Hamilton Bancorp Inc., a century-old community bank with four Baltimore-area branches, plans to acquire Rosedale-based Fairmount Bancorp Inc. for $15.4 million in cash, or $30 a share, the companies announced Thursday.
Fairmount and its subsidiary Fairmount Bank have agreed to merge into Hamilton and its Hamilton Bank subsidiary, giving Hamilton five branches and assets of $366 million, with $215 million in loans and deposits of more than $276 million. The deal, which requires approval of Fairmount shareholders and banking regulators, is expected to close by the end of the year.
"The addition of Fairmount will leverage our footprint and greatly enhance our operating performance," Robert DeAlmeida, president and CEO of Hamilton, said in the announcement.
Hamilton, which serves small and middle-market businesses in the Baltimore-Washington region, has branches in Cockeysville, Towson, Baltimore and Pasadena, offering mortgages, consumer loans and commercial products. Fairmount, a Maryland-chartered commercial bank, was founded in 1879 and has a Rosedale branch.
Joseph Solomon, Fairmount's president and CEO, said the merger will be a good for shareholders while preserving Fairmount's community bank culture. Before surging to $29.95 a share Thursday, Fairmount's stock last traded Tuesday at $24 a share.
"We believe Hamilton Bank's diverse loan products and deposit products for personal and business banking, its commitment to local communities and the combined strength of our organizations make Hamilton an attractive partner for our customers, employees and community we serve," Solomon said.