Patapsco Bancorp Inc., the holding company for Patapsco Bank, said yesterday that it has signed an agreement to acquire Belmar Federal Savings and Loan Association in Baltimore.

Belmar, a one-office mutual company with assets of $18.7 million, will be merged into the Patapsco Bank in Dundalk.

Patapsco Bancorp stock will be offered to qualified members of Belmar at a discount to the market price, said Joseph Bouffard, the holding company's president.

As part of the acquisition, Belmar will convert to a commercial bank, Bouffard said. Belmar has eight employees, and Patapsco has 28.

"It is unusual for a one-branch bank to acquire another, but this is part of the banking world," said Bouffard. "We have a better chance of surviving and being profitable if we grow."

Belmar's acquisition will result in consolidated assets for Patapsco Bancorp of about $109.5 million, consolidated loans of about $86.4 million and consolidated deposits of about $86.9 million.

The deal is expected to be completed no earlier than the fourth quarter, subject to regulatory approval and approval by Belmar's members, Bouffard said.

Patapsco Bancorp Inc. also declared a cash dividend of 10 cents a share payable on or about July 24.

Pub Date: 6/18/98