Orrstown Financial Services has agreed to acquire US-based community bank, Hamilton Bancorp, in a stock and cash deal valued at around $58.5m.
As per terms of the deal, Hamilton shareholders will secure 0.54 shares of Orrstown common stock, as well as $4.10 per share in cash for each share of Hamilton common stock owned by them.
With integrated lending teams, business development officers, and branch network in south central Pennsylvania and Maryland, the combined organization will provide enhanced services to the businesses and consumers in its marketplaces.
The combined business will help create significant value for both shareholders of Orrstown and Hamilton.
Subject to Hamilton’s stockholder approval and customary regulatory approvals, the deal is expected to complete in the second quarter of 2019.
Once the deal concludes, the combined company will have around $2.5bn in assets, $1.7bn in loans and $2.1bn in deposits.
With around 72 full-time equivalent employees, Hamilton Bank operates seven branch locations across Greater Baltimore to serve communities of Cockeysville, Pasadena, Rosedale, Towson, Ellicott City, and Baltimore in Maryland.
Orrstown president and CEO Thomas Quinn said: “By joining Hamilton and Orrstown together, our institutions, shareholders, and customers will benefit greatly from our expanded footprint, enhanced products and services, and robust technology offerings.”
Hovde Group served as financial advisor and Goodwin Procter acted as legal counsel to Orrstown, while Keefe, Bruyette & Woods served as financial advisor and Luse Gorman acted as legal counsel to Hamilton.
Earlier this month, Orrstown also acquired Mercersburg Financial and its wholly-owned subsidiaries Orrstown Bank and Wheatland Advisors, which offer a range of consumer and business financial services.
Hamilton president and CEO Bob DeAlmeida said: “We built and grew a great bank. Today, I am excited to announce the partnership with Orrstown that will allow us to better serve our customers through expanded products and services.
“Our goal, through the combination of Hamilton and Orrstown, is to build an incredibly strong community bank which has the size and resources to meet the needs of our customers today and well into the future.”