BV Financial, the holding company for BayVanguard Bank, has signed a merger agreement with Kopernik Bank.
As per the agreement, Kopernik, a Maryland-chartered mutual savings bank headquartered in Baltimore, will merge with and into BayVanguard Bank.
Kopernik Bank has three branches on Eastern Avenue and North Point Road. All three branches will become BayVanguard branches, taking the tally of BayVanguard branches to seven.
The deal is expected to increase BV Financial’s consolidated assets from $167.2m to $326.1 million.
It is also agreed that BV Financial will issue additional shares of its common stock to Bay-Vanguard in an amount equal to the fair value of Kopernik.
The deal has been cleared by the board of directors of both the banks and is expected to close in the first quarter of 2019.
BayVanguard president and CEO David Flair stated: “We are pleased to partner with Kopernik. We are very familiar with Kopernik and believe the bank will be a great complement to us. We look forward to having a greater impact on the Baltimore community through this partnership.”
Kopernik president and CEO Timothy Prindle said: “We have always focused on our customers’ and communities’ needs. We feel that the combined bank will be stronger than each was separately, allowing us to provide more services to and convenience for our customers and the communities we serve.”
Following the completion of the merger, Flair and Prindle will serve as co-presidents and CEOs of BayVanguard, BV Financial and BayVanguard Bank.
Furthermore, BayVanguard announced that it has converted from a federal savings bank to a Maryland savings bank.
Consequently, the name of the bank has been changed from Bay-Vanguard Federal Savings Bank to BayVanguard Bank.