Patapsco Bancorp to acquire Belmar in stock deal Each has one office

S&L to become a commercial bank

Banking

June 18, 1998|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

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

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