Fairmount Bancorp to acquire Fullerton Federal

Deal involves Fullerton converting from mutual to stock entity

May 12, 2011|By Hanah Cho, The Baltimore Sun

Fairmount Bancorp in Rosedale announced Thursday that it has agreed to acquire Baltimore's Fullerton Federal Savings Association.

As part of the agreement, Fullerton Federal will convert from a federally chartered mutual savings association to a stock entity and issue stock to Fairmount.

In exchange, Fairmount will offer shares of its stock to Fullerton Federal members and then to Fairmount's employee stock ownership plan in a subscription offering. Once the offering is complete, Fullerton Federal will be integrated into Fairmount Bank.

Joseph M. Solomon, Fairmount's president and chief executive officer, said in a statement that the deal provides additional capital to support the bank's growth.

The deal is expected to close later this year, pending approval by regulators and Fullerton Federal members.

Last year, Fairmount converted its namesake bank from a mutual to a stock entity, raising $4.4 million in a stock offering.

Hanah.cho@baltsun.com

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