BayVanguard Bank Acquires North Arundel Savings Bank

Rhea-AI Summary

BV Financial, Inc. (OTC PINK: BVFL) announced the acquisition of North Arundel Bank on January 4, 2022. This transaction involves the issuance of 251,004 shares of common stock to its parent mutual holding company, Bay-Vanguard, M.H.C., Inc. The combined assets of BayVanguard Bank now amount to approximately $835 million, with $713 million in deposits and $107 million in stockholders' equity. The conversion of data processing systems is expected around March 5, 2022.

Positive

• Acquisition expands BayVanguard Bank's footprint in Maryland.
• Combined assets post-acquisition stand at approximately $835 million.
• Expecting operational synergies and enhanced service delivery.

Negative

• Issuance of 251,004 shares may lead to shareholder dilution.
• Integration challenges in merging data processing systems.

EDGEMERE, MD / ACCESSWIRE / January 4, 2022 / BV Financial, Inc. (the "Company") (OTC PINK:BVFL), announced today that its wholly owned subsidiary, BayVanguard Bank, a Maryland-chartered stock savings bank, acquired North Arundel Bank, a Maryland-chartered mutual savings bank located in Pasadena, Maryland. In connection with the merger, the Company issued 251,004 shares of its common stock to Bay-Vanguard, M.H.C., Inc., its parent mutual holding company. Based on September 30, 2021 financial information, on a combined basis, BayVanguard Bank has approximately $835 million in assets, $713 million in deposits and $107 million in stockholders' equity and operate from seventeen banking offices located in the Baltimore metropolitan area and the Eastern Shore of Maryland.

David M. Flair, co-President and Chief Executive Officer of the Company, stated "We look forward to working with the North Arundel team in delivering to all of our customers and shareholders the benefits that we expect from this transaction." Timothy L. Prindle, Co-President and Chief Executive Officer of the Company, continued "We are excited to complete our acquisition of North Arundel Savings Bank and welcome their customers and employees to BayVanguard Bank."

The conversion and consolidation of data processing platforms, systems and customer files is expected to occur on or about March 5, 2022.

Upon the closing of the transaction, Machteld V. Thomas, the former President of North Arundel Savings Bank, was added to the Boards of Directors of each of Bay-Vanguard, M.H.C., Inc., BV Financial, Inc. and BayVanguard Bank.

About BV Financial, Inc. and BayVanguard Bank

BV Financial, Inc. (OTC Pink: BVFL) is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Edgemere, Maryland with sixteen other branches in the Baltimore metropolitan area and the Eastern Shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses within its market area. For additional information, visit its website at www.bayvanguard.com.

CONTACT:

David M. Flair Timothy L. Prindle
Co-President and Chief Executive Officer Co-President and Chief Executive Officer
(410) 477-5000

SOURCE: BV Financial, Inc.

View source version on accesswire.com:
https://www.accesswire.com/680861/BayVanguard-Bank-Acquires-North-Arundel-Savings-Bank

FAQ

What is the significance of BV Financial's acquisition of North Arundel Bank?

The acquisition enhances BV Financial's asset base and market presence, targeting growth in the Maryland banking sector.

When is the data processing system conversion expected to occur after the acquisition?

The conversion is expected to take place on or about March 5, 2022.

What are the financial metrics of BayVanguard Bank after the merger?

Post-merger, BayVanguard Bank has approximately $835 million in assets and $713 million in deposits.

Who joined the board of directors after the North Arundel acquisition?

Machteld V. Thomas, the former President of North Arundel Savings Bank, was added to the boards of BV Financial, Bay-Vanguard, and BayVanguard Bank.