Rosedale Federal Savings & Loan Association to Acquire CBM Bancorp, Inc.
BALTIMORE, January 28, 2022 /PRNewswire/ — Rosedale Federal Savings & Loan Association (“Rosedale Federal”) and CBM Bancorp, Inc. (“CBM Bancorp”) (OTCMKTS- “CBMB”) have jointly announced the execution of a definitive merger agreement pursuant to from which Rosedale Federal will acquire CBM Bancorp, the Baltimore, Marylandbased holding company and parent of Chesapeake Bank of Marylandin an all-cash transaction for an aggregate purchase price of $64.4 million.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both entities, CBM Bancorp shareholders will be entitled to receive $17.75 in cash for each common share of CBM Bancorp they hold.
“This is a very exciting time for Rosedale Federal as this transaction will provide immediate additional size and scale, as well as a larger footprint for additional growth opportunities,” said Kevin Benson, President and CEO of Rosedale Federal. “Assessing opportunities in our market has been part of our strategic plan for some time; now we have the opportunity to seize an exciting time for local banks. The acquisition of CBM Bancorp really makes sense when we look at how our activities align with mortgage lending and deposits, as well as branches which allow us to offer a significant financial advantage to our customers.”
Joseph SolomonChairman of CBM Bancorp, said, “With local bank consolidation continuing and additional headwinds facing our industry, we thought it was a good time for us to consider a partner. Rosedale Federal offers the breadth of service, community involvement and scale that will provide the type of community banking experience our customers expect. We both have a rich history in the Baltimore area and we are thrilled to be part of the Rosedale Federal family. »
The transaction will expand Rosedale Federal’s presence in Maryland and complement its ongoing strategy of continued growth to benefit account holders and achieve business objectives, as well as deliver Chesapeake Bank of from Maryland customers a wider banking network and more convenient banking options.
As part of the execution of the merger agreement, Rosedale has entered into shareholder agreements with the directors and officers of CBM Bancorp. Subject to the terms and conditions of the shareholder agreements, these parties have agreed to vote their shares in favor of the transaction.
The merger is expected to be completed in the first half of 2022, following satisfaction of customary closing conditions, including regulatory approvals and CBM Bancorp shareholder approval.
Mr. Benson continued, “This is an exceptional solution for Rosedale Federal. The combined assets of both companies will strengthen our proven ability to serve our community, while enriching the experience of our customers and employees.
Performance Trust Capital Partners, LLC is acting as financial advisor, and Luse Gorman, PC is acting as legal counsel to Rosedale Federal in connection with this transaction.
Piper Sandler & Co. is a financial advisor, and Jones Walker LLP, washington d.c.is legal counsel to CBM Bancorp.
About Rosedale Federal
For more than 110 years, the Rosedale Federal Savings & Loan Association has served Baltimore City, Baltimore Countyand Harford County residents with unrivaled personalized service and high-quality savings and loan products at competitive rates. Rosedale Federal is a locally operated independent mutual savings and loan institution, headquartered in Perry Hallwith 10 locations in total in Overlea, Perry Hall, white swamp, Abingdon, forest hill, beautiful air, Rosedale, Dundalk, Towsonetc. Timonium. In 2021, the bank donated almost $270,000 to many local organizations and causes. Rosedale Federal continues to be the community bank that treats its customers like neighbors. Visit www.rosedalefederal.com for more product, service or location information.
About CBM Bancorp, Inc.
CBM Bancorp, Inc. conducts business through Chesapeake Bank of Maryland, a federally chartered stock savings association. The Bank was founded in 1913 as the New Eastern Avenue Permanent Savings and Loan Association. The Bank operates as a community-driven institution by offering a variety of loan and deposit products and meeting the other financial needs of its local community. The Bank carries out its activities from its head office located at Baltimore County, Marylandand three branches located in Arbutus, beautiful airand Pasadena, Maryland. The Bank’s business strategy is primarily to attract retail deposits from the general public to its market area and to use these funds, together with funds generated from operations and borrowings, to create loans secured by residential real estate. and non-residential.
SOURCE Federal Savings and Loan Association of Rosedale