Edgemere-based BayVanguard Bank will merge with Kopernik Bank, officials announced on Aug. 30.
The move is expected to increase BayVanguard holding company BV Financial’s assets from $167.2 million to $326.1 million.
Kopernik Bank, with three branches on Eastern Avenue and North Point Road, will merge into BayVanguard Bank. All three branches will become BayVanguard offices, bringing the total number of BayVanguard branches to seven. Currently, BayVanguard has branches on North Point Road and in Essex, Pasadena and Locust Point.
After the merger is completed, BayVanguard president and CEO David M. Flair and Kopernik president and CEO Timothy L. Prindle will serve as co-presidents and CEOs of BayVanguard M.H.C., BV Financial and BayVanguard Bank.
The board of directors for the merged bank will be made up of six members from BayVanguard and six from Kopernik.
Current customers of Kopernik Bank will become depositors of BayVanguard, with all the rights and privileges entailed.
In addition, BV Financial will issue shares of its common stock to BayVanguard M.H.C. in an amount equal to the fair value of Kopernik.
For his part, BayVanguard’s Flair noted, “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.”
“We have always focused on our customers’ and communities’ needs,” said Kopernik president Prindle. “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.”
The merger has been approved by the boards of directors of both banks and is expected to be finalized early next year, subject to approval by Kopernik depositors and regulatory approvals.
In addition to the impending merger. BayVanguard announced that it has converted from a federal savings bank to a Maryland savings bank as of Aug. 23. As such, the name of the bank has chanced from Bay-Vanguard Federal Savings Bank to BayVanguard Bank.
The bank’s primary regulator will be the Maryland Office of the Commissioner of Financial Regulation with federal oversight from the Federal Deposit Insurance Corporation as well as the Federal Reserve Board.
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