A suburban Baltimore bank has agreed to buy one branch of NBRS Financial, owned Rising Sun Bancorp.
NRBS had been under orders from the Federal Reserve Board of governors to sell itself or raise capital within a 60-day period.
Howard Bancorp, Inc. and Rising Sun Bancorp, Inc. announced that their respective banking subsidiaries, Howard Bank and NBRS Financial Bank (NBRS), calling for Howard Bank to purchase the NBRS Bank branch at 800 Revolution Street, Havre de Grace, MD 21078.
Howard Bank expects to acquire approximately $17 million in loans and assume approximately $21 million in deposits from NBRS.
Mary Ann Scully, Howard Bank’s President and CEO, said of the transaction in a release: “Howard Bank has been very favorably impressed by our experiences in Harford County since our purchase of a branch in Aberdeen and the opening of a de novo branch in Bel Air. The community has opened its arms to us and welcomes our commitment to serve them as a sophisticated local bank and our interest in growing with them. We appreciate this opportunity to extend both our presence and our commitment in this attractive market.”
Last year, Howard Bank purchased the Aberdeen branch from Cecil Bank, Elkton. Cecil Bank has also been supervision by state and federal regulators.
Hugh Garchinsky, NBRS CEO, stated, “Our purpose in conducting this transaction is to strengthen our capital ratios. Only approximately 10% of NBRS’ deposits and loans are involved with this sale; the core bank at NBRS remains intact. We are pleased to work with the fine people from Howard Bank, and we believe our customers will continue to receive excellent banking service and benefit from a continued relationship with a community bank that genuinely cares for its customers and the community it serves the same as we do.” The amount of capital that would be added to the balance sheet of NBRS was not immediately disclosed.
The completion of the transaction is expected to be completed in the third quarter of 2014.
Griffin Financial Group acted as financial advisor to Howard Bank. Ober|Kaler served as legal counsel to Howard Bank. The Kafafian Group acted as financial advisor to NBRS and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to NBRS.
Howard Bancorp, Inc. has total assets of $499 million Its principal operating subsidiary, Howard Bank, is a growth-focused community bank serving businesses, professionals and individuals in the Greater Baltimore area through eight full service branches and also regional offices in Annapolis and Towson, MD. Howard Bank is a wholly owned subsidiary of Howard Bancorp, Inc.
