iReverse Home Loans, LLC, a subsidiary of Hopkins Federal Savings Bank has been acquired by Bay Bank Federal Savings Bank of Columbia, Maryland in July.
Hopkins Federal Savings Bank’s Pikesville branch will be rebranded with the Bay Bank name and its Highlandtown branch will be consolidated with Bay Bank’s existing branch there, for a total of 12 branches.
The $25 million cash deal was subject to final conditions and was approval by Hopkins Federal’s board.
Bay Bank sought to acquire Hopkins Federal as a way to grow its market share in the Baltimore area and boost its value to shareholders and customers, said Bay Bancorp CEO Joseph J. Thomas in an interview.
“We believe that in today’s world, growth is important,” Thomas said.
The Hopkins Federal acquisition will give Bay Bank about $650 million in assets and grow its total deposits nearly 55 percent, to $595 million, which it said ranks the bank the fifth largest among community banks in the Baltimore area.
The combined company will have 160 employees. Alvin Lapidus, chairman of Hopkins Federal Savings Bank, will serve as chairman emeritus at Bay Bank.
The acquisition is Bay Bank’s third since 2010. Acquisitions are a key part of Bay Bank’s growth strategy and the company will look for additional opportunities in the future, Thomas said. Bay Bank acquired Columbia-based Carrollton Bank in 2010 and absorbed some assets of Bel-Air’s Slavie Bank in 2015.
submitted by Alex Gottfried, Reverse Mortgage Consultant. www.alexgottfried.com