Towson-based Hamilton Bancorp announced Tuesday it would scoop up a three-branch local savings and loan association, just weeks after closing its acquisition of another small bank.
The $27 million deal to buy Fraternity Community Bancorp will boost Hamilton’s assets to more than $500 million, with $400 million in deposits and eight branches.
Fraternity, headquartered in the Pigtown neighborhood of Baltimore, also has locations in Ellicott City and Cockeysville and was founded in 1913. The merger will require shareholder and regulatory approval and is expected to close in the second quarter of next year.
Last month, Hamilton won shareholder and regulatory approval to buy Rosedale-based Fairmount Bank, a one-branch bank that increased Hamilton’s assets to $366 million, with more than $276 million of deposits.
Small banks in the Baltimore area and across the U.S. have been merging more frequently, as their managers say larger institutions are better able to comply with increased regulatory demands since the recession.
