COLUMBIA, Md., March 26, 2013 (GLOBE NEWSWIRE) -- Carrollton Bancorp (Nasdaq:CRRB) ("Carrollton") recently received two key regulatory approvals required in connection with the transactions contemplated by the Agreement and Plan of Merger ("Merger Agreement") by and among Carrollton, Jefferson Bancorp, Inc. ("Jefferson") and Financial Services Partners Fund I, LLC ("FSPF"), dated as of April 8, 2012, and amended as of May 7, 2012 and February 28, 2013.
On March 14, 2013, the Federal Reserve Bank of Richmond ("FRB"), acting under authority delegated by the Board of Governors of the Federal Reserve System, approved (1) the acquisition by Hovde Acquisition I LLC, Hovde Private Equity Advisors LLC and FSPF of 100% of the voting securities of Carrollton pursuant to the Merger Agreement, and (2) Carrollton to become a savings and loan holding company through the merger of Jefferson with and into Carrollton (the "Merger") pursuant to the Merger Agreement. The FRB approval requires that the Merger be consummated within three (3) months from the date of the approval unless the period is extended by the FRB.
Secondly, on March 22, 2013, Carrollton received an approval letter from the Office of the Comptroller of the Currency ("OCC") in connection with the proposed merger of Carrollton's bank subsidiary, Carrollton Bank, with and into Jefferson's subsidiary, Bay Bank FSB ("Bay Bank") ("Bank Merger"). The OCC approval letter waived the Qualified Thrift Lender (QTL) test with regard to Bay Bank during the first two (2) years following the Bank Merger and noted that consummation of the Bank Merger is subject to a 15-day waiting period.Approval of the FRB and OCC were closing conditions pursuant to the Merger Agreement. As previously announced, if the Merger is not consummated by April 19, 2013, either Jefferson or Carrollton may terminate the Merger Agreement at any time. Subject to satisfaction of the remaining closing conditions pursuant to the Merger Agreement, it is anticipated that the Merger and Bank Merger will be consummated on or before April 19, 2013.