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Rosedale Federal to acquire Baltimore-based CBM Bancorp

Rosedale Federal Savings & Loan Association and CBM Bancorp Inc. jointly announced Friday the signing of a definitive merger agreement allowing Rosedale Federal to acquire CBM Bancorp, the Baltimore-based holding company and parent of Chesapeake Bank of Maryland, for $64 million in an all-cash deal.

Under the terms of the merger agreement, which has been approved unanimously by the boards of directors of both entities, stockholders of CBM Bancorp will be entitled to receive $17.75 in cash for each share of CBM Bancorp common stock they own.

The transaction will expand Rosedale Federal’s footprint in Maryland and complement its ongoing strategy of continuous growth to benefit account holders and drive business goals, as well as offer Chesapeake Bank of Maryland’s customers a larger banking network and more convenient banking options.

In connection with the execution of the merger agreement, Rosedale has entered into stockholder agreements with the directors and executive officers of CBM Bancorp. Subject to the terms and conditions of the stockholder agreements, these parties have agreed to vote their shares in favor of the transaction.

The merger is expected to be complete in the first half of 2022, after the satisfaction of customary closing conditions, including regulatory approvals and the approval of CBM Bancorp’s stockholders.

Performance Trust Capital Partners, LLC is serving as financial adviser and Luse Gorman, PC is serving as legal counsel to Rosedale Federal in this transaction.

Piper Sandler & Co. is serving as financial adviser and Jones Walker LLP in Washington is serving as legal counsel to CBM Bancorp.

For more than 110 years, Rosedale Federal has served Baltimore city, Baltimore County, and Harford County residents with savings and loan products. The company is a locally run, independent mutual savings and loan institution headquartered in Perry Hall, with 10 total locations in Overlea, Perry Hall, White Marsh, Abingdon, Forest Hill, Bel Air, Rosedale, Dundalk, Towson and soon Timonium.

CBM Bancorp conducts its business operations through Chesapeake Bank of Maryland, a federally chartered stock savings association. It was founded in 1913 as New Eastern Avenue Permanent Savings and Loan Association.

The bank operates as a community-oriented institution by offering a variety of loan and deposit products and serving other financial needs of its local community. It conducts business out of its main office in Baltimore County and out of three branch offices located in Arbutus, Bel Air and Pasadena.

CBM Bancorp’s business strategy consists principally of attracting retail deposits from the general public in its market area, and using those funds, together with funds generated from operations and borrowings, to originate loans secured by residential and nonresidential real estate.