Orrstown Financial To Buy Hamilton Bancorp For $58.5 Mln In Stock-and-cash Deal

(RTTNews) - Orrstown Financial Services Inc. (ORRF) Tuesay said it has agreed to buy Hamilton Bancorp Inc. (HBK) for $58.5 million in a stock and cash deal.

Hamilton shareholders will receive 0.54 shares of Orrstown common stock and $4.10 per share in cash for each share of Hamilton common stock. The cash consideration is subject to reduction based on potential losses, write-downs, or reserves related to certain identified loans.

The deal is expected to result in earnings accretion of about 8% in 2020. Following the completion of deal, the combined company is expected to have about $2.5 billion in assets, $1.7 billion in loans and $2.1 billion in deposits.

The transaction is expected to close in the second quarter of 2019.

The deal has been unanimously approved by the boards of directors of Orrstown and Hamilton. The completion of the transaction is subject to Hamilton's stockholder approval and customary regulatory approvals.

"We are thrilled to welcome Hamilton Bank to the Orrstown family," said Thomas R. Quinn, Jr., President and CEO of Orrstown. "By joining Hamilton and Orrstown together, our institutions, shareholders, and customers will benefit greatly from our expanded footprint, enhanced products and services, and robust technology offerings.