BV Financial, Inc. (OTCPK:BVFL) entered into definitive agreement to acquire MB Bancorp, Inc. (OTCPK:MBCQ) for $32.1 million on September 5, 2019. Under the terms of the merger agreement, MB Bancorp shareholders will receive cash of $15.85 for each share of MB Bancorp. As per the terms of transaction, BV Financial will acquire MB Bancorp and its wholly owned bank subsidiary, Madison Bank of Maryland. There will be no change in the management or Board of Directors of BV Financial or BayVanguard Bank as a part of the transaction.

The completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of MB Bancorp's shareholders. The transaction has been approved by the Boards of Directors of each company. The transaction received approval from MB Bancorp shareholders at the special meeting held on December 17, 2019. As on January 21, 2020, all regulatory approvals relating to the merger have been received. The merger is targeted to close on or about January 31, 2020. As of January 31, 2020, the transaction is expected to close later in the first quarter of 2020. The transaction is expected to be accretive to BV Financial's 2020 earnings per share. Scott A. Brown and Thomas P. Hutton of Luse Gorman, P.C acted as legal advisors to BV Financial. Banks Street Partners, LLC acted as financial advisor and Kilpatrick Townsend & Stockton LLP acted as legal advisor to MB Bancorp.