BcSB Bankcorp to acquire WHG Bancshares Corp. for 1.5 times revenue

Weekly Corporate Growth Report, Mar 4, 2002

The Deal: BCSB Bankcorp Inc. has entered into a definitive agreement to acquire WHG Bancshares Corporation for $14.25 per share in cash (a total value of approximately $18 million). Due diligence has been completed, and the boards of both companies have approved the transaction. The deal remains subject to approval by WHG shareholders and regulatory authorities. The deal is expected to close in the fall of 2002. WHG will to merge into BCSB upon completion of the transaction.

Discussion: WHG Bancshares is the savings and loan holding company for Heritage Savings Bank. Heritage Savings offers a full range of consumer banking services, such as certificates of deposit, checking, and money market accounts. The bank also issues loans, the majority of which are for family mortgages.

BCSB Bankcorp is the holding company for Baltimore County Savings Bank, which operates 10 branches in and around metropolitan Baltimore. The bank offers standard retail services including CDs, IRAs, and checking, savings, and money market accounts. The bank's loan portfolio includes family mortgages, commercial real estate, construction, and consumer loans. The company also sells insurance through subsidiary Ebenezer Road.

As a result of anticipated cost savings, BCSB believes that the transaction will be immediately accretive to earnings. Upon completion of the transaction, BCSB will have a total of sixteen offices in the Baltimore region.