A pair of longtime Baltimore lenders, Rosedale Federal Savings & Loan Association and Midstate Community Bank in Rodgers Forge, are planning to merge.
The two firms jointly announced yesterday that Midstate, which operates out of one location at York Road and Regester Avenue, will become part of Rosedale Federal. They said the transaction will expand Rosedale Federal’s “footprint” in the community and complement its growth, and that it will offer Midstate’s customers a larger banking network and more banking options.
The announcement came a month after the death of Kathryn “Kitty” Gerling, 95, who rose from a teller to become Midstate’s longtime president. She was succeeded by her son, N. Alan Anthony, and daughter, Nancy Gerling, who are planning to retire. Midstate traces its roots to 1884, and the merger means that the Baltimore market will have one fewer less institution.
Under the terms of the agreement, Rosedale Federal will gain approximately $168 million in assets. Pending approval by Midstate’s members and the receipt of regulatory approval, the merger will create a financial institution with assets of just under $1 billion.
According to bank representatives, the two institutions will operate independently until the third quarter of 2017, at which time their systems will merge. Until then, Rosedale Federal will be implementing a number of information technology enhancements that will carry over to Midstate.
No branch closings or staff reductions are planned as a result of the merger. In business for more than 109 years, Rosedale Federal currently has eight branches and will make Midstate’s one office its ninth location in the fall of 2017. The lenders say they will retain the same employees who have served customers for years.
“This is a very exciting time for us as we look to combine Rosedale Federal Savings & Loan Association and Midstate Community Bank. Like Rosedale Federal, Midstate enjoys a rich legacy in the Baltimore banking community,” said Kevin Benson, president and chief executive officer of Rosedale Federal, in a statement. “Rosedale Federal and Midstate are well aligned as both are profitable mutual savings institutions with strong community ties. We welcome Midstate customers and employees to the Rosedale Federal family.”
Benson will serve as president and chief executive officer of the combined bank. Its board of directors will consist of nine directors from Rosedale Federal and two directors from Midstate.
“With the upcoming retirement of Nancy Gerling and myself, partnering with Rosedale Federal presents a significant opportunity to continue our history of customer service and community involvement. We are proud to partner with an institution that is also aligned with our conservative business model,” said Anthony, Midstate’s chief executive officer. “We’re confident that our customers, our employees, our community and, most importantly, our legacy will be well served by this decision.”
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