The last locally owned bank in Washington County officially has become the second banking subsidiary of F&M Bancorp of Frederick, Md.
Home Federal Savings Bank of Hagerstown, with its eight banking offices and 11 ATMs, will keep its name.
Bancorp owns Farmers and Mechanics National Bank based in Frederick.
The acquisition was expected to benefit the 1,600 Home Federal stockholders, who were to be issued higher valued F&M Bancorp stock in exchange for their Home Federal stock, according to the terms of the $29 million transaction.
Home Federal has 35,000 depositors and 7,000 loan customers.
"With ... shared philosophy and the considerable resources of our new parent company, Home Federal ... is well positioned to efficiently expand its products, services and delivery systems, creating even greater value for our customers," said Richard Phoebus Sr., president and chief executive officer of Home Federal Savings Bank.
Faye E. Cannon, president and chief executive officer of F&M Bancorp, said, "We welcome our new affiliate to the F&M Bancorp family. With this significant new presence in Washington County, we have enhanced our position as the leading, customer-focused community banking institution in our marketplace."