Both the firms have reached a definitive merger agreement to this effect.
As of 30 September this year, Fox Chase had assets worth $1.1bn, $739.5m in loans, and $717.7m in deposits.
In addition to its main office in Hatboro, Pennsylvania, Fox Chase operates nine other full-service banking offices in Pennsylvania and New Jersey.
Upon closing of the merger, Univest will have nearly $4bn in assets, $2.9bn in loans, and $3bn in deposits.
The deal will expand Univest’s subsidiary Univest Bank and Trust’s presence in Bucks, Chester, Philadelphia and Montgomery counties as seven Fox Chase’s locations will be added to Univest’s existing network of financial centers.
Univest Bank currently operates 29 financial centers in the Philadelphia region, with plans to expand its network to 30 offices in early 2016 with the opening of its Fairmount, Philadelphia location.
Fox Chase president and CEO Thomas M. Petro said: "This combination of two regional community banks into the ninth largest bank by deposits headquartered in Pennsylvania will undoubtedly provide many benefits to our employees, customers, shareholders and communities."
As per the agreed terms, Fox Chase shareholders will receive either $21 in cash, or a fixed exchange ratio of 0.9731 shares of Univest, or a combination of the two, for outstanding shares of Fox Chase.
Subject to regulatory approvals and approval by the shareholders of both companies, the merger is expected to be completed in the third quarter of 2016.
Univest president and CEO Jeffrey M. Schweitzer said: "This has been one of the biggest years for bank acquisitions since the financial crisis and Univest is pleased to be able to be an acquirer of choice, well positioned to expand our franchise with a highly respected and strong performing institution like Fox Chase Bank."
In March, Univest Bank and Trust opened a new financial center in Newtown, Pennsylvania.
The Newtown financial center provides banking services, as well as other financial solutions including insurance, mortgage banking, investments and wealth management.
Image: Fox Chase Bancorp and Univest Corporation of Pennsylvania sign definitive merger agreement. Photo: courtesy of adamr / FreeDigitalPhotos.net.
