Conestoga Bank will subsequently be merged into Beneficial Bank, under a definitive stock purchase agreement signed.
As per the agreed terms, Conestoga Bancorp will receive cash for all of the outstanding shares of Conestoga Bank.
Subject to required regulatory approvals and other customary closing conditions, the acquisition is expected to be completed during the first or second quarter of 2016.
Beneficial Bancorp president and CEO Gerard P. Cuddy said: "We are pleased to announce our agreement to acquire Conestoga Bank which strengthens our position in the Philadelphia marketplace and provides an opportunity to meaningfully improve our earnings profile as we begin to deploy our capital from the second step conversion.
"Conestoga Bank’s fourteen locations are a great complement to our branch network and add important commercial and consumer relationships to our banking franchise. Combining our two well-established and well-respected companies will create an enhanced community banking franchise that is better positioned to serve our customers, our employees and our communities."
Conestoga Bank, a locally-managed institution, provides quality community banking and commercial lending services with locations in Philadelphia, Delaware, Montgomery, Bucks, Chester and Lehigh Counties.
As of 30 June 2015, Conestoga Bank has approximately $712m worth assets, $506m in loans and $530m in deposits. It serves its customers from fourteen locations.
Conestoga Bank also provides equipment financing through its wholly owned subsidiary, Conestoga Equipment Finance Corp and offers small business administration loans to commercial customers.
