US-based Mid Penn Bancorp has agreed to merge with William Penn Bancorporation, the holding company of William Penn Bank, in an all-stock transaction valued at around $127m.
According to the terms of the definitive agreement and plan of merger, William Penn Bancorporation shareholders will receive 0.426 shares of Mid Penn Bancorp common stock for each share they hold in William Penn. Both firms are currently listed on NASDAQ.
In addition, all existing options of William Penn Bancorporation will be converted into equivalent options of Mid Penn Bancorp.
The implied transaction value is nearly $13.58 per William Penn Bancorporation share, based on Mid Penn Bancorp’s closing stock price at $31.88 per share on 30 October 2024.
Headquartered in Pennsylvania, William Penn Bancorporation operates 12 branches across Pennsylvania and New Jersey. The company has total assets of about $812m, $465m in total loans and $630m in total deposits as of 30 September 2024.
William Penn Bancorporation chairman, president, and CEO Kenneth Stephon said: “We are incredibly pleased to partner with Mid Penn in this strategic combination that allows our shareholders to participate in a fabulous long-term growth opportunity while also providing them with immediate value.
“The merger enables us to accelerate our growth far more rapidly than we could as an independent company, while also creating excellent value for our shareholders, customers, and employees.”
Through the proposed merger, both parties aim to create a significantly larger community banking entity, with a combined total of approximately $6.3bn in assets, $4.9bn in loans, and $5.3bn in deposits.
Besides, the transaction will enhance Mid Penn Bancorp’s earnings per share immediately and is expected to positively influence its key profitability and operating ratios in the long term.
Mid Penn Bancorp operates 45 retail locations throughout Pennsylvania and central New Jersey. The company provides an extensive suite of financial products and services as well as has total assets of around $5bn.
Mid Penn Bancorp chair, president, and CEO Rory Ritrievi said: “This merger will bolster Mid Penn’s presence in the attractive greater Philadelphia metro area market, aligning with our strategic plan of disciplined growth in the southeastern region of Pennsylvania and the southern region of New Jersey.
“Together, we look forward to joining the two companies to expand our footprint and, in turn, enhance our ability to deliver for our customers, communities and shareholders.”
The boards of directors of both companies have unanimously approved the merger.
Subject to customary conditions, including regulatory approvals and shareholder consent, the merger is anticipated to be completed in the first half of 2025.
For the transaction, Stephens is acting as the exclusive financial adviser to Mid Penn Bancorp, with Pillar + Aught providing legal counsel.
Piper Sandler serves as William Penn Bancorporation’s exclusive financial adviser while Kilpatrick Townsend & Stockton is providing legal advice to the company.
