Pennsylvania-based Bryn Mawr Bank, parent of The Bryn Mawr Trust Company, has agreed to acquire local rival Royal Bancshares of Pennsylvania, parent of Royal Bank America, in a $127.7m deal.
Bryn Mawr said that the deal will add about $602m in loans and $630m in deposits to its portfolio and help it foray into new markets of New Jersey and Berks County, Pennsylvania.
As per the terms of the merger deal, Royal shareholders will receive 0.1025 shares of Bryn Mawr stock per Royal class A share and 0.1179 shares of Bryn Mawr per Royal class B share. Moreover, all options to buy shares of Royal Class A common stock will be cashed out upon the completion of the merger.
The deal is expected to be concluded in the third quarter of 2017, subject to regulatory and shareholder approvals.
Royal president and CEO Kevin Tylus will join the senior management team of Bryn Mawr as part of the deal.
Bryn Mawr Bank president and CEO Frank Leto said: “The acquisition of Royal Bank is a logical choice for Bryn Mawr Trust. With its strong lending team and prime branch locations, Royal Bank provides BMT with its first location in Center City Philadelphia, as well as a foothold in the State of New Jersey, where Royal has established a well-received presence in the Princeton market.
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“We are excited to be able to expand our banking presence in this thriving market, and plan to introduce our comprehensive suite of financial services which also includes wealth management and insurance. We believe these new markets will provide a tremendous growth opportunity for our merged institutions.”