US-based Citizens Financial Services (CZFS) has struck a $67.4m deal to acquire HV Bancorp (HVBC), a holding company of Huntingdon Valley Bank.
The deal will result in the merger of HVBC with and into CZFS.
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As per the terms of the definitive agreement signed in this regard, HVBC shareholders can opt to receive $30.50 in cash or 0.400 shares of CZFS common stock for each share held.
These elections will undergo proration process, wherein 80% of HVBC shares will be exchanged for stock and the remaining 20% for cash.
The proposed transaction is expected to enable CZFS to strengthen its footprint in Montgomery, Bucks and Philadelphia counties of Pennsylvania state, New Castle County in Delaware, and Burlington County in New Jersey.
Following the merger, HVBC CEO Travis J Thompson and HVBC president Robert J Marino will be roped in by CZFS unit First Citizens Community Bank (FCCB) as senior officers.
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By GlobalDataFurthermore, one HVBC director will join each of the board of directors of CZFS and FCCB.
The deal, which awaits regulatory and HVBC shareholders’ clearances, is expected to close in the first half of 2023.
It already secured the green light from the companies’ boards.
CZFS president and CEO Randall Black said: “We are pleased to announce the strategic combination of FCCB and Huntingdon Valley Bank. Our complementary business models and shared values make this partnership a natural fit.
“This agreement creates great excitement, and we believe our combination will deepen our reach in providing banking services and enhanced technological offerings across our entire bank franchise.”
HVBC chairman and CEO Travis Thompson said: “As 150-year-old financial institutions, we share similar core values and both believe deeply in community banking. “We are confident that our customers will receive the same high-quality experience from FCCB that they have come to expect from HVB.”
