Pennsylvania’s Mid Penn Bancorp has signed a definitive merger agreement to acquire local bank holding company Riverview Financial.
The all-stock transaction is valued at around $124.7m.
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The move will create a combine lender with $4.8bn in assets. It will also provide Mid Penn with access to key markets in Pennsylvania.
Transaction details:
Under the terms of the agreement, Riverview shareholders will receive 0.4833 shares of Mid Penn common stock for each share.
The transaction is expected to complete in the fourth quarter of 2021, subject to customary conditions including regulatory and shareholder approvals.
Once complete, Riverview Bank will merge with and into Mid Penn Bancorp’s Mid Penn Bank.
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By GlobalDataTwo Riverview directors will also join Mid Penn Bancorp board, as agreed.
Benefits:
Riverview Bank, the subsidiary of Riverview Financial, serves its customers through 23 community banking offices and three limited purpose offices.
The combination of two lenders will increase competitive capabilities of the surviving entity. The deal is also expected to create greater positive operating leverage and improve profitability.
After completion, Mid Penn will be the sixth largest Pennsylvania-headquartered bank under $10bn.
Quotes:
Mid Penn president and CEO Rory G. Ritrievi said: “We are pleased to welcome the Riverview shareholders, customers and employees to the Mid Penn family.
“These two great community bank organisations have been familiar with each other for years as competitors but now get to provide world class customer service to our markets throughout Pennsylvania together.
“This combination provides strong economic value to both shareholder groups and creates a financial institution with plenty of muscle at a time when it is most important. That muscle should allow us to continue to provide best in class return to both groups of shareholders.”
