Pennsylvania-based lender Univest, the parent of Univest Bank and Trust, has agreed to acquire Fox Chase Bancorp, parent of Fox Chase Bank, in a deal worth about $244.3m.
Fox Chase, based in Hatboro, Pennsylvania, managed nearly $1.1bn in assets, $739.5m in loans, and $717.7m in deposits as of 30 September 2015.
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As per the agreed terms of the cash-stock transaction, Fox Chase will be merged with and into Univest.
Shareholders of Fox Chase can opt to receive either $21.00 in cash, or a fixed exchange ratio of 0.9731 shares of Univest, or a combination of the two, for outstanding shares of Fox Chase.
Univest will have about $4bn in assets, $2.9bn in loans, and $3bn in deposits following completion of the deal, which is scheduled by the third quarter of 2016.
Under the deal, Fox Chase president and CEO Thomas Petro will be appointed to the Univest Board, while Fox Chase executive vice president and chief financial officer Roger Deacon will assume the role of senior executive vice president and chief financial officer at Univest and Univest Bank.
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By GlobalDataThe deal has already secured the go-ahead from the boards of directors of both companies, and is now subject to shareholder and regulatory approval.
Univest president and CEO Jeffrey Schweitzer said: "This has been one of the biggest years for bank acquisitions since the financial crisis and Univest is pleased to be able to be an acquirer of choice, well positioned to expand our franchise with a highly respected and strong performing institution like Fox Chase Bank.
"Since 1867, Fox Chase has been focused on providing quality banking solutions to its local communities. We are two, established, long-term players in this market. Together, we look forward to building on our traditions, evolving the business through our joint financial expertise, introducing Univest’s comprehensive financial solutions to a wider community and providing a broader array of services to Fox Chase’s long-standing relationships."
