ESSA Bancorp in Pa. to Buy Eagle National Bancorp

ESSA Bancorp in Stroudsburg, Pa., has agreed to buy Eagle National Bancorp in Upper Darby, Pa., for $25.3 million.

The $1.6 billion-asset ESSA agreed to pay $5.80 per share in cash, totaling $24.7 million, to holders of Eagle's common stock. ESSA would also pay the costs of cashing out Eagle's outstanding stock options. The deal is expected to close in the fourth quarter.

ESSA expects its acquisition of the $182 million-asset Eagle to be immediately accretive to earnings. ESSA projects the deal would result in a 3.8% dilution in its tangible book value and that it would earn back the dilution in about three years.

The deal values Eagle at 109% of its tangible book value as of June 30.

Eagle operates five branches in the Philadelphia suburbs. ESSA would have 33 branches after the deal closes.

RP Financial was financial adviser to ESSA and Luse Gorman was legal counsel. Ambassador Financial Group was Eagle's financial adviser and Fox Rothschild was legal counsel.

For reprint and licensing requests for this article, click here.
Community banking M&A Pennsylvania
MORE FROM AMERICAN BANKER