Bryn Mawr Bank in Pennsylvania has agreed to buy Royal Bancshares of Pennsylvania in Bala Cynwyd.
The $3.4 billion-asset Bryn Mawr said Tuesday that it would pay $127.7 million for the $811 million-asset Royal. The deal, which is expected to close in the third quarter, values Royal at 247.3% of its tangible book value.
Royal has $602 million in loans and $630 million in deposits and would provide Bryn Mawr an entree to New Jersey.
The acquisition “is a logical choice,” Frank Leto, Bryn Mawr’s president and CEO, said in a news release. “With its strong lending team and prime branch locations, Royal Bank provides [Bryn Mawr] with its first location in center city Philadelphia.”
Kevin Tylus, Royal’s president and CEO, will join Bryn Mawr’s senior management team.
The acquisition is expected to be accretive to Bryn Mawr’s tangible book value per share and accretive to earnings in the first 12 months of operations, excluding merger-related expenses.
Boenning & Scattergood and Reed Smith advised Bryn Mawr. Sandler O'Neill, RBC Capital Markets and Stevens & Lee advised Royal.