Citizens & Northern in Pennsylvania lines up another acquisition
Citizens & Northern in Wellsboro, Pa., has agreed to buy Covenant Financial in Doylestown, Pa.
The $1.6 billion-asset C&N said in a press release Wednesday that it will pay $77 million in cash and stock for the $512 million-asset Covenant. The deal is expected to close in the third quarter.
“The addition of Covenant expands C&N’s presence in attractive southeastern Pennsylvania markets and builds on our recent acquisition of Monument Bank,” J. Bradley Scovill, C&N’s president and CEO, said in the release.
“This strategic investment provides scale, effectively leverages our strong capital base and is expected to produce substantial earnings accretion beginning in 2020,” Scovill added.
Two Covenant directors will join C&N’s board. Blair Rush, Covenant’s president and chief operating officer, will join C&N as a region president, while Kelley Cwiklinski, Covenant’s chief lending officer, will become a regional commercial lending executive.
Boenning & Scattergood and Stevens & Lee advised C&N. Sandler O’Neill and Windels Marx Lane & Mittendorf advised Covenant.