Juniata Valley Financial in Mifflintown, Pa., has agreed to buy FNBPA Bancorp in Port Allegany, Pa.
The $473 million-asset Juniata Valley agreed to pay $13.2 million in cash and stock for the $96 million-asset FNBPA. Shareholders of FNBPA can elect to exchange each share of common stock for $50.34 in cash, or 2.7813 shares of Juniata Valley Financial stock, with the cash portion restricted to between 15% and 25% of the total.
The deal is expected to close by the end of the year. Juniata Valley Financial expects the deal to be accretive to earnings within a year after closing.
First National Bank of Port Allegany, the bank subsidiary of FNBPA Bancorp, will operate under a yet-to-be-determined local trade name as a division of Juniata Valley Bank.
Ambassador Financial Group was financial adviser to Juniata Valley and Barley Snyder was its legal counsel. Boenning & Scattergood was financial adviser to FNBPA and Rhoads & Sinon was legal counsel.