Mid Penn Bancorp in Millersburg, Pa., has agreed to buy Scottdale Bank & Trust in Pennsylvania.
The $1 billion-asset Mid Penn said in a press release Wednesday that it will pay $59.1 million in cash and stock for the $300 million-asset Scottdale Bank. The deal, which is expected to close in the third quarter, values Scottdale Bank at 130% of its tangible book value.
Mid Penn said it expects the deal to be immediately accretive to its tangible book value.
“Through this combination, we will be able to offer new products, services and conveniences to Scottdale’s customers while also continuing and enhancing the bank’s good work in the communities it serves,” Rory Ritrievi, Mid Penn’s president and CEO, said in the release.
Donald Kiefer, Scottdale Bank’s president and CEO, is expected to join Mid Penn’s board.
Sandler O’Neill and Stevens & Lee advised Mid Penn. Ambassador Financial Group and Tucker Arensberg advised Scottdale.