Mid Penn Bancorp in Millersburg, Pa., has agreed to buy First Priority Financial in Malvern, Pa.
The $1.4 billion-asset Mid Penn said in a press release Tuesday that it will pay $82 million in stock for the $610 million-asset First Priority. The deal is expected to close in the third quarter.
The acquisition will allow Mid Penn to expand into several markets in southeastern Pennsylvania, including Chester, Berks, Montgomery and Bucks counties.
"This merger provides us with the opportunity to expand into several new and dynamic markets while also bringing on board a number of well-respected, talented employees from all areas of the bank,” Rory Ritrievi, Mid Penn’s president and CEO, said in the release. “It also provides an attractive financial return to both sets of shareholders.”
Mid Penn said it expects the transaction to be accretive to earnings per share. It should take less than three years for the company to earn back any dilution to its tangible book value.
David Sparks, First Priority’s chairman and CEO, will become Mid Penn’s chief strategic adviser and oversee its First Priority division. Four First Priority directors will join Mid Penn’s board.
Sandler O’Neill and Pillar & Aught advised Mid Penn. Griffin Financial Group and Stevens & Lee advised First Priority.