Tower Bancorp Inc. and First Chester County Corp. have extended for a third time the deadline for completing their merger.
The $1.5 billion-asset Tower in Harrisburg, Pa., agreed last December to buy First Chester in West Chester, Pa., for $65 million. In a regulatory filing, the companies extended the latest closing date — which was Nov. 20 — to Dec. 31 after which either party may walk away from the deal if it does not close. The acquisition now is expected to close in mid-December.
Under the agreement, the deal price falls as First Chester's delinquencies rise. The filing amended the terms to include any losses that result from First Chester's selling of nonperforming assets or real estate owned. Delinquencies have nearly doubled at the $1.1 billion-asset First Chester since the deal was announced, and the company entered into a formal agreement with regulators last month.
Tower and its bank signed letters to extend to Dec. 31 the maturity date of $28 million in First Chester credit facilities.