Bryn Mawr, Pa.-based Bryn Mawr Bank Corp. has agreed to pay about $32.7 million for Media, Pa.-based First Keystone Financial Inc. with a view to folding First Keystone into subsidiary Bryn Mawr Trust Co.
The deal, set to close in mid-2010, is expected to add about $500 million in assets to Bryn Mawr Bank, which had $1.2 billion in corporate assets and $2.7 billion in trust and investment assets under management or administration at the end of September.
Bryn Mawr Bank's chairman and chief executive, Ted Peters, says the addition of First Keystone will increase Bryn Mawr Trust's presence in Pennsylvania's Chester and Delaware counties, and boost its mortgage and wealth-management sales.
The agreement between the companies - which is subject to adjustment — calls for holders of First Keystone Financial common stock to receive 0.6973 shares of Bryn Mawr Bank stock per share plus a $2.06 per share in "cash consideration."
In late October, Bryn Mawr Bank reported a third-quarter earnings increase of 15.4% over the third quarter of 2008 and a 19.7% quarter-over-quarter increase in wealth-management assets — partly due to the recent launches of a retail brokerage and a Bryn Mawr Trust Co. affiliate in Wilmington, Del.
Keystone Financial's stock was up $3.11, or 35%, to $11.96 in recent trading. Shares of Bryn Mawr Bank were down $1.12, or 6.9%, to $15.20.