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Investors are now willing to put money into community lenders with credible business plans, sufficient scale, and executives who show "courage" and "fortitude," says Greg Mitchell, CEO of First PacTrust.
May 22 -
Many bank buyers will stay on the sidelines until Dodd-Frank rules are written and the Consumer Financial Protection Bureau's agenda is clearer, industry experts say.
May 22 -
Daryl Byrd, the CEO of Iberiabank (IBKC) says a wave of bank mergers is inevitable and will be larger than expected. Rusty Cloutier, his counterpart at MidSouth Bancorp (MSL), says a lack of able buyers is miring consolidation.
May 21
Two small Pennsylvania banks have announced a deal that would create a 10-branch bank outside Philadelphia.
First Priority Financial of Malvern and Affinity Bancorp of Wyomissing, both privately held, would then hold a stock offering and seek a listing on Nasdaq for the combined bank — which would have $450 million of assets. How broadly the stock would be offered still has to be determined, First Priority's chief executive, David Sparks, explained Thursday.
The value of the all-stock deal, announced Wednesday, was not disclosed. It is scheduled to close in the fourth quarter.
Customers would get access to more products, while shareholders would have a chance to cash out, the banks said. Each bank has five branches with little overlap, and most employees would keep their jobs, they said.
Though the parties described the deal as a "merger of equals" and the brands of both banks are to survive, most of the terms favor First Priority.
Affinity investors are to receive 0.98 shares in First Priority for each of their shares. First Priority investors are to own 62% of the merged entity and will control seven of the 12 board seats. Sparks will be chairman and CEO of the holding company level while Affinity's leader, Steven Ehrlich, is to become president and chief executive of First Priority's operating unit, First Priority Bank.
The merged bank would be based in Malvern.
Dean Anason contributed to this article.
