WSFS Financial in Wilmington, Del., has agreed to buy Penn Liberty Financial in Wayne, Pa.
The $5.4 billion-asset WSFS said in a press release Monday that it will pay $101 million, or $21.75 a share, in cash and stock for the $651 million-asset parent of Penn Liberty Bank. The deal is expected to close in the third quarter.
Penn Liberty has 11 branches, $510 million in loans and $558 million in deposits.
"Penn Liberty's experienced management team and commercially focused business model will add important relationships to our banking franchise," WSFS President and Chief Executive Mark Turner said in the release. "Southeastern Pennsylvania continues to be a highly desirable and complementary market extension opportunity for our franchise and we look forward to further serving that market."
WSFS said it expects to incur about $15.5 million in pretax merger-related expenses, though it also plans to cut about 34% of Penn Financial's noninterest expenses. The acquisition should be immediately accretive to earnings per share at WSFS, excluding one-time costs. Expected tangible book value dilution of 6.7% should be earned back in less than five years.
Patrick Ward, Penn Liberty's chairman and chief executive, will join the board at WSFS and become the company's Pennsylvania market pesident. Brian Zwaan, Penn Liberty Bank's president, chief operating officer and chief lending officer, will join the senior management team at WSFS.
Keefe, Bruyette & Woods and Covington & Burling advised WSFS. Sandler O'Neill and Silver Freedman Taff & Tiernan advised Penn Liberty.