Mid Penn Bancorp in Harrisburg, Pa., has agreed to buy Brunswick Bancorp in New Brunswick, N.J.
The $4.3 billion-asset Mid Penn said in a press release that it will pay $53.9 million in cash and stock for the $382 million-asset Brunswick. The deal, which is expected to close in the second quarter, priced Brunswick at 120% of its tangible book value.
The acquisition will give Mid Penn its first branches in central New Jersey. Brunswick has five branches, $280 million of deposits and $303 million of loans.
“We are enthusiastic to partner with Brunswick as our first formal step into the dynamic central New Jersey community,” Rory Ritrievi, Mid Penn’s chairman, president and CEO, said in the release.
Brunswick “has built a solid reputation as a dependable bank for the numerous businesses and consumers in the communities they serve,” Ritrievi added. “We look forward to providing the strength of our balance sheet and our own relationship-building expertise in enhancing and expanding upon their success.”
One Brunswick director will join Mid Penn’s board.
The deal is expected to be 8.5% accretive to Mid Penn’s earnings per share. It should take less than three years for Mid Penn to earn back less than 4% dilution to its tangible book value.
Mid Penn plans to cut 37.5% of Brunswick’s annual noninterest expenses. It expects to incur $8.5 million of merger-related expenses.
Stephens and Pillar+Aught advised Mid Penn, while Piper Sandler provided a fairness opinion.
Janney Montgomery Scott and Windels Marx Lane & Mittendorf advised Brunswick.