Mid Penn Bancorp in Harrisburg, Pa., has agreed to buy William Penn Bancorp. in Bristol, Pa.
The $5 billion-asset Mid Penn said in a press release that it will pay $127 million in stock for the $812 million-asset William Penn. The deal is expected to close in the first half of next year.
Mid Penn also plans to sell $70 million of common stock in conjunction with the acquisition.
William Penn has 12 branches, $465 million in loans and $630 million in deposits.
“As longstanding community banks headquartered in Pennsylvania, both Mid Penn and William Penn have grown to know and respect each other’s operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate,” Rory Ritrievi, Mid Penn’s chairman, president and CEO, said in the release.
“This merger will bolster Mid Penn’s presence in the attractive greater Philadelphia metro area market, aligning with our strategic plan of disciplined growth in the southeastern region of Pennsylvania and the southern region of New Jersey,” he added.
Kenneth Stephon, William Penn’s chairman, president and CEO, will join Mid Penn Bank as vice chairman.
Stephens and Pillar + Aught advised Mid Penn, while Keefe, Bruyette & Woods provided a fairness opinion. Piper Sandler and Kilpatrick Townsend & Stockton advised William Penn.