Norwood Financial to buy PB Bankshares in Pennsylvania
Norwood Financial in Honesdale, Pa., has agreed to buy PB Bankshares in Coatesville, Pa.
The $2.4 billion-asset Norwood said in a press release that it will pay $54.9 million in cash and stock for the $467 million-asset PB Bankshares. The deal, which is expected to close by the first quarter of next year, priced PB Bankshares at 106.6% of its tangible book value.
PB Bankshares “is a growing and respected institution located within the most demographically attractive markets in Pennsylvania,” James Donnelly, Norwood’s president and CEO, said in the release. “Joining these institutions provides Wayne Bank with the opportunity to deepen Presence Bank’s relationships with its customers, given our broader product mix and larger balance sheet.”
Janak Amin, PB Bankshares’ president and CEO, will join Norwood as COO of its bank. Two PB Bankshares directors will join Norwood’s board.
The merger is expected to be about 10% accretive to Norwood’s 2026 earnings per share. It will take Norwood two to three years to earn back an estimated 4.2% dilution to its tangible book value.
Norwood plans to cut about a third of PB Bankshares’ annual noninterest expenses. Norwood expects to incur about $7.1 million in merger-related expenses.
Janney Montgomery Scott and Jones Walker advised Norwood. Stephens and Barley Snyder advised PB Bankshares.