The acquisition is expected to enable First Citizens Community Bank to enhance its franchise value of and expand into northern Delaware
Citizens Financial Services, the parent company of First Citizens Community Bank, has completed the previously announced acquisition of MidCoast Community Bancorp, the holding company of MidCoast Community Bank.
The transaction includes merger of First Citizens Community Bank and MidCoast Community Bancorp, with Citizens and FCCB as the surviving institutions.
MidCoast Community Bank is a Delaware-based commercial bank, operating three community banking offices in New Castle and Kent Counties, Delaware. It is also an active lender in Chester County, Pennsylvania.
First Citizens Community Bank is a Pennsylvania-chartered commercial bank, operating 31 full-service branch offices in Pennsylvania, Delaware and New York.
Merger agreement was signed in September last year
As per the merger agreement entered last September, the shareholders of MidCoast were permitted to receive either 0.1065 shares of Citizens common stock, $6.50 in cash, or a combination of cash and shares of Citizens common stock for each share of MidCoast.
The merger agreement was subject to proration and allocation to ensure that 75% of MidCoast shares were exchanged and the remaining 25% were exchanged for cash.
Citizens issued 373,356 shares for the merger and it now has 3,879,365 outstanding shares as a result of the completion of the merger.
At the time of the announcement of the deal, Citizens’ and First Citizens’ president and CEO Randall E. Black said: “We are excited to expand our franchise into Delaware’s affluent New Castle and Kent County markets through our partnership with MidCoast Community Bank. These markets are robust and healthy with economic growth, and are attractive markets with favorable demographics.
“This acquisition allows us to leverage our existing products, services and expertise in an attractive market while adding a very talented banking team. Additionally, we see Kent County and the surrounding secondary markets rich in agricultural lending opportunity, which will help us to diversify our growing expertise in agricultural lending, along with CRE and residential growth opportunities.
“We take great pride in understanding the needs of our customers throughout all of our markets and look forward to providing this new region with the support and assistance it needs to continue to grow and thrive.”
As per the merger agreement, Citizens announced the creation of a Corporate Advisory Board to serve the markets in which MidCoast operates, upon the completion of the transaction.
Janney Montgomery Scott served as financial advisor to Citizens on the transaction, while Luse Gorman was its legal counsel.