The combined bank will have assets of over $800m with operations in southcentral Pennsylvania
LINKBANCORP has agreed to acquire Pennsylvania-based bank holding company GNB Financial Services in a stock-cum-cash deal worth around $62.6m.
The merger is expected to result in creating a major community bank in Pennsylvania with a network of nine offices across the southcentral part of the American state. It will hold assets of more than $800m.
Founded in 2018, LINKBANCORP is the owner of LINKBANK, a state-chartered bank with assets of nearly $368.6m, as of 30 September 2020.
GNB Financial Services is the parent company of state-chartered commercial bank The Gratz Bank and GNB Investment. As of 30 September 2020, GNB Financial services had total assets of around $437.1m.
LINKBANCORP CEO and founder Andrew Samuel said: “This is a true partnership, leveraging the strengths of each institution to create a community bank that is extremely well-positioned for the future.
“It’s a very attractive financial transaction that accelerates our growth plan and evidences our commitment to an entrepreneurial, values-driven community banking model that positively impacts all of our constituencies.”
Andrew Samuel will serve as CEO of the combined company, post-merger.
As per the terms of the deal, GNB Financial Services’ shareholders can opt to receive $87.68 per share in cash or agree to be issued 7.3064 shares of LINKBANCORP’s common stock for each share they own.
Shareholders of LINKBANCORP will own nearly 52% of the combined company, while GNB Financial Services’ shareholders will hold the remaining stake of around 48%.
LINKBANCORP will be the surviving bank holding company, while the combined banking subsidiary will operate as Gratz Bank.
The company stated that no branch locations are expected to close as a result of the merger.
GNB Financial Services CEO Wesley Weymers said: “We have great respect for LINKBANK’s very experienced and talented team and what they have accomplished in a relatively short period.
“This partnership is an exciting opportunity to combine two very complementary institutions and achieve the scale and talent needed to compete and thrive in a rapidly evolving environment.”
The deal, which is subject to necessary regulatory and shareholder approvals, and the meeting of customary closing conditions, is expected to close in mid-2021.