The deal will create a large-scale community bank in Pennsylvania and the combined company will have around $4.8bn in assets
Mid Penn to acquire Riverview Financial for $124.7m. (Credit: Gerd Altmann from Pixabay.)
Mid Penn Bancorp has agreed to acquire Riverview Financial Corporation in an all-stock deal valued at around $124.7m.
The deal was unanimously approved by both boards of directors and the transaction value is based on Mid Penn’s closing stock price of $27.47 as of 29 June 2021.
Under the terms of the agreement, Riverview shareholders are expected to receive 0.4833 shares of Mid Penn common stock for each share of Riverview common stock held.
Upon closing of the deal, Riverview Bank will be merged into Mid Penn Bank, and two of Riverview’s directors will be appointed to the Mid Penn Bancorp board of directors.
The merger is expected to close in the fourth quarter of 2021, subject to customary closing conditions, including regulatory approvals and shareholder approvals of both parties.
Mid Penn president and CEO Rory Ritrievi said: “We are pleased to welcome the Riverview shareholders, customers and employees to the Mid Penn family.
“These two great community bank organizations have been familiar with each other for years as competitors but now get to provide world-class customer service to our markets throughout Pennsylvania together.
“This combination provides strong economic value to both shareholder groups and creates a financial institution with plenty of muscle at a time when it is most important. That muscle should allow us to continue to provide best in class return to both groups of shareholders.”
The transaction will enable Mid Penn to enhance its presence across central Pennsylvania, by foraying into the Lehigh Valley and State College markets.
Also, the combination will provide the company with access to core deposit funding markets comprising the Clearfield and Altoona geographies in western Pennsylvania.
The merger is anticipated to create a combined community banking franchise in Pennsylvania with around $4.8bn in assets, $3.7bn in deposits and $3.7bn in loans.
Riverview president and CEO Brett Fulk said: “This is an exciting opportunity to join a like-minded, high-performing community bank with considerable franchise value and growth potential.
“Mid Penn has a high degree of familiarity with our operating markets and business lines. We are pleased to continue to work on behalf of our valued customers and communities with Rory and his team.”
Piper Sandler & Co. served as financial advisor and Pillar+Aught as legal advisor to Mid Penn on the transaction, while Stephens rendered a fairness opinion to Mid Penn’s board.
Janney Montgomery Scott served as financial advisor and rendered a fairness opinion to the Riverview board of directors, while Luse Gorman served as legal advisor to Riverview.