Norwood Financial, the holding company for Wayne Bank, Honesdale, Pennsylvania has agreed to acquire North Penn Bancorp, the holding company for North Penn Bank, Scranton, Pennsylvania, in a stock and cash transaction.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Norwood Financial will acquire all of the outstanding shares of North Penn Bancorp, for a total purchase price of approximately $27.1m assuming a price of $28 per share for Norwood common stock.
In addition, North Penn Bank will merge with and into Wayne Bank, with Wayne Bank as the surviving bank.
In addition, one member of the North Penn Bancorp’s board of directors shall be appointed to the board of directors of Norwood Financial and Wayne Bank.
It is expected that the merger will be consummated in the second quarter of 2011 and is subject to certain conditions, including receiving requisite regulatory and North Penn Bancorp stockholder approvals.
The combined company will have approximately $700m in assets, 16 branches and improve its market position in Monroe County.