Two community banks have finalized a consolidation deal that will form one bank with about $440 million in assets.
Riverview Financial Corp. of Marysville and Union Bancorp Inc. of Pottsville announced their consolidation after working for most of 2013 to finalize the deal.
The two companies announced in early March their intention to consolidate into one bank company that now has 18 branch locations in Berks, Cumberland, Dauphin, Northumberland, Perry and Schuylkill counties.
Through the consolidation, Union Bank and Trust and its five locations in the Pottsville area are merged into Riverview Bank. The new entity now has $440 million in assets, with $394 million in deposits.
Union Bank will change its name to Riverview Bank sometime around February, according to Kirk Fox, Riverview Bank president.
Before the merger, Riverview had been the holding company of three Central Pennsylvania banks — Riverview Bank, Halifax National Bank and Marysville Bank. Halifax Bank has three locations in Dauphin County and Riverview Bank has a location in Cumberland County.
The newly consolidated company — which also will have the name Riverview Financial Corp. — acquired all of the outstanding shares of Union and the former Riverview in a stock-for-stock transaction in which Union shareholders received 1.95 shares of the new company for each Union share held. Shareholders of the former Riverview now have one share of the new Riverview for each stock it formerly held.
Union's former shareholders own approximately 36 percent of the new company, and Riverview's former shareholders own 64 percent of the new company.
Robert Garst, CEO of the former Riverview, now is the CEO of the new Riverview company, and Fox continues as its president.
Riverview is traded over the counter under the symbol RIVE.