More details of Codorus Valley acquisition emerge
Codorus Valley Bancorp Inc. gave a more detailed picture of its acquisition of a Maryland bank in a recent presentation to investors.
The presentation, filed with the Securities and Exchange Commission today, explained the one-time costs of the acquisition of Madison Bancorp Inc. will be about $2.5 million.
However, in the first year post-acquisition, the company expects to grow 26 cents per fully diluted share annually solely from cost savings. The cost savings are described as “eliminating (duplicate) overhead and leveraging its operating processes” across the four Madison offices it will acquire.
York-based Codorus Valley is the parent company of PeoplesBank. In July, the company announced its acquisition of Madison Bancorp Inc., the holding company for Madison Bank and its four Baltimore-area locations.
In addition to the growth from cost-savings, the presentation further said revenue growth and more operational efficiencies are expected as the company puts its sales and services activities into place at the Madison locations.
Full integration is expected within one year from the merger date, according to the presentation.
The deal is pending state and federal regulatory approval and is expected to be complete in the first quarter of 2015.
Codorus Valley has more than $1.2 billion in assets and trades on the NASDAQ at CVLY.