In addition to the holding company merger, First Priority’s banking subsidiary, First Priority Bank, has been merged with and into Mid Penn’s subsidiary bank, Mid Penn Bank and is now operating as First Priority Bank, a Division of Mid Penn Bank.
The all-stock transaction was valued at approximately $82 million and expands Mid Penn’s footprint into southeastern Pennsylvania, including Berks, Bucks, Chester and Montgomery counties.
“As we introduce the Mid Penn brand of community banking to Berks County and the Delaware Valley, we are very focused on ensuring this transition is positive for all stakeholders,” Rory G. Ritrievi, president and CEO of Mid Penn, said in a statement
Mid Penn now operates a total of 37 retail locations in Pennsylvania.
The consolidated assets of the combined company are valued at approximately $2 billion.
As part of the agreement David E. Sparks, Joel L. Frank, Alan P. Novak and Patrick M. Smith have been appointed to serve as directors of Mid Penn Bancorp. and Mid Penn Bank, according to a Securities and Exchange Commission filing.
Frank, Novak and Smith were previously directors of First Priority.
Sparks, who founded First Priority, served as chairman and CEO since the bank’s inception in 2005. He will now be serving as chief strategic adviser to Ritrievi and as market president of First Priority Bank, a Division of Mid Penn Bank, according to the filing.
A lawsuit has been filed against the banks by a First Priority shareholder who believes the merger is unfair. But both banks have dismissed its claims.
“Mid Penn and First Priority believe that the lawsuit is without merit as there are substantial legal and factual defenses to the claims asserted and intend to vigorously defend the lawsuit,” Mid Penn said in an SEC filing.
Headquartered in Millersburg, Mid Penn reported net income of $2.8 million in the second quarter of 2018, up from $2.3 million in the second quarter of 2017.