Mid Penn Bancorp Inc. and First Priority Financial Corp. have cleared a major hurdle this week on the way to merging.
Shareholders of both banks are on board with Mid Penn’s proposed acquisition of First Priority.
First Priority shareholders approved the acquisition on July 24 while shareholders of Mid Penn approved it on July 25, according to a U.S. Securities and Exchange Commission filing made by Mid Penn.
More than 99 percent of First Priority shares voted in favor of the merger and more than 98 percent of Mid Penn shares voted in favor, Rory G. Ritrievi, president and CEO of Mid Penn, said in a statement.
“We are thrilled with the level of support for this transaction,” he added.
Following the merger’s completion, Mid Penn said it will have over $2 billion in assets. The deal will also expand Mid Penn’s footprint into Chester, Berks, Montgomery and Bucks counties.
The deal is expected to close in the third quarter.
While the merger faces a lawsuit, 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 has assets of approximately $1.4 billion and 29 branches in Cumberland, Dauphin, Fayette, Lancaster, Luzerne, Northumberland, Schuylkill and Westmoreland counties.
According to its most recent earnings report, Mid Penn had net income of $1 million in the first quarter of 2018, down from $2 million in the first quarter of 2017. Results included nearly $1.7 million in expenses stemming from the bank’s acquisition of The Scottdale Bank & Trust Co., which closed in January, and the pending merger with First Priority.
First Priority is headquartered in Malvern and has approximately $615 million in assets. The bank has seven locations in Chester, Berks, Montgomery and Bucks counties. According to its most recent earnings report, First Priority had net income of $762,000 in the first quarter of 2018, down from $782,000 in the first quarter of 2017.
