Pending receipt of approval from shareholders of Mid Penn and First Priority, Mid Penn intends to close the transaction in the third quarter of this year, Mid Penn said in a news release.
Following completion of the merger, First Priority Bank will be merged with and into Mid Penn Bank and will operate as First Priority Bank, a division of Mid Penn Bank.
“We believe our partnership will provide an attractive set of products and services to customers and a meaningful financial return to shareholders,” president and CEO of Mid Penn, Rory G. Ritrievi, said in a statement.
The merger will expand Mid Penn’s footprint into southeastern Pennsylvania, including Chester, Berks, Montgomery and Bucks counties. Mid Penn, following completion of the merger, will have over $2 billion in assets.
Headquartered in Millersburg, Mid Penn currently 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. That is down from $2 million in its 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.