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Riverview Financial closes Somerset County acquisition
Michael Sadowski//January 5, 2016
The bank holding company for Riverview Bank and its operating divisions Halifax Bank and Marysville Bank plans to run the acquired entity as Citizens Neighborhood Bank, a division of Riverview Bank.
The $8 million deal, which closed Dec. 31, brings total assets of Riverview to about $536.9 million. It has $448.1 million in deposits and $405 million in loans.
Timothy E. Walters, former president of Citizens, has been named president of Riverview Financial Wealth Management, another division of Riverview Bank.
The deal takes Riverview out of its Central Pennsylvania footprint and into a new market, and featured a small delay in 2015. Riverview announced the deal in January, but had to put the deal on hold in July while the company went through a restructuring that included the departure of former CEO Robert A. Garst for undisclosed reasons.
Because of the restructuring, the company had to withdraw its application to acquire Citizens. But it refiled the paperwork in September and was able to close the deal by the end of the year.
The deal was for 20 percent cash and 80 percent stock, but shareholders of Citizens oversubscribed to the cash portion of the payout. Riverview said it will reduce cash payouts based on the number of shares held by each shareholder. Those shareholders will receive additional shares of Riverview stock at a rate designed to replace the reduced portion of their cash payouts.
Riverview trades its shares on the OTC exchange at the ticker symbol RIVE.
