Harrisburg-based Mid Penn Bancorp signed a definitive agreement to acquire Brunswick Bancorp of New Brunswick, New Jersey for $53.9 million.
The sale is a combination cash and stock transaction based on Mid Penn’s closing stock price of $30.95 as of Dec. 19, Mid Penn said.
The merger, unanimously approved by both boards of directors, will expand Mid Penn’s footprint into central New Jersey market. Mid Penn will add five total financial centers, four in Middlesex County and one in Monmouth County.
Founded in 1902, Brunswick had $381.6 million in assets, $279.8 million in deposits and $302.5 million in gross loans, as of Sept. 30, 2022.
“We are enthusiastic to partner with Brunswick as our first formal step into the dynamic central New Jersey community,” said Mid Penn Chair, President and CEO Rory G. Ritrievi.
“Brunswick, under the direction of Executive Chair Frank Gumina, President and CEO Nick Frungillo, Jr. and their strong staff of professionals has built a solid reputation as a dependable bank for the numerous businesses and consumers in the communities they serve,” Ritrievi added.
Under Mid Penn’s ownership, Brunswick customers will have access to an expanded product and services offering, he said. The transaction creates a combined community banking franchise with approximately $5 billion in assets, $4.2 billion in deposits and $3.8 billion in gross loans, Mid Penn said.
“Mid Penn is an excellent cultural fit for Brunswick, and the opportunity to join a like-minded, top-tier community bank is one that will provide both organizations with significant growth potential,” said Frungillo. “Together we will continue to provide our clients with valuable opportunities via higher lending limits and a sophisticated technology platform. We are pleased to continue providing service to our valued customers and to the communities in which we live, alongside Rory and his team.”
The merger is expected to close in the second quarter of 2023.