First Bank has signed a definitive agreement to acquire Malvern Bancorp, the parent company of Malvern Bank, in a transaction worth around $149.5m loans-cash.net .
Under the terms of the agreement, Malvern Bancorp shareholders will receive 0.7733 of First Bank common shares, and $7.80 in cash per each Malvern Bancorp share held.
First Bank expects to issue around 5.9 million new shares and $59.4 million in cash consideration to complete the transaction.
The consideration is based on its closing price of $15.31 per share as of 13 December.
The boards of directors of both companies have unanimously approved the merger.
The closing of the transaction is expected in the second quarter of 2023, subject to the approval of First Bank and Malvern Bancorp shareholders, and other customary regulatory approvals.
Malvern Bancorp president and chief executive officer Anthony Weagley said: “We are excited to be combining with a financially strong and strategically well-positioned community bank.
“First Bank has an excellent track record and is successfully executing upon its vision to be a premier community bank focused on high-touch customer service throughout the New York City to Philadelphia corridor.
“We believe this strategic combination will benefit all the stakeholders of the combined company and we look forward to working closely with First Bank’s team to complete the transaction.”
Malvern Bank serves its customers through nine banking locations in Chester and Delaware counties, Pennsylvania, Morristown, New Jersey, and Palm Beach, Florida.
Malvern Bancorp had assets worth around $1.04bn, including around $815.6m loans and $785.3m deposits, as of 30 September 2022.
Upon closing of the transaction, First Bank will have about $3.68bn in assets with 27 branches in seven New Jersey counties, three eastern Pennsylvania counties and one Florida county.
First Bank said that the transaction would expand its market position and deposit share in eastern Pennsylvania, and is in line with its strong organic growth strategy.
In addition, the acquisition is expected to further strengthen the company’s balance sheet through a diversified loan portfolio, and expand its access to cost-effective deposits.
First Bank president and chief executive officer Patrick Ryan said: “This merger is another example of what we believe are high-quality and low-risk transactions we are using to build size and scale, solidify our market position and expand our service area.
“Malvern Bank’s emphasis on commercial lending, private banking and superior customer service create a great fit, and we are delighted to welcome Malvern Bank’s employees to the First Bank team.”
Hovde Group served as a financial advisor, and Luse Gorman, PC as legal counsel to First Bank, while Piper Sandler & Co. served as financial advisor and Holland & Knight as legal counsel to Malvern Bancorp on the transaction.
