Mid Penn Bank (the “Bank”), a wholly owned subsidiary of Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ: MPB), and PennCrest bank (“PennCrest”), a Pennsylvania-chartered mutual savings bank with its headquarters in Altoona, Pennsylvania, jointly announced today that they have entered into a Purchase and Assumption Agreement providing for the sale of the Bank’s Williamsburg Financial Center to PennCrest. An agreement was reached in order to facilitate this.
The Agreement Signed:
PennCrest has agreed, following the terms of the Purchase and Assumption Agreement, to assume certain deposit liabilities with a combined total of approximately $25.4 million, to purchase certain loans with a combined total of approximately $2.7 million, as well as cash, real property, personal property, and other fixed assets associated with the Williamsburg Financial Center, and to assume certain deposit liabilities with a combined total of approximately $25.4 million. It is anticipated that the deal will be finalised during the fourth quarter of 2022, pending the fulfilment of customary closing conditions, which may include clearance from regulatory authorities. In the not-too-distant future, more details about the transaction will be communicated to the patrons of the Williamsburg Financial Center.
“Decisions about the consolidation of Financial Centers like these don’t always boil down to money and cents; rather, they are a product of both the mind and the heart. “Since our acquisition of Riverview Financial and subsequent announcement of our intention to close and consolidate the Williamsburg Financial Center acquired in that acquisition, we have engaged with community leaders and the residents of Williamsburg, and we have listened to what is most important to them,” said Rory Ritrievi, President and CEO of Mid Penn. “Since we acquired Riverview Financial and subsequent announcement of our intention to close and consolidate the Williamsburg Financial Center acquired, we have engaged with community leaders and the residents of Williams.
“Rather than simply closing the Financial Center and prohibiting another bank from operating there, as has previously occurred in Williamsburg, we listened to the community and worked hard to ensure that a local, in-person banking option remained available. This is in contrast to what has previously occurred in Williamsburg. When we started talking to PennCrest bank about the possibility of a sale, it was immediately apparent that they had a solid grasp of both the local market and the community’s requirements. As a result, we have every reason to believe that PennCrest will provide excellent service to the customers in Williamsburg.”
Acquiring and Operating:
“As a cooperative savings bank, PennCrest is devoted to community banking and the communities it serves. We were excited by the prospect of acquiring and operating the location,” said William E. Ritenour, President and CEO of PennCrest. “Upon learning of Mid Penn’s intention to consolidate the Williamsburg Financial Center with a nearby office, we were excited by the prospect of acquiring and operating the location.
As told by pennCrest:
PennCrest bank community concept is beneficial not just to PennCrest but also to the Williamsburg neighbourhood.” Williamsburg is a natural match within our market region. We are thrilled that our cooperative ownership structure and commitment to community banking will allow us to offer stability to that location. Concerning the deal, Pillar+Aught is acting as Mid Penn’s legal counsel and representing their best interests. PennCrest is represented by Boenning & Scattergood as its financial adviser, and Luse Gorman, PC, represents the company as its legal counsel.
About Mid Penn Bancorp Inc.:
Since its founding in 1868, Mid Penn Bancorp Inc. (NASDAQ: MPB), its headquarters in Harrisburg, Pennsylvania, has provided financial services to the local community. Mid Penn has assets worth more than $4.6 billion and runs retail sites in 16 counties throughout the Commonwealth of Pennsylvania. The Bank fulfils the requirements of the communities it serves by providing a full range of banking goods and services via its extensive product line.
You may be interested in: Loan Agreement Template: Advice You Should Know
Leave a Reply