DNB Financial Corporation, the parent company of Downingtown’s DNB First,  has agreed to acquire East River Bank of Philadelphia for $49 million in stock and cash.

The deal will boost DNB total assets to around $1.1 billion in assets, with $841 million in deposits and $764 million in loans, making it one of only six institutions with total assets of more than $1 billion headquartered in Southeastern Pennsylvania.

East River Bank, which operates three full-service offices in Philadelphia, reported $311 million in assets, total loans of $282 million, and total deposits of $234 million for last year. This agreement will also increase DNB’s total numbers of branch offices to 15 across Chester, Philadelphia and Delaware counties.

“This transaction provides our shareholders with greater liquidity and the opportunity to build upon the success of the DNB franchise,” said Christopher P. McGill, President and CEO of East River Bank. “In addition to a shared legacy of strong financial performance and community engagement, the strategic synergy and cultural fit between our two banks present exciting opportunities to all of our stakeholders. As East River’s lending team joins DNB, an enhanced product set, and higher lending limits will enable us to better serve our clients in Philadelphia. We look forward to being part of the DNB team.”

McGill will join DNB as Executive Vice President and Chief Business Development Officer once the transaction is completed, but it has yet to be approved by DNB and East River shareholders. Then the deal will await regulatory approval.

DNB anticipates the deal will close in the second half of 2016.

“DNB and East River is a powerful combination that will benefit our respective customers, investors, employees and communities,” said William J. Hieb, President and CEO of DNB. “This transaction will establish a much stronger institution and create efficiencies to generate greater earnings for our combined shareholder base. It will also allow us to deliver a comprehensive set of financial products and services to consumers and businesses throughout our region, with logical expansion into the attractive Philadelphia market, positioning us for continued growth.”

Read previous VISTA Today coverage of DNB here.