Mid Penn Bank to Acquire Riverview Bank, ‘Create Financial Institution with Plenty of Muscle’
Mid Penn Bank, which is based in Millersburg and has a presence in 12 counties, including Chester County, will acquire Harrisburg-based Riverview Bank in an all-stock transaction valued at approximately $124.7 million.
That figure is based upon Mid Penn’s closing stock price of $27.47 for the trading day ending June 29.
The acquisition, unanimously approved by both boards of directors, will enhance Mid Penn’s footprint throughout central Pennsylvania. In addition to providing entry into the growing Lehigh Valley and State College markets, the combination also provides access to attractive core deposit funding markets, including the Clearfield and Altoona geographies in western Pennsylvania.
“We are pleased to welcome the Riverview shareholders, customers, and employees to the Mid Penn family,” said Mid Penn President and CEO Rory G. Ritrievi. “These two great community bank organizations have been familiar with each other for years as competitors but now get to provide world-class customer service to our markets throughout Pennsylvania together. This combination provides strong economic value to both shareholder groups and creates a financial institution with plenty of muscle at a time when it is most important. That muscle should allow us to continue to provide best-in-class return to both groups of shareholders.”
The transaction creates a combined community banking franchise with approximately $4.8 billion in assets, $3.7 billion in deposits, and $3.7 billion in loans. Following the transaction, Mid Penn will be the sixth-largest Pennsylvania-headquartered bank under $10 billion and will retain its standing as the top-ranked community bank by deposit market share in the Harrisburg MSA.
“This is an exciting opportunity to join a like-minded, high-performing community bank with considerable franchise value and growth potential,” said Riverview CEO Brett D. Fulk. “Mid Penn has a high degree of familiarity with our operating markets and business lines. They share our relationship-centric culture, and together we will provide our clients with growth opportunities via higher lending limits and the ability to further invest in technology and digital initiatives. We are pleased to continue to work on behalf of our valued customers and communities with Rory and his team.”
The merger is expected to close in the fourth quarter of 2021.
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