Citizens Financial Services in Mansfield, Pennsylvania, is buying cross-state rival HV Bancorp, the holding company for Huntingdon Valley Bank, in a cash-and-stock deal valued at $67.4 million.
The deal, slated to close in the first half of 2023, is projected to bolster the $2.2 billion-asset Citizens' market share in Montgomery, Bucks and Philadelphia counties in Pennsylvania, as well as New Castle County in Delaware and Burlington County in New Jersey.
"The expertise of the combined organization will enable us to invest in the future, build market share, and better serve all of our constituencies," Randall Black, president and CEO of Citizens, said in a press release Wednesday.
HV Bancorp CEO Travis Thompson and President Robert Marino agreed to join the combined bank as senior officers.
The $570 million-asset HV Bancorp, of Doylestown, Pennsylvania, has about $388 million of net loans and $482 million of deposits. Based on data as of June 30, the combined company is expected to have nearly $2.8 billion of assets, about $2 billion of gross loans and $2.4 billion of deposits upon completion of the deal with Citizens.
Janney Montgomery Scott served as financial adviser to Citizens Financial, and Hogan Lovells US served as its legal counsel.
The Kafafian Group acted as financial advisor and provided a fairness opinion to HV Bancorp, and Luse Gorman PC provided legal counsel.
