HV Bancorp to merge with Citizens Financial Services in $67m deal
HV Bancorp (HVBC), the holding company for Huntingdon Valley Bank (HVB), will merge with rival US bank holding company Citizens Financial Services (CZFS), the owner of First Citizens Community Bank (FCCB), in a deal worth around $67.4 million.
The merger is expected to boost and increase the footprint of Citizens Financial Services in communities situated in Montgomery, Bucks and Philadelphia Counties in Pennsylvania, Burlington County in New Jersey, and New Castle County in Delaware.
On completion of the merger, the combined entity is expected to have more than $2.78 billion in assets, $2.36 billion in deposits, and $1.96 billion in gross loans.
As per the deal, the shareholders of HV Bancorp will have the option to receive for each share of HV Bancorp common stock $30.5 in cash or 0.4 shares of Citizens Financial Services common stock.
Randall Black — Citizens Financial Services President and CEO said: “This agreement creates great excitement, and we believe our combination will deepen our reach in providing banking services and enhanced technological offerings across our entire bank franchise.
“In addition, the expertise of the combined organization will enable us to invest in the future, build market share, and better serve all of our constituencies.”
Based on financial metrics as of 30 June 2022, HV Bancorp had approximately $570.6 million in assets, $481.5 million in deposits, and $388.3 million in net loans.
Travis Thompson — HV Bancorp Chairman and CEO said: “As 150-year-old financial institutions, we share similar core values and both believe deeply in community banking.
“We are confident that our customers will receive the same high-quality experience from FCCB that they have come to expect from HVB.”
Expected to be completed in the first half of 2023, the merger between the two US bank holding companies has been approved by their respective board of directors.
The closure of the transaction is subject to regulatory approval, approval by HV Bancorp shareholders, and other customary conditions.
Janney Montgomery Scott and The Kafafian Group acted as financial advisors to Citizens Financial Services and HV Bancorp, respectively.
Hogan Lovells US and Luse Gorman, PC served as legal counsels for Citizens Financial Services and HV Bancorp, respectively.