Mid Penn Bancorp to acquire Brunswick Bancorp to expand in central New Jersey
Mid Penn Bancorp, the parent company of Mid Penn Bank, has agreed to acquire Brunswick Bancorp, a holding company of Brunswick Bank & Trust, in a cash and stock deal valued at around $53.9 million, to expand its footprint into the central New Jersey market.
As part of the agreement, half of Brunswick Bancorp’s common stock will be paid in the form of Mid Penn Bancorp’s common shares while the outstanding 50% will be swapped for cash.
Post-closing, Mid Penn Bancorp will add a total of five financial locations to its existing portfolio. These include four locations in Middlesex County and one in Monmouth County.
The merger agreement is expected to form a combined community banking franchise with around $5 billion in assets, $4.2 billion in deposits, and $3.8 billion in gross loans.
Based on the financial metrics, as of 30 September 2022, Brunswick Bancorp reported $381.6 million in assets, $302.5 million in gross loans, and $279.8 million in deposits.
The merger is anticipated to provide Brunswick Bancorp’s customers with an increased product and services offering.
Rory G Ritrievi — Mid Penn Bancorp Chair, President, and CEO, said: “We are enthusiastic to partner with Brunswick as our first formal step into the dynamic central New Jersey community.
“Brunswick, under the direction of Executive Chair Frank Gumina, President and CEO Nick Frungillo, Jr. and their strong staff of professionals has built a solid reputation as a dependable bank for the numerous businesses and consumers in the communities they serve.
“We feel confident that this combination will, in a very short period of time, create one of the most dynamic and organically growth-oriented financial institutions in that region.”
Brunswick Bank & Trust will be merged with and into Mid Penn Bank on the completion of the transaction.
Nicholas A Frungillo Jr — Brunswick Bancorp President and CEO said: “Mid Penn is an excellent cultural fit for Brunswick, and the opportunity to join a like-minded, top-tier community bank is one that will provide both organizations with significant growth potential.
“Together we will continue to provide our clients with valuable opportunities via higher lending limits and a sophisticated technology platform.”
Anticipated to complete in the second quarter of 2023, the merger is subject to regulatory approvals and Mid Penn Bancorp and Brunswick Bancorp shareholder approvals as well as customary closing conditions.