NexTier to acquire Mars Bancorp to create $2.6bn Western PA community bank powerhouse
NexTier, Inc., the holding company of NexTier Bank, N.A., has agreed to acquire Mars Bancorp, Inc., the holding company of Mars Bank, in a significant move set to reshape Western Pennsylvania’s banking landscape. This monumental merger will forge Western Pennsylvania’s top locally-owned and operated community bank, boasting assets surpassing $2.6 billion. The imminent merger will see Mars Bank being absorbed into NexTier Bank, with all branch locations subsequently operating under the NexTier Bank brand.
Leaders Speak: Enhanced Banking Services for Western PA
NexTier Bank, holding $2.1 billion in assets as of June 30, 2023, and overseeing 27 branches, prides itself on its commercial acumen, treasury management, and deep-rooted community engagement. Clem Rosenberger, NexTier’s CEO, expressed enthusiasm about the merger’s potential. He noted, “Joining forces with Mars Bank allows NexTier to offer an enriched banking experience to Western Pennsylvania’s diverse clientele, spanning businesses, non-profits, schools, and local governments. Our impending expansion into Mercer County is particularly exciting.”
Conversely, Mars Bank, with assets of $520.8 million as of June 30, 2023, specializes in retail, mortgage, and commercial lending. Jim Dionise, Mars Bank’s CEO, underscored the merger’s benefits, stating that it would offer customers cutting-edge products and services while preserving the intimate, relationship-centric service ethos that both banks champion.
Merger Details and Timeline
Mars shareholders are set to receive a cash consideration of $20 per share of Mars common stock. Both NexTier and Mars’ Boards of Directors have given the merger a unanimous thumbs-up. The merger’s culmination is anticipated for Q1 2024, pending regulatory approvals, Mars’ shareholder approval, and other customary prerequisites.
Janney Montgomery Scott, LLC acted as NexTier’s financial advisor, while Alston & Bird LLP provided legal counsel. Mars enlisted D.A. Davidson & Co. for financial advice and Silver, Freedman, Taff & Tiernan LLP for legal guidance.
About NexTier Bank, N.A.
A subsidiary of NexTier, Inc., NexTier Bank, N.A. operates 27 community offices across multiple counties in Pennsylvania, in addition to loan production offices in Ohio and New York. As of June 30, 2023, the bank reported assets, loans, and deposits of $2.13 billion, $1.68 billion, and $1.74 billion respectively.
About Mars Bank
Mars Bank, under the aegis of Mars Bancorp, Inc., manages six retail offices in Pennsylvania and loan production offices in both Pennsylvania and West Virginia. As of June 30, 2023, the bank reported assets, loans, and deposits of $520.8 million, $338.7 million, and $459.1 million respectively.