PENNSYLVANIA (WHTM) — Mid Penn Bancorp (Mid Penn) recently announced on Dec. 20 that they signed a definitive merger agreement with Brunswick Bancorp (Brunswick) – an acquisition that is valued at approximately $53.9 million.
The newly signed merger agreement was unanimously approved by both boards of directors, according to Mid Penn. As per the terms of the agreement, Brunswick is set to convert 50% of its common shares into Mid Penn common stock – the other 50% of shares will then be exchanged for cash.
Shareholders of Brunswick stock will have two options moving forward – they may elect to receive 0.598 shares of Mid Penn per share of Brunswick, or shareholders may elect to be paid out $18 in cash for each share of Brunswick that they own. According to Mid Penn, the receipt of Mid Penn common stock by current shareholders of Brunswick is expected to be tax-free, as a result of the transaction qualifying as a reorganization for federal income tax purposes.
The merger is expected to be closed in the second quarter of 2023. According to Mid Penn, they are prepared to add five new financial centers across two counties in New Jersey, upon the completed transaction.
Following the official closing of the deal, Brunswick will be merged with and into Mid Penn.
“We are enthusiastic to partner with Brunswick as our first formal step into the dynamic central New Jersey community,” Mid Penn Chair, President and CEO Rory G. Ritrievi said. “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 look forward to providing the strength of our balance sheet and our own relationship-building expertise in enhancing and expanding upon their success.”
According to Mid Penn, Brunswick Bancorp was founded in 1902, and is a holding company for Brunswick Bank & Trust out of New Jersey. Brunswick had $381.6 million in assets as of Sep. 30, 2022.
Mid Penn Bancorp, formerly known as the Millersburg Trust Company, was founded in 1868. According to their website, the bank was originally headquartered in Millersburg , Pa. and later relocated to Harrisburg, where they currently reside.
According to their website, Mid Penn Bancorp is known for offering many services, such as:
- Checking and savings accounts
- Home equity loans
- Lines of credit
- Trust and wealth management services
- Credit cards
To learn more about Mid Penn’s services and history, you may visit www.midpennbank.com