The an all-stock transaction valued at $27.2 million is scheduled to close in the third quarter of 2017.
HAMILTON -- First Bank will buy the four-branch Bucks County Bank in an all-stock transaction valued at $27.2 million, the companies announced Wednesday.
First Bank, which has nine branches in New Jersey and one in Bucks County, Pa., expects to close the deal in the third quarter of 2017. The boards of directors of both banks has approved the plan.
First Bank CEO Patrick Ryan, right, at a recent MIDJersey Chamber of Commerce event with Joe Ridolfi. (File photo) Bucks County Bank, which has locations in Doylestown, Warminster, Bensalem and Levittown, currently has $198 million in assets, with $179 million in loans and $145 million in deposits.
The new, 14-branch bank will have approximately $1.3 billion in assets. First Bank had $1.1 billion in assets as of December 31, 2016.
First Bank President and CEO Patrick L. Ryan said Bucks County Bank's focus on relationship lending to commercial borrowers and the demographics of the bank's market were desirable to First Bank.
"Bucks County, in which we already have a small presence, has strong income, growth, and density characteristics, and presents an attractive growth opportunity for us," Ryan said in a statement.
John Harding, President and CEO of Bucks County Bank, will join First Bank as a market president and a board member, along with one additional director from the current Bucks County Bank board.
"First Bank is an ideal partner for us," Harding said. "We have similar business models, similar relationship-lending philosophies, and a similar emphasis on community relations in our markets."
To complete the purchase, Bucks County Bank shareholders will receive 0.98 shares of First Bank common stock. First Bank expects to issue about 2.4 million new shares to fund it.
The $27.2 million value of the purchase comes from First Bank's March 28, 2017 closing price of $11.30 per share, and the actual transaction value of $11.07 per share, the announcement said.
First Bank has branches in Hamilton, Ewing and Lawrence in Mercer County, and Cranbury, Flemington, Denville, Randolph, Somerset and Williamstown, and Trevose, Pa.
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