Citizens Financial Services Inc (CZFS), the holding company for First Citizens Community Bank, and HV Bancorp Inc (HVBC), the holding company for Huntingdon Valley Bank, said on Wednesday that they had entered into a definitive agreement under which HVBC will merge with CZFS.
Under the agreement, HV Bancorp’s shareholders will have the right to elect to receive for every share of HVBC common stock either $30.50 in cash or 0.400 shares of CZFS common stock.
The deal is expected to be finalized during the first half of 2023, subject to regulatory approval, approval by HVBC shareholders and other customary closing conditions.
“We are pleased to announce the strategic combination of FCCB (First Citizens Community Bank) and Huntingdon Valley Bank. Our complementary business models and shared values make this partnership a natural fit,” Randall Black, President and Chief Executive Officer of Citizens Financial Services Inc, said in a press release.
“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. From a broader perspective, together with the Huntingdon Valley team, we will leverage our combined strength to focus on a greater future.”
As of June 30th, HV Bancorp Inc had about $570.6 million in total assets, $388.3 million in net loans and $481.5 million in deposits.
Based on financial metrics as of June 30th, the combined entity is expected to have more than $2.78 billion in total assets, $1.96 billion in gross loans and $2.36 billion in deposits when the transaction is completed.
Janney Montgomery Scott LLC served as financial advisor to Citizens Financial Services Inc and Hogan Lovells US LLP acted as its legal counsel.
The Kafafian Group Inc served as financial advisor to HV Bancorp Inc and Luse Gorman PC provided legal advice.