Mid Penn Bancorp, Inc. (NASDAQ: MPB) (“Mid Penn”) and William
Penn Bancorporation (“William Penn”) (NASDAQ: WMPN) jointly
announced today that they have entered into a definitive agreement
and plan of merger, pursuant to which William Penn will merge with
and into Mid Penn (the “Merger”) in an all-stock transaction valued
at approximately $127 million, based on Mid Penn’s closing stock
price as of October 30, 2024. The Merger has been approved
unanimously by each company’s board of directors and is expected to
close in the first half of 2025. Completion of the transaction is
subject to customary closing conditions, including the receipt of
required regulatory approvals and the approval of Mid Penn and
William Penn shareholders.
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Headquartered in Bristol, Pennsylvania, William Penn operates 12
branches across Pennsylvania and New Jersey. As of September 30,
2024, William Penn had approximately $812 million in total assets,
$465 million in total loans and $630 million in total deposits. The
Merger will create a powerful combined community banking franchise
with approximately $6.3 billion in total assets, $4.9 billion in
total loans and $5.3 billion in total deposits, based on financial
data as of September 30, 2024.
“We are excited to welcome the William Penn shareholders,
customers and employees to Mid Penn. As longstanding community
banks headquartered in Pennsylvania, both Mid Penn and William Penn
have grown to know and respect each other’s operating philosophy,
dedication to providing best-in-class customer service and
commitment to the communities in which we operate,” Mid Penn Chair,
President, and Chief Executive Officer, Rory G. Ritrievi said.
“This merger will bolster Mid Penn’s presence in the attractive
greater Philadelphia metro area market, aligning with our strategic
plan of disciplined growth in the southeastern region of
Pennsylvania and the southern region of New Jersey. Together, we
look forward to joining the two companies to expand our footprint
and, in turn, enhance our ability to deliver for our customers,
communities and shareholders.”
William Penn Chairman, President and Chief Executive Officer,
Kenneth J. Stephon, said, “We are incredibly pleased to partner
with Mid Penn in this strategic combination that allows our
shareholders to participate in a fabulous long-term growth
opportunity while also providing them with immediate value. The
merger enables us to accelerate our growth far more rapidly than we
could as an independent company, while also creating excellent
value for our shareholders, customers, and employees.” Mr. Stephon
will join Mid Penn’s Board of Directors and will become the Vice
Chairman of Mid Penn Bank.
According to the terms of the merger agreement, shareholders of
William Penn will receive 0.4260 shares of Mid Penn common stock
for each share of William Penn common stock. Additionally, all
options of William Penn will be rolled into Mid Penn equivalent
options. Based on Mid Penn’s closing stock price of $31.88 per
share as of October 30, 2024, the implied transaction value is
approximately $13.58 per William Penn share, or $127 million, in
the aggregate. The merger is expected to be immediately accretive
to Mid Penn’s estimated earnings per share and to have a positive
long-term impact on Mid Penn’s key profitability and operating
ratios.
Stephens Inc. is serving as Mid Penn’s exclusive financial
advisor, and Pillar + Aught is serving as its legal advisor. Keefe,
Bruyette & Woods, A Stifel Company, rendered a fairness opinion
to Mid Penn’s board of directors. Piper Sandler & Co. is
serving as William Penn’s exclusive financial advisor and rendered
a fairness opinion to William Penn’s board of directors, and
Kilpatrick Townsend & Stockton LLP is serving as its legal
advisor.
ABOUT MID PENN BANCORP, INC.:
Mid Penn Bancorp Inc. (NASDAQ: MPB), headquartered in
Harrisburg, Pennsylvania, is the parent company of Mid Penn Bank, a
full-service commercial bank. Mid Penn operates 45 retail locations
throughout Pennsylvania and central New Jersey, has total assets of
approximately $5 billion, and offers a comprehensive portfolio of
financial products and services to the communities it serves. To
learn more, please visit www.midpennbank.com.
ABOUT WILLIAM PENN BANCORPORATION:
William Penn Bancorporation (NASDAQ: WMPN), headquartered in
Bristol, Pennsylvania, is the parent company of William Penn Bank
and provides community banking services to individuals and small-
to medium-sized businesses in the Delaware Valley area. William
Penn currently conducts business through 12 branch offices located
in Pennsylvania and New Jersey.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to,
expectations or predictions of future financial or business
performance, conditions relating to Mid Penn and William Penn, or
other effects of the proposed Merger of Mid Penn and William Penn.
Forward-looking statements are typically identified by words such
as “believe,” “approximately,” “expect,” “anticipate,” “intend,”
“target,” “estimate,” “continue,” “positions,” “prospects” or
“potential,” by future conditional verbs such as “will,” “would,”
“should,” “could” or “may,” or by variations of such words or by
similar expressions. These forward-looking statements may include
the expectations relating to the anticipated opportunities and
financial and other benefits for the proposed Merger between Mid
Penn and William Penn, and the projections of, or guidance on, Mid
Penn’s or the combined company’s future financial performance,
asset quality, liquidity, capital levels, expected levels of future
expenses, including future credit losses, anticipated growth
strategies, descriptions of new business initiatives and
anticipated trends in Mid Penn’s business or financial results. Mid
Penn and William Penn are subject to numerous assumptions, risks
and uncertainties, which change over time. Forward-looking
statements are made only as of the date of this press release, and
neither Mid Penn nor William Penn undertakes any obligation to
update any forward-looking statements contained in this
presentation to reflect events or conditions after the date hereof.
Actual results may differ materially from those described in any
such forward-looking statements.
In addition to factors previously disclosed in the reports filed
by Mid Penn and William Penn with the SEC and those identified
elsewhere in this document, the following factors, among others,
could cause actual results to differ materially from forward
looking statements or historical performance: the occurrence of any
event, change or other circumstances that could give rise to the
right of one or both of the parties to terminate the Merger
Agreement entered into between Mid Penn and William Penn; the
ability to obtain regulatory approvals and satisfy other closing
conditions to the Merger, including approval by shareholders of Mid
Penn and William Penn; the outcome of any legal proceedings that
may be instituted against Mid Penn or William Penn; the possibility
that the Merger may be more expensive to complete than anticipated;
diversion of management’s attention from ongoing business
operations and opportunities; potential adverse reactions or
changes to business or employee relationships, including those
resulting from the announcement or completion of the Merger;
changes in Mid Penn’s share price before the closing of the Merger;
risks relating to the potential dilutive effect of shares of Mid
Penn company stock to be issued in the Merger; the timing of
closing the Merger; difficulties and delays in integrating the
business or fully realizing cost savings and other benefits;
changes in asset quality and credit risk; the inability to sustain
revenue and earnings growth; changes in interest rates and capital
markets; inflation; customer acceptance of products and services;
customer borrowing, repayment, investment and deposit practices;
competitive conditions; economic conditions, including downturns in
the local, regional or national economies; the impact, extent and
timing of technological changes; changes in accounting policies or
practices; changes in laws and regulations; other actions of the
Federal Reserve Board and other legislative and regulatory actions
and reforms; and any other factors that may affect future results
of Mid Penn, William Penn and the combined company.
Important Additional Information About the Merger and Where
to Find It
The proposed Merger transaction will be submitted to the
shareholders of William Penn and Mid Penn for their consideration
and approval. In connection with the proposed Merger transaction,
Mid Penn will be filing with the SEC a registration statement on
Form S-4, which will include a joint proxy statement of Mid Penn
and William Penn and a prospectus of Mid Penn and other relevant
documents concerning the proposed transaction. INVESTORS AND
SHAREHOLDERS OF MID PENN AND WILLIAM PENN ARE URGED TO READ THE
REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS
REGARDING THE TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Investors will be able to obtain a free copy of the
joint proxy statement/prospectus, as well as other filings
containing information about Mid Penn and William Penn, free of
charge from the SEC’s Internet site (www.sec.gov). Copies of the
joint proxy statement/prospectus and the filings with the SEC that
will be incorporated by reference in the joint proxy
statement/prospectus can also be obtained, free of charge, or by
contacting Mid Penn Bancorp, Inc., 2407 Park Drive, Harrisburg,
Pennsylvania, 17110, attention: Investor Relations (telephone (866)
642-7736); or William Penn Bancorporation, 10 Canal Street, Suite
104, Bristol, Pennsylvania 19007, attention: Kenneth J. Stephon,
President and CEO (telephone (267) 540-8500).
No Offer or Solicitation
This communication not a proxy statement or solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed Merger and shall not constitute an offer
to sell or a solicitation of an offer to buy any securities nor
shall there be any sale of securities in any state or jurisdiction
in which such offer, solicitation, or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
Participants in the Solicitation
Mid Penn, William Penn and their respective directors, executive
officers, and certain other members of management and employees may
be deemed to be participants in the solicitation of proxies from
Mid Penn and/or William Penn shareholders in connection with the
proposed Merger transaction under the rules of the SEC. Information
regarding the directors and executive officers of Mid Penn and
William Penn is available in each company’s respective most recent
definitive proxy statement filed with the SEC and other documents
filed by Mid Penn and William Penn with the SEC. Other information
regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the joint proxy
statement/prospectus and other relevant materials filed with the
SEC, which may be obtained free of charge as described under the
heading “Important Additional Information About the Merger and
Where to Find It.”
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version on businesswire.com: https://www.businesswire.com/news/home/20241101796006/en/
Rory G. Ritrievi Chair, President and CEO Mid Penn Bancorp, Inc.
866-642-7736
Mid Penn Bancorp (NASDAQ:MPB)
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