Univest Corporation of Pennsylvania in Souderton has agreed to buy Valley Green Bank in Mount Airy, Pa.
The $2.2 billion-asset Univest will pay $76 million in stock, or $27 a share, for the $370 million-asset Valley Green. The transaction is expected to close in the first quarter of next year.
Valley Green, based in a Philadelphia suburb, has $329 million in loans, $335 million in deposits, three branches and two loan production offices.
"Valley Green Bank is a high-performing and well respected community-focused organization, which is why this merger is so exciting for Univest and our stakeholders," Jeffrey Schweitzer, Univest's president and chief executive, said in a press release Wednesday. "This is an important step in our strategic plan and we are excited for the opportunity to combine our joint expertise and introduce Univest's diversified financial solutions to the very desirable Philadelphia market."
Valley Green President and Chief Executive Jay Goldstein will become president of the Valley Green Division of Univest Bank and Trust Co. Goldstein and one other Valley Green director will join Univest's board.
The transaction is anticipated to be accretive to Univest's earnings per share in the first year of operations. The company expects to recover any tangible book value dilution in less than five years.
Griffin Financial Group and Stevens & Lee advised Univest. Keefe, Bruyette & Woods and Stradley Ronon Stevens & Young advised Valley Green.
