Citizens Financial Services in Mansfield, Pa., has agreed to buy MidCoast Community Bancorp in Wilmington, Del.
The $1.5 billion-asset Citizens said in a press release Wednesday that it will pay $31 million in cash and stock for the $269 million-asset MidCoast. The deal is expected to close in the first quarter.
The acquisition will allow Citizens to enter northern Delaware, where MidCoast has three branches.
"This acquisition allows us to leverage our existing products, services and expertise in an attractive market while adding a very talented banking team,” Randall Black, Citizens' president and CEO, said in the release.
Citizens said it plans to cut about a third of MidCoast’s annual noninterest expenses.
Citizens said it will create a corporate advisory board to serve MidCoast’s markets. It will invite a majority of MidCoast's directors to serve on the advisory board.
Janney Montgomery Scott and Luse Gorman advised Citizens. Boenning & Scattergood and Barley Snyder advised MidCoast.
