First Bank in Hamilton, New Jersey, agreed to acquire Malvern Bancorp in Paoli, Pennsylvania, a move to expand in Greater Philadelphia.
Malvern Bank has nine branches — primarily in Philadelphia suburbs across Pennsylvania and New Jersey. The $1 billion-asset bank has deposits of about $785 million and loans of $816 million.
Should the $149.5 million deal close as planned in the second quarter of 2023, First Bank would have nearly $3.7 billion of assets and 27 branches in seven New Jersey counties, three eastern Pennsylvania counties and one in Florida. The bank is in the midst of deepening its presence across the corridor that stretches from Philadelphia to New York City.
"This strategic transaction expands our market position and deposit share in eastern Pennsylvania, while complementing our strong organic growth strategy," Patrick Ryan, president and CEO of First Bank, said in a release press Wednesday.
"This merger is another example of what we believe are high-quality and low-risk transactions we are using to build size and scale, solidify our market position and expand our service area," Ryan added.
First Bank has closed four bank acquisitions in the past decade. Most recently, it
The acquisition of Malvern would easily be First Bank's largest acquisition, according to S&P Global data. The deal value is nearly five times greater than First Bank's biggest closed transaction, the roughly
Ryan said he expects the Malvern transaction "will be significantly and immediately accretive to First Bank's earnings per share and that the earn back on tangible book dilution to be under two and a half years."
He added, "First Bank's regulatory capital levels will remain strong, enabling us to continue to evaluate all appropriate growth opportunities."
Hovde Group acted as financial advisor to First Bank, and Piper Sandler performed the same role for Malvern. Luse Gorman provided legal counsel to First Bank, and Holland & Knight provided legal advice to Malvern.
