Financial services firm Codorus Valley will merge with Orrstown Financial in an all-stock deal, creating a bank with $5.2 billion in assets.
The banks said on Tuesday their boards had unanimously approved the $207 million deal, under which each outstanding share of Codorus Valley common stock will be exchanged for the right to receive 0.875 shares of Orrstown common stock.
Treasury Secretary Janet Yellen said in May more mergers among midsize U.S. banks could be necessary after a series of bank failures earlier this year.
In July, Banc of California and PacWest Bancorp also said they will merge in an all-stock deal.
In the latest merger deal, Orrstown shareholders will own about 56% of the outstanding shares of the combined company and Codorus Valley shareholders will own the remaining shares.
The combined company will trade on the Nasdaq Global Select Market under the symbol “ORRF” and operate as “Orrstown Bank”.
Source: Reuters.com