Mid Penn Bancorp, Inc. (NASDAQ: MPB) and 1st Colonial Bancorp, Inc. (OTCPK: FCOB) have announced their definitive agreement for Mid Penn to acquire 1st Colonial in a cash and stock transaction valued at approximately $101 million. As of June 30, 2025, 1st Colonial had approximately $877 million in total assets, $743 million in total deposits, and $640 million in total loans. Once the transaction is completed, the combined company will have pro forma total assets of more than $7.2 billion, total deposits of approximately $6.2 billion, and gross loans of more than $5.4 billion.
Under the terms of the merger agreement, 60% of 1st Colonial common shares will be converted into Mid Penn common stock while the remaining 40% will be exchanged for cash. This values the transaction at approximately $20.03 per 1st Colonial common share, based on Mid Penn's closing stock price on September 23, 2025, and the 60% stock and 40% cash consideration mix. Following the completion of the transaction, 1st Colonial shareholders are projected to receive a quarterly cash dividend equal to approximately $0.14 per 1st Colonial share of common stock exchanged for Mid Penn stock, based on Mid Penn's current quarterly dividend of $0.20 per share of common stock.
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 its key profitability and operating ratios. After the completion of the merger, 1st Colonial shareholders will own approximately 8% of Mid Penn's outstanding shares of common stock.
Keefe, Bruyette & Woods, a Stifel company, is acting as the exclusive financial advisor to Mid Penn, while Holland & Knight LLP is serving as its legal advisor in the transaction. Stephens Inc. is acting as the exclusive financial advisor to 1st Colonial and has rendered a fairness opinion to 1st Colonial, and Stradley Ronon Stevens & Young, LLP is acting as its legal advisor in the transaction.
Mid Penn Bancorp, Inc., headquartered in Harrisburg, Pennsylvania, operates 59 retail locations throughout Pennsylvania and central and southern New Jersey, with a comprehensive portfolio of financial products and services. As of June 30, 2025, Mid Penn had total assets of approximately $6.4 billion.
1st Colonial Bancorp, Inc. is a Pennsylvania corporation headquartered in Mount Laurel, New Jersey, and the parent company of 1st Colonial Community Bank. The bank provides a range of business and consumer financial services, with branches in Westville, New Jersey, and Limerick, Pennsylvania.
The transaction is expected to close late in the first quarter or early in the second quarter of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by 1st Colonial shareholders. Following these announcements, the company's shares moved -0.69%, and are now trading at a price of $30.10. For the full picture, make sure to review MID PENN BANCORP INC's 8-K report.
