Bryn Mawr Bank Corp. has received final regulatory approval to acquire neighboring Royal Bancshares of Pennsylvania, CEO Frank Leto said, setting up the soon-to-be combined company to make changes to its physical footprint along the Main Line and its staff.
The Federal Reserve signed off on the transaction, priced at almost $128 million when announced in January, on Thursday afternoon and the deal will close later this month, writes Jeff Blumenthal for Philadelphia Business Journal.
Based on third quarter data, the deal is estimated to add $595 million in loans and $627 million in deposits, strengthen Bryn Mawr’s position as the largest community bank in Philadelphia’s western suburbs and expand the bank’s distribution network into Philadelphia and New Jersey. Royal (Nasdaq: RBPAA) has $809 million in assets, compared to Bryn Mawr’s $3.47 billion, so the transaction will move Bryn Mawr over the $4 billion asset threshold.
Leto said systems conversion would take place in February.
Bryn Mawr (Nasdaq: BMTC), parent to Bryn Mawr Trust Co., told investors when the deal was announced that the acquisition would include cost saves of roughly 40 percent. Those usually focus on duplicative employees and branches.
Leto said three branches will be consolidated — Royal’s locations in Villanova and Reading and Bryn Mawr’s in King of Prussia. Royal’s corporate headquarters in Bala Cynwyd will also be closed, but Leto said Bryn Mawr plans to keep Royal’s former headquarters on Montgomery Avenue in Narberth — which includes a retail branch on the bottom floor and two floors of executive office space.
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