Covenant Financial, which is headquartered in Doylestown and has a branch in Paoli, completed its merger with Wellsboro-based Citizens & Northern Corporation on July 1.
The two parties previously announced the execution of an agreement and plan of merger on Dec. 18, 2019. Under the agreement, Covenant merged with and into C&N, and Covenant’s bank subsidiary, Covenant Bank, merged into C&N’s bank subsidiary, Citizens & Northern Bank.
Citizens & Northern Bank now operates 29 banking offices located in Bradford, Bucks, Cameron, Chester, Lycoming, McKean, Potter, Sullivan, and Tioga counties in Pennsylvania and Steuben County in New York, as well as loan production offices in Warminster and York and Elmira, N.Y.
With the addition of Covenant, C&N is projected to have assets of approximately $2.3 billion.
“We are pleased to start the second half of 2020 by welcoming the shareholders, customers, and employees of Covenant Bank to our C&N family,” said Brad Scovill, C&N’s President and CEO. “Covenant’s deep roots in Bucks and Chester counties and its relationship-based, community-focused culture aligns well with C&N’s mission and values. Combining Covenant with our recent acquisition of Monument Bank last year strengthens our position to create value for customers and communities in the attractive and growing southeastern Pennsylvania markets.”
Upon completion of the acquisition of Covenant, the former Covenant shareholders became entitled to receive either (i) $16.50 in cash without interest or (ii) 0.6212 shares of C&N common stock, together with cash in lieu of fractional shares of C&N common stock, for each outstanding share of Covenant common stock. Based on the $20.65-per-share closing price of C&N common stock on June 30, 2020, the total transaction value for the Covenant transaction was approximately $63.9 million (including options).
Effective as of the completion of the Covenant transaction, Covenant directors Stephen M. Dorwart and Robert G. Loughery were appointed to the boards of directors of C&N and Citizens & Northern Bank.
Blair T. Rush, Covenant’s President/Chief Operating Officer, and Kelley A. Cwiklinski, Covenant’s Chief Lending Officer, will join the C&N southeast regional leadership team as Executive Vice President/Region President and Senior Vice President/Regional Commercial Lending Executive, respectively.
Click here to learn more about Covenant Bank.
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