Mid Penn Bancorp to acquire William Penn after shareholder nod

Published 02/04/2025, 22:54
Mid Penn Bancorp to acquire William Penn after shareholder nod

HARRISBURG, Pa. - Mid Penn Bancorp, Inc. (NASDAQ: MPB) and William Penn Bancorporation (NASDAQ: WMPN) announced the approval by their shareholders of Mid Penn’s proposed acquisition of William Penn. The endorsement came during special meetings held on Wednesday, where a significant majority of votes were cast in favor of the merger. Mid Penn, currently valued at $506.55 million, has demonstrated strong financial health with a P/E ratio of 9.01 and consistent dividend payments for 15 consecutive years, according to InvestingPro data.

Mid Penn President and CEO Rory G. Ritrievi expressed satisfaction with the outcome, noting that over 96% of William Penn shares and more than 98% of Mid Penn shares voted in support of the transaction. The merger is set to expand Mid Penn’s reach into the Greater Philadelphia Metro market, as well as in Southeastern Pennsylvania and Central and Southern New Jersey. Post-merger, Mid Penn is expected to have assets totaling approximately $6.3 billion. The bank’s solid financial performance, with 9.01% revenue growth and a 3.11% dividend yield, suggests strong potential for continued growth. For detailed analysis and additional insights, investors can access more than 30 key financial metrics through InvestingPro.

Currently, Mid Penn Bancorp, headquartered in Harrisburg, Pennsylvania, is the parent company of Mid Penn Bank, operating 47 retail locations with assets of about $5 billion. William Penn Bancorporation, based in Bristol, Pennsylvania, serves as the parent company of William Penn Bank, conducting business through 12 branches across Pennsylvania and New Jersey. Based on InvestingPro’s Fair Value analysis, Mid Penn currently appears fairly valued in the market, with analysts projecting continued profitability for the coming year.

The forward-looking statements in the press release indicate that the management teams of both Mid Penn and William Penn anticipate the merger to bring about opportunities and benefits, projecting a positive impact on financial performance and growth strategies. However, they also caution about the risks and uncertainties that could affect the anticipated results, such as legal proceedings, conditions of the transaction not being satisfied, integration challenges, and competitive factors in their operational regions.

As the information is based on a press release statement, it reflects the companies’ expectations and projections at the time of the announcement. The completion of the merger remains subject to customary closing conditions.

In other recent news, Mid Penn Bancorp Inc. announced the launch of a new Executive Annual Incentive Plan aimed at boosting the company’s profitability and growth. This plan, approved by the Board of Directors, is designed to align the financial interests of the executive team with the company’s performance. The plan includes annual cash and/or equity bonuses based on specific performance objectives determined by the Board’s Compensation Committee. These objectives may involve metrics such as net income, efficiency ratio, and tangible book value growth, along with qualitative factors tied to each executive’s role. Bonuses will be contingent on satisfactory performance evaluations and are set to be distributed no later than March 15th following the plan year. Equity awards will be given as restricted stock with a three-year vesting period under the company’s 2023 Stock Incentive Plan. Additionally, all awards will be subject to recovery or clawback provisions in accordance with the company’s policy or applicable laws. This incentive plan is part of Mid Penn Bancorp’s efforts to attract and retain key contributors to its success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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