Mid Penn to acquire 1st Colonial in $101 million deal

HARRISBURG/MOUNT LAUREL - Mid Penn Bancorp, Inc. (NASDAQ:MPB), a financial institution with a market capitalization of $692 million and a "GOOD" financial health rating according to InvestingPro, announced Wednesday it will acquire 1st Colonial Bancorp, Inc. (OTCPK:FCOB) in a cash and stock transaction valued at approximately $101 million, expanding its presence in the greater Philadelphia metropolitan area.

Under the agreement, which has been unanimously approved by both companies’ boards, 60% of 1st Colonial shares will be converted into Mid Penn common stock, while the remaining 40% will be exchanged for cash. Shareholders can elect to receive either 0.6945 shares of Mid Penn common stock or $18.50 in cash for each 1st Colonial share, subject to proration. Mid Penn, currently trading at a P/E ratio of 13.07 and showing strong revenue growth of 13.34% in the last twelve months, appears positioned for continued expansion.

The transaction values 1st Colonial at approximately $20.03 per share based on Mid Penn’s closing stock price on September 23, 2025. The acquisition is expected to close in late first quarter or early second quarter of 2026, pending regulatory approvals and 1st Colonial shareholder approval.

Following the merger, one 1st Colonial director will join Mid Penn’s board, and 1st Colonial’s President and CEO Robert B. White will become Senior Executive Vice President and Greater Philadelphia Metro Area Market President at Mid Penn Bank.

The combined entity will have approximately $7.2 billion in total assets, $6.2 billion in total deposits, and $5.4 billion in gross loans, based on June 30, 2025 financial data. The transaction is expected to be immediately accretive to Mid Penn’s earnings per share.

"This merger brings together two institutions with a deep understanding of our customers’ needs, a shared commitment to our communities, and a focus on shareholder return," said Mid Penn Chair, President and CEO Rory G. Ritrievi in the press release statement.

Founded in 2000, 1st Colonial operates three branch locations and one loan production office in the greater Philadelphia area with approximately $877 million in total assets as of June 30, 2025. Mid Penn, known for its high shareholder yield and 15-year track record of consistent dividend payments according to InvestingPro analysis, continues to demonstrate strong market presence. Discover more insights and 4 additional ProTips about Mid Penn’s performance with an InvestingPro subscription.

In other recent news, Mid Penn Bancorp announced modifications to its executive retirement and change in control agreements. The company, along with its main operating subsidiary, Mid Penn Bank, has updated the supplemental executive retirement plan agreements for executives Justin Webb, Scott Micklewright, and Jordan Space. According to a filing with the Securities and Exchange Commission, each executive will receive an annual normal retirement benefit of $125,000. Notably, for Webb and Micklewright, this benefit will increase by 2.0% each year after full vesting until the benefit is fully paid. The vesting schedule for the executives remains unchanged. These developments are part of the company’s recent strategic adjustments in executive compensation.

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