Mid Penn Bancorp to Acquire William Penn Bancorporation

Mid Penn Bancorp and William Penn Bancorporation entered into a definitive agreement and plan of merger, pursuant to which William Penn will merge with and into Mid Penn in an all-stock transaction valued at approximately $127 million, based on Mid Penn’s closing stock price as of Oct. 30, 2024. The merger has been approved unanimously by each company’s board of directors and is expected to close in H1/25. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Mid Penn and William Penn shareholders._x000D_
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“We are excited to welcome the William Penn shareholders, customers and employees to Mid Penn. As longstanding community banks headquartered in Pennsylvania, both Mid Penn and William Penn have grown to know and respect each other’s operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate,” Rory G. Ritrievi, chair, president and CEO of Mid Pann, said. “This merger will bolster Mid Penn’s presence in the attractive greater Philadelphia metro area market, aligning with our strategic plan of disciplined growth in the southeastern region of Pennsylvania and the southern region of New Jersey. Together, we look forward to joining the two companies to expand our footprint and, in turn, enhance our ability to deliver for our customers, communities and shareholders.”_x000D_
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“We are incredibly pleased to partner with Mid Penn in this strategic combination that allows our shareholders to participate in a fabulous long-term growth opportunity while also providing them with immediate value,” Kenneth J. Stephon, chairman, president and CEO of William Penn, said. “The merger enables us to accelerate our growth far more rapidly than we could as an independent company, while also creating excellent value for our shareholders, customers and employees.”_x000D_
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Stephon will join Mid Penn’s board of directors and will become the vice chairman of Mid Penn Bank._x000D_
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According to the terms of the merger agreement, shareholders of William Penn will receive 0.4260 shares of Mid Penn common stock for each share of William Penn common stock. Additionally, all options of William Penn will be rolled into Mid Penn equivalent options. Based on Mid Penn’s closing stock price of $31.88 per share as of Oct. 30, 2024, the implied transaction value is approximately $13.58 per William Penn share, or $127 million, in the aggregate. 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 Mid Penn’s key profitability and operating ratios._x000D_
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Stephens is serving as Mid Penn’s exclusive financial advisor, and Pillar + Aught is serving as its legal advisor. Keefe, Bruyette & Woods, a Stifel company, rendered a fairness opinion to Mid Penn’s board of directors. Piper Sandler is serving as William Penn’s exclusive financial advisor and rendered a fairness opinion to William Penn’s board of directors, and Kilpatrick Townsend & Stockton is serving as its legal advisor.