NexTier, the holding company of NexTier Bank, and Mars Bancorp, the holding company of Mars Bank, entered into a definitive agreement whereby NexTier will acquire Mars. The proposed transaction will result in Western Pennsylvania’s premier, locally owned and managed community bank having total assets in excess of $2.6 billion. Upon consummation of the proposed transaction, Mars Bank will be merged with and into NexTier Bank, with the combined company and branch locations operating under the NexTier Bank brand. Clem Rosenberger, nextier’s president and CEO, will lead the combined institution, and Jim Dionise, Mars’ president and CEO, will join the NexTier Bank board of directors upon the consummation of the merger.
With 27 branches and $2.1 billion in assets as of June 30, 2023, NexTier Bank brings a strong commercial business, treasury management and relationship building focus, along with its community-based culture to the combined bank. “We believe the merger with Mars Bank provides NexTier the opportunity to provide additional banking services to Western Pennsylvania’s businesses, retail customers, non-profit organizations, school districts and local government entities. We are especially excited to expand our services into Mercer County. We will continue to provide the level of relationship-focused service and community involvement that both organizations have historically succeeded in,” Rosenberger said. “We look forward to our partnership with Mars Bank as we combine our two organizations.”
Mars Bank holds $520.8 million in assets as of June 30, 2023 and brings strong capability in retail, mortgage and commercial lending along with digital acquisition. “This merger ensures our customers will continue to receive access to the products, services, and technology they need, while maintaining the relationship-driven, hands-on service they’ve come to expect,” Dionise said.
Under the terms of the merger agreement, shareholders of Mars will receive cash consideration of $20.00 for each share of Mars common stock owned. The agreement was unanimously approved by the Boards of Directors of NexTier and Mars. The transaction is expected to close in the first quarter of 2024, following receipt of approvals from regulatory authorities, the approval of Mars’ shareholders and the satisfaction of other customary closing conditions.
Janney Montgomery Scott served as financial advisor and Alston & Bird served as legal counsel to NexTier. D.A. Davidson & Co. served as financial advisor and Silver, Freedman, Taff & Tiernan served as legal counsel to Mars.
