A Bryn Mawr Bank Corporation announced an agreement to acquire Royal Bancshares of Pennsylvania, Inc., parent company of Royal Bank America in a transaction valued at $128 million.
Bryn has a banking office and wealth management operations in northern New Castle County.
The acquisition strengthens the Bryn Mawr’s position as the largest community bank in Philadelphia’s western suburbs and, based on deposits, ranks it as the eighth largest community bank headquartered in Pennsylvani, a release stated. The acquisition will also expand the corporation’s distribution network into the new markets in New Jersey and Berks County, PA.
Frank Leto, CEO of Bryn Mawr commented, “The acquisition of Royal Bank is a logical choice for Bryn Mawr Trust. With its strong lending team and prime branch locations, Royal Bank provides BMT with its first location in Center City Philadelphia, as well as a foothold in the State of New Jersey, where Royal has established a well-received presence in the Princeton market.”
Leto continued, “We are excited to be able to expand our banking presence in this thriving market, and plan to introduce our comprehensive suite of financial services which also includes wealth management and insurance. We believe these new markets will provide a tremendous growth opportunity for our merged institutions. In addition, we are pleased to announce that Kevin Tylus, Royal Bank’s President and CEO, will join our Senior Management team in order to continue to expand these relationships and to help ensure a smooth integration of the two institutions.”
Leto concluded, “BMT continues to attract customers who are frustrated with some of our larger competitors, often due to their lack of personal service, slow response time, or their inability to satisfy a more customized borrowing need. We believe that there is a real opportunity for institutions like Bryn Mawr Trust to occupy a much larger space in the banking, wealth management and insurance areas. As I’ve stated many times before, Bryn Mawr Trust is committed to the communities we serve and I firmly believe that, with the breadth of our product offerings, we are well-positioned to take advantage of every opportunity that presents itself. By joining forces with Royal Bank, we take a big step toward accomplishing this goal.”
Boenning & Scattergood, Inc. served as financial advisor to Bryn Mawr Bank Corporation and Reed Smith LLP served as legal counsel to Bryn Mawr Bank Corporation. Both Sandler O’Neill & Partners, L.P., and RBC Capital Markets, LLC served as financial advisors to Royal Bancshares of Pennsylvania, Inc., and Stevens & Lee, P.C. served as legal counsel to Royal Bancshares of Pennsylvania, Inc.
Wilmington-based WSFS has emerged as the largest bank headquartered in the Delaware Valley, acquiring smaller community institutions in the Philadelphia suburbs. Smaller banks have been seeking merger partners, due to compliance costs and stiff competition.
A few years ago, Bryn Mawr had its eyes on the Delaware market with an offer to buy MidCoast Community Bank, Wilmington. However, it pulled out of the deal after the bank and former officers were accused of questionable loan practices. The former preident of MidCoast was sentenced to two years in federal prison.
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MidCoast continues to operate as a community bank in Delaware.
