WSFS Bank plans to boost its presence in suburban Philadelphia with the $92 million cash and stock acquisition of Alliance Bancorp of Pennsylvania.
WSFS Financial Corporation and Alliance Bancorp, Inc. Tuesday announced the signing of a merger agreement.
Alliance Bank, the wholly owned bank subsidiary of Alliance Bancorp, Inc. will merge into WSFS Financial Corporation’s wholly owned bank subsidiary, WSFS Bank.
Headquartered in Broomall, PA, Alliance Bank opened in 1938. It offers banking services in Delaware County and neighboring Chester County.
Alliance Bank reported about $421 million in assets, $310 million in loans and $345 million in deposits as of December 31, 2014 and serves its customers from eight branch locations. Following the merger, WSFS will have 17 locations in southeastern Pennsylvania, including 11 in Delaware County.
WSFS President and Chief Executive Officer, Mark A. Turner said, “We are pleased to announce our partnership with Alliance Bank, our fourth acquisition in recent years and our largest to date. Alliance’s eight locations and over three-quarters of a century heritage in southeastern Pennsylvania are a great complement to our branch network and add important relationships to our banking franchise. We believe we have aligned ourselves with a terrific partner in Alliance Bank, as they also share an extraordinary commitment to customers, communities and associates. Southeastern Pennsylvania is a highly desirable and complementary market expansion opportunity for our franchise and we look forward to further expanding our presence in the market.”
The transaction is valued at approximately $92.0 million. Under the terms of the agreement, which has been approved by the boards of directors of both companies, shareholders of Alliance Bancorp, Inc. of Pennsylvania will be entitled to elect to receive either 0.28955 shares of WSFS common stock or $22.00 in cash for each common share of Alliance Bancorp, Inc. of Pennsylvania, subject to an overall allocation of exchanged shares into 70 percent common stock and 30 percent cash. The closing is anticipated to occur during the fourth quarter of 2015, subject to approval by Alliance Bancorp, Inc. of Pennsylvania shareholders, regulatory approvals and other customary closing conditions.
WSFS expects to incur pre-tax merger and integration costs of approximately $9.3 million
The acquisition is expected to add to WSFS earnings per share in the first year of combined operations, excluding one-time costs.
Dennis D. Cirucci, President and Chief Executive Officer of Alliance Bancorp, Inc. of Pennsylvania said, “I am proud of the organization and relationships our team has built over the last 77 years. We are pleased to partner with WSFS, the largest and oldest bank and trust company headquartered in the Delaware Valley. Their significant presence in Delaware and southeastern Pennsylvania as well as their expanded wealth and commercial product offerings will benefit our community, customers and employees. Our team is delighted to be joining WSFS and we look forward to working together and building additional value for our combined shareholders.”
WSFS operates dozens of offices in all three counties of Delaware and is now one of the three largest full-service banks in Delaware. Last year, it acquired the First National Bank of Wyoming in Kent County, DE.
