Orrstown Monetary Companies in Shippensburg, Pennsylvania, stated it could purchase in-state rival
Billed as a
The deal would create a $5.2 billion-asset financial institution with 51 branches spanning central and jap Pennsylvania in addition to the Higher Baltimore space in Maryland. The 2 banks’ territories overlap and the merger would deepen Orrstown Monetary’s presence in its current footprint, together with Baltimore and central Maryland.
The mixed firm and financial institution would function beneath the Orrstown identify. Its administrative headquarters could be positioned in Harrisburg, Pennsylvania, with an operations heart in York.
Thomas Quinn Jr., president and CEO of Orrstown Monetary, would turn out to be president and CEO of the mixed firm and financial institution. He touted the deal as an environment friendly strategy to achieve substantial heft wanted to compete with bigger banks for purchasers and expertise.
“The partnership of our corporations will considerably improve our dimension and scale, which we consider is not going to solely drive profitability and shareholder worth but in addition profit our shoppers, workers and communities by means of broader product choices, larger lending limits, an improved buyer expertise, and elevated profession alternatives,” Quinn stated within the launch.
Hypothesis of a possible Codorus Valley sale dates to 2021, when activist investor Driver Administration in New York referred to as on the banking firm to
Codorus Valley’s origins date to 1864, when its banking unit first opened as First Nationwide Financial institution of Glen Rock. It adopted the PeoplesBank moniker in 1997.
Craig Kauffman, president and CEO of Codorus Valley, would assume the function of chief working officer of the mixed firm. Kauffman could be in line to succeed Quinn upon his deliberate retirement in mid-2025.
“This union marks a major milestone in our dedication to offering enhanced monetary providers to our valued shoppers. Collectively, we’re poised to create a stronger, extra resilient establishment that can harness the synergies of our mixed experience and sources,” Kauffman stated within the launch. “This merger is a testomony to our dedication to innovation, consumer satisfaction, neighborhood engagement and long-term progress within the dynamic panorama of the monetary trade.”
Neil Kalani, chief monetary officer of Orrstown Monetary, would turn out to be CFO of the mixed firm.
The board of the merged firm would include seven administrators from Orrstown Monetary and 6 from Codorus Valley. Joel Zullinger, chairman of Orrstown Monetary, would turn out to be chairman, whereas J. Rodney Messick, chairman of Codorus Valley, would function vice chairman following the merger.
Raymond James acted as monetary adviser to Orrstown Monetary. Goodwin Procter served as authorized counsel. Keefe Bruyette & Woods acted as monetary adviser to Codorus Valley. Holland & Knight served as authorized counsel.