PeoplesBank will merge into Orrstown Bank next year
Orrstown Financial, the parent company of Orrstown Bank, and Codorus Valley Bancorp, Inc., the parent company of PeoplesBank announced Tuesday that they have entered into a definitive agreement to merge.
PeoplesBank will merge into Orrstown, creating a Pennsylvania and Maryland community bank with approximately $5.2 billion in assets and a market capitalization of approximately $460 million.
The combined company will have 51 branches serving markets throughout a contiguous footprint in Central and Eastern Pa. and the Greater Baltimore area. Closing is expected to occur in the third quarter of 2024, according to a news release.
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“Orrstown and Codorus Valley share a similar culture, vision and deep commitment to our communities. The partnership of our companies will significantly increase our size and scale, which we believe will not only drive profitability and shareholder value but also benefit our clients, employees and communities through broader product offerings, higher lending limits, an improved customer experience, and increased career opportunities," Thomas R. Quinn, Jr., Orrstown’s President and Chief Executive Officer, said in the release.
Transaction details
Under the terms of the definitive agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of Codorus Valley common stock will be exchanged for the right to receive 0.875 shares of Orrstown common stock. As a result of the transaction, Orrstown shareholders will own approximately 56% of the outstanding shares of the combined company and Codorus Valley shareholders will own approximately 44% of the outstanding shares of the combined company.
Name, branding, headquarters and governance
The combined company will operate under the "Orrstown Financial Services, Inc." name, and the combined bank will operate under the "Orrstown Bank" name. The administrative headquarters of the combined company will be located in Harrisburg, while the operations center will be located in York.
The combined company's board of directors will consist of seven directors from Orrstown and six directors from Codorus Valley.
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This article originally appeared on York Daily Record: PeoplesBank to merge into Orrstown Bank next year
