Financials Company First Bank Announces Merger With Malvern Bancorp
First Bank (NASDAQ:FRBA) has announced a merger with Malvern Bancorp (NASDAQ:MLVF) that is expected to be completed in Q2 of 2023.
Under the terms of the agreement, First Bank has agreed to give Malvern Bancorp $149.50 million in cash & stock in exchange for MLVF stock.
About The Companies Involved
First Bank is a full-service commercial bank, with an emphasis on providing personal and business financial services to individuals and small to mid-sized businesses in Gloucester, Atlantic and Camden Counties in New Jersey. The Bank provides its customers with a variety of financial services targeting all segments of the retail and corporate market.
Malvern Bancorp Inc owns Malvern Federal Savings Bank, which operates several financial centers as well as an online banking site. The company provides checking and savings accounts, and in turn issues loans for commercial and residential real estate projects.
How A Merger Works
A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.
Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
This article was generated by Benzinga's automated content engine and reviewed by an editor.