Fidelity Savings and Loan Association of Bucks County and Washington Savings Bank are set to merge with William Penn Bancorp Inc., the holding company for William Penn Bank.
William Penn Bank is a state-chartered savings bank with its headquarters in Bristol, Bucks County The Bank serves the Delaware Valley with six branches and $418 million in assets.
Fidelity is a state-chartered savings bank also headquartered in Bristol, with one branch and $86 million in assets.
Washington is a state-chartered savings bank headquartered in Philadelphia with four branches and $159 million in assets.
When combined, William Penn Bank will be the second-largest mutual institution in Eastern Pennsylvania with 11 branches, $663 million in assets, $475 million in deposits, and equity of approximately $98 million.
Kenneth J. Stephon, current President and CEO of William Penn Bancorp and William Penn Bank, will serve as the President and CEO of the combined banks following completion of the mergers.
The mergers have been approved by all parties and are expected to be completed in the second calendar quarter of 2020. As a result of the mergers, Fidelity and Washington will be merged into William Penn Bank.
Under the terms of the merger agreements, depositors of Fidelity and Washington, respectively, will become depositors of William Penn Bank and will have the same rights and privileges in William Penn, MHC, the mutual holding company parent of the company, as if their accounts had been established at William Penn Bank on the date established at Fidelity and Washington, respectively. As part of the transactions, William Penn Bancorp will issue additional shares of its common stock to William Penn, MHC in an amount equal to the fair value of Fidelity and Washington, respectively, as determined by an independent appraiser. These shares are expected to be issued in connection with the completion of the mergers.
The mergers are subject to certain customary closing conditions, including the receipt of all required regulatory approvals.
Sandler O’Neill & Partners LP served as financial adviser to William Penn Bancorp and The Kafafian Group, Inc. served as financial adviser to both Fidelity Savings and Loan Association of Bucks County and Washington Savings Bank. Kilpatrick Townsend & Stockton LLP acted as legal counsel to William Penn Bancorp, Pillar + Aught acted as legal counsel to Fidelity Savings and Loan Association of Bucks County, and Jones Walker LLP, Washington, DC, acted as legal counsel to Washington Savings Bank.