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William Penn Bank enters agreement to merge with two Pennsylvania mutual savings banks
December 5, 2019 / Bristol, PA – Bristol, Pa.-based Fidelity Savings and Loan Association of Bucks County and Philadelphia-based Washington Savings Bank agreed to merge with and into William Penn Bank (MHC), a unit of William Penn Bancorp Inc. (MHC).
Depositors of Fidelity and Washington, respectively, will become William Penn Bank depositors and will have the same rights and privileges in William Penn MHC, the mutual holding company parent of William Penn Bancorp, as if their accounts had been established at William Penn Bank on the date established at Fidelity and Washington, respectively.
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 anticipated to be issued in connection with the completion of the mergers, which is expected to be completed in the second calendar quarter of 2020.
William Penn Bank has $418 million in assets, Fidelity has $86 million in assets, and Washington has $159 million in assets, according to a news release. When the mergers are completed, William Penn Bank will have $663 million in assets.
William Penn Bancorp will enter Philadelphia County, Pa. with four branches, which will be ranked No. 20 with a 0.26% share of approximately $49.75 billion in total market deposits.
With the acquisition of Fidelity, William Penn Bancorp will enter Bucks County, Pa., with six branches, to be ranked No. 17 with a 1.29% share of approximately $19.19 billion in total market deposits. It will enter Camden County, N.J., with two branches, to be ranked No. 18 with a 0.76% share of approximately $11.43 billion in total market deposits; and it will enter Burlington County, N.J., with one branch, to be ranked No. 20 with a 0.19% share of approximately $11.19 billion in total market deposits.
Kenneth Stephon, current president and CEO of William Penn Bancorp and William Penn Bank, will be the president and CEO of the combined banks following the completion of the mergers.