We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WSFS Financial (WSFS) to Buy Bryn Mawr Bank (BMTC) for $976.4M
Read MoreHide Full Article
With an aim to further solidify its position in the Greater Philadelphia and Delaware regions, WSFS Financial Corporation (WSFS - Free Report) has inked a deal to acquire Bryn Mawr Bank Corporation . The all-stock deal, expected to close early in the fourth quarter of 2021, is valued at $976.4 million.
Since the announcement of the transaction last week, shares of WSFS Financial have declined 2.5%, while that of Bryn Mawr Bank has jumped 11.8%.
WSFS Financial’s management believes that the deal will not only strengthen its market share, but is likely to improve balance sheet position, in turn, helping it compete with large regional and national banks.
The deal has been already approved by the board of directors of both the companies. It still requires consents from regulators and both companies’ shareholders.
Rodger Levenson, WSFS Financial’s Chairman, President and CEO said, “Combining with Bryn Mawr allows us to accelerate our long-term strategic objectives, including scale to continue to invest in our delivery and talent transformations. This combination also creates the premier wealth management and trust business in the region and the sixth largest bank-affiliated wealth management and trust business nationwide under $100 billion in assets.”
Transaction Details
Under the terms of the deal, shareholders of Bryn Mawr Bank will get 0.90 of share of WSFS Financial common stock for each share of Bryn Mawr Bank. This will result in approximately 27% ownership of Bryn Mawr Bank shareholders in the combined company.
Following the closure, Frank Leto, President and CEO of Bryn Mawr Bank, will join the boards of directors of WSFS Financial along with two mutually agreed upon current directors of Bryn Mawr Bank’s board.
Synergies & Other Financial Benefits
WSFS Financial expects the acquisition of Bryn Mawr Bank to be 6.7% accretive to earnings (excluding the one-time merger and restructuring costs) in 2022 and 13.4% in 2023. Further, the deal is likely to lead to significant revenue synergies, which has not been included in the transaction model.
The transaction will result in one-time merger-related costs of $127 million. Also, WSFS Financial projects nearly $73 million of annual cost savings, with 65% to be realized by next year and 100% in 2023.
Additionally, the transaction will result in 30% reduction in total branch count mainly owing to “geographic overlap and optimization opportunities within the network.”
The combined company will have $20 billion in assets, $12.6 billion in net loans, $16.2 billion in total deposits and roughly $43 billion in Wealth Management business based on Dec 31, 2020-data.
Conclusion
Over the years, WSFS Financial has grown meaningfully through acquisitions. Specifically, since 2010, the company has acquired eight banks, which has substantially strengthened its position in the regional market and improved financials.
Over the past six months, shares of WSFS Financial and Bryn Mawr Bank have jumped 87.6% and 76.4%, respectively.
Since the beginning of 2021, many small and large banks have announced acquisition deals amid tough operating backdrop owing to the coronavirus pandemic. Some of these are Shore Bancshares, Inc. (SHBI - Free Report) and M&T Bank Corporation (MTB - Free Report) .
Earlier this month, Shore Bancshares announced the signing of a definitive merger agreement with Severn Bancorp, Inc. The stock and cash deal worth $146 million, is expected to close in the third quarter of 2021, subject to necessary approvals.
Last month, M&T Bank agreed to acquire People’s United Financial Inc. in an all-stock merger deal worth $7.6 billion. The transaction is expected to close in the fourth quarter of 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
WSFS Financial (WSFS) to Buy Bryn Mawr Bank (BMTC) for $976.4M
With an aim to further solidify its position in the Greater Philadelphia and Delaware regions, WSFS Financial Corporation (WSFS - Free Report) has inked a deal to acquire Bryn Mawr Bank Corporation . The all-stock deal, expected to close early in the fourth quarter of 2021, is valued at $976.4 million.
Since the announcement of the transaction last week, shares of WSFS Financial have declined 2.5%, while that of Bryn Mawr Bank has jumped 11.8%.
WSFS Financial’s management believes that the deal will not only strengthen its market share, but is likely to improve balance sheet position, in turn, helping it compete with large regional and national banks.
The deal has been already approved by the board of directors of both the companies. It still requires consents from regulators and both companies’ shareholders.
Rodger Levenson, WSFS Financial’s Chairman, President and CEO said, “Combining with Bryn Mawr allows us to accelerate our long-term strategic objectives, including scale to continue to invest in our delivery and talent transformations. This combination also creates the premier wealth management and trust business in the region and the sixth largest bank-affiliated wealth management and trust business nationwide under $100 billion in assets.”
Transaction Details
Under the terms of the deal, shareholders of Bryn Mawr Bank will get 0.90 of share of WSFS Financial common stock for each share of Bryn Mawr Bank. This will result in approximately 27% ownership of Bryn Mawr Bank shareholders in the combined company.
Following the closure, Frank Leto, President and CEO of Bryn Mawr Bank, will join the boards of directors of WSFS Financial along with two mutually agreed upon current directors of Bryn Mawr Bank’s board.
Synergies & Other Financial Benefits
WSFS Financial expects the acquisition of Bryn Mawr Bank to be 6.7% accretive to earnings (excluding the one-time merger and restructuring costs) in 2022 and 13.4% in 2023. Further, the deal is likely to lead to significant revenue synergies, which has not been included in the transaction model.
The transaction will result in one-time merger-related costs of $127 million. Also, WSFS Financial projects nearly $73 million of annual cost savings, with 65% to be realized by next year and 100% in 2023.
Additionally, the transaction will result in 30% reduction in total branch count mainly owing to “geographic overlap and optimization opportunities within the network.”
The combined company will have $20 billion in assets, $12.6 billion in net loans, $16.2 billion in total deposits and roughly $43 billion in Wealth Management business based on Dec 31, 2020-data.
Conclusion
Over the years, WSFS Financial has grown meaningfully through acquisitions. Specifically, since 2010, the company has acquired eight banks, which has substantially strengthened its position in the regional market and improved financials.
Over the past six months, shares of WSFS Financial and Bryn Mawr Bank have jumped 87.6% and 76.4%, respectively.
Currently, WSFS Financial carries a Zacks Rank #3 (Hold) and Bryn Mawr Bank has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Undertaking Similar Efforts
Since the beginning of 2021, many small and large banks have announced acquisition deals amid tough operating backdrop owing to the coronavirus pandemic. Some of these are Shore Bancshares, Inc. (SHBI - Free Report) and M&T Bank Corporation (MTB - Free Report) .
Earlier this month, Shore Bancshares announced the signing of a definitive merger agreement with Severn Bancorp, Inc. The stock and cash deal worth $146 million, is expected to close in the third quarter of 2021, subject to necessary approvals.
Last month, M&T Bank agreed to acquire People’s United Financial Inc. in an all-stock merger deal worth $7.6 billion. The transaction is expected to close in the fourth quarter of 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>