First Bank to acquire Malvern Bancorp for $7.80 per share in cash

First Bank (FRBA) and Malvern Bancorp (MLVF) announced that they have entered into a definitive merger agreement pursuant to which First Bank will acquire Malvern Bancorp and Malvern Bank in a transaction valued at approximately $149.5M. The merger has been unanimously approved by the boards of directors of both institutions and is expected to be completed in the second quarter of 2023, subject to the approval of First Bank and Malvern Bancorp, Inc. shareholders, as well as customary regulatory approvals. "This strategic transaction expands our market position and deposit share in eastern Pennsylvania, while complementing our strong organic growth strategy," said Patrick L. Ryan, President and Chief Executive Officer of First Bank. "This merger is another example of what we believe are high-quality and low-risk transactions we are using to build size and scale, solidify our market position and expand our service area. Malvern Bank’s emphasis on commercial lending, private banking and superior customer service create a great fit, and we are delighted to welcome Malvern Bank’s employees to the First Bank team. In addition, this transaction further strengthens our balance sheet through loan portfolio diversification and provides expanded access to cost-effective deposits. Importantly, we expect the transaction will be significantly and immediately accretive to First Bank earnings per share and that the earn back on tangible book dilution to be under two and a half years. First Bank’s regulatory capital levels will remain strong, enabling us to continue to evaluate all appropriate growth opportunities." According to terms of the merger agreement, Malvern Bancorp, Inc. shareholders will receive 0.7733 shares of First Bank common stock and $7.80 in cash per each Malvern Bancorp, Inc. common share outstanding. First Bank expects to issue approximately 5.9 million new shares of First Bank common stock and $59.4 million in cash consideration to consummate this transaction. Based upon First Bank’s December 13, 2022 closing price of $15.31 per share, the transaction is valued at approximately $149.5 million in aggregate deal value.