Fulton Financial Corp. is Prudential Bancorp Inc. for equity and cash transactions worth $ 142.1 million. To buy. The two companies announced on Wednesday that they have signed an agreement to integrate Prudential into Fulton.
At the time of the announcement, Lancaster-based Fulton Financial Corp. described the transaction as strategic and enhancing Fulton’s presence in Philadelphia.
The transaction has been unanimously approved by the board of directors of each company and is expected to close in the third quarter of 2022. Prudential shareholders must approve the transaction and obtain regular regulatory approval before the transaction is completed.
In a statement, Fulton Chairman, President and Chief Executive Officer E. Philip Wenger said, “I am more active in merging and acquiring investors with strategically, culturally and geographically suited companies. We shared Fulton’s desire to work on it. ” “We work with the Prudential team to bring together a mutual community-oriented banking style, a comprehensive range of products and services, and a talented team to make Philadelphia’s more customers and communities economical. We look forward to helping you achieve great success. “
Fulton Financial Corp. is a bank holding company of Fulton Bank of NA with consolidated assets of approximately $ 26 billion. It operates 200 financial centers in Pennsylvania, Delaware, Maryland, New Jersey, and Virginia, with a total of 18 in the Burks, Chester, and Montgomery counties.
Prudential is a Pennsylvania-sanctioned savings bank and a holding company of Prudential Bank with assets of approximately $ 1.1 billion. Headquartered in Philadelphia, it operates additional financial centers in Philadelphia, one in Drexel Hill in Delaware County and one in Huntingdon Valley in Montgomery County.
Under the terms of the agreement, Prudential shareholders will receive Fulton Common Shares on a fixed exchange ratio of 0.7974 Fulton Shares and $ 3.65 in cash per Prudential Share. An implicit value of the transaction based on a 10-day volume-weighted average share price of $ 18.01 for Fulton’s common stock for the period ending March 1, 2022.
The transaction is expected to qualify as a tax-exempt exchange for the share consideration received by Prudential’s shareholders.
According to the announcement that the merger was announced, approximately 80% of Prudential’s consideration for common shareholders will consist of Fulton common stock and the remaining 20% will be paid in cash.
Fulton has completed acquisitions of banks and other financial services companies in the past, according to a spokesman for the company. However, Prudential Bancorp. This transaction with is the first bank acquisition since 2006.
In addition to accelerating Fulton Bank’s continued growth in Philadelphia, Fulton’s senior communications consultant, Stephen Trapnell, responded to questions by email, and the acquisition made Fulton more consumers. He said he will be able to provide financial services to SMEs and commercial customers.
Fulton Bank has opened four financial centers in Philadelphia since 2019.
“We are very pleased to be able to work with partners like Fulton who share our commitment to community banking. Prudential President and Chief Executive Officer Dennis Pollack said in a statement that our customers Has a history of working to improve the lives of people in the community that provides services.
No additional information is provided regarding location consolidation or employee impact. As part of the integration process, Trapnell said banks value locations and the best way to serve integrated bank customers.
Fulton Bank and Prudential Bank will continue to operate separately until approved and the acquisition is completed. Later, Trapnell said Prudential Bank would be integrated into Fulton Bank, probably in the fourth quarter of this year.
At that time, there was an employee who was transferring his role to Fulton, and in other cases “employees would be able to think of new opportunities,” he added in an email reply.
As part of this acquisition, Fulton Financial Corp. Will make a $ 2 million donation to the Fulton Forward Foundation. This foundation is used to provide impact gifts to support Philadelphia’s nonprofit community organizations. ..
Fulton Financial is Prudential Bancorp.Acquired for $ 142 million
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