|"Bryn Mawr Bank Completes Purchase of First Keystone Financial"
July 1, 2010
Bryn Mawr Bank Corp. said Thursday it has closed its acquisition of First Keystone Financial Inc.
While the deal was originally valued at $34 million when it was announced last fall, it ended up at $32 million based on Bryn Mawr’s closing share price Wednesday of $16.78. The deal includes 85 percent stock and 15 percent cash.
Bryn Mawr announced its plan to acquire First Keystone’s $489 million in assets and more than $331 million in deposits in November. At that time, First Keystone had $525 million in assets.
All but one of First Keystone’s eight branches, which are set to be re-branded in August, are in Delaware County. The deal increases Bryn Mawr’s assets from $1.2 billion to $1.7 billion, loans from $886 million to $1.2 billion, deposits from $899 million to $1.3 billion and branches from nine to 17.
Bryn Mawr, Pa.-based Bryn Mawr Bank Corp., operator of Bryn Mawr Trust Co., has branches in Bryn Mawr, Ardmore, Exton, Haverford, Newtown Square, Paoli, Wayne, West Chester and West Conshohocken, Pa. Bryn Mawr Trust also has seven limited-service sites in retirement communities.
It now will operate First Keystone’s locations in Aston, Brookhaven, Chester, Chester Heights, Media, Swarthmore, WIllowdale and Kennett Square, Pa. The deal makes Bryn Mawr Trust the largest community bank in Delaware County, with a 5 percent market share.
First Keystone had been subject to a memo of understanding by its regulator, the Office of Thrift Supervision. Bryn Mawr CEO Ted Peters has said that action related to problems with loan processes but that First Keystone did not have any major problems with its loan portfolio.
Peters said First Keystone CEO Hugh Garchinsky will stay with the bank through a transition period and then exit by the end of the year. As for First Keystone’s 99 employees, Peters said all have made the initial move and Bryn Mawr expects to retain between 75 and 80 of them. There are some back office redundancies, though Peters said any job openings at Bryn Mawr were held for First Keystone employees.
First Keystone Chairman Donald S. Guthrie, who was its CEO from 1993 to 2005, will serve on Bryn Mawr’s board. The other First Keystone board members will be invited to serve on a Delaware County advisory board.
Peters said Bryn Mawr is still evaluating other acquisition possibilities. The bank raised $25 million this spring to buffer its coffers for future activity.
Bryn Mawr was advised by the investment banking firm Keefe, Bruyette and Woods, as well as the law firm of Stradley Ronon Stevens & Young. First Keystone was advised by the investment banking firm of Sandler O'Neill & Partners and the law firm of Elias Matz Tiernan & Herrick.