Fulton Financial on Wednesday announced an agreement to absorb Philadelphia-based Prudential Bank through stock and cash, as part of an effort to break into business and consumer customers in the greater metro area. of Pennsylvania.
Under the merger agreement, current Prudential shareholders will have their holdings converted into Fulton shares and will also receive $3.65 for each Prudential share held, according to a joint press release from the two companies. Fulton shares closed at $17.24 on Tuesday.
Prudential’s total market value as of Tuesday was $112 million.
The deal is expected to close in the third quarter of this year, according to a press release.
“I have shared with investors Fulton’s desire to be more active in business mergers and acquisitions that suit us – strategically, culturally and geographically,” said E. Philip Wenger, president and chief executive officer of Fulton in a press release. “We look forward to working with the Prudential team to bring our community-focused mutual banking style, our full suite of products and services, and our talented teams together to help even more customers and communities in Philadelphia achieve financial success. “
Lancaster-based Fulton Financial is the parent company of Fulton Bank, the county’s largest bank. Fulton Bank, which holds assets of about $26 billion, operates 200 branches in the mid-Atlantic, with large presences in south-central Pennsylvania and southern New Jersey.
The addition of Prudential’s eight Philadelphia branches gives Fulton 11 a much larger presence in a major city in the region.
Federal data from June 2021 showed Fulton held $93 million in Philadelphia in total deposits, compared to Prudential’s $652 million, the data showed.
Prudential’s savings bank operation, which has assets of about $1.1 billion, also has locations in Montgomery and Delaware counties.
Founded in 1886, Prudential reported $594 million in loans and $721 million in deposits at the end of last year.
Its loans are primarily related to real estate development, both residential and commercial, according to a company profile presented by Fulton.