South Philadelphia Bank Agrees to Buy Local Competitor for $38M

Prudential Bancorp has agreed to acquire Huntingdon Valley’s Polonia Bancorp for $38.1 million in a merger that will create an 11-branch, $850 million asset company.

Under terms of the deal, South Philadelphia-based Prudential will acquire 100 percent of the outstanding shares of Polonia in exchange for a mixture of cash and common shares of Prudential. Polonia shareholders will receive $11.28 per each share, above the bank’s $10.41 Thursday closing price.

The transaction is scheduled to close in the fourth quarter. Prudential said it expects the deal to be “significantly accretive” to the combined company’s earnings per share in 2017 and thereafter. The modest tangible book value dilution to be experienced at closing is expected to be earned back in approximately one year.

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