Bryn Mawr Bank Corp. will go from one branch to five in the state of Delaware by acquiring MidCoast Community Bancorp Inc. in a transaction valued at $33 million.
The Montgomery County-based bank holding company said Thursday it will acquire the 6-year-old MidCoast, which has about $235 million in loans, $250 million in deposits, and 36 employees.
In this all-stock deal, MidCoast shareholders would receive 0.52 shares of Bryn Mawr Bank common stock for each share of MidCoast they own. Shares of Bryn Mawr Bank were trading at $23.52, up 6 cents, on Thursday afternoon.
Bryn Mawr Bank added its first Delaware branch last November when it bought certain loan and deposit accounts as well as an office along Route 202 in Wilmington from First Bank of Delaware for $10.6 million.
MidCoast’s three branches in Wilmington and one in Dover will assume the Bryn Mawr Trust name when the transaction, which still requires regulatory and MidCoast shareholder approvals, closes late in the third quarter.
In a statement, Bryn Mawr Bank said that MidCoast president and chief executive Jim Ladio would lead its Delaware banking operations.
Bryn Mawr Bank currently has 19 full-service branches and seven limited-service offices in retirement communities in Philadelphia’s western suburbs. According to its 2012 annual report, it had total deposits of $1.63 billion and total assets of $2.04 billion as of Dec. 31.
The MidCoast merger would be Bryn Mawr Bank’s largest retail branch deal since it completed the acquisition of First Keystone Financial Inc. and its eight Delaware County branches in mid-2010 in a transaction valued at $31.3 million.
Since then, Bryn Mawr Bank has concentrated on expanding its wealth management business. It bought the private wealth management group of the Hershey Trust Co. for $18.4 million in May 2011 and Davidson Trust Co. in Devon for $10.5 million in last May. Bryn Mawr Bank nearly doubled its total assets under management over the last two years to $6.67 billion as of Dec. 31.
Half of those assets under management are handled by Bryn Mawr Bank’s two Delaware wealth management subsidiaries: the Bryn Mawr Trust Co. of Delaware, Greenville, Del., and Lau Associates L.L.C., an asset manager for high net-worth individuals and families.