ESSA Bancorp, Inc. Announces Completion of Franklin Security Bancorp Acquisition
05 April 2014 - 7:30AM
Marketwired
ESSA Bancorp, Inc. Announces Completion of Franklin Security
Bancorp Acquisition
STROUDSBURG, PA and WILKES-BARRE, PA--(Marketwired - Apr 4,
2014) - ESSA Bancorp, Inc. (NASDAQ: ESSA) ("ESSA Bancorp"), the
holding company for ESSA Bank & Trust, today announced it has
completed the acquisition of Franklin Security Bancorp, Inc.
("FSB") and its wholly owned subsidiary, Franklin Security Bank,
through an all cash transaction.
Under the terms of the merger agreement, stockholders of FSB
will receive $9.75 per share or an aggregate of approximately $15.7
million. The merger is expected to be immediately accretive to ESSA
Bancorp's earnings upon closing. Franklin Security Bank's
locations serving Scranton and Wilkes-Barre, Pennsylvania will
immediately begin operating as ESSA Bank & Trust. Franklin
Security Bank had assets of approximately $219.5 million at
closing, with total loans of approximately $155.5 million and total
deposits of approximately $163.1 million.
ESSA Bank & Trust, with assets of more than $1.5 billion
following the acquisition, provides a full range of retail and
commercial financial services, and financial advisory and wealth
management capabilities to the northeast Pennsylvania region
through 27 community offices.
Gary S. Olson, President and CEO of ESSA Bank & Trust,
commented: "This acquisition provides a platform for ESSA Bank
& Trust to expand its presence northward to an adjacent
regional market. Franklin's capabilities in commercial
banking, government lending, and indirect auto lending businesses
will provide added diversity to ESSA's loan portfolio and add to
our core deposits.
"The acquisition offers the opportunity to expand our Bank's
consumer and mortgage banking operations into Franklin Security
Bank's markets. We anticipate a smooth and seamless experience
for customers and employees, and a coordinated systems and back
office transition." Richard F. Mebane, President and CEO of
Franklin Security Bank, will serve as ESSA Bank & Trust's
Wilkes-Barre/Scranton/Regional Market President.
RP Financial, LC served as financial advisor to ESSA Bancorp and
Luse Gorman Pomerenk & Schick, P.C. served as legal counsel to
ESSA Bancorp. Ambassador Financial Group served as financial
advisor to FSB, Boenning & Scattergood provided a fairness
opinion to FSB and Silver, Freedman, Taff & Tiernan, LLP served
as legal counsel to FSB.
ESSA Bank & Trust, a wholly-owned subsidiary of ESSA
Bancorp, Inc., has total assets of more than $1.5 billion and is
the leading service-oriented financial institution headquartered in
Stroudsburg, Pennsylvania. ESSA Bank & Trust maintains its
corporate headquarters in downtown Stroudsburg, Pennsylvania and
has 27 community offices throughout the Greater Pocono, Lehigh
Valley, Scranton and Wilkes-Barre markets in Pennsylvania. In
addition to being one of the region's largest mortgage lenders,
ESSA Bank & Trust offers a full range of retail, commercial
financial services, and financial advisory and asset management
capabilities. ESSA Bancorp, Inc. stock trades on The NASDAQ Global
Select Market(SM) under the symbol "ESSA."
Forward-Looking Statements
Certain statements contained herein are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements may be identified by reference to a
future period or periods, or by the use of forward-looking
terminology, such as "may," "will," "believe," "expect,"
"estimate," "anticipate," "continue," or similar terms or
variations on those terms, or the negative of those
terms. This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. In addition to those risk factors listed in ESSA
Bancorp's Annual Report on Form 10-K, the following factors could
cause the actual results of ESSA Bancorp's operations to differ
materially from ESSA Bancorp's expectations: difficulties related
to the integration of the businesses following the merger; and
the failure to retain Franklin Security customers or to expand the
customer base following the merger . ESSA Bancorp does not
assume any duty to update forward-looking statements.
Readers should not place undue reliance on any such
forward-looking statements, which speak only as of the date made.
Readers are advised that the factors listed above could affect our
financial performance and could cause our actual results for future
periods to differ materially from any opinions or statements
expressed with respect to future periods in any current statements.
We do not undertake and specifically decline any obligation to
publicly release the result of any revisions, that may be made to
any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of
anticipated or unanticipated events.
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