— Jeff Ward, Lehigh Valley News Briefs
Two Central Pennsylvania banks will combine in what Mifflinburg Bancorp and Northumberland Bancorp describe as a “merger of equals.”
The two companies will combine, but there is some tricky language surrounding future names of the Susquehanna Valley institutions.
If I had time, I’d make a flow chart.
From their statement: “Northumberland Bancorp will merge with and into Mifflinburg Bancorp, Inc. (“Mifflinburg”) and Northumberland’s subsidiary bank, Northumberland National Bank (“Norry Bank”) will merge with and into Mifflinburg Bank and Trust Company (“Mifflinburg Bank”), Mifflinburg’s banking subsidiary. In connection with the closing, Mifflinburg Bancorp, Inc. will be renamed Steele Bancorp, Inc. Mifflinburg Bank will be rebranded to a more suitable name, more reflective of the combined financial institution, and jointly determined by the parties.”
There are a lot of long names here, and an element of mystery.
In a mostly futile attempt to make this more simple: Northumberland Bancorp owns The Northumberland National Bank, known as Norry Bank. Norry Bank will become part of Mifflinburg Bancorp’s subsidiary, Mifflinburg Bank and Trust, aka Mifflinburg Bank.
Then, after the companies are combined, Mifflinburg Bancorp. (the parent company of Mifflinburg Bank) will be renamed Steele Bancorp, while Mifflinburg Bank (the name most people know) will get a new name.
Hmmm. Norry Bank will become part of Mifflinburg Bank, which will get a new name.
On the personnel side, the new company will offer early retirement and severance packages, and expects some workforce attrition to reach “efficient staff levels.” Fewer staff, that is.
The joint statement noted above puts a $34.2 million value on the deal.
Both banks are traded over the counter. Holders of Northumberland Bancorp shares (ticker symbol NUBC) will receive 1.185 shares of Mifflinburg Bancorp (ticker: MIFF) for each Northumberland share they own. Current Northumberland holders will own about 46% of the combined company.
Donald J. Steele Jr., chairman of the board of Northumberland Bancorp and Norry Bank, will be chairman of Steele Bancorp.
Mifflinburg Bank has seven locations in the Susquehanna Valley and 81 employees. Northumberland National Bank has six offices and 104 employees.
Lehigh Valley News Briefs 