Situation
Muncy Bank Financial, Inc. (“Muncy”) and its banking subsidiary The Muncy Bank and Trust Company are headquartered in Muncy, PA, with $633 million in assets across 10 offices located in the communities of Muncy, Clarkstown, Hughesville, Montoursville, Dewart, Avis, Linden, Montgomery and South Williamsport. CCFNB Bancorp, Inc. and its banking subsidiary First Columbia Bank & Trust Co. are headquartered in Bloomsburg, PA, with $944 million in assets across 12 offices serving Columbia, Montour, Luzerne, Lycoming and Northumberland counties. The banks are in adjacent markets with similar business models, each looking for opportunities to grow their respective franchises and provide value to shareholders.
Solution
Muncy engaged Griffin Financial Group to assist in structuring a merger of equals with the nearby and like-minded CCFNB. The companies came together to structure a transaction that benefits each side and preserves the legacy of both institutions.
The surviving bank will be rebranded as Journey Bank with no branch closures or mandatory layoffs anticipated as a result of the merger. The Muncy CEO will become COO of the combined holding company, President and CEO of Journey Bank and a director of each board. The CCFNB CEO will serve as Chairman, President and CEO of the combined holding company, Executive Chairman of Journey Bank and will continue to serve as a director on both boards. The combined holding company and Journey Bank will each have eight directors from CCFNB and six from Muncy. SEC registration of the combined company is expected to provide greater liquidity and a deeper market for buying or selling shares.
Measures of Success
The combination provides for shared leadership and the additional scale sought by both institutions. The increased size and scale are expected to result in improved performance and better long-term growth opportunities. Additionally, the merger provides a significantly higher lending limit to each bank and leverages strengths from both sides.
For more information on this transaction, contact Charles Schreck, Managing Director, at 410.458.3116, Alan Grover, Senior Vice President, at 610.478.2008, or Christopher P. Adams, Associate, at 610.205.6016.
