Mid Penn Bancorp and William Penn Bancorporation Merger: Full Details (WMPN, MPB Merger)

When two strong forces in regional banking come together, you know it is going to shake up the landscape a bit. Mid Penn Bancorp and William Penn Bancorporation have officially announced plans to merge, creating a powerhouse that promises growth, stability, and new opportunities for their customers and investors. This blog will break down what the merger means, why it is happening, and what both companies' shareholders should expect moving forward.

*Update - The merger is pending close. Shareholders of WMPN to receive 0.426 share of MPB for every 1 share of WMPN owned. The combined entity to begin trading on May 1 2025.

The Big Announcement

On October 31, 2024, Mid Penn Bancorp, Inc. and William Penn Bancorporation entered into a definitive merger agreement. In this deal, William Penn will merge into Mid Penn, with Mid Penn continuing as the surviving entity. Once the merger wraps up, William Penn Bank itself will be merged into Mid Penn Bank.

By March 28, 2025, both companies had already received the necessary approvals from bank regulatory agencies to move forward. Now, all that stands in the way are shareholder approvals and some routine closing conditions. If everything lines up, the merger is expected to officially close during the second quarter of 2025​.

Key Dates to Remember

Shareholders will be crucial to moving this merger forward. Here are the dates to circle:

• Special shareholder meetings for both companies are scheduled for April 2, 2025.

• Mid Penn shareholders will meet virtually, while William Penn shareholders will meet in person at their Bristol, Pennsylvania office​.

Shareholders are being encouraged to cast their votes early, either online, by telephone, or by mail.

How the Share Exchange Works

This merger comes with an interesting exchange offer. For each share of William Penn common stock, shareholders will receive 0.426 shares of Mid Penn common stock. Cash will be paid out instead of issuing fractional shares.

The maximum number of Mid Penn shares estimated to be issued is about 3,922,700. After the deal closes, former William Penn shareholders are expected to own roughly 16.85 percent of Mid Penn Bancorp.

What About Stock Prices

At the time of the merger announcement on October 31, 2024, Mid Penn stock was priced at $31.59 per share, while William Penn was at $12.74. Fast forward to February 6, 2025, and prices had shifted slightly to $30.28 for Mid Penn and $12.58 for William Penn. It is worth noting that these figures will keep fluctuating right up to the merger's closing​.

There is even a built-in safety net. If Mid Penn’s stock price drops below certain thresholds during a specified time frame, William Penn has the option to terminate the merger unless Mid Penn adjusts the exchange ratio.

Regulatory Green Light

Getting regulatory approval is no small task. Both banks worked through a detailed process and, by March 28, 2025, they secured the green light from all required banking regulators​. Now, the last major hurdle is getting a yes from their shareholders.

Why Merge

There are several reasons why this merger makes strategic sense:

• Market Expansion: The combined bank will have a much larger footprint across Pennsylvania and neighboring regions.

• Stronger Financials: Pooling resources can strengthen the new bank's balance sheet, making it more competitive.

• Customer Reach: Greater resources mean better banking products and services for customers.

• Operational Efficiencies: Combining back-office operations and technology platforms can create cost savings and boost profitability.

• Shareholder Value: Both boards of directors believe this deal is in the best interest of their shareholders and recommend voting in favor.

The boards of both companies unanimously support the merger, underlining their confidence in the benefits that the combined company will deliver​.

Risks to Keep in Mind

While the merger is packed with promise, no deal is without its risks. Here are a few potential challenges:

• Integration Risks: Merging two corporate cultures, IT systems, and operating models can be tricky.

• Market Volatility: Stock price fluctuations could impact shareholder sentiment.

• Regulatory Changes: Any new banking regulations could complicate the merger’s execution or profitability after closing.

• Economic Uncertainty: Broader economic downturns might affect the performance of the newly combined bank.

Investors should weigh these factors carefully when making their voting decisions. Don't rely on statements made in this blog post, conduct your own due diligence prior to making any investment decisions.

Final Thoughts

Mid Penn Bancorp’s planned merger with William Penn Bancorporation is shaping up to be a major event in the regional banking world. If everything moves according to plan, this deal could create a stronger, more competitive financial institution with a broader reach and deeper resources.

The merger is about building a future-proof bank that can better serve its communities and shareholders alike. Shareholders have an important voice in this process, so make sure your vote counts. Stay tuned for more updates as this merger moves closer to completion.

FAQs About the Mid Penn and William Penn Merger

When will the merger be completed?

The companies expect to close the merger in the second quarter of 2025, pending shareholder approval.

What will happen to William Penn Bank?

William Penn Bank will be merged into Mid Penn Bank after the parent companies merge.

How many Mid Penn shares will William Penn shareholders get?

Shareholders will receive 0.426 shares of Mid Penn common stock for each share of William Penn common stock they own.

Will there be a cash payment?

Cash will only be paid out in lieu of issuing fractional shares.

Where can I find more information?

Detailed information can be found in the joint proxy statement/prospectus sent to shareholders and filed with the SEC.

WMPN MPB Merger

WMPN MPB Merger