Somerset Trust Co. has announced a $3.4 million deal under which the Somerset bank’s holding company will absorb First Bank of Lilly, thereby expanding its presence in Cambria County.
In a press release, Somerset Trust Co. officials said the merger agreement “calls for Somerset Trust Holding Company to acquire the stock of First Bank of Lilly in a transaction that will result in the merger of First Bank of Lilly into Somerset Trust Co., with Somerset Trust Co. as the surviving banking entity.”
James P. Leahey, president and CEO of First Bank of Lilly, said in the press release that the leaders of the Lilly bank “believe all our constituencies – our community, our customers, our employees and our stockholders – will benefit from this transaction.”
The aggregate purchase price will be $3.4 million, approximately equal to First Bank of Lilly’s book value, Somerset Trust Co. officials said in the press release.
G. Henry Cook, CEO and chairman of Somerset Trust Co., said in the press release that the leaders of the Somerset bank are “excited to be expanding our footprint in Cambria County” and “impressed with the long-standing history and spirit of community commitment that First Bank of Lilly has established over its 113 years of business.”
“We look forward to upholding this commitment to the community and preserving the tradition of local banking,” Cook said. “We will be welcoming all the staff at First Bank of Lilly to our team and we know they will be an excellent addition to the Somerset Trust Company family.”
First Bank of Lilly shareholders who live in Pennsylvania, who own 90 percent of its outstanding shares, will receive shares of Somerset Trust Holding Co., while shareholders who live outside of Pennsylvania will receive cash of equal value, according to the press release.
The merger agreement was approved by both banks’ boards of directors and is expected to close in the third quarter of 2019, subject to regulatory and shareholder approval.