Bryn Mawr Trust to buy Royal Bancshares

|About: Bryn Mawr Bank Corporation (BMTC)|By:, SA News Editor

There's some M&A activity in the Philadelphia suburbs this morning, with Bryn Mawr Bank (NASDAQ:BMTC) agreeing to purchase Royal Bancshares of Pennsylvania (NASDAQ:RBPAA) in a $127.7M all-stock deal.

The acquisition will add about $602M in loans and $630M in deposits to the Bryn Mawr balance sheet.

The deal terms represent 165.9% of Royal's adjusted tangible book valuer per share and 25x adjusted 2016 net income.

The purchase is expected to immediately be accretive to BMT's tangible book value per share, and to EPS during the first year (excluding merger-related expenses).

The stock prices of both banks are modestly lower in opening action.

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