Citizens Financial Services completes acquisition of HV Bancorp

Mansfield, Pa.-based Citizens Financial Services Inc., the holding company for First Citizens Community Bank, completed its acquisition of Doylestown, Pa.-based HV Bancorp Inc., the parent company of Huntingdon Valley Bank.

Under the terms of the deal, HV Bancorp merged with and into Citizens Financial Services, with the latter as the surviving corporation. Huntingdon Valley Bank merged with and into First Citizens Community Bank, with the latter as the surviving institution.

The transaction is expected to improve and expand Citizens Financial Services' presence in communities located in Montgomery, Bucks and Philadelphia counties in Pennsylvania, New Castle County in Delaware, and Burlington County in New Jersey, according to a news release.

Robert Marino, the former president of HV Bancorp, will join the boards of Citizens Financial Services and First Citizens Community Bank. Marino will also serve as chief revenue officer and senior executive vice president of the bank.

John Behm, a former director of HV Bancorp, was appointed to the board of First Citizens Community Bank.

At the effective time of the merger, each HV Bancorp common share was converted into the right to receive, subject to the election of the holder, either $30.50 in cash or 0.4040 of a Citizens Financial Services common share, with cash payable in lieu of any fractional shares. Elections were subject to proration procedures whereby at least 80% of HV Bancorp common shares will be exchanged for Citizens Financial Services common shares.

As a result of the elections, former HV Bancorp shareholders received an aggregate of about 723,068 Citizens Financial Services common shares and an aggregate of approximately $13.7 million in cash.