Codorus Valley to merge with Orrstown Financial in all-stock deal

Orrstown Financial Services

12/12/2023 22:56

Dec 12 (Reuters) - Financial services firm Codorus
Valley  CVLY.O  will merge with Orrstown Financial  ORRF.O  in
an all-stock deal, creating a bank with $5.2 billion in assets.
    The banks said on Tuesday their boards had unanimously
approved the $207 million deal, under which each outstanding
share of Codorus Valley common stock will be exchanged for the
right to receive 0.875 shares of Orrstown common stock.
    Treasury Secretary Janet Yellen said in May more mergers
among midsize U.S. banks could be necessary after a series of
bank failures earlier this year.
    In July, Banc of California  BANC.N  and PacWest Bancorp
 PACW.O  also said they will merge in an all-stock deal. 
    In the latest merger deal, Orrstown shareholders will own
about 56% of the outstanding shares of the combined company and
Codorus Valley shareholders will own the remaining shares.
    The combined company will trade on the Nasdaq Global Select
Market under the symbol "ORRF" and operate as "Orrstown Bank".

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Shinjini Ganguli)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))