First Citizens Community Bank Parent Gains Regulatory Approvals for Acquisition

Citizens Financial Services’ previously announced acquisition of HV Bancorp has received requisite regulatory approvals.

The acquisition, which was announced in October and was subject to approvals, is now expected to close June 16, though it remains subject to customary closing conditions, Citizens Financial Services said in a Monday (April 10) press release.

Citizens Financial Services is the holding company for First Citizens Community Bank, while HV Bancorp is the holding company for Huntingdon Valley Bank, according to the Oct. 19, press release that announced the planned transaction.

The regulatory approvals and waivers announced Monday came from the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of Philadelphia, according to the release.

“[Citizens Financial Services (CZFS)] and [HV Bancorp (HVBC)] anticipate mailing election materials to shareholders of HVBC during the week of May 8, 2023, pursuant to which such shareholders may elect, subject to the terms of the merger agreement, the form of consideration that they wish to receive in the pending transaction,” Citizens Financial Services said in the release.

When announcing in October that they had entered into a definitive agreement for the deal, Citizens Financial Services said in the press release that this would enhance and expand its presence in three counties in Pennsylvania, one in Delaware and one in New Jersey.

“Our complementary business models and shared values make this partnership a natural fit,” Citizens Financial Services President and CEO Randall Black said in the October press release. “This agreement creates great excitement, and we believe our combination will deepen our reach in providing banking services and enhanced technological offerings across our entire bank franchise.”

HV Bancorp Chairman and CEO Travis Thompson said in the October release that the combination will provide benefits to customers, employees and shareholders.

“As 150-year-old financial institutions, we share similar core values and both believe deeply in community banking,” Thompson said at the time.

The latest announcement about the acquisition comes at a time when there is an opportunity for community banks to reassure customers.

As PYMNTS reported April 3, there’s an opportunity for smaller financial institutions to serve banking customers that are finding they are loathe to put all their (financial) eggs in one large, marquee banking name.