East River Bank Purchased For $49 Million

EAST FALLS -- DNB Financial Corporation has purchased the East River Bank of Philadelphia fort $49 million, according to a press release.

DNB is the parent company of DNB First, National Association, a community bank headquartered in Downingtown. East River operates three full-service offices in Philadelphia.

When the acquisition is completed, DNB will have approximately $1.1 billion in assets, $764 million in loans, and $841 million in deposits, with 15 branch offices in Chester, Delaware and Philadelphia counties. It will become one of only six institutions with total assets of more than $1 billion, headquartered in Southeastern Pennsylvania.

“DNB and East River is a powerful combination that will benefit our respective customers, investors, employees and communities,” said William J. Hieb, president and chief executive officer of DNB, in a statement. “This transaction will establish a much stronger institution and create efficiencies to generate greater earnings for our combined shareholder base. It will also allow us to deliver a comprehensive set of financial products and services to consumers and businesses throughout our region, with logical expansion into the attractive Philadelphia market, positioning us for continued growth.”

“This transaction provides our shareholders with greater liquidity and the opportunity to build upon the success of the DNB franchise," said Christopher P. McGill, president and chief executive officer of East River. “In addition to a shared legacy of strong financial performance and community engagement, the strategic synergy and cultural fit between our two banks present exciting opportunities to all of our stakeholders. As East River's lending team joins DNB, an enhanced product set and higher lending limits will enable us to better serve our clients in Philadelphia. We look forward to being part of the DNB team.”

Mr. McGill will join DNB as executive vice president and chief business development officer. Jerry L. Cotlov, executive vice president and chief lending officer of East River, will also join DNB as senior vice president and assistant chief commercial lending officer.

John F. McGill, Jr., chairman of East River, will join the DNB board of directors as vice chairman; two other members of the East River board of directors, Charles A. Murray and Daniel O’Donnell, will also join the DNB board as independent directors. James H. Thornton will continue to serve as chairman of the DNB board.

The acquisition, which is subject to regulatory approval, the approval of shareholders of DNB and East River and other customary closing conditions, is expected to close during the second half of 2016.

Ambassador Financial Group, Inc. served as financial advisor to DNB Financial Corporation; Stradley Ronon Stevens & Young, LLP served as legal counsel.

Griffin Financial Group LLC served as financial advisor to East River Bank; Silver, Freedman Taff & Tiernan LLP served as legal counsel.