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Beneficial Mutual To Acquire FMS for $183M

PHILADELPHIA-The acquisition will add 42 Farmers and Mechanics Bank branches, all in South Jersey, to Beneficial Mutual's 39 in the Greater Philadelphia region and raises the combined assets to $3.6 billion.

By Marita Thomas | Updated on October 16, 2006

PHILADELPHIA-Locally based Beneficial Mutual Bancorp Inc. has signed a definitive merger agreement with Burlington, NJ-based FMS Financial Corp. Under the agreement, which is valued at approximately $183.2 million, FMS’ Farmers and Mechanics Bank will be merged into Beneficial Mutual Savings Bank.

This will add 42 Farmers and Mechanics’ bank branches to Beneficial’s 39. Channing Smith, CFO of FMS, tells GlobeSt.com that 38 locations are in Burlington County, three in Camden County and one in Mercer County. There is one Beneficial branch in New Jersey. The others are all on the Pennsylvania side of the Greater Philadelphia MSA. Beneficial, the oldest and largest bank based here, has assets of $2.4 billion. FMS has assets of $1.2 billion.

Prior to completion of the transaction, Beneficial, which is privately held, will conduct a minority stock offering to its depositors and the public. The pro forma, tangible book value of the shares of Beneficial stock to be issued is not less than $65.6 million. Approximately 55% of Beneficial’s outstanding common stock will be held by its parent, Beneficial Savings Bank MHC, a mutual holding company. Beneficial will remain in a mutual holding company structure.

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