Delaware bank taking over South Jersey’s Liberty Bell Bank

Marlton-based Liberty Bell Bank is merging into a bank that currently operates in the Delaware-Maryland region, the two announced Friday. The deal is valued at approximately $16 million.Marlton-based Liberty Bell Bank is merging into a bank that currently operates in the Delaware-Maryland region, the two announced Friday. The deal is valued at approximately $16 million.

Under the definitive agreement, Liberty will be acquired by Delmar Bancorp, the parent company of The Bank of Delmarva, based in Seaford, Delaware. Each Liberty shareholder would receive either 0.2857 of a share of Delmar common stock, or $1.70 in cash, for each Liberty share, provided 70 percent of Liberty shares are converted into stock and 30 percent into cash.

“We are thrilled to have found such a strong and high-caliber institution as Delmar Bancorp to merge with,” Benjamin F. Watts, Liberty’s CEO and president, said in a prepared statement. “This partnership will serve our shareholders, our employees, our customers and our community well.”

The banks share the same largest shareholder, they noted in a news release announcing the deal.

Liberty has three branches in Burlington and Camden counties and about $149.9 million in assets, $121.2 million in loans and $136.5 million in deposits. The deal would mark Delmar’s first entry into the South Jersey-Philadelphia market, the release said.

The New Jersey bank would be called Liberty Bell Bank, a division of The Bank of Delmarva.

“We plan to work very closely with the Liberty team to provide a seamless transition, and make Liberty’s customers feel that nothing has changed, except our capacity to serve them,” John W. Breda, Delmar and Delmarva’s CEO and president, said in a statement. “Having just assumed the role of president and CEO of Delmar, I am very proud and eager to lead it into a new market and new opportunities.”

The deal is expected to close in the fourth quarter of 2017 or first quarter of 2018, pending customary approvals and conditions. Both boards of directors have unanimously approved the deal.

Liberty’s financial adviser was FIG Partners L.P., while its legal counsel was Stevens & Lee. Delmar’s financial adviser was RP Financial LC, and its legal counsel was Buckley Sandler LLP.