Pennsylvania bank M&A picked up as two new deals were announced in October on back-to-back days, according to S&P Global Market Intelligence data.

This article is part of S&P Global Market Intelligence's series of state profiles, which take an in-depth look at M&A and key banking metrics for banks and thrifts with less than $10 billion in assets.

Over the first 10 months of 2022, five bank deals involving Pennsylvania-based targets were announced, up from four in 2021 and just two in 2020. However, it is still below 2019's six deals and the eight deals announced in both 2018 and 2017.

October's 2 deals

On Oct. 20, Elkins Park-based Noah Bank announced that it would be acquired by New Jersey-based Bank of Princeton for $25.4 million, a little over six months after Fort Lee, N.J.-based Nmb Financial Corp. made its own $29.4 million bid for the company.

Just one day prior, on Oct. 19, Mansfield, Pa.-based Citizens Financial Services Inc. announced that it would buy Doylestown-based HV Bancorp Inc. for $67.4 million, its largest-ever acquisition.

Once the deal is completed, Citizens' subsidiary, First Citizens Community Bank, currently Pennsylvania's 15th-largest community bank by assets, should move into the top 10 by assets based on June 30 data.

Top 25 Pennsylvania community banks by assets

On Aug. 30, Indiana, Pa.-based First Commonwealth Financial Corp., parent company of First Commonwealth Bank, Pennsylvania's largest community bank under $10 billion in assets, announced that it would acquire Harrisburg-based Centric Financial Corp. for $136.7 million, in a deal that should push its assets north of $10.5 billion.

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Republic First saga

Meanwhile, the drama surrounding Philadelphia-based Republic First Bancorp Inc., holding company of the state's 4th-largest community bank in Pennsylvania by assets, continues.

On Oct. 20, activist shareholders again demanded that Republic First's board create a special independent committee to investigate alleged misconduct by board members. Four days later, the company responded, stating that it was indeed utilizing independent committees to investigate former directors and the former CEO and stated that the investor group continued to make "public and distracting attacks."

Also on Oct. 24, Frank Cavallaro provided notice that he was resigning from his role as CFO. Jonathan Hill was appointed interim CFO on Oct. 28.

While some industry observers have noted that Republic First's Philadelphia footprint may make it an attractive takeover target, the company's outsized security portfolio will be a drag on valuation as buyers will have to account for "mark to market" losses.

Republic First's shares have underperformed this year, posting a negative 23.9% return over the first 10 months of 2022, compared to a 14.5% loss for the S&P U.S. BMI Banks index.