Princeton to buy Cornerstone Financial at a discount

Cornerstone Financial Corp (OTCMKTS: CFIC) opened about 13% down on Thursday after Princeton Bancorp Inc (NASDAQ: BRPN) said it will buy the financial services company for nearly $18 million.

Details of Princeton-Cornerstone deal

The agreement will replace each share of Cornerstone Financial with 0.24 share of Princeton Bancorp. Simply put, it values $CFIC at $8.16 versus its previous close at $9.15.

Princeton expects its total assets to be worth $2.3 billion following this acquisition. Edward J. Dietzler – its chief executive said in a press release today:

Shares of Princeton Bancorp Inc are also slightly in the red at writing on Thursday.

Impact on Princeton’s per-share earnings

Princeton expects its deal with Cornerstone to close in the second or third quarter of this year provided that it secures regulatory and shareholders’ approval.

The bank holding company is convinced that this acquisition which is in line with its “continued vision of being the premier community bank” will be 21% accretive to its per-share earnings in 2025.

Raymond James and Stevens & Lee are serving as the financial advisor and legal counsel (respectively) of Princeton Bancorp on its agreement with Cornerstone Financial.

The news arrives months after Princeton Bancorp Inc said its net income jumped about 9.0% on a year-over-year basis to $7.6 million in its third financial quarter.