Getting Past a Deal Structure Impasse

Orrstown Financial and Codorus Valley, in Pennsylvania, went back and forth over exclusivity and which bank would be the surviving entity as they negotiated a merger.

Orrstown Financial Services in Shippensburg, Pa., and Codorus Valley Bancorp in York, Pa., squabbled over the structure of their proposed merger in the months leading up to the deal.

The $3.1 billion-asset Orrstown agreed in December to buy the $2.2 billion-asset Codorus Valley for $207 million in a deal expected to close in the third quarter.

A regulatory filing tied to the pending merger shines light on some of the hiccups that can occur even in instances where there is no auction process.