merger consideration. In this pro forma analysis it was assumed that the William Penn ESOP Loan had a balance of $9,321,875 and was paid off with the retirement of 770,505 William Penn common shares ($9.3 million divided by the William Penn assumed merger consideration per share of $12.10). At the close of the transaction, all shares of William Penn common stock held in the treasury of William Penn (“Treasury Stock”), prior to the closing of the transaction shall be cancelled, and no payment or distribution shall be made in consideration therefor. The total estimated purchase price for the purpose of this pro forma financial information is $104.1 million. The adjustment for shares outstanding, basic, and diluted weighted average common shares outstanding is an amount to adjust the shares to equal the new common shares issued for the transaction. The following is a summary of the fair value of assets acquired and liabilities assumed resulting in goodwill. Goodwill is created when the purchase price consideration exceeds the fair value of the net assets acquired or a bargain purchase gain results when the current fair value of the net assets acquired exceeds the purchase price consideration. For purposes of this analysis as of September 30, 2024, goodwill of $2.4 million results from the transaction; however, the final purchase accounting analysis will be performed as of the merger date and amounts therein are subject to change based on operations subsequent to September 30, 2024, as additional information becomes available and as additional analyses are performed. (dollars in thousands, except per share data) Purchase Price Consideration for Common Stock William Penn common shares outstanding as of 9/30/2024 . . . . . . . . . . . . . . . . . . . . . . . . . 9,218,459 Less: ESOP Shares ESOPloanbalance ........................................................ 9,321,875 Transaction price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12.10 Less: estimated shares of William Penn Common Stock to pay off ESOP Loan . . . . . . . . . 770,505 William Penn common shares as of 9/30/2024 less ESOP shares to payoff ESOP loan settled for stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,447,954 Exchange ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4260 Mid Penn shares to be issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,598,828 Price per share of Mid Penn common stock (closing stock price as of January 3, 2025, which was the latest practical trading date before the date of this document) . . . . . . . . . $ 28.40 Purchase price consideration for common stock ........................... $ 102,207 Purchase Price Consideration - Rollover of Outstanding Options William Penn stock options outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,264,000 Mid Penn stock options issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538,464 Fair value of Mid Penn stock option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.25 Purchase price assigned to stock options rolled over ........................ $ 4,981 Total purchase price consideration ...................................... $ 107,188 30
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