Under the agreement, Affinity will become a division of First Priority Bank, however all of the Berks County market activities will continue to be branded and marketed under the Affinity name.

David E. Sparks continues as chairman and CEO of First Priority Financial Corp. and chairman of First Priority Bank. Steven A. Ehrlich will become president of First Priority Financial Corp. and president and CEO of First Priority Bank.

Concurrent with the closing, First Priority issued $6.6 million of new common equity through a private placement offering made in conjunction with the merger.

First Priority has now acquired all of the outstanding shares of Affinity in a stock-for-stock transaction, and Affinity shareholders received 0.9813 newly issued shares of First Priority for each share of Affinity. Under the private placement offering, First Priority issued 1.27 million shares of common stock.

First Priority now is valued at $450 million, operating with 10 offices in Berks, Montgomery, Bucks and Chester counties, with loans in excess of $325 million and deposits of $375 million.