2009-03-19 / Front Page

Bank Merger Receives Regulatory Approvals


The parent companies that operate The First National Bank of Greencastle (FNBG) and Harrisburg based Graystone Bank said Tuesday that the Federal Deposit Insurance Corp. (FCIC), the Pennsylvania Department of Banking and the Federal Reserve Bank of Philadelphia have OK'd the two financial institutions' merger.

State and federal bank regulatory approvals were the final consents needed before consumating the partnership that was first announced in November 2008.

Announcement of the merger's approval by shareholders at both banks was made March 4.

Bank officials said in Tuesday's joint statement that they anticipate the banking partnership will be effective April 1.

"We are pleased that all of the necessary approvals are in place and we are looking forward to moving ahead with our partnership," said Jeffrey B. Shank, pres- ident and CEO of FNBG parent company Tower Bancorp Inc. The transition, Shank said, is expected to be smooth.

Andrew Samuel, chairman and CEO of Graystone Financial Corp., said, "The First National Bank of Greencastle and Graystone Bank share very similar values, with strong commitments to our employees, customers, shareholders and the communities we share."

Both Shank and Samuel said in the released statement that the merger will not affect products or services to customers at either bank.

The combined financial institutions will have assests of $1.2 billion and more than 300 employees at 25 branches in southcentral Pennsylvania and will operate as the Tower Bank and Graystone Bank divisions of Graystone Tower Bank, under the holding company of Tower Bancorp Inc.

Tower Bancorp's reorganized leadership team includes: Samuel, president and CEO; Jeffrey Renninger, executive vice president and COO; Mark Merrill, executive vice president and CFO; Shank, Tower Bancorp executive vice president and president and CEO of Tower Bank, a division of Graystone Tower Bank; and Janak Amin, Tower Bancorp executive vice president and president and CEO of Graystone Bank, a division of Graystone Tower Bank.

Shank also said that the state and federal regulatory approvals statisfy all conditions to a special dividend of $1.12 per share to Tower Bancorp shareholders of record on March 20. The special dividend will be paid March 31 and was announced, pending regulatory approvals, last Thursday as part of the merger.

The merger agreement calls for Graystone shareholders to receive 0.42 shares of Tower common stock for each share of Graystone common stock they hold on the effective date of the merger.

Return to top