Local Bank Sold Third Time
Susquehanna Bancshares Inc. based in Litiz, Pa., announced Monday that it agreed to buy Tower Bancorp Inc. for $343 million in cash and stock, a 41 percent premium over Tower’s closing stock price last Friday.
Under the deal, Tower shareholders can receive 3.4696 shares of Susquehanna common stock, or $28 for each Tower share they own, with $88 million to be paid in cash. The transaction is expected to be completed in the first quarter of 2012.
Susquehanna said it will be the largest community bank in Pennsylvania once it closes the Tower acquisition and another pending deal with Jenkintown, Pa.-based Abingtion Bancorp. The combined company would give Susquehanna a top three market-share position in 14 of the counties it serves.
Susquehanna has $15.2 billion in assets, while Tower has $2.6 billion.
The Tower Bank, as a division of Graystone Tower Bank, in McConnellsburg was originally The First National Bank of McConnellsburg, chartered in 1906 and headquartered in Mc- Connellsburg since its inception.
The First National was sold to The First National Bank of Greencastle in a cash and stock deal that closed in January 2006.
In 2009 the Greencastle bank, with its holding company Tower Bancorp, was acquired by Graystone Bank, with the new holding company being named Graystone Tower Bancorp. Locally Tower Bank has branches in Needmore, Pa., and Hancock, Md., as well as main banking facilities in McConnellsburg.
The last local area bank directors resigned from the Tower Bancorp Inc. board in January of this year.
The Susquehanna-Tower deal was unanimously approved by both boards. Tower Chairman and CEO Andrew Samuel and two other Tower directors will get seats on the Susquehanna board.
Along with Susquehanna’s pending acquisition of Abington Bancorp, the Tower deal will give Susquehanna about $17.8 billion in assets.