Shank said combining the banks under the same banner will provide the capital to potentially open more branches in central and south-central Pennsylvania as well as the flexibility to offer more products and services.
According to a press release issued by Tower Bankcorp Inc., Graystone Bank has nine branches serving Centre, Cumberland, Dauphin, Lancaster, Lebanon and York counties that it will bring to the partnership.
While plans are under way and lawyers and accountants are preparing for the official merger in early 2009, Shank said the companies are still waiting for a final vote of approval from shareholders at the first-quarter meeting.
Shank said he is optimistic that the benefits of the partnership will help it pass with shareholders.
Graystone President and CEO Andrew Samuel said the move is a "win-win for employees, customers, shareholders and the community."
Partnering with Graystone Bank, First National Bank will give the new Graystone Tower Bank an estimated $1.2 billion in capital, Samuel said.
It will also give it a NASDAQ listing.
Listing on the NASDAQ is perhaps the greatest benefit to shareholders, as it provides more liquidity and position in the market, Shank said.
As a company with larger capital, the listing will afford shareholders additional dividends up to $1.12 per share.
For those who use First National Bank of Greencastle every day, Shank said the only visible change will be the name on the Carlisle Street building, which will be Tower Bank, a division of Graystone Tower Bank.
"The idea was to partner with Graystone and not affect the services which touch our customers," Shank said. "Our goal is for customers to be able to see the same faces they have known for years, to walk into a branch or pick up a phone and talk who they want."
Some Greencastle jobs will move to the new central office expected to be in Harrisburg, but very few, Shank said.
First National Bank of Greencastle is separately chartered from the First National Bank of Mercersburg.