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Susquehanna Bancshares Inc. to acquire Pa.-based Tower Bancorp Inc.

June 24, 2011|By KATE S. ALEXANDER | kate.alexander@herald-mail.com

Tower Bancorp Inc., which operates locally as Tower Bank, will soon become part of Susquehanna Bancshares Inc., a regional financial services holding company.

Susquehanna will acquire all outstanding shares of Harrisburg, Pa.-based Tower Bancorp's common stock in a stock and cash transaction, according to a news release from the public relations firm IMRE of Baltimore.

The transaction has an approximate total value of $343 million and is expected to be completed in the first quarter of 2012, the release said.

Tower Bank came to Franklin, Fulton and Washington counties in 2009 when The First National Bank of Greencastle merged with Graystone Tower Bank under Tower Bancorp and changed the name of its local branches to Tower Bank, a division of Graystone Tower Bank, according to a story in The Herald-Mail.

With the acquisition of Tower, the Lititz, Pa.-based Susquehanna will expand its branch presence in Pennsylvania into Lebanon, Fulton and Centre counties, the release said.

Susquehanna provides banking and financial services at more than 220 branch locations in the mid-Atlantic region, the release said.

William J. Reuter, chairman and chief executive officer of Susquehanna said in the release that the combination of the two banks will bring tremendous benefits to shareholders, customers and communities.

"By increasing our market share in several of the counties we currently serve and by entering new markets, we will give customers of both institutions the added convenience of an expanded network of branches and ATMs," he said.

Andrew Samuel, chairman and chief executive officer of Tower, said in the release that Tower is pleased to be joining Susquehanna.

"This merger plays to the strengths of both institutions," he said.

Including Susquehanna's pending acquisition of Abington Bancorp, the combined company will have approximately $17.8 billion in assets, and it will be the largest community bank in Pennsylvania after the mergers are closed, according to the release.

It will also be the largest bank in deposit market share and branch count among independent banks that have more than 90 percent of their deposits in Pennsylvania, Maryland and New Jersey, the release said.

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