Community Bank, N.A. has announced its acquisition of seven branch locations in the Allentown, PA area from Santander Bank, N.A. as well as certain branch-related loans and deposits. In addition, the bank will purchase related wealth management relationships. This acquisition, along with the bank's existing branches in the market and its pending de novo locations, will bring its total retail locations in the greater Lehigh Valley to 12, resulting in a top 5 market position.
The bank anticipates assuming approximately $600 million in deposits and purchasing approximately $33 million in branch-related loans. The deposit premium for this acquisition is 8.0%, or approximately $48 million in estimated cash consideration to Santander Bank for the branch assets and liabilities. It is expected that the transaction will be slightly accretive to earnings for Community Financial System, Inc.
Lazard Frères & Co served as the financial advisor, and Luse Gorman, PC served as the legal advisor to Community Financial System, Inc. Ambassador Financial Group also assisted in this Lehigh Valley expansion. The market has reacted to these announcements by moving the company's shares -0.5% to a price of $55.93. If you want to know more, read the company's complete 8-K report here.
