Susquehanna Bancshares, of Lititz, Lancaster County, says it has agreed to pay $273 million, or about $13 a share, for Abington Bancorp of Jenkintown, which has lately traded around $11-12 a share.
Susquehanna says it hopes to save $8 million a year after cutting costs following the merger. That's equal to about one-third of the yearly expenses at Abington's main subsidiary, Abington Savings Bank, which employs around 150 at around 20 offices, mostly in Montgomery County.
Abington had lost money in recent years from a string of bad investments and loans, but share prices had risen in the past year, in part due to expectations the company would be acquired. With U.S. interest rates at near-record lows, community banks have been seeking merger partners to boost profits for their owners.
The combined bank, with around $15 billion in assets, will be one of the biggest surviving lenders based in the region, especially to small businesses. More here.