ACNB, the holding company of ACNB Bank, has received all necessary regulatory approvals for its previously announced $73.5m acquisition of Traditions Bancorp and its subsidiary, Traditions Bank.
The proposed deal has been greenlit by both the US Federal Deposit Insurance Corporation (FDIC) and the Pennsylvania Department of Banking and Securities.
Additionally, the Federal Reserve Bank of Philadelphia granted ACNB a waiver from certain merger application requirements.
Shareholders of Traditions Bancorp are scheduled to vote on the proposed acquisition during a special meeting on 18 December 2024.
ACNB shareholders will also participate in a virtual meeting to vote on the issuance of ACNB common stock as part of the merger terms.
If shareholders of both parties approve, and other customary conditions are met, the transaction is anticipated to be completed on 1 February 2025.
Under the definitive merger agreement announced in July this year, shareholders of Traditions Bancorp will receive 0.73 shares of ACNB common stock for each share of Traditions Bancorp common stock they hold at closing.
Based on ACNB’s 20-day volume weighted average price as of 19 July 2024, the transaction is valued at approximately $26.43 per share of Traditions Bancorp common stock.
Following the transaction, Traditions Bancorp shareholders will also be eligible for a quarterly cash dividend of around $0.23 per share of Traditions Bancorp common stock, based on ACNB’s current dividend rate of $0.32 per share.
Founded in 2002, Traditions Bank is a full-service community bank providing financial services to businesses, individuals, and community organisations.
As of 30 June 2024, the bank reported total assets of $859m, total deposits of $738m, and total loans of $673m.
Upon completion of the acquisition, ACNB Bank will operate the former Traditions Bank branches located in York and Lancaster counties.
The combined entity is projected to hold pro forma total assets of $3.3bn, total deposits of $2.6bn, and total gross loans of $2.4bn. ACNB will operate 32 community banking offices across Pennsylvania and Maryland, upon completion of the integration.
