C&N to buy Susquehanna Community in merger of Pa. banks
Citizens & Northern in Wellsboro, Pa., has agreed to buy Susquehanna Community Financial in West Milton, Pa.
The $2.6 billion-asset C&N said in a press release that it will pay $44.3 million for the $598 million-asset Susquehanna. The deal, which is expected to close in the fourth quarter, priced Susquehanna at 126% of its tangible book value.
Susquehanna has seven branches in central Pennsylvania.
The acquisition “continues our strategic efforts to enter attractive markets through acquisition and leverages the strengths of two reputable community banks that share a similar culture and customer-first mindset,” J. Bradley Scovill, C&N’s president and CEO, said in the release. “We believe this is a great fit and we are pleased to welcome … the SQCF team and customers to C&N.”
The deal is expected to be about 17% accretive to C&N’s 2026 earnings per share. It should take less than three years to earn back an estimated 8% dilution in C&N’s tangible book value.
C&N expects to incur $6.6 million in merger-related charges. It plans to cut about 30% of Susquehanna’s annual noninterest expense.
Chris Trate, Susquehanna’s chairman, will join C&N’s board. Dave Runk, Susquehanna’s CEO, will join C&N Bank’s executive team as a strategic adviser, while Jeffrey Hollenbach, Susquehanna’s president and chief operating officer, will become a region president.
Piper Sandler and Barley Snyder advised C&N. Janney Montgomery Scott and Pillar+Aught advised Susquehanna.