Susquehanna Bancshares Inc. Completes Acquisition of Tower Bancorp Inc.
19 February 2012 - 2:00AM
Business Wire
Susquehanna Bancshares Inc. (Nasdaq: SUSQ) completed its
acquisition of Tower Bancorp Inc. (Nasdaq: TOBC) on February 17,
2012, creating Pennsylvania’s largest community bank.
Tower’s bank branches in central and southeastern Pennsylvania
as well as Maryland – which operated under the Graystone, Tower and
1N Bank divisions – will open after the Presidents’ Day weekend as
Susquehanna Bank offices. With the acquisition, Susquehanna has
$17.5 billion in assets and 261 offices in Pennsylvania, Maryland,
New Jersey and West Virginia. The bank has approximately $12.4
billion in deposits and $12.5 billion in loans.
“Graystone Tower Bank built a great reputation for serving their
customers and communities, and we are pleased to welcome their
customers, employees and shareholders to Susquehanna,” said William
J. Reuter, Chairman and Chief Executive Officer of Susquehanna
Bancshares. “This merger enhances our presence in key markets,
expands our branch network into several new counties, and positions
us to grow and strengthen our company.”
Susquehanna Bank is one of the top three banks by market share
in 14 of the counties it serves. The addition of Graystone Tower
Bank’s branches significantly increased Susquehanna’s branch
network in Chester County, as well as in central Pennsylvania. In
addition, Susquehanna Bank acquired branches for the first time in
State College and in Fulton and Lebanon counties in Pennsylvania.
Graystone’s wealth management business, headquartered in Chester
County, will become part of Susquehanna Wealth Management.
“With Susquehanna Bank, we offer customers a wide array of
financial products and services to meet any need they may have,
along with a convenient network of branch offices and staff
dedicated to personal service,” said Andrew Samuel, Tower’s
Chairman and Chief Executive Officer, who joined Susquehanna as
President and Chief Revenue Officer.
In conjunction with the merger, three members of Tower’s Board
of Directors have joined the Boards of Directors of Susquehanna
Bancshares Inc. and Susquehanna Bank: Samuel, Jeffrey F. Lehman,
President and Chief Executive Officer of Shank’s Extracts Inc.,
Lancaster, Pa., and Robert E. Poole, Jr., Chairman, President and
Chief Executive Officer of S&A Homes Inc., State College,
Pa.
In the transaction, each share of Tower common stock outstanding
immediately prior to completion of the merger was converted into
the right to receive 3.4696 shares of Susquehanna common stock or
$28.00 in cash, subject to proration so that $88 million of the
aggregate consideration is paid in cash.
Susquehanna was advised in this transaction by J.P. Morgan
Securities LLC, as financial advisor and Morgan, Lewis &
Bockius LLP as legal counsel. Tower was advised by Keefe, Bruyette
& Woods as financial advisor and Rhoads & Sinon LLP as
legal counsel.
Susquehanna Bancshares, Inc. is a financial services holding
company with assets of $17.5 billion. Its largest subsidiary is
Susquehanna Bank, which provides commercial banking services to
consumers and businesses through 261 branch offices in
Pennsylvania, New Jersey, Maryland and West Virginia. Through
Susquehanna Wealth Management, the holding company also offers
investment, fiduciary, brokerage, insurance, retirement planning,
and private banking services, with approximately $7.4 billion in
assets under management and administration. Susquehanna also
operates an insurance brokerage and employee benefits company, a
commercial finance company and a vehicle leasing company. For more
information, please visit www.susquehanna.net.
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