Susquehanna Bancshares Inc. in Lititz, Pa., has agreed to buy in-state competitor Tower Bancorp of Harrisonburg.
The $14 billion-asset Susquehanna said late Monday that it would pay $343 million for the $2.6 billion-asset Tower. The price, which will be paid either in 3.45 shares of Susquehanna stock or $28 in cash, represents 150% of Tower's tangible book value. The transaction is expected to be completed in the first quarter of 2012.
Susquehanna in January agreed to buy the $1.2 billion-asset Abington Bancorp Inc. in Jenkintown, Pa., for $273 million in an acquisition set to close in the third quarter. Susquehanna said in a press relase that once those acquisitions are completed, it will have $17.8 billion in assets, becoming the largest community bank based in Pennsylvania.
Analysts called the deal surprising, as Tower itself has completed two transformative acquisitions in recent years. Andrew Samuel, chairman and chief executive of Tower, is expected to become president and chief revenue officer of Susquehanna upon completion of the deal.
