Susquehanna Bancshares Inc. in Lititz, Pa., announced an agreement to buy Abington Bancorp Inc. in Jenkinton, Pa.
The $14 billion-asset company said late Wednesday that the $273 million stock deal would add 20 branches around Philadelphia. Susquehanna plans to keep open all of the $1.2 billion-asset Abington's branches.
The deal should close in the third quarter, adding $95 million of common equity. Accretion will be based on how capital is used. Abington's total risk-based capital ratio was 23.89% at Dec. 31.
Its stockholders are to get 1.32 share of Susquehanna stock for each share they own. In a press release, the company said the deal is priced at 13.8% above Abington's Tuesday closing price of $11.46 a share.
Susquehanna reported that its fourth-quarter earnings jumped 185% from a year earlier, to $9.7 million. Abington reported a $1.9 million profit for the quarter, compared with a $2 million loss a year earlier.
