ACNB Corp., the holding company for ACNB Bank and ACNB Insurance Services, is acquiring Traditions Bank, owned by Traditions Bancorp.
The all-stock transaction will merge two Pennsylvania community banks. ACNB, headquartered in Gettysburg, currently has 26 community banking offices and three loan offices in Adams, Cumberland, Franklin, Lancaster and York counties in Pennsylvania, and Baltimore, Carroll and Frederick counties in Maryland.
Traditions Bank, based in York, operates eight full-service branch offices located in York, Hanover, and Lancaster, as well as a loan production office in Lemoyne, Cumberland County.
The combined company would have total assets of $3.3 billion, total deposits of $2.6 billion, and total gross loans of $2.4 billion. Once the acquisition and consolidation are complete, ACNB will have 32 community banking offices in Pennsylvania and Maryland, offering a full range of financial services including banking, trust, retail brokerage, insurance and expanded mortgage products and services.
“ACNB Corporation has been executing a multi-year strategic plan to be the community bank of choice in the markets that we serve and thereby deliver superior financial results, performance and value to our shareholders and other stakeholders. At the core of this strategic plan has been profitable organic and inorganic growth,” ACNB President and CEO James Helt said. “The announcement of our proposed strategic acquisition of Traditions and Traditions Bank is also in furtherance of this strategic plan. This transaction will provide the resources to expand our presence in York County and enhance our penetration in the vibrant and demographically compelling Lancaster County market.”
Three executives from Traditions join ACNB Corporation in leadership positions. Eugene Draganosky, Traditions’ Chairman and CEO will join the ACNB Boards as a Vice Chair, while Thomas Sposito, II, Traditions’ President, will join ACNB Bank, as President of the Traditions Bank, a division of ACNB Bank. Further, Traditions Founder, Michael Kochenour will join ACNB as a Director Emeritus.”
“ACNB and Traditions share common cultures, values, vision and operating philosophies of what a community bank can and should be in today’s ever-changing business environment. For more than two decades, Traditions has done an exceptional job of creating a premier community bank, with an outstanding commercial banking team and an industry leading mortgage banking unit,” Draganosky said.
As part of the deal, Traditions shareholders will receive 0.7300 shares of ACNB common stock for each share of Traditions common stock that they own as of the closing date. Based on the price of ACNB common stock as of July 19, the transaction is valued at $73.5 million or $26.43 per share of common stock. Following completion of the transaction, Traditions shareholders will receive a quarterly cash dividend equal to approximately $0.23 per Traditions share of common stock based on ACNB’s current quarterly dividend of $0.32 per ACNB share of common stock.
The transaction is expected to close in the first quarter of 2025, pending approvals.
After the deal closes, two Traditions branch locations — 235 St. Charles Way in York, and 361 Eisenhower Drive in Hanover —as well as an ACNB loan production office at 1601 South Queen Street in York, are anticipated to be consolidated to the nearest ACNB or Traditions Bank location.