First Commonwealth Financial Corporation announced this week that its banking subsidiary, First Commonwealth Bank, will acquire 14 Santander Bank branches in Central Pennsylvania.
The branches are located in State College, Lock Haven, Williamsport, and Lewisburg. As of March 31, the banks have approximately $525 million of deposits and $120 million of retail and business loans.
“The contiguous expansion of our footprint into these new towns, which have complementary demographics and culture to our core Western Pennsylvania markets, makes perfect sense for us,” T. Michael Price, CEO of First Commonwealth, said. “These branches have a long history as community bank branches. We look forward to improving the financial lives of our new neighbors and businesses in these communities.”
The acquisition provides First Commonwealth with the opportunity to expand its Pennsylvania footprint by adding approximately 22,000 retail and small business households and grow its deposit base with low-cost, stable funding. The transaction aligns with Santander’s strategy to reallocate capital to investments in core markets that will drive growth.
“Santander is proud to have served these communities in central Pennsylvania for more than a decade,” Michael Cleary, co-president of Santander Bank and head of consumer and business banking, said. “We are pleased to reach this agreement with First Commonwealth – a mission-driven community bank that shares our values of providing excellent service to our customers and a great work environment for our team members. We look forward to working with them to provide a seamless transition and service experience for our customers, employees and the community.”
The transaction is subject to regulatory approval and is expected to close in the third quarter of 2019.