Gettysburg-based ACNB Corp., the financial holding company for ACNB Bank and ACNB Insurance Services, and York-based Traditions Bancorp, the holding company for Traditions Bank, recently entered into a definitive merger agreement.
Under the agreement, ACNB will acquire Traditions and Traditions Bank in an all-stock transaction. On the closing date, Traditions shareholders will receive 0.73 shares of ACNB common stock for each share of Traditions common stock they own. This values the transaction at $73.5 million as of July 19.
The merger is expected to close during the first quarter of next year. Once it closes, Traditions shareholders will receive quarterly cash dividends equal to approximately $0.23 per Traditions share of common stock. The dividend is approximately 192 percent higher than Tradition’s current quarterly dividend.
Both companies’ boards of directors unanimously approved the merger. It is still subject to Traditions and ACNB shareholder approval.
The agreement contains provisions such as a termination fee payable to ACNB in an amount equal to approximately 4 percent of the transaction value should certain events outlined in the agreement occur.
An ACNB loan production office in York, a Traditions branch location in York and a Traditions branch location in Hanover will be consolidated with the nearest ACNB or Traditions Bank location.