Community Bank, N.A., a subsidiary of Community Financial System, a diversified financial services company, recently entered into an agreement with Santander Bank to acquire seven branch locations in the Allentown area.
The agreement also includes certain branch related loans and deposits, and related wealth management relationships.
The transaction is part of Community Bank’s plans to expand in the Greater Lehigh Valley. It also complements the bank’s existing commercial and consumer lending presence in the market.
The deal is expected to close during the fourth quarter subject to customary regulatory approval. Once the deal closes, all former Santander Bank locations will remain open. Santander Bank employees will be offered continued employment.
The new locations, when combined with Community Bank’s existing and planned locations, will bring Community Bank’s total retail locations in the Greater Lehigh Valley to 12.
Once the deal concludes, Community Bank will assume approximately $600 million in deposits, purchase approximately $33 million in branch-related loans and pay Santander Bank approximately $48 million for the branch assets and liabilities.
Community Bank operates approximately 200 customer locations in Pennsylvania, New York, Vermont and Massachusetts. It has more than $16 billion in assets, making it one of the largest banking institutions in the United States.