In Brief: Fulton of Pa. Buying Small Allentown Bank

Pennsylvania's Fulton Financial Corp. announced plans Monday to acquire Ambassador Bank of the Commonwealth, Allentown, Pa., for about $77 million in stock.

Lancaster-based Fulton, a $4.5 billion-asset holding company that operates 11 community banks in four states, would exchange 1.12 shares of its common stock for each Ambassador share. The deal, valued at roughly 3.15 times book, is expected to close during the third quarter.

"The Lehigh Valley area is a thriving region and this acquisition solidifies our market presence," said Rufus A. Fulton Jr., Fulton's president and chief executive officer.

Founded in 1990, $275 million-asset Ambassador operates eight community bank branches in Lehigh and Northampton counties and is opening a ninth this year.

If the deal is approved by regulators and shareholders, Ambassador would merge with Lafayette Bank, a Fulton subsidiary with $450 million of assets and 13 branches in Northampton County.