WELLSBORO, Pa. - Citizens and Northern Corp. is planning to buy a neighboring, north central Pennsylvania bank company for about $22.8 million in stock, according to documents filed this week with the Securities and Exchange Commission.

The $705 million-asset parent of Citizens and Northern Bank said it has a deal to acquire $120 million-asset Peoples Limited of Wyalusing and its subsidiary, Peoples State Bank. Citizens and Northern would exchange 2.5 of its shares for each share of Peoples' stock.

Citizens' stock last traded Tuesday, when it closed at $22.25. Peoples' stock, which is also thinly traded, is currently valued around $31.50.

Citizens plans to fold Peoples' six locations into its network of 16 branches in Bradford, Tioga, Sullivan and Lycoming counties. The sale is expected to close in the fourth quarter.

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