GNB Financial in Gratz, Pa., has agreed to buy Liberty Centre Bancorp in Pottsville, Pa.
GNB plans to pay cash equal to adjusted book value for the $28 million-asset Liberty Centre, the companies announced Wednesday. The adjustment to Liberty Centre's book value will reflect increases to its loan-loss allowance, outstanding contracts and commitments and payments to resolve other matters, the companies said. The expected price was not disclosed.
The acquisition would provide the $182 million-asset GNB with two branches and a loan facility. GNB already has three branches. The deal "continues GNB Financial's growth as a strong, high-performing community bank and increases our locations, products and efficiencies to better serve our customers and provide value to our shareholders," Wesley Weymers, the company's president and chief executive, said in a press release.
Three Liberty Centre directors would join an advisory board to GNB's board. The deal is expected to close by early 2014.