Susquehanna Bancshares Inc. of Lititz, Pa., is merging its eight community banks into three, all bearing the holding company's name.
William J. Reuter, Susquehanna's chairman, president, and chief executive officer, said Friday that the moves would slash its administrative and regulatory burden and make it more convenient to its customers, who would then be able to conduct basic banking transactions at any of its 159 branches.
The consolidation and rebranding are expected to be completed in the second quarter.
Currently, Susquehanna customers can use any of its 170 automated teller machines, but customers of one subsidiary cannot use another subsidiary's branches. After the consolidation, they would be able to make deposits, withdrawals, and loan payments at any Susquehanna branch.
"It's not uncommon for our customers to travel from Lancaster to Baltimore and every place in between," Mr. Reuter said. "It just makes sense that we provide a structure to service them through their travels."
Farmers Bank in Lititz would be combined with First Susquehanna Bank and Trust in Sunbury and WNB Bank in Williamsport Pa., to create Susquehanna Bank PA. It would be based in Lititz and would have 58 branches and $2.3 billion of assets.
Citizens Bank of Southern Pennsylvania in Greencastle would merge with Farmers & Merchants Bank and Trust in Hagerstown, Md., First American Bank of Pennsylvania in Everett, Pa., and Susquehanna Bank in Towson, Md., to create Susquehanna Bank. It would be based in Hagerstown and would have $2.8 billion of assets 64 branches in Pennsylvania, Maryland, and West Virginia.
The third new subsidiary, Susquehanna Patriot Bank, was formed June 10, when Susquehanna merged Equity Bank in Marlton, N.J., with the recently acquired Patriot Bank in Pottstown, Pa. Susquehanna Patriot has 37 branches and $2.1 billion of assets.
Mr. Reuter said his company considered combining all of its banks into a single subsidiary, but that would have been "too extreme."
Consolidating the eight banks into three will yield almost as much savings as folding them into one bank, and having three separate boards "ensures that local decision making and pricing will be preserved," he said. "We think it's a win-win."
