Penns Woods Bancorp (PWOD) agreed to acquire Luzerne National Bank (LUZR) in Luzerne, Pa.

Penns Woods, which is based in Williamsport, Pa., will pay $44.5 million in cash and stock, the companies said in a press release late Thursday. The companies said they expect to complete the transaction in the second quarter of 2013.

Penns Woods, which would have about $1.1 billion in assets when it completes the acquisition, will keep the Luzerne Bank on the eight branches it is buying. Penns Woods will continue to use Jersey Shore State Bank on its own branches.

Earlier on Thursday, Penns Woods announced that its third-quarter earnings had increased 16% from a year earlier, to $3.7 million.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.