Susquehanna Bancshares Inc. in Lititz, Pa., said late Wednesday that it had agreed to buy Abington Bancorp Inc.
The $273 million stock deal would boost the $14 billion-asset company's presence in Philadelphia and provide more capital to deploy elsewhere.
Buying the $1.2 billion-asset Abington, based in Jenkintown, Pa., will give Susquehanna 20 new branches in suburban Philadelphia. Susquehanna said it expects to keep all of Abington's branches open. It is expected to close in the third quarter.
The deal will also add $95 million of common equity to Susquehanna's balance sheet and the deal's accretion would be determined by how that capital is used. At Dec. 31, Abington had a total risk-based capital ratio of 23.89%.
Abington shareholders will receive 1.32 shares of Susquehanna stock for each share. In a press release, the company said the deal is priced at 13.8% above Abington's closing price on Tuesday.
Also on Wednesday, Susquehanna reported that its fourth-quarter earnings jumped 185% from a year earlier, to $9.7 million. Abington reported a $1.9 million profit for the quarter, compared to a $2 million loss a year earlier.
