ACNB Corp. announced its plans to acquire Traditions Bancorp, Inc., a community bank holding company for Traditions Bank in York, Pa., through a definitive merger agreement valued at $73.5 million. The transaction is expected to close in the first quarter of 2025.
Upon the transaction’s completion, the combined company is expected to have $3.3 billion in total assets, $2.6 billion in total deposits, and $2.4 billion in total gross loans.
A joint press release described the all-stock transaction as a strategic acquisition for ACNB Corp. to add a locally headquartered, managed, and focused community bank to the financial holding company’s business roster, which includes ACNB Bank and ACNB Insurance Services, Inc.
“ACNB Corp. has been executing a multi-year strategic plan to be the community bank of choice in the markets that we serve and thereby deliver superior financial results, performance and value to our shareholders and other stakeholders,” ACNB President and CEO James Helt said in the release. “At the core of this strategic plan has been profitable organic and inorganic growth. As demonstrated in today’s previously released second quarter of 2024 financial results press release, we continue to deliver on profitable organic growth in our core community banking and insurance agency lines of business.”
The acquisition complements ACNB’s strategic plan by providing it the resources necessary to expand its presence in York County and enhance the company’s “penetration in the vibrant and demographically compelling Lancaster County market.”
Traditions was established in 2002 and operates eight branch locations between York and Lancaster counties, a loan production office in Cumberland County, and an operations center in York. As of June 30, the bank had total assets of $859 million, total deposits of $738 million, and total loans of $673 million.
Three members of the Traditions board will join the boards of directors at ACNB Corp. and ACNB Bank: Traditions CEO and Chair Eugene Draganosky will become a vice chair; Traditions founder Michael Kochenour will become director emeritus; and Traditions President Thomas Sposito, II, will retain his title upon completion of the acquisition, at which time Traditions Bank will become a division of ACNB Bank.
“ACNB and Traditions share common cultures, values, vision and operating philosophies of what a community bank can and should be in today’s ever-changing business environment,” Draganosky said. “For more than two decades, Traditions has done an exceptional job of creating a premier community bank, with an outstanding commercial banking team and an industry leading mortgage banking unit.”
The acquisition will bring ACNB’s collection of community banking offices in Pennsylvania and Maryland to 32, offering a range of banking, trust, retail brokerage, insurance and expanded mortgage products and services. Two Traditions branches are expected to be consolidated to the nearest ACNB or Traditions Bank locations at a date to be determined after the deal is closed.
“We are excited to welcome Traditions as ACNB Corp. expands its presence in the Pennsylvania market. York and Lancaster are growing, vibrant markets for community banking, which is at the core of ACNB Corp.’s success for more than 165 years,” Helt said. “This strategic acquisition is intended to complement our operations with profitable growth opportunities adjacent to our current footprint, while contributing to the corporation’s established commitment of enhancing long-term shareholder value. We certainly look forward to sharing our commitment to community banking with customers and other stakeholders in the York and Lancaster markets.”
The terms of the agreement state that Traditions shareholders will receive 0.73 shares of ACNB common stock for each share of Traditions common stock they own at the closing date. Based on the 20-day volume weighted average price of ACNB common stock as of July 19, the transaction is valued at $26.43 per share of common stock.