We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ACNB Corp. Receives Regulatory Consent for Traditions Bancorp Buyout
Read MoreHide Full Article
ACNB Corp. (ACNB - Free Report) has obtained requisite regulatory approvals or waivers to acquire Traditions Bancorp, Inc. and its wholly-owned subsidiary, Traditions Bank. The deal was announced in July.
The approval has been issued by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities.
Details of the Acquisition Pursued by ACNB
ACNB announced an all-stock transaction worth $73.5 million to acquire Traditions Bancorp, with a termination fee of roughly 4% of the deal value.
Traditions Bancorp, established in 2002 and headquartered in York, PA, operates with eight full-service branches. It is a leading community bank in York County with the second-largest deposit market share.
Per the agreement, ACNB will issue 0.73 shares for each share of Traditions Bancorp’s common stock as of the closing date. The deal is expected to be closed on Feb. 1, 2025, subject to customary and shareholder approvals.
Further, upon the closing of the transaction, three directors from Traditions Bancorp will join the boards of ACNB and ACNB Bank, including chairman and CEO Eugene J. Draganosky, who will be designated as vice chairman.
Shareholders of both banks will be voting with regard to the proposed transaction in a special meeting to be held on Dec. 18, 2024.
ACNB’s Rationale Behind This Acquisition
ACNB is likely to benefit from expected cost savings of 35% of Traditions Bancorp’s non-interest expenses. Of this, 75% will be phased in 2025 and the rest will be realized thereafter.
The deal is anticipated to be 29.1% and 29.6% accretive to 2025 and 2026 earnings per share, respectively, assuming the execution of cost savings. Also, tangible book value is expected to be diluted by roughly 9.2% with a projected earn-back period of approximately 2.25 years.
Further, ACNB projects roughly 15.4% average tangible common equity and 1% return on average assets, and an internal rate of return of more than 15%.
This transaction aligns with ACNB’s multi-year strategic plan for inorganic growth while bolstering the potential for future organic growth. Further, Tradition Bancorp’s mortgage banking unit complements the company’s existing insurance and wealth management businesses, leading to higher non-interest income and loan growth.
Moreover, the deal meaningfully expands ACNB’s branch footprint in Lancaster County with a lower commercial real estate loan concentration and improves the deposit mix.
ACNB’s Zacks Rank & Price Performance
Year to date, shares of ACNB have risen 7.5% compared with the industry’s growth of 26%.
Earlier this month, The Bank of New York Mellon Corporation (BK - Free Report) acquired Archer Holdco, LLC, a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry. The financial terms of the deal, announced on Sept. 5, were kept under wraps.
This move aligns with BK’s inorganic growth strategy to boost its services. Archer provides comprehensive middle- and back-office solutions to asset and wealth managers, enabling them to address the managed account needs of institutional, private wealth and retail investors.
Similarly, Barclays PLC (BCS - Free Report) completed the acquisition of the retail banking business of Tesco Personal Finance plc. The deal was announced this February.
The deal is anticipated to result in the recognition of an estimated pre-tax profit of £0.3 billion in the fourth quarter of 2024, generating a 50-basis point accretion for the 2024 return on tangible equity for BCS.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ACNB Corp. Receives Regulatory Consent for Traditions Bancorp Buyout
ACNB Corp. (ACNB - Free Report) has obtained requisite regulatory approvals or waivers to acquire Traditions Bancorp, Inc. and its wholly-owned subsidiary, Traditions Bank. The deal was announced in July.
The approval has been issued by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities.
Details of the Acquisition Pursued by ACNB
ACNB announced an all-stock transaction worth $73.5 million to acquire Traditions Bancorp, with a termination fee of roughly 4% of the deal value.
Traditions Bancorp, established in 2002 and headquartered in York, PA, operates with eight full-service branches. It is a leading community bank in York County with the second-largest deposit market share.
Per the agreement, ACNB will issue 0.73 shares for each share of Traditions Bancorp’s common stock as of the closing date. The deal is expected to be closed on Feb. 1, 2025, subject to customary and shareholder approvals.
Further, upon the closing of the transaction, three directors from Traditions Bancorp will join the boards of ACNB and ACNB Bank, including chairman and CEO Eugene J. Draganosky, who will be designated as vice chairman.
Shareholders of both banks will be voting with regard to the proposed transaction in a special meeting to be held on Dec. 18, 2024.
ACNB’s Rationale Behind This Acquisition
ACNB is likely to benefit from expected cost savings of 35% of Traditions Bancorp’s non-interest expenses. Of this, 75% will be phased in 2025 and the rest will be realized thereafter.
The deal is anticipated to be 29.1% and 29.6% accretive to 2025 and 2026 earnings per share, respectively, assuming the execution of cost savings. Also, tangible book value is expected to be diluted by roughly 9.2% with a projected earn-back period of approximately 2.25 years.
Further, ACNB projects roughly 15.4% average tangible common equity and 1% return on average assets, and an internal rate of return of more than 15%.
This transaction aligns with ACNB’s multi-year strategic plan for inorganic growth while bolstering the potential for future organic growth. Further, Tradition Bancorp’s mortgage banking unit complements the company’s existing insurance and wealth management businesses, leading to higher non-interest income and loan growth.
Moreover, the deal meaningfully expands ACNB’s branch footprint in Lancaster County with a lower commercial real estate loan concentration and improves the deposit mix.
ACNB’s Zacks Rank & Price Performance
Year to date, shares of ACNB have risen 7.5% compared with the industry’s growth of 26%.
Image Source: Zacks Investment Research
Currently, ACNB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions Pursued by Other Banks
Earlier this month, The Bank of New York Mellon Corporation (BK - Free Report) acquired Archer Holdco, LLC, a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry. The financial terms of the deal, announced on Sept. 5, were kept under wraps.
This move aligns with BK’s inorganic growth strategy to boost its services. Archer provides comprehensive middle- and back-office solutions to asset and wealth managers, enabling them to address the managed account needs of institutional, private wealth and retail investors.
Similarly, Barclays PLC (BCS - Free Report) completed the acquisition of the retail banking business of Tesco Personal Finance plc. The deal was announced this February.
The deal is anticipated to result in the recognition of an estimated pre-tax profit of £0.3 billion in the fourth quarter of 2024, generating a 50-basis point accretion for the 2024 return on tangible equity for BCS.