First Commonwealth Financial has signed an agreement to acquire 14 Santander Bank branches located in central Pennsylvania.
The acquisition will add around 22,000 retail and small business households to First Commonwealth Financial portfolio. It will further bolster its presence in Pennsylvania and strengthen its deposit base.
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Overall, the acquired branches had approximately $525m of deposits and $120m of retail and business loans as of 31 March 2019.
First Commonwealth CEO T. Michael Price said: “The deposits that we are acquiring with these branches provide low-cost, stable funding that will immediately improve our profitability and, more importantly, allow us to continue the steady pace of our loan growth in the face of a competitive deposit market.
“This transaction is similar in size and scope to the four low-risk transactions that we have completed in recent years, each of which has exceeded our expectations.”
For Santander, the deal will support its strategy to reallocate capital to investments in core markets to support growth.
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By GlobalDataThe Santander Bank branches to be transferred under the deal are located in State College, Lock Haven, Williamsport, South Williamsport, Lewisburg, Danville, Montoursville, Beech Creek, Jersey Shore, Milton, Muncy and Renovo.
The transaction is expected to be completed in the third quarter of this year, subject to regulatory approval.
Headquartered at Indiana in Pennsylvania, First Commonwealth Financial has 137 branches in Pennsylvania and Ohio.
