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Suburban Phila bank sold to Lancaster investors

Stonebridge sold to ex-Rep. Dellinger, Conestoga Wood's Hahns

    by Joseph N. DiStefano
    Published 

Stonebridge Financial Corp., a West Chester company that filed for bankruptcy reorganization in June, says it agreed Nov. 9 to sell money-losing Stonebridge Bank to a group of Lancaster-based investors, pending bank regulators' approval.

In a statement, Stonebridge boss Daniel J. Machon Jr. said the deal left his bank "poised for growth" if it is approved by regulators, adding that the investors plan to "greatly improve" the bank's financial strength. Stonebridge has lost money every year since 2007. Its capital base has slipped from $34 million in 2008 to $7 million on June 30, according to Federal Deposit Insurance Corp. figures. Loans and other assets fell to $130 million, from $487 million, in the same period. The bank has a branch in Warminster and a loan office in Southampton.

The buyers believe that the recent wave of bank mergers, with more expected soon, "created an opening for a locally-owned and based community bank in the south-central Pennsylvania region," said one of the investors, former Pa. State Rep. Gordon Denlinger (R-Lancaster County), in this statement.

Reporter Tim Mekeel of the Lancaster newspapers talked to the buyers, read his story here. Some highlights: "Former state Rep. Gordon Denlinger and two Conestoga Wood Specialties executives are getting into the banking business. They and other investors have agreed to buy the tiny, ailing Stonebridge Bank, based in West Chester, for $570,000, according to bankruptcy court records...

"Court records show that Denlinger is being joined by Anthony Hahn, president and chief executive officer of Conestoga Wood Specialties, and Hahn's father, Norman, who co-founded the company in 1964...They are among six to 10 investors who will be buying the bank."

LancasterOnline noted the Hahns became nationally known "in 2014 when Conestoga Wood challenged the federal mandate that it must provide insurance coverage for contraception, which officials said went against their religious beliefs." 

    JN
    Joseph N. DiStefano