Susquehanna Bancshares Inc., Lititz, has agreed to buy Community Banks Inc., Harrisburg, in a $860 million cash and stock deal that would create Pennsylvania's tenth largest bank ranked by deposits and fourth largest ranked by assets.
Susquehanna, which operates 14 branches in Burlington and Camden Counties, said it expected the merged companies to save $33 million - or 35 percent of non-interest expense - by eliminating administrative and operational redundancies.
Community Banks has 80 branches, including two in Chester County. The combined company would have 246 branches, mostly in Pennsylvania, New Jersey and Maryland. Susquehanna's shares fell 78 cents, or 3.5 percent, to $21.53 this morning, while Community's shares shot up by a third, or $7.94, to $31.57.