ACNB Bank is in the process of acquiring Maryland-based New Windsor State Bank in a deal valued at roughly $33.3 million.
The move expands ACNB’s footprint into northern Maryland, where New Windsor has seven banking offices. Once the deal is completed, those branches will operate as “New Windsor Bank, a division of ACNB Bank.”
New Windsor would be ACNB Corp.’s first acquisition since 2005, when it added Maryland-based Russell Insurance Group, Inc. as a wholly-owned subsidiary.
ACNB expects to keep many of New Windsor’s employees, especially in the areas of lending, consumer contact and retail, according to the release.
“This new partnership will enable ACNB Corp. to profitably grow in a desirable market that is adjacent to our current footprint,” ACNB Board Chairman Frank “Rusty” Elsner III said in a news release Tuesday.
ACNB Corp., the Gettysburg-based parent company of ACNB Bank, plans to complete the acquisition of New Windsor’s owner, New Windsor Bancorp, in mid-2017, the companies said in the release.
The combined entity will have assets totaling $1.52 billion, with New Windsor bringing $311.1 million. Not including the planned New Windsor additions, ACNB has 22 branches in Adams, Cumberland, Franklin and York counties, making up about 5.4 percent of the market share in those areas.
Two directors from New Windsor plan to join the boards of ACNB Corp. and ACNB Bank, according to the release. New Windsor President Tom Rasmussen will remain in northern Maryland as market president after the merger.
“New Windsor State Bank has been part of the Northern Maryland community for more than 80 years, with origins that date back to 150 years,” Rasmussen said in the release. “With ACNB Corp. as our partner, we believe that the resources, capital, expertise, experience and common culture are there for us to profitably grow in this market for years to come.”
Boards of directors from both companies have approved the transaction, valued at $33.294 million, or $33.11 per share. Pending approvals by regulators, New Windsor stockholders and others, the companies expect to finalize the acquisition by late in the second quarter or early in the third quarter of 2017.
In addition to New Windsor State Bank, New Windsor Bancorp operates wholly-owned subsidiary New Windsor Capital Trust I and one indirect subsidiary, bank-owned New Windsor Holdings LLC.