The First National Bank of Fredericksburg has become the third midstate-based bank to be acquired in 2015, as it officially closed on a deal to be bought by Citizens Financial Services Inc.
Citizens Financial is the parent company of Mansfield-based First Citizens Community Bank. It is adding seven branches of Bethel Township-based FNB Fredericksburg — four in Lebanon County, two in Schuylkill County and one in Berks County.
The deal was for $22.1 million, with 75 percent awarded in stock and 25 percent in cash. However, according to Citizens Financial, the cash election was oversubscribed, with 46.8 percent of outstanding shares requesting a cash payout.
About 45.7 percent requested stock. About 7.5 percent did not make a choice and are subject to a stock award.
Since the cash award was oversubscribed, shareholders who wanted a cash payout will not be able to get cash for all their shares. They will receive $630 per share in return for about 53.4 percent of their shares, and they will receive 12.6 shares of Citizens common stock for each of their remaining shares.
The acquisition ends a dizzying year for acquisitions in midstate banking.
In March, S&T Bancorp Inc.of Indiana, Pa., acquired Integrity Bancshares Inc., formerly of Camp Hill. Then in August, North Carolina-based BB&T Corp. acquired Susquehanna Bancshares Inc., formerly of Lititz.
In February, Pittsburgh-based F.N.B. Corp., parent company of First National Bank of Pennsylvania, is expected to complete it acquisition of Metro Bancorp Inc.of Swatara Township.