Northern Dauphin County-based Gratz Bank is transferring its Minersville trust services to another institution.
Fidelity D & D Bancorp, holding company of Lackawanna County-based Fidelity Bank, will take over Gratz’s Minersville-based trust business and accounts, according to a news release issued Tuesday.
Fidelity will continue offering the services out of Gratz’s Minersville location, and Gratz Bank’s retail banking services will continue there as is, said Daniel Santaniello, Fidelity’s president and CEO.
Jim O’Brien of Gratz’s trust department will also remain in the Minersville office as a member of Fidelity’s wealth management team. Fidelity has not yet made a decision on two other employees who currently work with O’Brien, Santaniello said.
The Minersville trust department has $55 million in assets under management as part of Gratz. When the transfer to Fidelity goes through after a 30- to 45-day transition window, the combined entity will have more than $310 million in assets under management, Santaniello said.
The banks did not disclose the cost of the acquisition.
Gratz gained the Minersville branch in 2015 when its holding company, GNB Financial Services, acquired First National Bank of Minersville for $13.4 million.
Transferring the trust services to Fidelity will let the bank concentrate on other services, Gratz president and CEO Wesley Weymers said in the release.
“As we look to the future to focus on those areas that Gratz Bank excels at, we find our focus and expertise is in the community banking arena,” Weymers said.
Gratz has five offices in Dauphin, Schuylkill and Northumberland counties and about $300 million in assets.
Fidelity, meanwhile, has 10 offices in Lackawanna and Luzerne counties and $770 million in assets. Taking over Gratz’s Minersville trust services will help the company build its trust and wealth management business in a new area, Santaniello said.
Fidelity is looking forward to more growth in 2017, with plans to open a new office in Dallas, Pa., in the fourth quarter of the year.