Pro Forma Ownership Was Sticking Point in Pa. Bank Merger

ACNB and Traditions Bancorp went back and forth multiple times over how much of the surviving company would be owned by the seller's shareholders.

Hello again, Bank Slaters!

Are we having a great week? I finally caught up on all the emails that had backed up while I was on the road at conferences. I get a few weeks at the home office before I fly to New York to join an ABA panel looking at the 2025 merger outlook. Reach out if you’re planning to be there — we’ll definitely make time to connect.

We have some bonus content this week after ACNB in Gettysburg, Pa., and Traditions Bancorp in York, Pa., submitted a regulatory filing for their planned merger. What struck me here was the significant back and forth the companies had over Traditions’ insistence that its shareholder retain a 20% stake in ACNB after the deal closed.

Often I see banks quibble over the exchange ratio or valuation, so a focus on post-closing ownership was interesting. There are some other good nuggets in the filing, including details on an aggressive cost-cutting effort Traditions enacted as it was talking to potential buyers.