By Lisa Kerner
Charlotte, N.C., Dec. 5 - Penseco Financial Services Corp. agreed to acquire Old Forge Bank and merge it with Penseco's wholly owned banking subsidiary Penn Security Bank and Trust Co. in a deal valued at $58 million or $103.76 per share.
Old Forge shareholders may elect to receive cash and/or shares of Penseco Financial in exchange for their Old Forge shares subject to proration, a Penseco news release said.
Penseco said no more than 30% of the merger consideration will be in cash.
The transaction is expected to close in the second quarter of 2009.
Craig Best, Penseco Financial's president and chief executive officer, will be CEO of the combined company. Three of Old Forge's board members will join the Penseco board of directors.
Once the merger is complete, Scranton, Pa.-based Penseco Financial said its assets will increase to about $860 million from $640 million and its banking offices will increase to 12 from nine.
Old Forge Bank (Pink Sheets: OLDF) is located in Old Forge, Pa.
| Acquirer: | Penseco Financial Services Corp.
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| Target: | Old Forge Bank
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| Announcement date: | Dec. 5
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| Transaction total: | $58 million
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| Price per share: | $103.76
|
| Expected closing: | Second quarter of 2009
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