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Citizens & Northern Corp. Acquires Susquehanna Community Financial

Citizens & Northern Corp. expands with the acquisition of Susquehanna Community Financial.

News Summary

Citizens & Northern Corp., based in Wellsboro, Pennsylvania, has announced the acquisition of Susquehanna Community Financial for $44.3 million in stock. This merger will create a combined entity with approximately $3.2 billion in assets and is set to close in the fourth quarter of 2025. The acquisition aims to expand Citizens & Northern’s market presence in Central Pennsylvania, particularly Union County, enhancing customer service and strategic growth amidst a wave of bank mergers in the region.

Pennsylvania – Citizens & Northern Corp., based in Wellsboro, Pennsylvania, has announced its acquisition of Susquehanna Community Financial in a deal valued at $44.3 million in stock. This merger marks a significant step for Citizens & Northern as it seeks to expand its footprint into Central Pennsylvania markets, particularly in Union County, where Susquehanna holds a dominant market position.

With Susquehanna Community Financial reporting assets of $598 million and Citizens & Northern standing at $2.6 billion, the combination will create a new entity with approximately $3.2 billion in total assets. This merger is expected to culminate in the fourth quarter of 2025 and is notable for being the eighth bank merger in Pennsylvania since September 2023.

The acquisition will result in Susquehanna shareholders receiving approximately $15.58 per share, which translates to around 0.80 shares of Citizens & Northern stock. Post-merger, these shareholders will own about 13% of the newly combined company’s outstanding common stock. Susquehanna CEO Dave Runk is set to join Citizens & Northern as Executive Vice President and Strategic Advisor, while Chairman Chris Trate is expected to take a position on the board of directors. Additionally, Susquehanna President and COO Jeffrey Hollenback will serve as the market president for the merged company.

Bradley Scovill, the CEO of Citizens & Northern, highlighted that the focus of the merger lies in entering attractive markets and fostering a culture centered around customer service, which both institutions share. Citizens & Northern aims to leverage Susquehanna’s strong market presence in Union County, where it currently commands a 31% share of the $1.1 billion deposit market.

The timing of this merger comes amidst a flurry of bank mergers in Pennsylvania, including Northwest Bancshare’s acquisition of Penns Woods Bancorp and CNB Financial’s planned merger with ESSA Bancorp. However, experts have indicated that the current pace of community bank mergers may slow down, partly due to the dwindling number of potential buyers in the market.

Citizens & Northern has been performing well financially, reporting a first-quarter net income of $6.3 million, reflecting a 19% increase from the previous year. The bank anticipates a 17% growth in earnings for 2026 as a result of the Susquehanna acquisition. This positive financial trajectory supports the strategic rationale behind the merger, which is to consolidate resources and broaden market influence amid increasing competition in the banking sector.

Factors driving the ongoing trend of bank mergers include the quest for enhanced market share, increased competition, and the pursuit of strategic growth opportunities. As more institutions look to combine operations to remain competitive, the landscape of community banking in Pennsylvania and beyond continues to evolve rapidly.

Citizens & Northern last expanded its operations in July 2020 with the acquisition of Covenant Bank, making this upcoming merger a further extension of its growth strategy. As community banks navigate challenges and opportunities within the financial sector, such mergers are likely to have lasting implications for the industry and its customers.