New Windsor, MD – New Windsor State Bank, a small Maryland-based bank with seven locations in the northern part of the state, will soon be acquired by the Pennsylvania-based ACNB Bank in a new deal estimated to be worth $33.3 million.
The acquisition is part of ACNB’s plans to expand into Maryland, though the New Windsor State Bank branches will retain some of their autonomy. The current locations will be rebranded as New Windsor Bank, a division of ACNB Bank.
Talks of the partnership began more than two years ago, as New Windsor Bancorp, the corporation behind New Windsor State Bank, struggled to meet regulation costs while operating on a small scale. The merger has been approved by the boards of directors from both banks, though it is still pending final approval from New Windsor’s current stockholders, as well as the regulatory agencies that govern the 5,388 commercial banks in the U.S.
“We saw them as a bank with a strong cultural fit,” said New Windsor Bancorp President Tom Rasmussen said of ACNB. “It was an easy and comfortable arrangement. We have similar goals and philosophies.”
New Windsor will add an estimated $311.1 million in assets to the ACNB Banking group, for a combined total of $1.52 billion once the acquisition is complete. ACNB currently operates 22 branches, not including the seven future New Windsor Bank locations.
Both parties believe that the merger will be finalized by the third quarter of 2017. Current New Windsor shareholders will each receive 1.1 shares of ACNB stock or $30 cash for every owned share as part of the transition.
“New Windsor State Bank has been part of the Northern Maryland community for more than 80 years, with origins that date back to 150 years,” Rasmussen said in a press release announcing the board approval. “With ACNB Corp. as our partner, we believe that the resources, capital, expertise, experience and common culture are there for us to profitably grow in this market for years to come.”