ACNB Corp. Receives Regulatory Consent for Traditions Bancorp Buyout

Group 1: Acquisition Overview - ACNB Corp. has received regulatory approvals to acquire Traditions Bancorp and its subsidiary, Traditions Bank, with the deal announced in July [1] - The acquisition is an all-stock transaction valued at $73.5 million, with a termination fee of approximately 4% of the deal value [2] - The agreement stipulates that ACNB will issue 0.73 shares for each share of Traditions Bancorp's common stock, with the deal expected to close on February 1, 2025, pending approvals [3][4] Group 2: Strategic Rationale - ACNB anticipates cost savings of 35% on Traditions Bancorp's non-interest expenses, with 75% of these savings expected to be realized in 2025 [5] - The acquisition is projected to be accretive to earnings per share by 29.1% in 2025 and 29.6% in 2026, assuming successful execution of cost savings [5] - The tangible book value is expected to be diluted by approximately 9.2%, with an earn-back period of about 2.25 years [5] Group 3: Financial Projections and Growth - ACNB projects an average tangible common equity of roughly 15.4% and a 1% return on average assets, with an internal rate of return exceeding 15% [6] - The acquisition aligns with ACNB's strategic plan for inorganic growth and enhances potential for future organic growth, particularly through Traditions Bancorp's mortgage banking unit [6] - The deal will expand ACNB's branch footprint in Lancaster County and improve the deposit mix, while reducing commercial real estate loan concentration [7] Group 4: Market Performance - Year-to-date, ACNB shares have increased by 7.5%, compared to the industry's growth of 26% [8]