Community Bank to accelerate Lehigh Valley expansion with branch deal
The $16 billion-asset company is beefing up its presence in Allentown by acquiring seven branches in the market from Santander Bank.
Community Bank in DeWitt, New York, is acquiring seven branches in Allentown, Pennsylvania, from Santander Bank.
The banking subsidiary of Community Financial System, Inc. (NYSE: CBU) said it will pay approximately $48 million in cash for the branches, which will include $600 million in deposits and $33 million in branch-related loans.
In addition, Community Bank will purchase related wealth management relationships.
The transaction is expected to close during the fourth quarter of 2025.
The deal accelerates Community Bank’s expansion in the Greater Lehigh Valley and complements its existing commercial and consumer lending presence in the market.
The acquisition, together with Community Bank’s existing branches in the market and its pending de novo locations, brings its total retail locations in the Greater Lehigh Valley to 12, resulting in a top five market position.
Community Financial System, Inc. expects the transaction to be slightly accretive to earnings.
All branches will remain open and all employees will be offered continued employment, the bank said.
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The Lehigh Valley is among the fastest-growing regions of the Northeast, attracting a net of 11,000 newcomers to the eastern Pennsylvania region since 2020. In the last five years, 11,600 new jobs were created in the region.
Further crowding the Allentown market was last year’s arrival of $4.2 billion-asset United Federal Credit Union. St. Joseph, Michigan-based United arrived through a merger with Allentown-based GOLD Credit Union.
That move could cause additional disruption to member acquisition, lending opportunities and talent procurement efforts for the area’s banks and credit unions.
Community Bank reported net income of $49.6 million in the first quarter, or $0.93 per share, which was an increase of $0.17 per share from 2024’s first quarter.
Community Bank is among the country’s 100 largest banking institutions, with more than $16 billion in assets. It operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont and Western Massachusetts.
