ESSA acquires FSB for $16M

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ESSA Bancorp Inc. of Stroudsburg, the holding company for ESSA Bank & Trust, has acquired Franklin Security Bancorp Inc. of Wilkes-Barre for $16 million.
ESSA Bank & Trust, with assets of $1.37 billion, provides retail and commercial financial services and financial advisory and wealth management capabilities to the Greater Pocono and Lehigh Valley areas in northeast Pennsylvania through 26 community offices.
Franklin Security Bank reported assets of $225.65 million at Sept. 30, 2013, total loans of $148.88 million and total deposits of $168.25 million.
“Partnering with Franklin Security Bank provides a platform for ESSA Bank & Trust to expand its presence northward to an adjacent regional market,” Gary S. Olson, president and CEO of ESSA Bank & Trust said.
Under the terms of the merger, stockholders of FSB will receive $9.75 per share or an aggregate of about $15.7 million. Pending the satisfaction of customary closing conditions, including the receipt of all regulatory approvals and the approval of stockholders of FSB, the transaction is expected to close in the second quarter of 2014.
Ambassador Financial Group Inc. of Allentown advised FSB in the deal.