Community Bank N.A., a subsidiary of Community Financial System Inc., announced it has entered into a Purchase and Assumption Agreement with Santander Bank N.A. to acquire seven branch locations in the Allentown, Penn. area as well as certain branch related loans and deposits. In addition, Community Bank will purchase related wealth management relationships. The transaction is expected to close during the fourth quarter of 2025 subject to customary regulatory approval. All branches will remain open and all employees will be offered continued employment.

The transaction accelerates Community Bank’s de novo 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 Community Bank’s total retail locations in the Greater Lehigh Valley to 12, resulting in a Top 5 market position.

Community Bank anticipates assuming approximately $600 million in deposits and purchasing approximately $33 million in branch-related loans. Community Bank will pay a deposit premium of 8.0%, or approximately $48 million, in estimated cash consideration to Santander Bank for the branch assets and liabilities. Community Financial System, Inc. expects the transaction to be slightly accretive to earnings.

Lazard Frères & Co. served as financial advisor, and Luse Gorman PC served as legal advisor to Community Financial System Inc. Ambassador Financial Group also assisted Community Financial System Inc. in this Lehigh Valley expansion.

For more information on Community Bank’s checking and savings accounts, credit cards, mortgages, personal and business loans, and financial planning, visit cbna.com. Better banking starts with trust, and Community Bank is honored to have been consistently ranked as one of America’s Best Banks by Forbes magazine.