M&A: Orrstown Financial Services, Codorus Valley Bancorp to merge

With M&A activity at a high point lately, several transactions have received regulatory approval and are expected to close within the next month. 

Orrstown Financial Services, Codorus Valley Bancorp 

Shippensburg, Pa.–based lender Orrstown Financial Services and York, Pa.-based lender Codorus Valley Bancorp, the parent company of PeoplesBank, received regulatory approval for a merger of equals on June 17, according to an Orrstown Financial Services release. 

The combined company will have about $5.2 billion in assets, 51 branches in Maryland and Pennsylvania and a market capitalization of around $460 million, according to the release. The merger will be effective July 1, PeoplesBank told Equipment Finance News. 

Both holding companies will use the Orrstown Financial Services’ name, and the combined banks will use the name Orrstown Bank. 

“With our combined resources, we are well-positioned to support the diverse borrowing needs of our commercial clients, fostering growth and success in the communities we serve,” Orrstown Bank CEO and President Thomas R. Quinn Jr. said in a statement to EFN. 

Quinn will be president and CEO of the combined company, while Codorus Valley CEO and president Craig L. Kauffman will be executive vice president and COO until June 1, 2025, when Quinn will retire, and Kauffman will become president and CEO, according to the release. 

Equipment financing is serviced by the PeoplesBank Commercial Banking group, which includes its agricultural banking specialty team. The team has helped clients in the construction, transportation, manufacturing, medical and agriculture industries. 

Orrstown also offers commercial and small business equipment loans in the same states, according to its website. 

Agland, Martin Deerline 

Alberta, Canada-based agriculture equipment dealers Agland and Martin Deerline announced May 31 they will merge to form Horizon Ag and Turf by July 31. 

The John Deere dealers have a combined 13 locations, and have been operating as family businesses for decades, according to their websites. 

Peoples Security Bank and Trust, FNCB Bank 

Holding companies Peoples Financial Services and FNCB Bancorp have received regulatory approval to complete their planned July 1 merger, according to a June 14 Peoples Financial Services release. 

Peoples Financial Services will be the holding company and Peoples Security Bank and Trust will absorb FNCB Bank. 

FNCB Bancorp has $1.8 billion in assets, according to its website. Peoples Financial Services Corp has $3.7 billion in assets, according to a March 31 investor presentation. 

Peoples Security Bank and Trust and FNCB Bank have 28 and 17 locations, respectively, across New York, New Jersey and Pennsylvania, according to their websites.  

Peoples Financial Services CEO Craig Best will remain in his position for one year after the merger closes. Following that, FNCB CEO and President Gerard Champi will become CEO and Peoples Financial Services President and Chief Operations Officer Thomas Tulaney will be president, according to a 2023 presentation. 

FNCB Bank has a dedicated equipment finance division, 1st Equipment Finance, with experience in construction, commercial vehicles, manufacturing, cranes, recycling, masonry, landscaping and technology, among others, according to its website. 

The holding company will be headquartered in Scranton, Pa., and the bank will be headquartered in Dunmore, Pa. 

Luby Equipment acquires Potter Equipment 

St. Louis-based construction equipment dealer Luby Equipment Services will acquire fellow dealer Potter Equipment, according to a June 3 Luby Equipment Services release.  

With the acquisition, Luby will gain Springfield, Mo., and Harrison, Ark., locations, for a total of eight dealerships across Missouri, Illinois and Arkansas. 

The company sells CASE Construction and Takeuchi equipment, among others. 

PeoplesBank and Cornerstone Bank 

Massachusetts-based holding companies PeoplesBancorp and SSB Community Bancorp, have announced their merger, according to a June 20 Cornerstone Bank release. 

Their respective banks — PeoplesBank and Cornerstone Bank — will continue to operate under separate names and brands, PeoplesBank CEO and Chairman Tom Senecal said in the release.  

PeoplesBank of Massachusetts is not affiliated with the Codorus Valley Bancorp affiliate. 

“While customers won’t see any difference in their day-to-day banking experiences, this merger offers us more scalability and strength, which we can build on in the future,” Senecal said in the release. 

Senecal will remain CEO and Cornerstone Bank CEO Todd Tallman will become president.  

The holding company will have around $6 billion in assets, according to the release. 

Cornerstone Bank is a preferred U.S. Small Business Administration lender able to finance new and used equipment, according to its website. PeoplesBank also offers commercial term loans for equipment. 

The merger is expected to close in the first quarter of 2025, according to the release.