Northwest Bancshares completed its purchase of the owner of Union Community Bank for $85.8 million in cash and stock on Friday.
With the transaction, Northwest significantly expands its presence in Lancaster County, growing from six to 15 full-service offices.
The deal lifts Northwest from the 13th largest bank in the county, with 1.36 percent of all deposits here, to sixth biggest, with 5.60 percent of all deposits here.
These figures are based on Federal Deposit Insurance Corp. data as of June 30, the most recent available.
For Warren-based Northwest, the deal brings a bigger stake “in one of the most rapidly growing counties in our footprint,” said CEO Ronald J. Seiffert in a prepared statement.
The addition of Union Community’s offices and its $554 million in assets increases Northwest’s branch network to 172 full-service offices in three states and its total assets to $10.1 billion, about half the size of Fulton Financial.
Customers benefit too, said Northwest Vice President Melanie Clabaugh, from Northwest’s wider range of products and services.
The impact on Union Community’s roughly 135 employees was not immediately available.
In keeping with its broader presence here, Northwest has moved its regional headquarters from Lebanon to the former Union Community headquarters at 101 E. Main St., Mount Joy. Its headquarters’ staff numbers 15.
Northwest has been in Lancaster County since acquiring Steitz Savings & Loan in 1990. Steitz had one office here, in Manheim.
Northwest had announced its intention to buy Union Community's owner last June.
Union Community was owned by Donegal Financial Services, a subsidiary of Donegal Group and its controlling shareholder, Donegal Mutual Insurance.
Immediately before the sale of Donegal Financial was completed, Donegal Financial paid a dividend of $29.2 million to Donegal Group and Donegal Mutual.
So in total, the sale to Northwest brought Donegal Group and Donegal Mututal $115.0 million.
Union Community dates to 1853, when it was established as Union National Mount Joy Bank.
Donegal Group and Donegal Mutual had formed a bank too — Province Bank — under the auspices of Donegal Financial in 2000.
In 2011, Donegal Financial bought Union National’s owner for $23 million and changed the bank’s name to Union Community.