DUNMORE, Pa.--(BUSINESS WIRE)--Fidelity D & D Bancorp, Inc. (“Fidelity”) (OTC US: FDBC) and its banking subsidiary Fidelity Deposit and Discount Bank (“Fidelity Bank”) and GNB Financial Services, Inc. (“GNB”) (OTC: GNBF.PK), the bank holding company of The Gratz Bank (“Gratz Bank”), announced today the execution of a Transfer Agreement whereby The Gratz Bank will cease offering Trust department services and transfer to Fidelity Bank its Trust business and accounts located at its Gratz Bank Minersville location.
Daniel J. Santaniello, Fidelity and Fidelity Bank President and Chief Executive Officer, stated, “This transfer of Gratz Bank’s Trust business is part of our strategic plan to profitably grow our Trust and Wealth Management business. We believe that our client centric relationship model is advantageous to our clients and consistent with our values and business culture. Further, this transfer is expected to add long-term value to Fidelity’s business. We look forward to Gratz Bank Trust customers joining the Fidelity family.”
Once the trust account transfer is complete, the retail banking operation of Gratz Bank in Minersville will not be affected and will continue as is. This transition provides the opportunity to continue to serve Trust clients in a community bank setting in the current location. As a larger community Trust Services provider, Fidelity Bank will be able to provide additional Trust resources to better meet the financial goals of Gratz Bank Trust customers, while maintaining outstanding customer service. The goal of both banks is to create a seamless and worry-free transition for our clients.
As part of the joint effort between GNB and Fidelity to ensure a smooth transition, we are happy to announce that Jim O’Brien will be joining the Fidelity Bank Wealth Management team and that he will remain in his current office space in Minersville. The transaction has been unanimously approved by the boards of directors of both companies.
Wesley M. Weymers, GNB and Gratz Bank President and Chief Executive Officer, stated, “As we look to the future to focus on those areas that Gratz Bank excels at, we find our focus and expertise is in the community banking arena. We are pleased to undertake this transfer with a community financial institution that shares our values and culture of client service and believe the transaction will provide advantages for Trust clients and allow us to focus on our bank business activities. This transfer will be positive to our shareholders, reduce cost, and allow us to focus on other aspects of the banking business.”
Bybel Rutledge LLP served as legal counsel to Fidelity and Fidelity Bank and Joseph C. Michetti, Jr. of Diehl, Dluge, Michetti & Michetti served as legal counsel to GNB and Gratz Bank.
About Fidelity D & D Bancorp, Inc.
Fidelity D & D Bancorp, Inc. has built a strong history as trusted advisors to the customers served by The Fidelity Deposit and Discount Bank, and is proud to be an active member of the community of Northeastern Pennsylvania. The Company serves Lackawanna and Luzerne Counties through The Fidelity Deposit and Discount Bank’s 10 community banking office locations providing personal and business banking products and services, including wealth management assistance through fiduciary activities with the Bank’s full trust powers; as well as offering a full array of asset management services. The Bank provides 24 hour, 7 day a week service to customers through branch offices, online at www.bankatfidelity.com, and through the Customer Care Center at 800-388-4380. Fidelity Bank has been named “Best Bank” by the readers of the Scranton Times 3 years in a row, has been named a top 200 Community Bank in the country by American Banker, and has received a five-star rating by the independent bank watchdog Bauer Financial.
About GNB and Gratz Bank
GNB Financial Services, Inc. is the bank holding company for The Gratz Bank, headquartered in Gratz, Pennsylvania and operating four community banking offices located in the Herndon, Valley View, Gratz, and Pottsville. The Gratz Bank was established in 1934 and has been serving the financial needs of its neighbors and friends for more than 75 years. For more information about GNB and Gratz Bank, visit its website at www.gratzbank.com.
Caution Regarding Forward-Looking Statements
The foregoing material may contain forward-looking statements. We caution that such statements may be subject to a number of uncertainties and actual results could differ materially and therefore readers should not place undue reliance on any forward looking statements. With respect to Fidelity D & D Bancorp, Inc., a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Fidelity D & D Bancorp, Inc.’s operations, pricing, products and services and other factors that may be described in Fidelity D & D Bancorp, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (“SEC”) from time to time. In addition to these risks, the trust department transaction presents risks other than those presented by the nature of the business acquired. Trust department acquisitions may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder—or take longer—to achieve than expected. As regulated financial institutions, our pursuit of attractive trust department acquisition opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to trust department acquisition may cause reputational harm to Fidelity D & D Bancorp, Inc. following the acquisition, and integration of the acquired business with ours may result in additional future costs arising as a result of those issues. Fidelity D& D Bancorp, Inc. does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of Fidelity D & D Bancorp.
With respect to GNB, this news release may contain “forward-looking statements” which are made in good faith by GNB. These forward-looking statements include statements with respect to GNB’s strategies, goals, beliefs, expectations, estimates, intentions, financial condition, results of operations, future performance and business. Statements preceded by, followed by or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important economic, regulatory, legal and technological factors, among other, could cause GNB’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. GNB cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact that any future transaction may have on GNB and any such forward-looking statement. GNB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of GNB.