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Acquisitions
9 Months Ended
Sep. 30, 2011
Acquisitions [Abstract] 
Pending Acquisitions

NOTE 2. Acquisitions

Agreement to Acquire Tower Bancorp, Inc.

On June 20, 2011, Susquehanna announced the signing of a definitive agreement under which Susquehanna agreed to acquire all outstanding shares of Tower Bancorp, Inc. ("Tower") common stock in a stock and cash transaction. The transaction, with an approximate total value of $343,000, is expected to be completed on or around February 17, 2012. Under the terms of the agreement, Tower shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88,000 of the aggregate consideration being paid in cash. The transaction will enhance Susquehanna's already strong presence in central and southeastern Pennsylvania and will significantly increase its market share in the Pennsylvania counties of Chester, Dauphin, and Franklin. Additionally, the merger will give Susquehanna branch presence in the Pennsylvania counties of Lebanon, Fulton, and Centre.

The boards of directors of both Susquehanna and Tower have unanimously approved the transaction. Completion of the transaction is subject to customary closing conditions, including regulatory approvals and the approval of shareholders of both companies.

On September 28, 2011, Susquehanna and Tower entered into an amendment (the "Amendment") to Tower Merger Agreement in order to correct an inconsistency in the way the performance of the Nasdaq Bank Index is measured as compared to the performance of Susquehanna's stock price for purposes of determining whether Tower may terminate the Tower Merger Agreement. The Tower Merger Agreement provided a termination right to Tower if, as of a date that is approximately four days prior to the merger, (1) Susquehanna's stock price declined from $8.07 by more than 20% and (2) Susquehanna's stock price underperformed the Nasdaq Bank Index by more than 20% since the last trading day prior to the date the Tower Merger Agreement was announced. Prior to the Amendment, the performance of Susquehanna's stock price was measured by comparing $8.07 to the average closing price of Susquehanna's stock over a 20-trading-day period immediately prior to the closing, while the performance of the Nasdaq Bank Index was measured by comparing the closing price on the last trading day prior to the date of the announcement of the Tower Merger Agreement to the closing price on the fourth day prior to the closing. The Amendment changes the measurement of the Nasdaq Bank Index so that its performance is measured over the same 20-trading-day period over which Susquehanna's stock performance is measured. The recent extreme volatility in the stock markets highlighted the need for the amendment to the boards of directors of Susquehanna and Tower. The respective boards approved the amendment of the termination right in order to avoid the unintended consequences that could occur if the two prices to be compared were measured over different periods in the context of a volatile market. The Amendment did not change Susquehanna's right to prevent the termination by increasing the consideration paid in connection with the Tower Merger to the extent necessary to cause either of the two termination conditions to be deemed not to exist. All other terms and provisions of the Tower Merger Agreement in effect prior to the Amendment remain in full force and effect.

Abington Bancorp, Inc.

On October 1, 2011, Susquehanna completed the acquisition of Abington Bancorp, Inc. ("Abington") in a stock-for-stock transaction. The transaction, in which Abington shareholders received 1.32 shares of Susquehanna common stock for each share of Abington common stock, had an approximate total value of $145,908 compared to a book value of $205,866. Under the current accounting rules, Susquehanna expects to record a bargain purchase gain in the fourth quarter of 2011. The locations of Abington's bank branches provide a natural extension of Susquehanna's network in the greater Philadelphia area.