First Star Bank to be Acquired by ESSA Bancorp

This time next year, customers will very likely be ESSA Bank & Trust customers.

In a press release dated Dec. 22, the firms announced ESSA is acquiring the Bethlehem-based First Star for about $24.2 million in a merger deal.

Subject to First Star shareholder and regulatory approval, the companies said they expect the deal to close in mid-2012.

ESSA, which currently has 17 branches, will add First Star's nine locations in the Lehigh Valley, bringing its total to 26. No bank location closures are anticipated, company officials said, and all the branches will operate under the ESSA Bank & Trust name.

"We have long recognized the opportunity to serve the Lehigh Valley, having entered this market during the past two years with three branch openings,” Gary S. Olson, President and CEO of ESSA, said. “One of our goals has been to build a banking organization with the size to compete effectively and have a significant presence in the Lehigh Valley. This combination will accomplish that goal, creating a $1.5 billion asset bank with 26 banking locations, with roughly one third of our combined deposits in the Lehigh Valley.”

First Star Bank currently operates branches in Alburtis, Allentown, Bath, , Nazareth, New Tripoli, and Wind Gap.