The proposed consolidation is expected to be completed by early October 2008. Susquehanna anticipates that one-time pre-tax costs associated with the consolidation will be between $6 million and $8 million in the third-quarter of 2008. However, the company expects that cost savings associated with the consolidation in 2009 will be between $18 million and $20 million.

After the consolidation, the resulting Pennsylvania state-chartered bank will include all 235 Susquehanna Bank locations in central and eastern Pennsylvania, southern New Jersey, Maryland and West Virginia. Currently, these markets are served by three separate affiliate banks.

William Reuter, chairman and CEO of Susquehanna Bancshares, said: "Combining our banks into a single subsidiary enhances our ability to offer customers the most efficient, convenient and consistent service. Customers will be able to conduct their banking business at any of our branches as they travel throughout the mid-Atlantic region."