Community Bank System, a holding company for Community Bank, has entered an agreement to acquire New York-based Elmira Savings Bank in an $82.8m all-cash deal.
Under the terms of the agreement, Elmira shareholders will receive $23.10 in cash for each share of common stock they own.
Elmira will strengthen Community Bank’s presence in Central New York and Southern Tier markets, including Elmira, Corning, and Ithaca, with $648.7m in total assets, deposits of $551.2m, net loans of $465.3m and 12 branch offices across a five-county area.
Mark E. Tryniski, president and CEO of Community Bank System, said: “Our acquisition of Elmira Savings Bank will enhance and extend our banking footprint in the Finger Lakes Region, across markets which we successfully compete in and aspire to continue to grow our business.
“This combination will establish a broader and deeper community banking presence in Central New York and the Southern Tier and will further enhance our ability to serve these markets.”
The merger is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including approval by Elmira shareholders and required regulatory approvals. Upon completion of the transaction, the combined company is expected to have $15.4bn in assets.
Community Bank has facilitated a number of acquisitions in the past 12 months. Earlier this year, the firm’s subsidiary OneGroup acquired Boston-based insurance agency, Thomas Gregory Associates.
In July, the firm also acquired benefits consultant, Fringe Benefits Design of Minnesota which boosted its subsidiary, Benefit Plans Administrative Services, by over 510,000 retirement plan participant accounts, 4,200 employer clients and approximately $13bn in defined contributed plan assets and approximately $110bn of total assets in trust.
Meanwhile last June, Community Bank acquired Steuben Trust Company in a stock and cash deal valued at $98.3m. The acquisition extended its footprint into two new counties in Western New York State.
Merger and acquisition (M&A) activity among US banks has soared in the past six months. In June, US bank M&A hit a two-year high, with 26 deals announced, marking it the highest monthly total since 2019.
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