Community Bank System, a holding company of Community Bank, has entered into a deal to acquire New York-based Elmira Savings Bank in a $ 82.8 million all-cash deal.
Under the agreement, Elmira shareholders will receive $ 23.10 in cash for each common share they own.
Elmira will strengthen Community Bank’s presence in central New York and southern markets, including Elmira, Corning and Ithaca, with total assets of $ 648.7 million, deposits of $ 551.2 million, net loans of $ 465.3 million and 12 branches in a five-county region. .
Mark E. Tryniski, President and CEO of Community Bank System, said: “Our acquisition of Elmira Savings Bank will strengthen and expand our banking presence in the Finger Lakes region, in markets in which we are competitive 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 further strengthen our ability to serve these markets.”
The merger is expected to be finalized in the first quarter of 2022 and is subject to customary closing conditions, including Elmira shareholder approval and required regulatory approvals. Upon completion of the transaction, the combined company is expected to have $ 15.4 billion in assets.
Community Bank has facilitated a number of acquisitions over the past 12 months. Earlier this year, the OneGroup subsidiary acquired Boston-based insurance agency Thomas Gregory Associates.
In July, the company also acquired benefits consultant, Fringe Benefits Design of Minnesota, which bolstered its subsidiary, Benefit Plans Administrative Services, with more than 510,000 pension plan member accounts, 4,200 employer clients and approximately $ 13 billion in defined contribution plan assets and approximately $ 110 billion in total trust assets.
Meanwhile, last June, Community Bank acquired Steuben Trust Company in a stock and cash transaction valued at $ 98.3 million. The acquisition expanded its presence into two new counties in western New York State.
Merger and acquisition (M&A) activity among US banks has skyrocketed in the past six months. In June, U.S. bank mergers and acquisitions hit a two-year high, with 26 deals announced, making it the highest monthly total since 2019.