DeWITT, NY – Community Bank System, Inc. (NYSE: CBU) announced that it has agreed to acquire Elmira Savings Bank (NASDAQ: ESBK) in cash transaction valued at $ 82.8 millions of dollars.
Under the agreement, shareholders of Elmira Savings Bank will receive $ 23.10 in cash for each common share they own. The transaction was unanimously approved by the boards of directors of the two banking companies.
The acquisition strengthens DeWitt-based Community Bank’s presence in several central New York and southern markets, including Elmira, Corning and Ithaca. Elmira Savings Bank has total assets of nearly $ 649 million, deposits of $ 551 million, net loans of $ 465 million, and 12 branches in a five-county region.
“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”, Mark E. Tryniski, President and CEO of Community Bank System, said in a statement. “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 acquisition is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including Elmira Savings Bank shareholder approval and required regulatory approvals. After the deal is closed, the combined banking company is expected to have more than $ 15.4 billion in assets.
Community Bank System expects the transaction to add 8 cents per share to its 2022 GAAP earnings and 9 cents per share to its cash earnings, excluding one-time transaction fees. He further expects the acquisition to add 15 cents per share to its 2023 GAAP earnings and 16 cents per share to cash earnings, excluding one-time transaction costs.
Community Bank operates more than 215 branches in upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts.