Bank of Akron provides a full range of financial services including residential mortgages, construction loans and home equity lines of credit as well as commercial loans and mortgages
CNB Financial Corporation (NASDAQ: CCNE), the parent company of CNB Bank, today announced that it has entered into a definitive agreement to acquire Bank of Akron (OTC: BARK) for $215 per share in cash and stock, or approximately $64.5 million in the aggregate. Headquartered in Akron, NY, Bank of Akron had approximately $389 million in total assets and $38.4 million in shareholders’ equity as of September 30, 2019.
Bank of Akron serves the western New York markets of Akron, Clarence, Clarence Center, Lancaster, and Wilson with six branch locations. Following completion of the merger, Bank of Akron will operate as BankOnBuffalo, a division of CNB Bank, which has branch offices in downtown Buffalo, Williamsville, Orchard Park and Niagara Falls. Martin T. Griffith will continue to serve as BankOnBuffalo President, and Anthony J. Delmonte, Jr., current President and Chief Executive Officer of Bank of Akron, is expected to serve as Market Executive following the merger.
“We are excited to expand our franchise into the neighboring New York markets, and to partner with such a strong earning, high performing bank,” announced Joseph B. Bower, Jr., President and CEO of CNB Financial Corporation. “There are many similarities between the markets of Bank of Akron and our existing CNB locations, as well as with our personal approach to banking. A larger presence in the western New York area will provide us additional growth opportunities. We understand the needs of customers in these markets and look forward to providing them with the support and assistance they need to continue to grow and thrive.”
Under the terms of the definitive merger agreement, which has been approved by the Boards of Directors of both companies, shareholders of Bank of Akron will be entitled to receive either a fixed exchange of 6.6729 shares of CNB common stock for each share of Bank of Akron common stock, which is based on a 10-day average closing price of CNB common stock as of December 17, 2019 of $32.22 per share, or $215.00 per share in cash, with at least 75% of the consideration to be paid in the form of CNB common stock. The transaction is expected to be a tax-free exchange for shareholders of Bank of Akron. CNB expects the transaction to be accretive to its earnings per share in the first full year of operations. Based on financials as of September 30, 2019, the combined company will have approximately $4 billion in assets and, on a pro forma basis, is expected to have 48 offices in central and western Pennsylvania, northeast and central Ohio, and western New York.
“CNB Financial Corporation is an outstanding partner for our bank,” said Anthony J. Delmonte, Jr., President and Chief Executive Officer of Bank of Akron. “CNB has a successful community banking model and has shown consistent growth, high returns and strong stock price performance. We are excited to bring together two strong community minded banks, serving the Erie and Niagara counties. At Bank of Akron we have always used a ‘person first approach’ to our customers and communities and in BankOnBuffalo we found a partner that will further such a philosophy. Leveraging CNB’s infrastructure and community banking products, and having access to the capital to continue to grow our business will serve our customers and communities well.”
Griffin Financial acted as financial advisor to CNB Financial Corporation, and Hogan Lovells US acted as legal counsel. Bank of Akron was advised by Sandler O’Neill + Partners, and its legal counsel was Hodgson Russ.
Source: Company Press Release