Community Bank’s parent company Community Bank System has completed the acquisition of Kinderhook Bank and it is subsidiary The National Union Bank of Kinderhook in an all-cash deal of $93.4m (£74.4m).
Announced in January, the deal has added 11 branch locations across five county area in the Capital District of Upstate New York for Community Bank.
As per the terms of the deal, Kinderhook’s shareholders were entitled to receive $62 per share in cash for each share of common stock. The bank had total assets of about $640m (£510m) and $560m (£446m) in deposits.
Following the completion of the transaction, Community Bank will have $11bn (£8.7bn) in assets and $9bn (£7.2bn) in deposits.
Community Bank System president and CEO Mark Tryniski said: “We are pleased to welcome the customers and employees of Kinderhook Bank to Community Bank. Kinderhook Bank has an impressive 165-year history of service to its customers, its communities and its stockholders, and its values align closely with those of Community Bank.
“This acquisition has created an exciting opportunity for Community Bank to establish a broader and deeper banking presence in the Capital District to further support our efforts to grow our retail and business banking businesses in the Capital District. We are dedicated to Kinderhook Bank’s customers, and both teams are working to make the transition to Community Bank as seamless as possible.”
The deal is expected to extend natural market for both the banking companies. It is claimed to bring together two low-risk banks. Kinderhook Bank will provide Community Bank with an operating presence in Capital District of upstate New York.
At the time of announcement of the deal, Kinderhook Bank Corp president and CEO John A. Balli said: “The shareholders, customers and associates of Kinderhook Bank should benefit from our merger with Community Bank System, a financially strong and effectively managed institution.
“Our customers will continue to receive the highly personalized service they expect, while having access to a greatly expanded set of products and services available from the larger combined organization with an extensive branch network.”
Through its banking subsidiary, Community Bank, Community Bank System operates over 234 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts.