Steuben Trust shareholders are expected to receive $12.60 in cash, along with 0.8054 shares of Community Bank System common stock
Community Bank System has announced the signing of an agreement to acquire Steuben Trust in a stock-cum-cash deal for a total consideration of $106.8m.
The transaction is expected to close in the second quarter of 2020, subject to customary closing conditions, including approval of the Steuben Trust shareholders and regulatory approvals. The boards of directors of both companies have unanimously approved the transaction.
Community Bank System president and chief executive officer Mark E Tryniski said: “Our acquisition of Steuben Trust will enhance and extend our banking footprint in Western New York, in markets which we successfully compete in and aspire to continue to grow. Our move to establish a broader and deeper banking presence in this region is reflective of these growth objectives.
“We are confident that the Steuben Trust franchise will further support our efforts to grow our retail and business banking presence in Western New York. Steuben Trust has an impressive 117-year history of service to its customers, its communities and its shareholders, values which align closely with those of Community Bank.”
The combined company will have more than $12bn in assets
Under the terms of the agreement, Steuben Trust shareholders are expected to receive $12.60 in cash, along with 0.8054 shares of Community Bank System common stock for each share of common stock they own.
Based on Community Bank System’s volume weighted average price of $62.58 as of 15 October 2019, the total consideration for the transaction is valued at approximately $63 per share.
Upon completion, the transaction enables the combined company to have more than $12bn in assets.
For the transaction, D.A. Davidson & Co. served as exclusive financial advisor and Cadwalader, Wickersham & Taft as legal advisor to Community Bank System, while PNC FIG Advisory served as exclusive financial advisor and Pillar Aught as legal advisor to Steuben Trust Corporation.
Steuben Trust Corporation chairman and chief executive officer Brenda L Copeland said: “The shareholders, customers and associates of Steuben Trust 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. We are pleased to be able to enhance our service capacity in all of our current communities.”