The acquisition of Elmira Savings Bank will allow Community Bank to enhance and extend its banking footprint in the Central New York and Southern Tier Regions
Community Bank to buy Elmira Savings Bank. (Credit: S K from Pixabay.)
Community Bank System, through its subsidiary Community Bank, has agreed to acquire Elmira Savings Bank in an all-cash transaction valued at around $82.8m.
Under the terms of the deal, Elmira shareholders are expected to receive a cash consideration of $23.10 for each share of the company’s common stock held.
The acquisition is expected to close in the first quarter of 2022, subject to customary closing conditions, including Elmira shareholders’ approval and necessary regulatory approvals.
Boards of directors of both companies have unanimously approved the transaction.
Upon closing, the combined company is expected to have more than $15.4bn in assets.
Community Bank System said that the transaction would be around $0.08 per share accretive to its 2022 GAAP earnings and $0.09 per share to cash earnings.
Community Bank System president and CEO Mark Tryniski said: “Our acquisition of Elmira Savings Bank will enhance and extend our banking footprint in the Finger Lakes Region, across markets which we successfully compete in 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 will further enhance our ability to serve these markets.
“We are delighted to welcome the Elmira Savings Bank team to the Community Bank organisation and look forward to the future of the combined company.”
The transaction that combines two high-quality, low-risk banks is expected to enhance the natural market for both organisations.
Community Bank is enabled to benefit from Elmira’s improved presence in several Central New York and Southern Tier markets.
The markets include Elmira, Corning, and Ithaca, with total assets of $648.7m, deposits of $551.2m, net loans of $465.3m, and 12 branch offices.
Stephens is serving as exclusive financial advisor and Squire Patton Boggs as legal advisor to Community Bank System on the transaction.
Boenning & Scattergood is serving as exclusive financial advisor and Vorys, Sater, Seymour and Pease as legal advisor to the savings bank.
Elmira president and CEO Thomas Carr said: “We are pleased to announce that we have entered into a merger agreement with Community Bank System, which is a financially strong and effectively managed bank.
“We view our combination with Community Bank as a win for all of our stakeholders, and we look forward to working closely with their team to complete the combination.”