The parent company of New York-based Community Bank N.A., which has branches in Western Massachusetts and Vermont, has agreed to acquire Elmira Savings Bank in an all-cash deal valued at approximately $82.8 million.
DeWitt, New York-based Community Bank System Inc. said in a statement today that the transaction has been unanimously approved by the boards of both companies. The merger is expected to close in the first quarter of 2022, subject to regulatory approvals and customary closing conditions. Elmira Savings Bank’s shareholders must also approve the deal.
“This transaction will provide natural market enhancement and extension for both institutions, joining two high-quality, low-risk banks with long histories of personalized customer service and commitment to their communities,” Community Bank said in the statement.
Elmira Savings Bank has $648 million in assets, deposits of $551.2 million, net loans of $465.3 million and 12 branches in the Finger Lakes Region of New York. The acquisition will give the $14.8-billion Community Bank N.A. an increased presence in several Central New York and Southern Tier markets, including Elmira, Corning, the statement said. The combined company would have about $15.4 billion in assets.
“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,” Mark E. Tryniski, president and CEO of Community Bank System, said in the statement. “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.”
Tryniski added that the banks have similar organizational values and cultures.
“We are delighted to welcome the Elmira Savings Bank team to the Community Bank organization and look forward to the future of the combined company,” Tryniski said.
Thomas M. Carr, Elmira’s president and CEO, said the bank’s shareholders, customers and employees would benefit from the merger.
“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 and a robust digital and mobile banking presence. We are pleased to be able to enhance our service capacity in all of our current communities,” Carr said. “Our employees benefit by becoming part of an organization which also values their commitment and contribution to the Company’s growth and profitability and which offers additional opportunities for professional growth and advancement.”
Under the terms of the agreement, Elmira Savings Bank shareholders will receive $23.10 in cash for each share of common stock they own.
Community Bank N.A. has more than 200 branches in Upstate New York, Northeastern Pennsylvania, Vermont, and Springfield, Massachusetts.
