DeWITT, N.Y. — Community Bank System, Inc. (NYSE: CBU) announced it has agreed to acquire Elmira Savings Bank (NASDAQ: ESBK) in a cash deal worth $82.8 million.
Under the terms of the agreement, shareholders of Elmira Savings Bank will receive $23.10 in cash for each share of common stock they own. The transaction has been unanimously approved by the boards of directors of both banking companies.
The acquisition boosts DeWitt–based Community Bank’s presence in several Central New York and Southern Tier markets, including Elmira, Corning, and Ithaca. Elmira Savings Bank has total assets of nearly $649 million, deposits of $551 million, net loans of $465 million, and 12 branch offices across a five-county area.
“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 a release. “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.”
The acquisition is expected to close in the first quarter of 2022 and is subject to customary closing conditions, including approval by the shareholders of Elmira Savings Bank and required regulatory approvals. After the deal’s completion, the combined banking company is expected to have more than $15.4 billion in assets.
Community Bank System expects the transaction to add 8 cents per share to its 2022 GAAP earnings and 9 cents a share to its cash earnings, excluding one-time transaction costs. It further expects the acquisition to add 15 cents a share to its 2023 GAAP earnings and 16 cents per share to cash earnings, excluding one-time transaction costs.
Community Bank operates more than 215 branches across upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts.