Elmira Savings Bank (NASDAQ: ESBK) shares have surged premarket on the news they have entered into a definitive agreement whereby Community Bank System’s (NYSE: CBU) subsidiary, Community Bank, N.A., will acquire the company.
Community Bank will pay a total of $82.8 million, with Elmira shareholders receiving $23.10 in cash for each share of common stock they own.
“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,” stated Elmira.
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Elmira currently has total assets of $648.7 million, deposits of $551.2 million, net loans of $465.3 million, and 12 branch offices across a five-county area.
Upon completing the transaction, the combined company is expected to have over $15.4 billion in assets. The merger is expected to close in the first quarter of 2022.
“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,” said Mark E Tryniski, President and CEO of Community Bank System.
“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,” he added.
The news has seen Elmira Savings Bank’s share price rally 66% to $22.42. Community Bank shares are flat premarket.
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