Community Bank System in N.Y. lines up acquisition

Community Bank System in DeWitt, N.Y., has agreed to buy Elmira Savings Bank in New York. 

The $14.8 billion-asset Community Bank System said in a press release Monday that it will pay $82.8 million in cash for the $648.7 million-asset Elmira. The deal, which is expected to close in the first quarter, priced Elmira at 164% of its tangible book value.

Elmira has 12 branches, $551.2 million of deposits and $465.3 million of loans. 

The acquisition “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 Tryniski, Community Bank System’s president and CEO, said in the 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,” Tryniski added.

Community Bank System said it expects the transaction to be accretive to its 2022 earnings per share by 8 cents, excluding merger-related expenses. 

Community Bank System plans to cut a third of Elmira's annual noninterest expenses, or $5.8 million. The company expects to incur $11 million of merger-related charges.

Stephens and Squire Patton Boggs advised Community Bank System. Boenning & Scattergood and Vorys, Sater, Seymour and Pease advised Elmira.