Community Bank System, Inc. ( CBU Quick Quote CBU - Free Report) has entered an agreement to acquire Elmira Savings Bank for $82.8 million in cash. The completion of the deal, expected in the first quarter of 2022, is subject to customary closing conditions, including approval by Elmira’s shareholders along with required regulatory approvals. Per the terms of the deal, shareholders of Elmira will get $23.10 in cash for each of their own shares held. Community Bank projects the acquisition to be accretive to its 2022 GAAP earnings by $0.08 per share. Excluding one-time transaction costs, the deal is expected to be $0.09 per share accretive to cash earnings in the same year. In 2023, the deal will likely be $0.15 per share accretive to GAAP earnings and $0.16 per share accretive to cash earnings (excluding one-time transaction costs). Post completion, the combined company is expected to have assets worth more than $15.4 billion. Mark E. Tryniski, president and CEO of Community Bank, stated, “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.” Tryniski added, “For over 150 years, Elmira Savings Bank has been engaged and committed to its customers, communities, and shareholders, values which align closely with those of Community Bank. Equally important, our institutions have similar organizational values and cultures that respect and value the people that contribute to our success.” Elmira’s president and CEO, Thomas M. Carr, said, “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.” So far this year, shares of Community Bank have gained 12.8% compared with 38% growth recorded by the industry.
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Currently, Community Bank carries a Zacks Rank #2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Expansion Efforts by Other Banks
At present, several banks are moving toward consolidation to dodge the heightened costs of investments in technology and counter lower rates in a bid to remain competitive. In an effort to diversify revenues,
Valley National Bancorp ( VLY Quick Quote VLY - Free Report) signed a deal to acquire Bank Leumi Le-Israel B.M.’s U.S. banking arm — Bank Leumi USA — for $1.15 billion. In August, Seacoast Banking Corporation of Florida ( SBCF Quick Quote SBCF - Free Report) announced two separate merger agreements. It agreed to acquire Sabal Palm Bancorp, Inc. and Business Bank of Florida, Corp. Further, Webster Financial Corporation ( WBS Quick Quote WBS - Free Report) and Sterling Bancorp have received respective shareholder approvals for the all-stock merger between the companies, which was announced in April.