Extends Presence Into More Western New York Counties
June 17, 2020
Community Bank System Inc., the parent company of Community Bank, N.A., completed its merger with Steuben Trust Corporation and its banking subsidiary, Steuben Trust Company. Community Bank System acquired Steuben for a combination of stock and cash representing total consideration valued at approximately $98.3 million.
The acquisition extends Community Bank System’s footprint into two new counties in Western New York State, and enhances its presence in four Western New York State counties in which it currently operates. Upon completion of the transaction, Community Bank System will have over $13 billion in assets and over $10 billion in deposits.
Mark E. Tryniski, Community Bank System’s president and CEO, said, “The commitment of our collective employees was demonstrated time and again by their efforts to work through the challenges caused by the COVID-19 pandemic to ensure that the customers’ transition to Community Bank is as seamless as possible. I want to commend both teams for their innovation and hard work and we are excited about this opportunity to expand the reach and depth of our banking services in Western New York.”
Under the terms of the merger agreement, Steuben’s common stockholders are entitled to receive a combination of $12.60 in cash and 0.8054 shares of Community Bank System common stock, and cash in lieu of fractional shares, if any, for each share of Steuben common stock.
With the inclusion of Steuben Trust, Community Bank System, Inc. will operate over 240 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts through its banking subsidiary, Community Bank, N.A. With assets of over $13 billion, the DeWitt, N.Y. headquartered company is among the country’s 125 largest banking institutions. Community Bank System, Inc. is listed on the New York Stock Exchange and the company’s stock trades under the symbol CBU.
Several Proposals Have Direct Impact on Community Banks
The Bottom Line
Most financial institutions have tremendous excess capacity in their existing branches today.