Community Bank System in Syracuse, N.Y., has agreed to buy Kinderhook Bank in New York.
The $10.6 billion-asset Community Bank System said in a press release Tuesday that it will pay $93.4 million for the $640 million-asset Kinderhook. The deal, which is expected to close in the second quarter, priced Kinderhook at 193% of its tangible book value.
Kinderhook has 11 branches and $560 million in deposits around Albany, N.Y.
The acquisition “will extend our banking footprint into the attractive Capital District markets which are similar to the other Upstate New York markets in which we successfully compete,” Mark Tryniski, Community Bank System’s president and CEO, said in the release.
“Our move to establish a broader and deeper banking presence in this region reflects the relative economic, demographic and geographic attractiveness of the area,” Tryniski added. “This investment also complements the financial commitment we made in 2018 when we added an experienced commercial banking team focused on the greater Albany area.”
Community Bank System said it expects the deal to be accretive to earnings per share in the first full year, excluding merger-related costs.
Loomis & Co. and Cadwalader, Wickersham & Taft advised Community Bank System. Endicott Financial Advisors, First Capital Equities and Cranmore, FitzGerald & Meaney advised Kinderhook.
