Chemung Financial Corp. in Elmira, N.Y., aims to expand into Pennsylvania with a deal to for the $80 million-asset Canton Bancorp Inc.
The $864 million-asset Chemung said last week that it has a letter of intent to buy Canton for $7.7 million in cash. Canton has three branches, all in its home state.
Ronald M. Bentley, Chemung's president and chief executive, said in a press release that he is "excited" about entering the northern tier of Pennsylvania and continuing a "long tradition" of customer and community service. The seller's Bank of Canton is 127 years old, and Chemung is 175 years old.
A definitive merger agreement is expected to be complete next month, and the deal is expected to close in the second quarter.
In October, Bank of Canton signed an agreement with the Federal Reserve Bank of Philadelphia that required it to boost earnings, improve board oversight, implement effective loan review procedures and retain an independent consultant to assess its management, among other things.
