CNB expanding in western New York with Bank of Akron deal
CNB Financial in Clearfield, Pa., has agreed to buy Bank of Akron in Akron, N.Y.
The $3.5 billion-asset CNB said in a press release Wednesday that it will pay $64.5 million in cash and stock for the $389 million-asset Bank of Akron. The deal, which is expected to close in the third quarter, priced Bank of Akron at 168% of its tangible book value.
Bank of Akron has six branches in western New York. It will operate as BankOnBuffalo, a CNB division, when the deal closes.
Anthony Delmonte Jr., Bank of Akron’s president and CEO, will join CNB as a market executive.
“We are excited to expand our franchise into the neighboring New York markets, and to partner with such a strong earning, high performing bank,” Joseph Bower Jr., CNB’s president and CEO, said in the release.
“There are many similarities between the markets of Bank of Akron and our existing CNB locations, as well as with our personal approach to banking,” Bower added. “A larger presence in the western New York area will provide us additional growth opportunities.”
CNB said it expects the deal to be 3.9% accretive to its earnings per share in the first full year of operations. It should take a little more than three years for CNB to earn back the projected 3.2% dilution to its tangible book value.
CNB expects to incur $6.4 million in merger-related expenses. It plans to cut roughly a third of Bank of Akron's annual noninterest expenses, or $3.5 million.
Griffin Financial Group and Hogan Lovells advised CNB. Sandler O’Neill and Hodgson Russ advised Bank of Akron.