Community Bank System and Oneida Financial, both of western New York state, have delayed the closing of their merger after settling a shareholder lawsuit that challenged the deal.
The $7.6 billion-asset Community Bank System in DeWitt and the $882 million-asset Oneida in its namesake town on Thursday said the merger will now close in either the third or fourth quarter, pending approval from regulators and Oneida shareholders. The deal had originally been set to close in early July. The companies did not provide a reason for the postponement.
Community Bank System in February agreed to acquire Oneida for $142 million in cash and stock. Oneida shareholders can elect to receive 0.5635 shares of CBU stock, or $20 in cash, for each Oneida share they own, conditional to a 60% stock, 40% cash split.
Community Bank System and Oneida also said Thursday that they have agreed to settle three lawsuits that challenged their merger. Community Bank System and Oneida did not cite the lawsuit settlements as the reason for the delay of the deal's closing.