Community Bank System in Syracuse, N.Y., has agreed to buy Oneida Financial in Oneida, N.Y.
The $7.5 billion-asset Community Bank System will pay $142 million, or $20 a share, in cash and stock for the $798 million-asset Oneida. The deal is expected to close in July.
Community Bank System said in a press release Tuesday that Oneida's insurance, benefits administration and wealth management businesses will "meaningfully strengthen and complement" its non-banking capacity. Oneida also has 12 branches and $690 million in deposits.
The deal is expected to be accretive to Community Bank System's 2015 earnings, excluding merger costs. Oneida should add 7 cents a share to Community Bank System's 2016 earnings.
Community Bank System was advised by RBC Capital Markets and Bond Schoeneck & King. Oneida was advised by Keefe, Bruyette & Woods and Luse Gorman.