Evans Bancorp takes M&A route into new market
Evans Bancorp in Hamburg, N.Y., has agreed to buy FSB Bancorp in Fairport, N.Y.
The $1.5 billion-asset Evans said in a press release Thursday that it will pay $34.7 million in cash and stock for the $300 million-asset FSB. The deal is expected to close in the second quarter.
The acquisition will provide Evans with its first branches in Rochester, N.Y.
“FSB has a long-established presence and respected legacy in an attractive market,” David Nasca, Evans’ president and CEO, said in the release.
“By combining our organizations, we are advancing our growth objectives and strategy to build the premier community financial institution in the markets we serve by expanding our geographic footprint and diversifying our client base,” Nasca said.
Evans said the merger consideration represents an 8% premium to FSB’s tangible book value. The company said the deal should be 4.7% accretive to its 2021 earnings per share.
It should take Evans a little more than three years to earn back any dilution to its tangible book value.
Keefe, Bruyette & Woods and Covington & Burling advised Evans. Sandler O’Neill and Luse Gorman advised FSB.