Community Bank System Inc. of Dewitt, N.Y., said Wednesday that it has raised $52.5 million in a public stock offering.
It issued 2.53 million shares in the offering — well above the 1.7 million it had set out to sell when it announced the capital-raise Sept. 10.
The $4.7 billion-asset company plans to use the proceeds for its pending deal to buy 18 branches in northern New York State from Citizens Financial Group Inc. of Providence, R.I., a unit of Royal Bank of Scotland Group PLC.
The deal is expected to close this quarter. The price was not disclosed, but Community Bank System, the holding company for Community Bank and First Liberty Bank and Trust, said it agreed to buy $135 million of loans and $630 million of deposits at a blended deposit premium of 12%.
Mark E. Tryniski, Community Bank System's president and chief executive, said in a press release that he was pleased about the oversubscribed offering. "This success reflects the solid asset quality, capital strength, earnings performance, and disciplined operating model of our company," he said.
