Norwood Financial has agreed to acquire US bank holding company UpState New York Bancorp in a stock-cum-cash deal valued at around $80m.
UpState New York Bancorp, which is based in Geneva, New York, is the holding company for a chartered bank by the name USNY Bank.
Norwood Financial, which is based in Honesdale, Pennsylvania, is the owner of Wayne Bank.
Through the deal, the Pennsylvania-based bank holding company will extend its presence in the Ontario, Otsego and Yates counties in New York.
Norwood Financial president and CEO Lewis Critelli said: “This acquisition will offer expanded products and services to the USNY Bank customer base and will extend our reach from the Southern Tier of New York to Upstate New York.”
USNY Bank has four offices in Geneva and Penn Yan. As of 30 September 2019, UpState New York Bancorp held total assets of $435.9m, $379.2m in total net loans, and $387.1m in total deposits.
Wayne Bank has 15 offices across Northeastern Pennsylvania and 12 offices in Delaware and Sullivan counties in New York. Its holding company, as of 30 September 2019, held $1.2bn in total assets, loans outstanding of $905.6m, and $974.4m in total deposits.
According to the parties, USNY Bank will be merging with and into Wayne Bank, with the latter being the surviving entity.
Enlarged bank holding company to have about $1.7bn in assets
The enlarged bank holding company, post-merger, will hold nearly $1.7bn in assets. It is expected to maintain 31 offices across five counties in Northeastern Pennsylvania, two counties in the Southern Tier of New York, and also in three counties in upstate New York.
As per the terms of the merger, shareholders of UpState New York Bancorp will have the option to be issued 0.9390 shares of Norwood Financial or $33.33 in cash per share, or a combination of both, for each of their shares.
UpState New York Bancorp president Michael Briggs said: “The added depth and breadth of the merged companies will enable us to enhance the customer experience through greater product offerings and provide career growth for our employees while delivering value for our shareholders.”
The merger is likely to be finalised in the third quarter of this year. It will be subject to approvals of both the bank holding companies, receipt of the necessary regulatory approvals, and meeting of certain closing conditions.
