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Steuben Trust Wins Shareholder Nod Received by Steuben Trust Corp. for Community Bank System Buyout
Thursday 05 March 2020

5 March 2020 - Shareholders of New York-based Steuben Trust Corp. (OTC: SBHO) have voted to approve the proposed merger of Steuben with Community Bank System, Inc. (NYSE: CBU), the companies said.

The acquisition is expected to close during 2Q20, pending regulatory approval and other customary closing conditions.

Last October, Community Bank System agreed to acquire Steuben Trust and its Steuben Trust Company holding, in a stock and cash transaction representing total consideration valued at approximately USD 106.8m.

Under the terms of the agreement, shareholders of Steuben Trust Corp. will receive, for each share of common stock they own, a combination of USD 12.60 cash and 0.8054 shares of Community Bank System common stock, for total consideration valued at approximately USD 63.00 per share.

This transaction will provide natural market enhancement and extension for both institutions, joining two high-quality, low-risk franchises with long histories of customer service, as well as a commitment to their communities.

Steuben Trust provides Community Bank, N.A. with improved scale in several more Western New York markets, including Buffalo and Rochester, with total assets of nearly USD 580m, deposits of USD 480m and 15 branch offices across a six county area.

Community's acquisition of Steuben Trust will enhance and extend its banking footprint in Western New York.

Upon completion of the transaction, the combined company is expected to have over USD 12bn in assets.

Community Bank System, Inc. operates more than 230 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts through its banking subsidiary, Community Bank, N.A. With assets of approximately USD 11.6bn, the company is among the country's 150 largest financial institutions.

Steuben Trust Corp. reported total assets at June 30, 2019 of approximately USD 580m, and is the holding company for Steuben Trust Company.

The bank's business, municipal, and consumer customers enjoy personalised relationships, online and mobile banking options, with 15 branches in Western New York.

D.A. Davidson and Co. Inc. acted as exclusive financial advisor to Community Bank System and Cadwalader, Wickersham and Taft LLP acted as its legal advisor. PNC FIG Advisory acted as exclusive financial advisor to Steuben Trust Corp. and Pillar Aught LLC acted as its legal advisor.
Date Published: 05/03/2020
Target: Steuben Trust Corp
Country: USA
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Community Bank System, Inc
Buyer Advisor: D.A. Davidson and Co , Cadwalader, Wickersham and Taft
Terms of the deal were not disclosed