Community Bank System Inc (CBU: Quote) Friday announced that it has entered into purchase and assumption agreements, through its wholly-owned banking subsidiary Community Bank NA, , to acquire 19 branch-banking locations across its core Upstate New York markets from First Niagara Bank, N.A. and HSBC Bank USA, N.A.
The company further noted that the HSBC branches are being sold by First Niagara in connection with its pending acquisition of HSBC's Upstate New York banking franchise.
Under the terms of the agreements, Community Bank will acquire approximately $218 million in loans and $955 million in deposits at a blended deposit premium of 3.22 percent.
Commenting on the acquisition, Mark E Tryniski, President and CEO, said' "We believe this is a very attractive transaction which will be additive to the existing strength of our core markets and which will be additive to shareholder value through expected earnings accretion of 4 percent to 5 percent in 2013."
by RTT Staff Writer
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