KINDERHOOK–Kinderhook Bank Corp., parent company of National Union Bank of Kinderhook, is being acquired by Community Bank System, Inc. headquartered in the Syracuse suburb of DeWitt, NY. Community Bank will pay approximately $93.4 million in cash for Kinderhook Bank.
A press release announcing the sale issued by both banks Tuesday, January 22 said, “The transaction has been unanimously approved by the boards of directors of both companies.” The banks expect to close the merger in the second quarter of 2019, subject approval by the shareholders of Kinderhook Bank Corp. and bank regulators, according to the release.
Kinderhook Bank Corp., which was established in Columbia County 165 years ago, has 11 branches in 5 counties. In recent years it expanded into Albany and the surrounding Capital District and in 2017 purchased the Patriot Federal Bank in Amsterdam, NY, which included Patriot’s two branches.
President and CEO of Kinderhook Bank Corp. John A. Balli, quoted in the release, said, “We are pleased that all of the branches of the Kinderhook Bank will remain open” after the merger and that employees would benefit from Community Bank’s “growth and profitability” and from “opportunities for professional growth and advance. The release did not say whether the sale would result in any layoffs.
Community Bank System, Inc. operates more than 230 “customer facilities” across Upstate New York and Northeastern Pennsylvania, Vermont and Western Massachusetts through its banking subsidiary, Community Bank, N.A. It has assets of approximately $10.6 billion and “is among the country’s 150 largest financial institutions.”
Kinderhook Bank has about $640 million in total assets.
In addition to retail, municipal, and business banking services, the Community Bank offers financial planning, and trust and wealth management. Community Bank System Inc. is listed on the New York Stock Exchange and the company’s stock trades under the symbol CBU.
Under the terms of the agreement, shareholders of Kinderhook Bank Corp. will receive consideration per share of common stock equal to $62.00 in cash. This price represents, assuming full conversion of preferred equity, approximately 193% of Kinderhook Bank Corp.’s tangible book value as of September 30, 2018.
“Our acquisition of Kinderhook Bank Corp. will extend our banking footprint into the attractive Capital District markets which are similar to the other Upstate New York markets in which we successfully compete,” Mark E. Tryniski, president and chief executive officer of Community Bank System, said in the release. “Our move to establish a broader and deeper banking presence in this region reflects the relative economic, demographic and geographic attractiveness of the area.”
Mr. Balli said that customers will continue to receive personalized service and have access to an expanded set of products and services, calling the merger “a win for all of our stakeholders.”
Community Bank: www.communitybankna.com or http://ir.communitybanksystem.com .
Kinderhook Bank: www.nubk.com.
Information regarding Community Bank System, Inc. is at federal Security and Exchange Commission (SEC) www.sec.gov) or you may obtain copies of certain documents, free of charge from Community Bank System, Inc. by accessing www.communitybankna.com under the heading of “Investor Relations” and then “SEC Filings & Annual Report.”