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Community Bank System to acquire 8 BofA branches in Pa.

Rochester Business Journal
July 24, 2013

The banking entity of Community Bank System Inc. will buy eight Bank of America Corp. retail locations in northeast Pennsylvania, the Syracuse-area company announced Wednesday.

Terms were not disclosed.

The deal comes a day after Community Bank System announced quarterly net income of $21.1 million, or 52 cents a diluted share, topping analysts’ estimates by 2 cents.

Community Bank N.A. has reached an agreement to purchase five Bank of America N.A. locations in Luzerne County, two in Carbon County and one in Lackawanna County, officials said.

The acquisition includes deposits of $369 million at a deposit premium of 2.39 percent. The transaction is expected to close in the fourth quarter, officials said.

“We believe this is a very attractive transaction at an opportune time in the interest rate cycle and will be additive to shareholder value through expected earnings accretion in 2014,” President and CEO Mark Tryniski said in a statement.

Community Bank previously announced that its First Liberty Bank and Trust branches in northeast Pennsylvania will become Community Bank N.A. in September.

In addition to the branch sale to Community Bank, Bank of America will sell 20 branches in New York State to Pittsfield, Mass.-based Berkshire Hills Bancorp Inc., whose New York footprint extends as far west as Syracuse.

Terms were not disclosed.

The 20 branches have deposits of $640 million and loans of $5 million, officials said.

Community Bank’s quarterly earnings matched the $21.1 million from the second quarter of 2012, with earnings per share were 53 cents.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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