Sept 9 (Askume) – U.S. bank NBT Bancorp (NBTB.O) has agreed to acquire Evans Bancorp (EVBNA.A) at a valuation of about $236 million as it plans to expand in western New York.
Small and medium-sized banksDeals are being expedited to strengthen balance sheets and compete more effectively with rivals .
Banks with assets between $10 billion and $100 billion had executed 38 deals through mid-August, compared with 29 a year earlier, according to Dealogic.
As of June 30, NBT’s total assets were $13.5 billion, while Ivins’ assets were $2.26 billion during the same period.
Chris Michener, an economics professor at Santa Clara University’s Levy School of Business, said banks are trying to reduce deposit concentration through mergers because a more diverse depositor base increases stability and reduces profitability risk.
The company said Monday that the latest deal will help NBT gain market share in Buffalo and Rochester. Currently, it mainly serves customers in Norwich, Syracuse, Oneonta and other areas of upstate New York. It is also found in Pennsylvania, Vermont and Massachusetts.
Founded in 1856, NBT is a leading corporate lender. As of the second quarter, more than half of its loan portfolio was industrial, commercial and commercial real estate loans.
Under the terms of the deal, Evans investors will receive 0.91 shares of NBT for each share held. The transaction is expected to be completed in the first half of next year; upon completion of the transaction, Evans CEO David Nasca will join the NBT board of directors.
Stephens is a financial advisor to NBT and Piper Sandler is an advisor to Evans.
