Evans Bancorp has signed an agreement to buy FSB Bancorp, the bank holding company of Fairport Savings Bank, in a cash and stock transaction valued at approximately $34.7m.

The transaction includes a 50% cash component. The remaining amount would be settled in stock. As per the definitive agreement, Evans will offer $17.8 a share to FSB stockholders.

FSB stockholders are entitled to choose either $17.8 in cash or 0.4394 shares of Evans common stock for each share.

Evans president and CEO David Nasca said: “By combining our organisations, we are advancing our growth objectives and strategy to build the premier community financial institution in the markets we serve by expanding our geographic footprint and diversifying our client base.

“Expanding to Rochester had been prioritised as part of our strategic planning and is accelerated by this opportunity.”

The acquisition of the Fairport, New York-headquartered Fairport Savings Bank allows Evans to expand its presence to Rochester, adding five branches in the Greater Rochester area.

The transaction will also bring to its fold three mortgage offices located in Rochester, Buffalo and Watertown locations.

FSB President and CEO Kevin Maroney said: “This mutually beneficial partnership will combine two community banks with very similar cultures and core values.

“The combined organisation will be able to offer top of line products and exceptional service to our customers in Rochester and surrounding markets. In addition to providing our customers with enhanced and expanded products and services, our employees will also benefit from broader opportunities in a larger organisation with strong growth potential.”

The combined business will have a network of 20 financial centres with $1.8bn in total assets. Total deposits are expected to be around $1.5bn, while loans will add up to $1.5bn.

The completion of the transaction is slated for the second quarter of 2020, subject to certain closing conditions.