Norwood Financial has agreed to acquire UpState New York Bancorp in a stock and cash deal in Geneva.
The deal is estimated to be valued at nearly $80m.
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Under the terms of the agreement, Norwood will obtain all of the outstanding shares of UpState.
Additionally, USNY Bank will combine with and into Wayne Bank, with Wayne Bank as the surviving entity.
The merged company will have nearly $1.7bn in assets and 31 offices throughout five counties in Northeastern Pennsylvania. It will also have two counties in the Southern Tier of New York and three counties in upstate New York.
Norwood president and CEO Lewis Critelli said: “We are pleased to be able to partner with UpState and USNY Bank. Both of our companies have earned a great reputation in the market and have a common community banking culture.
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By GlobalData“The merger will give us a presence in the Upstate New York Counties of Ontario, Otsego and Yates.
“This acquisition will offer expanded products and services to the USNY Bank customer base and will extend our reach from the Southern Tier of New York to Upstate New York.”
Lewis Critelli will continue to remain as president and CEO of the merged company.
Furthermore, all members of the executive Management team of Norwood and Wayne Bank will retain their current positions.
Meanwhile, UpState directors Jeffrey Gifford and Alexandra Nolan will be appointed to the boards of directors of Norwood and Wayne Bank.
UpState president Michael Briggs said: “We are delighted to provide our customers, shareholders and employees with the opportunity to partner with Wayne Bank.
“They are a high-quality community bank. The added depth and breadth of the merged companies will enable us to enhance the customer experience through greater product offerings and provide career growth for our employees while delivering value for our shareholders.”
The deal is expected to be completed in the third quarter of this year. It is subject to certain closing conditions, including receiving requisite regulatory approvals and the approval of Norwood’s and UpState’s shareholders.
