Community Bank System, Oneida Delay Closing of Merger

By Tanaya Macheel June 11, 2015, 12:13 p.m. EDT 1 Min Read

M&A

Community Bank System to Buy Oneida Financial for $142M

Community Bank System in Syracuse, N.Y., has agreed to buy Oneida Financial in Oneida, N.Y.

By Paul Davis

February 24
Community banking

No Denying Dodd-Frank's Role in Bank M&A

Some industry observers argue that bank consolidation is driven by economies of scale rather than by the regulatory burdens imposed under Dodd-Frank. But the two factors actually go hand in hand.

April 16

Community Bank System and Oneida Financial, both of western New York state, have delayed the closing of their merger after settling a shareholder lawsuit that challenged the deal.

The $7.6 billion-asset Community Bank System in DeWitt and the $882 million-asset Oneida in its namesake town on Thursday said the merger will now close in either the third or fourth quarter, pending approval from regulators and Oneida shareholders. The deal had originally been set to close in early July. The companies did not provide a reason for the postponement.

Community Bank System in February agreed to acquire Oneida for $142 million in cash and stock. Oneida shareholders can elect to receive 0.5635 shares of CBU stock, or $20 in cash, for each Oneida share they own, conditional to a 60% stock, 40% cash split.

Community Bank System and Oneida also said Thursday that they have agreed to settle three lawsuits that challenged their merger. Community Bank System and Oneida did not cite the lawsuit settlements as the reason for the delay of the deal's closing.

Tanaya Macheel

Reporter