UPDATE: This article includes comments from the companies' conference call.
The $236 million transaction, slated to close in the second quarter of 2025, would deepen the $13.5 billion-asset NBT's presence in upstate New York and help fill in a footprint that spans the Empire State to the northern reaches of New England.
The $2.3 billion-asset Evans has 18 branches and serves consumer, business and municipal customers in a region that ranges from Buffalo to Rochester.
"Our partnership with Evans is a natural geographic extension of NBT's footprint," NBT President and CEO Scott Kingsley said Tuesday during a call with analysts a day after announcing the deal. "This expansion into Buffalo and Rochester, upstate New York's largest two markets by population, complements our meaningful presence in central New York, the Capital District and the Hudson Valley."
He said there was no overlap of the two banks' physical operations. "As such, we expect to retain all branch offices and the vast majority of retail and business development team members," Kingsley said.
"Our banking footprint, both retail and commercial, is uniquely positioned to benefit from the economic growth in the Upstate New York chip and technology corridor for many years to come," he said.
It marks NBT's second deal in two years. Last year, it
NBT said the combined organization would have the highest deposit market share in upstate New York for any bank with assets under $100 billion and would create a network of more than 170 locations from Buffalo to Portland, Maine.
Kingsley expects the new markets to help drive organic growth, adding to lending momentum generated this year.
"I think in terms of our marketplaces, demand has stayed very good," he said. "Very happy with where the demand characteristics are and very happy how our team is addressing those. So trucking along as expected."
The combination adds to an active bank M&A market.
More than 70 banks have announced plans to sell in 2024, putting the year on track to eclipse last year's total of 100. M&A in 2023 was held in check in large part by surging interest rates that spiked deposit costs, curbed loan demand and raised the specter of recession.
But the Federal Reserve is on the cusp of lowering rates, perhaps as soon as its Sept. 18 meeting. The futures market is pricing in a 25-basis-point cut with a chance for a 50-basis-point reduction.
Deals are also getting larger on average. Through July of this year, bank M&A transactions in aggregate were valued at $9.25 billion, above the $4.15 billion for all of 2023, according to S&P Global Market Intelligence.
Winter Haven, Florida-based
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