Deal values, assets, and deposits are as of the Announcement Date. Deals announced from 1996 to present.

Return to Mergers & Acquisitions

Deal Overview

Community Bank System, Inc.
Actual Acquirer:
Community Bank System, Inc.
Merchants Bancshares, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
Announcement Date:
Announced Deal Value ($ M):
Completion Date:
Announced Deal Value Per Share ($ )

Consideration Breakout
Cash ($M) 82.6
Common Stock ($M) 259.8
Common Stock Issued 4,683,935

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 183.51 208.53
Price / Tangible Book (%) 193.55 219.78
Price / Earnings (x) 21.37 22.92
Price / Deposits (%) 20.27 22.80
Price / Assets (%) 15.28 17.04
Tangible Book Premium/ Deposits (%) NA NA
Deal Terms
Description of Consideration

Community Bank System Inc. paid $40.00 in cash or issued 0.963 shares of its common stock for each outstanding share of Merchants Bancshares Inc., subject to 70% of the consideration is paid in stock. Community Bank System Inc. has also assumed outstanding fixed and floating rate Junior Subordinated Debentures of Merchants Bancshares Inc.

Accounting Method Acquisition
In-State Transaction? No
Merger of Equals? No
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 191,903
Estimated Cost Savings (%) 22.70
Estimated Cost Savings ($ 000) 10,600
Est. Restructuring Charges ($ 000) 25,000
Maximum Termination Fee ($ 000) 10,720
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.963000
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 23,214
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes RBC Capital Markets LLC
Seller Yes Piper Sandler & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Cadwalader Wickersham & Taft
Seller Yes Goodwin Procter LLP
Copyright 2020, © S&P Global Market Intelligence  Terms of Use