ONEIDA >> Community Bank of Dewitt is set to buy Oneida Financial Corp. for $142 million in stock and cash following an agreement between the two institutions.
Under the terms of the agreement, shareholders of Oneida Financial Corp. can elect to receive either 0.5635 shares of Dewitt-headquartered Community Bank System common stock or $20 in cash for each share of Oneida Financial Corp. common stock they hold.
Additional terms of the proposed merger allow Michael Kallet and Eric Stickels of Oneida Financial Corp. to join the Community Bank System. The merger is expected to close in July 2015 and is subject to approval by the shareholders of Oneida Financial Corp. and required regulatory approvals.
Oneida Financial Corp. reported total assets of $798.2 million on Dec. 31, 2014 and a stockholders’ equity of $95.8 million.
Community Bank System, Inc. operates more than 190 customer facilities across Upstate New York and Northeastern Pennsylvania, and the institution reports assets of approximately $7.5 billion.
“This is an ideal opportunity for Oneida Financial Corp. to partner with a true community bank that has been nationally recognized for its financial strength and exceptional customer service, said Kallet, chairman and CEO of Oneida Financial Corp. “Their focus on customers and communities is identical to ours, and our customers will benefit from an expanded network of branch locations and ATMs, and broader product and service offerings, We are pleased with the attractive market premium our shareholders will be receiving, in addition to a greater dividend and substantial market liquidity. Community Bank System, Inc. has an impressive history of creating shareholder value through both earning and dividend growth.”
“We are very excited to be partnering with Oneida Financial Corp. to further extend and strengthen our Central New York service area,” said Community Bank System president and chief executive officer Mark Tryniski. “Oneida Financial Corp. has a leading market presence in Madison County, attractive share in Oneida County, and has built impressive businesses in insurance, benefits, and wealth management. Even more important to us, Oneida Financial Corp. has an impeccable history of service to its customers and its communities, and a culture that aligns very well with that of Community Bank, Inc.”
Oneida Financial Corp. and all its divisions, have a long history in Oneida.
Oneida Financial Corp. was formed in 1998, and is an Oneida-based family of companies that include Oneida Savings Bank (which was founded in 1866); Bailey, Haskell & LaLonde; Benefit Consulting Group, and Workplace Health Services. In a 2013, the Oneida Dispatch reported about 360 professionals work in all its divisions.
Oneida Savings Bank, which moved to the corner of Main Street and Lenox Avenue in Oneida in 1890, will celebrate its 150th anniversary this year.
In addition, the Oneida Savings Bank Charitable Foundation, which runs independently of the bank, has funded charities and local causes since 1998.
Bailey Haskell & Lalonde received the Oneida Chamber of Commerce’s Business at its Best award in June of 2014.
The name Bailey & Haskell Associates, Inc., began in 1988 when John Haskell’s agency, then Hamblin, Munz & Haskell, who employed a staff of six in 1968, formed a new equal partnership with another local company, Bailey Insurance Services.
Oneida Savings Bank purchased Bailey & Haskell Associates in 2000 to expand the business services available to its clients as well as to open new markets.
In 2001, Oneida Savings Bank acquired two smaller agencies, the Noyes and LaLonde Agency in Syracuse and the Dunn Agency, Inc. in Marcy. Both were merged with Bailey & Haskell Associates and the company began doing business as Bailey, Haskell & LaLonde.
In November 2013, Oneida Financial Corp. received the Distinguished Service Award from the Oneida Chamber, which Kallet accepted on behalf of the institution.
The evening the award was presented, Hank Leo, executive director of the YMCA of the Greater Tri-Valley, reflected on Oneida Financial Corp.’s community involvement over the years, which included providing relief assistance to those affected by the June 28, 2013 flood in Oneida, and donating repair money to the Madison County Children’s Camp when copper thieves tore out the plumbing a few short months before the camp was due to open and welcome the first of many campers from low-income families who couldn’t afford to attend a traditional summer camp.
Additional comment from Oneida Financial Corp. and Community Bank was unavailable in time for this report.
