US lender NBT Bancorp to buy Evans Bancorp in $236m deal By Reuters

By Niket Nishant

(Reuters) – U.S. lender NBT Bancorp (NASDAQ: ) has agreed to buy Evans Bancorp (NYSE: ) in a deal valuing it at nearly $236 million as it looks to expand its footprint in Western New York of the

Small and medium-sized banks have stepped up their deal-making process to strengthen their balance sheets and compete more effectively with rivals.

As of mid-August, banks with between $10 billion and $100 billion in assets completed 38 deals, compared with 29 in the same period last year, according to Dealogic data.

NBT’s assets totaled $13.50 billion as of June 30, while Evans had $2.26 billion in assets at the same time.

Banks are looking to reduce deposit concentration through mergers because a more diverse depositor base improves stability and reduces risks to profitability, said Kris Mitchener, professor of economics at Santa Clara University’s Leavey School of Business.

The latest deal will allow NBT to gain market share in Buffalo and Rochester, it announced Monday. It currently primarily serves customers in the upstate New York areas of Norwich, Syracuse, Oneonta and others. It is also present in Pennsylvania, Vermont and Massachusetts.

NBT was established in 1856 and is a large business lender. More than half of its loan portfolio consisted of commercial and industrial loans and commercial real estate loans as of the second quarter.

Under the terms of the deal, Evans’ investors will receive 0.91 NBT shares for each share they own. Following the deal, which is expected to close in the first half of next year, Evans CEO David Nasca will join NBT’s board of directors.

Stephens was NBT’s financial advisor, while Piper Sandler advised Evans.