Community Bank System Dips, Oneida Financial Skyrockets On Acquisition Plans

Community Bank System, Inc. CBU ticked down Wednesday after the regional bank said it will pay $20 a share to acquire Oneida Financial Corp ONFC.

Oneida, which operates 11 bank branches in the region around Syracuse, New York, changed hands recently at $19.48, up 47 percent.

Community Bank, which operates about 180 branches in the same region, traded at $35.09, off more than 1 percent.

The deal is worth $140 million to be paid 60 percent in stock and 40 percent in cash.

Community Bank said that excluding merger costs, the deal will boost 2015 earnings by $0.07 a share and 2016 earnings by $0.11 a share.

The acquisition will increase Community's assets about 10 percent to $8.3 billion.