|
Delaware
|
| |
6721
|
| |
16-1213679
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Andrew P. Alin, Esq.
Cadwalader, Wickersham & Taft LLP 200 Liberty Street New York, New York 10281 (212) 504-6000 |
| |
George J. Getman, Esq.
EVP and General Counsel Community Bank System, Inc. 5790 Widewaters Parkway DeWitt, New York 13214 (315) 445-2282 |
| |
Kenneth J. Rollins, Esq.
Pillar Aught LLC 4201 E. Park Circle Harrisburgh, Pennsylvania 17111 (717) 308-9910 |
|
| Large accelerated filer | | | ☒ | | | | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☐ | | | (Do not check if a smaller reporting company) | | |
Smaller reporting company
|
| | ☐ | |
| | | | | | | | | |
Emerging growth company
|
| | ☐ | |
|
![]() |
| |
STEUBEN TRUST CORPORATION
One Steuben Square
Hornell, New York 14843 |
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| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
| Community Bank System, Inc. | | | Steuben Trust Corporation | |
| Joseph E. Sutaris E.V.P. and Chief Financial Officer Community Bank System, Inc. 5790 Widewaters Parkway DeWitt, New York 13214 (315) 445-7396 |
| |
Brenda L. Copeland
Chairman and Chief Executive Officer
Steuben Trust Corporation
One Steuben Square
Hornell, New York 14843
(866) 783-8236
|
|
| Community Bank System, Inc. | | | Steuben Trust Corporation | |
| Marguerite K. Geiss Investor Relations/Board Secretary Community Bank System, Inc. 5790 Widewaters Parkway DeWitt, New York 13214 (315) 445-7313 |
| |
Mary E. Hilfiger
Corporate Secretary
Steuben Trust Corporation
One Steuben Square
Hornell, New York 14843
(866) 783-8236
|
|
| | |
Community
Bank System |
| |
Steuben
|
| ||||||||||||
| | | | | | | | |
Equivalent
Value Per Share |
| |||||||||
Closing Sale Prices Per Share on:
|
| |
Historical
|
| |
Historical
|
| ||||||||||||
October 18, 2019
|
| | | $ | 63.86 | | | | | $ | 42.01 | | | | | $ | 64.03 | | |
January 8, 2020
|
| | | $ | 70.71 | | | | | $ | 69.05 | | | | | $ | 69.55 | | |
(In thousands except per share data
and ratios) |
| |
Nine months ended
September 30, |
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
|
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan interest income
|
| | | $ | 227,701 | | | | | $ | 212,849 | | | | | $ | 286,165 | | | | | $ | 253,949 | | | | | $ | 211,467 | | | | | $ | 187,743 | | | | | $ | 185,527 | | |
Investment interest income
|
| | | | 57,979 | | | | | | 57,463 | | | | | | 76,568 | | | | | | 75,506 | | | | | | 73,720 | | | | | | 71,879 | | | | | | 70,693 | | |
Interest expense
|
| | | | 19,245 | | | | | | 12,644 | | | | | | 17,678 | | | | | | 13,780 | | | | | | 11,291 | | | | | | 11,202 | | | | | | 11,792 | | |
Net interest income
|
| | | | 266,435 | | | | | | 257,668 | | | | | | 345,055 | | | | | | 315,675 | | | | | | 273,896 | | | | | | 248,420 | | | | | | 244,428 | | |
Provision for loan losses
|
| | | | 5,573 | | | | | | 8,342 | | | | | | 10,837 | | | | | | 10,984 | | | | | | 8,076 | | | | | | 6,447 | | | | | | 7,178 | | |
Noninterest revenues
|
| | | | 168,586 | | | | | | 169,437 | | | | | | 223,720 | | | | | | 202,421 | | | | | | 155,625 | | | | | | 123,303 | | | | | | 119,020 | | |
Gain (loss) on investment securities & loss on debt extinguishment, net
|
| | | | 4,910 | | | | | | 404 | | | | | | 339 | | | | | | 2 | | | | | | 0 | | | | | | (4) | | | | | | 0 | | |
Acquisition expenses and litigation settlement
|
| | | | 7,789 | | | | | | (769) | | | | | | (769) | | | | | | 25,986 | | | | | | 1,706 | | | | | | 7,037 | | | | | | 2,923 | | |
Other noninterest expenses
|
| | | | 268,968 | | | | | | 258,445 | | | | | | 346,058 | | | | | | 321,163 | | | | | | 265,142 | | | | | | 226,018 | | | | | | 223,657 | | |
Income before income taxes
|
| | | | 157,601 | | | | | | 161,491 | | | | | | 212,988 | | | | | | 159,965 | | | | | | 154,597 | | | | | | 132,217 | | | | | | 129,690 | | |
Net income
|
| | | | 126,179 | | | | | | 127,818 | | | | | | 168,641 | | | | | | 150,717 | | | | | | 103,812 | | | | | | 91,230 | | | | | | 91,353 | | |
Diluted earnings per share
|
| | | | 2.41 | | | | | | 2.46 | | | | | | 3.24 | | | | | | 3.03 | | | | | | 2.32 | | | | | | 2.19 | | | | | | 2.22 | | |
Balance Sheet Data: | | | |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents
|
| | | $ | 781,732 | | | | | $ | 56,891 | | | | | $ | 29,083 | | | | | $ | 19,652 | | | | | $ | 24,243 | | | | | $ | 21,931 | | | | | $ | 12,870 | | |
Investment securities
|
| | | | 2,481,742 | | | | | | 2,948,057 | | | | | | 2,981,658 | | | | | | 3,081,379 | | | | | | 2,784,392 | | | | | | 2,847,940 | | | | | | 2,512,974 | | |
Loans, net of unearned discount
|
| | | | 6,853,191 | | | | | | 6,300,888 | | | | | | 6,281,121 | | | | | | 6,256,757 | | | | | | 4,948,562 | | | | | | 4,801,375 | | | | | | 4,236,206 | | |
Allowance for loan losses
|
| | | | (49,423) | | | | | | (50,133) | | | | | | (49,284) | | | | | | (47,583) | | | | | | (47,233) | | | | | | (45,401) | | | | | | (45,341) | | |
Intangible assets
|
| | | | 840,685 | | | | | | 811,700 | | | | | | 807,349 | | | | | | 825,088 | | | | | | 480,844 | | | | | | 484,146 | | | | | | 386,973 | | |
Total assets
|
| | | | 11,597,297 | | | | | | 10,659,567 | | | | | | 10,607,295 | | | | | | 10,746,198 | | | | | | 8,666,437 | | | | | | 8,552,669 | | | | | | 7,489,440 | | |
Deposits
|
| | | | 9,168,285 | | | | | | 8,463,821 | | | | | | 8,322,371 | | | | | | 8,444,420 | | | | | | 7,075,954 | | | | | | 6,873,474 | | | | | | 5,935,264 | | |
Borrowings
|
| | | | 328,795 | | | | | | 374,498 | | | | | | 413,682 | | | | | | 485,896 | | | | | | 248,370 | | | | | | 403,446 | | | | | | 440,122 | | |
Shareholders’ equity
|
| | | | 1,840,421 | | | | | | 1,668,345 | | | | | | 1,713,783 | | | | | | 1,635,315 | | | | | | 1,198,100 | | | | | | 1,140,647 | | | | | | 987,904 | | |
(In thousands except per share data
and ratios) |
| |
Nine months ended
September 30, |
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
|
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||
Capital and Related Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash dividends declared per share
|
| | | $ | 1.17 | | | | | $ | 1.06 | | | | | $ | 1.44 | | | | | $ | 1.32 | | | | | $ | 1.26 | | | | | $ | 1.22 | | | | | $ | 1.16 | | |
Book value per share
|
| | | | 35.63 | | | | | | 32.63 | | | | | | 33.43 | | | | | | 32.26 | | | | | | 26.96 | | | | | | 26.06 | | | | | | 24.24 | | |
Tangible book value per share(1)
|
| | | | 20.24 | | | | | | 17.67 | | | | | | 18.59 | | | | | | 16.94 | | | | | | 17.12 | | | | | | 15.90 | | | | | | 15.63 | | |
Market capitalization (in millions)
|
| | | | 3,187 | | | | | | 3,123 | | | | | | 2,988 | | | | | | 2,725 | | | | | | 2,746 | | | | | | 1,748 | | | | | | 1,554 | | |
Tier 1 leverage ratio
|
| | | | 10.76% | | | | | | 10.72% | | | | | | 11.08% | | | | | | 10.00% | | | | | | 10.55% | | | | | | 10.32% | | | | | | 9.96% | | |
Total risk-based capital to risk-adjusted
assets |
| | | | 17.54% | | | | | | 18.41% | | | | | | 19.06% | | | | | | 17.45% | | | | | | 19.10% | | | | | | 18.08% | | | | | | 18.75% | | |
Tangible equity to tangible assets(1)
|
| | | | 9.68% | | | | | | 9.13% | | | | | | 9.68% | | | | | | 8.61% | | | | | | 9.24% | | | | | | 8.59% | | | | | | 8.92% | | |
Dividend payout ratio
|
| | | | 47.9% | | | | | | 42.4% | | | | | | 43.8% | | | | | | 43.5% | | | | | | 53.7% | | | | | | 55.5% | | | | | | 51.6% | | |
Period end common shares
outstanding |
| | | | 51,660 | | | | | | 51,137 | | | | | | 51,528 | | | | | | 50,696 | | | | | | 44,437 | | | | | | 43,775 | | | | | | 40,748 | | |
Diluted weighted-average shares outstanding
|
| | | | 52,301 | | | | | | 51,925 | | | | | | 51,975 | | | | | | 49,665 | | | | | | 44,720 | | | | | | 41,605 | | | | | | 41,232 | | |
Selected Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets
|
| | | | 1.55% | | | | | | 1.60% | | | | | | 1.58% | | | | | | 1.49% | | | | | | 1.20% | | | | | | 1.17% | | | | | | 1.23% | | |
Return on average equity
|
| | | | 9.50% | | | | | | 10.40% | | | | | | 10.20% | | | | | | 10.21% | | | | | | 8.57% | | | | | | 8.87% | | | | | | 9.65% | | |
Net interest margin
|
| | | | 3.78% | | | | | | 3.72% | | | | | | 3.73% | | | | | | 3.69% | | | | | | 3.71% | | | | | | 3.73% | | | | | | 3.91% | | |
Noninterest revenues/operating revenues
(FTE)(2) |
| | | | 38.9% | | | | | | 39.9% | | | | | | 39.6% | | | | | | 38.8% | | | | | | 35.5% | | | | | | 32.3% | | | | | | 31.7% | | |
Efficiency ratio(3)
|
| | | | 59.2% | | | | | | 57.7% | | | | | | 58.0% | | | | | | 58.3% | | | | | | 59.6% | | | | | | 58.2% | | | | | | 58.4% | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses/total loans
|
| | | | 0.72% | | | | | | 0.80% | | | | | | 0.78% | | | | | | 0.76% | | | | | | 0.95% | | | | | | 0.95% | | | | | | 1.07% | | |
Nonperforming loans/total loans
|
| | | | 0.42% | | | | | | 0.40% | | | | | | 0.40% | | | | | | 0.44% | | | | | | 0.48% | | | | | | 0.50% | | | | | | 0.56% | | |
Allowance for loan losses/nonperforming loans
|
| | | | 172% | | | | | | 201% | | | | | | 197% | | | | | | 173% | | | | | | 199% | | | | | | 190% | | | | | | 190% | | |
Loan loss provision/net charge-offs
|
| | | | 103% | | | | | | 144% | | | | | | 119% | | | | | | 103% | | | | | | 129% | | | | | | 101% | | | | | | 117% | | |
Net charge-offs/average loans
|
| | | | 0.11% | | | | | | 0.12% | | | | | | 0.15% | | | | | | 0.18% | | | | | | 0.13% | | | | | | 0.15% | | | | | | 0.15% | | |
| | |
Historical
|
| |
Pro Forma
|
| ||||||||||||||||||
| | |
Community
Bank System |
| |
Steuben
|
| |
Combined
Company(1)(2)(3) |
| |
Steuben
Equivalent(4) |
| ||||||||||||
For the nine months ended
September 30, 2019: |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per share
|
| | | $ | 2.44 | | | | | $ | 3.12 | | | | | $ | 2.47 | | | | | $ | 1.99 | | |
Diluted Earnings per share
|
| | | $ | 2.41 | | | | | $ | 3.12 | | | | | $ | 2.45 | | | | | $ | 1.97 | | |
Cash Dividends
|
| | | $ | 1.17 | | | | | $ | 1.06 | | | | | $ | 1.17 | | | | | $ | 0.94 | | |
Book Value at September 30, 2019
|
| | | $ | 35.63 | | | | | $ | 38.81 | | | | | $ | 36.29 | | | | | $ | 29.23 | | |
For the year ended
December 31, 2018: |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per share
|
| | | $ | 3.28 | | | | | $ | 4.12 | | | | | $ | 3.33 | | | | | $ | 2.68 | | |
Diluted Earnings per share
|
| | | $ | 3.24 | | | | | $ | 4.11 | | | | | $ | 3.29 | | | | | $ | 2.65 | | |
Cash Dividends
|
| | | $ | 1.44 | | | | | $ | 1.31 | | | | | $ | 1.44 | | | | | $ | 1.16 | | |
|
Transaction value / tangible book value
|
| | | | 167% | | |
|
Transaction value / last twelve months earnings per share
|
| | | | 15.1x | | |
|
Core deposit premium(2)
|
| | | | 11.0% | | |
|
Market premium to most recent closing price
|
| | | | 37.2% | | |
Institution
|
| |
City, State
|
| |
Ticker
|
| |
Exchange
|
|
Ballston Spa Bancorp, Inc.
|
| |
Ballston Spa, NY
|
| |
BSPA
|
| |
OTC Pink
|
|
Elmira Savings Bank
|
| |
Elmira, NY
|
| |
ESBK
|
| |
NASDAQ
|
|
ES Bancshares, Inc.
|
| |
Newburgh, NY
|
| |
ESBS
|
| |
OTC Pink
|
|
Jeffersonville Bancorp
|
| |
Jeffersonville, NY
|
| |
JFBC
|
| |
OTCQB
|
|
Jonestown Bank and Trust Co.
|
| |
Jonestown, PA
|
| |
JNES
|
| |
OTC Pink
|
|
Juniata Valley Financial Corp.
|
| |
Mifflintown, PA
|
| |
JUVF
|
| |
OTC Pink
|
|
Mauch Chunk Trust Financial Corp.
|
| |
Jim Thorpe, PA
|
| |
MCHT
|
| |
OTC Pink
|
|
MNB Corporation
|
| |
Bangor, PA
|
| |
MNBC
|
| |
OTC Pink
|
|
Muncy Bank Financial, Inc.
|
| |
Muncy, PA
|
| |
MYBF
|
| |
OTC Pink
|
|
Northumberland Bancorp
|
| |
Northumberland, PA
|
| |
NUBC
|
| |
OTC Pink
|
|
Susquehanna Community Financial, Inc.
|
| |
West Milton, PA
|
| |
SQCF
|
| |
OTC Pink
|
|
Woodlands Financial Services Company
|
| |
Williamsport, PA
|
| |
WDFN
|
| |
OTC Pink
|
|
York Traditions Bank
|
| |
York, PA
|
| |
YRKB
|
| |
OTC Pink
|
|
| | |
Assets
In Thousands |
| |
Tangible
Equity/ Tang. Assets |
| |
Tangible
Comm. Eq./ Tang. Assets |
| |
NPAs/
Assets |
| |
Return
on Average Assets |
| |
Return
on Average Equity |
| ||||||||||||||||||
High
|
| | | $ | 662,064 | | | | | | 13.33% | | | | | | 13.33% | | | | | | 1.74% | | | | | | 1.30% | | | | | | 13.09% | | |
75th Percentile
|
| | | | 551,777 | | | | | | 10.20 | | | | | | 10.21 | | | | | | 1.08 | | | | | | 1.06 | | | | | | 11.33 | | |
Median
|
| | | | 519,520 | | | | | | 9.58 | | | | | | 9.58 | | | | | | 0.67 | | | | | | 0.93 | | | | | | 10.12 | | |
25th Percentile
|
| | | | 473,895 | | | | | | 8.77 | | | | | | 8.77 | | | | | | 0.42 | | | | | | 0.62 | | | | | | 7.29 | | |
Low
|
| | | | 409,061 | | | | | | 5.28 | | | | | | 5.28 | | | | | | 0.28 | | | | | | 0.35 | | | | | | 6.17 | | |
Steuben
|
| | | $ | 576,601 | | | | | | 11.05% | | | | | | 11.05% | | | | | | 0.55% | | | | | | 1.25% | | | | | | 11.96% | | |
| | |
Stock Price/
|
| | | | | | | | ||||||||||||||||||||||||||
| | |
Earnings per Share
|
| |
Tang.
Book Per Share |
| | | | | | | | | | | | | |
Shares
Traded Daily(2) |
| |||||||||||||||
| | |
LTM
|
| |
MRQ
(annualized) |
| |
Assets
Per Share |
| |
Dividend
Yield |
| ||||||||||||||||||||||||
High
|
| | | | 17.4x | | | | | | 17.0x | | | | | | 162% | | | | | | 15.4% | | | | | | 6.44% | | | | | | 6,078 | | |
75th Percentile
|
| | | | 13.9 | | | | | | 13.9 | | | | | | 114 | | | | | | 11.4 | | | | | | 3.46 | | | | | | 763 | | |
Median
|
| | | | 11.1 | | | | | | 9.9 | | | | | | 108 | | | | | | 10.0 | | | | | | 2.84 | | | | | | 498 | | |
25th Percentile
|
| | | | 10.7 | | | | | | 9.2 | | | | | | 100 | | | | | | 8.9 | | | | | | 2.33 | | | | | | 272 | | |
Low
|
| | | | 8.8 | | | | | | 8.5 | | | | | | 74 | | | | | | 3.9 | | | | | | 0.00 | | | | | | 53 | | |
Steuben
|
| | | | 11.0x | | | | | | 10.7x | | | | | | 121% | | | | | | 13.4% | | | | | | 3.04% | | | | | | 276 | | |
| | |
One-Year Stock Performance
|
| |||||||||||||||||||||
Date
|
| |
Steuben
(SBHO) |
| |
Comparable
Institutions |
| |
S&P 500
|
| |
NASDAQ Bank
Index |
| ||||||||||||
October 16, 2019
|
| | | | 92% | | | | | | 99% | | | | | | 106% | | | | | | 94% | | |
October 16, 2018
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | |
| | |
Three-Year Stock Performance
|
| |||||||||||||||||||||
Date
|
| |
Steuben
(SBHO) |
| |
Comparable
Institutions |
| |
S&P 500
|
| |
NASDAQ Bank
Index |
| ||||||||||||
October 16, 2019
|
| | | | 142% | | | | | | 129% | | | | | | 140% | | | | | | 121% | | |
October 14, 2016
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | |
| | |
Year
|
| |
Number
of Deals |
| |
Median
Price/ Last 12 Months Earnings |
| |
Median
Price/ Tangible Common Book (%) |
| |||||||||
Highest 3rd by Announced Price-to-Tangible Book
|
| |
2019 (through Oct. 16, 2019)
|
| | | | 29 | | | | | | 15.5x | | | | | | 189% | | |
| | | 2018 | | | | | 46 | | | | | | 24.4 | | | | | | 216 | | |
| | | 2017 | | | | | 47 | | | | | | 21.9 | | | | | | 209 | | |
| | | 2016 | | | | | 38 | | | | | | 20.3 | | | | | | 179 | | |
| | | 2015 | | | | | 47 | | | | | | 23.7 | | | | | | 181 | | |
Middle 3rd by Announced Price-to-Tangible Book
|
| |
2019 (through Oct. 16, 2019)
|
| | | | 30 | | | | | | 15.2x | | | | | | 158% | | |
| | | 2018 | | | | | 46 | | | | | | 24.4 | | | | | | 173 | | |
| | | 2017 | | | | | 47 | | | | | | 22.9 | | | | | | 167 | | |
| | | 2016 | | | | | 39 | | | | | | 20.0 | | | | | | 141 | | |
| | | 2015 | | | | | 46 | | | | | | 22.8 | | | | | | 143 | | |
Lowest 3rd by Announced Price-to-Tangible Book
|
| |
2019 (through Oct. 16, 2019)
|
| | | | 30 | | | | | | 16.7x | | | | | | 129% | | |
| | | 2018 | | | | | 46 | | | | | | 24.9 | | | | | | 134 | | |
| | | 2017 | | | | | 47 | | | | | | 20.8 | | | | | | 132 | | |
| | | 2016 | | | | | 39 | | | | | | 18.2 | | | | | | 116 | | |
| | | 2015 | | | | | 46 | | | | | | 23.4 | | | | | | 118 | | |
| | | Community / Steuben | | | | | | | | | | | 15.1x | | | | | | 167% | | |
Acquirer/Seller
|
| |
Deal
Value |
| |
Deal
Value/ Last 12 Months Earnings |
| |
Deal
Value/ Common Tangible Book |
| |||||||||
| | |
(in mill.)
|
| | | |||||||||||||
Mid Penn Bancorp, Inc./First Priority Financial Corp.
|
| | | $ | 91 | | | | | | 32.6x | | | | | | 194% | | |
Community Bank System, Inc./Kinderhook Bank Corp.
|
| | | | 93 | | | | | | 23.4 | | | | | | 193 | | |
Lakeland Bancorp, Inc./Highlands Bancorp, Inc.
|
| | | | 57 | | | | | | 22.5 | | | | | | 189 | | |
Northwest Bancshares, Inc./Donegal Financial Services Corp.
|
| | | | 86 | | | | | | 20.3 | | | | | | 174 | | |
OceanFirst Financial Corp./Capital Bank of New Jersey
|
| | | | 77 | | | | | | 13.3 | | | | | | 168 | | |
Citizens & Northern Corporation/Monument Bancorp, Inc.
|
| | | | 43 | | | | | | 16.7 | | | | | | 164 | | |
DNB Financial Corporation/East River Bank
|
| | | | 49 | | | | | | 21.7 | | | | | | 158 | | |
Sussex Bancorp/Community Bank of Bergen County, NJ
|
| | | | 47 | | | | | | 27.9 | | | | | | 158 | | |
OceanFirst Financial Corp./Country Bank Holding Company, Inc.
|
| | | | 102 | | | | | | 9.8 | | | | | | 151 | | |
ConnectOne Bancorp, Inc./Greater Hudson Bank
|
| | | | 76 | | | | | | NM | | | | | | 145 | | |
Investors Bancorp, Inc./Gold Coast Bancorp, Inc.
|
| | | | 64 | | | | | | 27.3 | | | | | | 138 | | |
Norwood Financial Corp./Delaware Bancshares, Inc.
|
| | | | 15 | | | | | | 25.7 | | | | | | 114 | | |
Median
|
| | | $ | 70 | | | | | | 22.5x | | | | | | 161% | | |
Community / Steuben
|
| | | $ | 107 | | | | | | 15.1x | | | | | | 167% | | |
Institution
|
| |
City, State
|
| |
Ticker
|
| |
Exchange
|
|
First Commonwealth Financial Corporation
|
| |
Indiana, PA
|
| |
FCF
|
| |
NYSE
|
|
First Financial Bankshares, Inc.
|
| |
Abilene, TX
|
| |
FFIN
|
| |
NASDAQ
|
|
First Interstate BancSystem, Inc.
|
| |
Billings, MT
|
| |
FIBK
|
| |
NASDAQ
|
|
Glacier Bancorp, Inc.
|
| |
Kalispell, MT
|
| |
GBCI
|
| |
NASDAQ
|
|
NBT Bancorp Inc.
|
| |
Norwich, NY
|
| |
NBTB
|
| |
NASDAQ
|
|
Northwest Bancshares, Inc.
|
| |
Warren, PA
|
| |
NWBI
|
| |
NASDAQ
|
|
Park National Corporation
|
| |
Newark, OH
|
| |
PRK
|
| |
NYSEAM
|
|
Renasant Corporation
|
| |
Tupelo, MS
|
| |
RNST
|
| |
NASDAQ
|
|
TowneBank
|
| |
Portsmouth, VA
|
| |
TOWN
|
| |
NASDAQ
|
|
WesBanco, Inc.
|
| |
Wheeling, WV
|
| |
WSBC
|
| |
NASDAQ
|
|
| | |
Assets
In Millions |
| |
Tangible
Equity/ Tang. Assets |
| |
NPAs/
Assets |
| |
Return
on Average Assets |
| |
Return
on Average Equity |
| |
Return
on Avg. Tang. Common Equity |
| |
Risk
Based Capital Ratio |
| |
Nonint.
Income/ Oper. Revenue |
| ||||||||||||||||||||||||
High
|
| | | $ | 14,415 | | | | | | 12.69% | | | | | | 1.06% | | | | | | 2.06% | | | | | | 15.17% | | | | | | 18.30% | | | | | | 21.16% | | | | | | 35.24% | | |
75th Percentile
|
| | | | 12,631 | | | | | | 9.92 | | | | | | 0.54 | | | | | | 1.35 | | | | | | 11.60 | | | | | | 16.74 | | | | | | 15.16 | | | | | | 26.60 | | |
Median
|
| | | | 11,224 | | | | | | 9.56 | | | | | | 0.46 | | | | | | 1.30 | | | | | | 10.00 | | | | | | 15.92 | | | | | | 14.70 | | | | | | 24.15 | | |
25th Percentile
|
| | | | 8,902 | | | | | | 9.10 | | | | | | 0.37 | | | | | | 1.24 | | | | | | 8.74 | | | | | | 14.78 | | | | | | 13.72 | | | | | | 22.35 | | |
Low
|
| | | | 7,979 | | | | | | 8.41 | | | | | | 0.35 | | | | | | 1.07 | | | | | | 8.33 | | | | | | 11.94 | | | | | | 13.02 | | | | | | 20.41 | | |
Community
|
| | | $ | 10,745 | | | | | | 10.15% | | | | | | 0.25% | | | | | | 1.60% | | | | | | 9.98% | | | | | | 20.31% | | | | | | 19.84% | | | | | | 38.77% | | |
| | |
Stock Price/
|
| | | |||||||||||||||||||||||||||||||
| | |
Earnings per Share
|
| |
Tang.
Book Per Share |
| |
Assets
Per Share |
| |
Dividend
Yield |
| |
Shares
Traded Daily(2) |
| |||||||||||||||||||||
| | |
LTM
|
| |
MRQ
(annualized) |
| ||||||||||||||||||||||||||||||
High
|
| | | | 28.7x | | | | | | 26.9x | | | | | | 457% | | | | | | 56.7% | | | | | | 4.41% | | | | | | 660,502 | | |
75th Percentile
|
| | | | 15.9 | | | | | | 17.3 | | | | | | 217 | | | | | | 18.7 | | | | | | 3.20 | | | | | | 411,786 | | |
Median
|
| | | | 14.8 | | | | | | 15.3 | | | | | | 193 | | | | | | 16.7 | | | | | | 2.93 | | | | | | 205,669 | | |
25th Percentile
|
| | | | 12.9 | | | | | | 12.2 | | | | | | 181 | | | | | | 16.6 | | | | | | 2.68 | | | | | | 130,473 | | |
Low
|
| | | | 12.1 | | | | | | 11.1 | | | | | | 177 | | | | | | 16.1 | | | | | | 1.44 | | | | | | 37,548 | | |
Community
|
| | | | 19.2x | | | | | | 18.2x | | | | | | 321% | | | | | | 30.1% | | | | | | 2.62% | | | | | | 209,609 | | |
| | |
One-Year Stock Performance
|
| |||||||||||||||||||||
Date
|
| |
Community
(CBU) |
| |
Comparable
Institutions |
| |
S&P 500
|
| |
NASDAQ Bank
Index |
| ||||||||||||
October 16, 2019
|
| | | | 107% | | | | | | 95% | | | | | | 106% | | | | | | 94% | | |
October 16, 2018
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | |
| | |
Three-Year Stock Performance
|
| |||||||||||||||||||||
Date
|
| |
Community
(CBU) |
| |
Comparable
Institutions |
| |
S&P 500
|
| |
NASDAQ Bank
Index |
| ||||||||||||
October 16, 2019
|
| | | | 132% | | | | | | 114% | | | | | | 140% | | | | | | 121% | | |
October 14, 2016
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | |
| | |
12 months ending June 30,
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| ||||||||||||||||||||||||
Net Income
|
| | | $ | 7,031 | | | | | | 7,558 | | | | | | 8,125 | | | | | | 8,735 | | | | | | 9,390 | | | | | | 10,094 | | | | | | 10,851 | | | | | | 11,665 | | |
Dividend
|
| | | $ | 2,361 | | | | | | 2,503 | | | | | | 2,653 | | | | | | 2,813 | | | | | | 2,981 | | | | | | 3,160 | | | | | | 3,350 | | | | | | 3,551 | | |
Name
|
| |
Cash
($) |
| |
Equity(1)
($) |
| |
Total
($) |
| |||||||||
Brenda L. Copeland
(Chairman and Chief Executive Officer)
|
| | | | 1,600,833(2) | | | | | | 100,128 | | | | | | 1,700,961(3) | | |
John S. Eagleton
(President)
|
| | | | 457,500(4) | | | | | | 38,304 | | | | | | 495,804 | | |
Total
|
| | | | 2,058,333 | | | | | | 138,432 | | | | | | 2,196,765 | | |
Name and Address
|
| |
Amount and
Nature of Beneficial Ownership |
| |
Percent of
Class |
| ||||||
David A. Shults
|
| | | | 283,345(1) | | | | | | 16.7% | | |
9 Seneca Street
Hornell, New York 14843 |
| | | ||||||||||
Dick Taylor Hollands Trust
|
| | | | 87,200 | | | | | | 5.2% | | |
10 Everett Street
Melrose, Massachusetts 02176 |
| | | ||||||||||
Michael E. Davidson
|
| | | | 85,606(2) | | | | | | 5.1% | | |
212 Main Street
Hornell, New York 14843 |
| | | | | | | | | | | | |
Name of Individual or Identity of Group
|
| |
Amount and
Nature of Beneficial Ownership |
| |
Percent of
Class |
| ||||||
Brenda L. Copeland
|
| | | | 29,218(1) | | | | | | 1.7% | | |
Michael E. Davidson
|
| | | | 85,606(2) | | | | | | 5.1% | | |
John S. Eagleton
|
| | | | — | | | | | | * | | |
Dr. Stoner E. Horey
|
| | | | 6,748 | | | | | | * | | |
Stanley R. Klein
|
| | | | 200(3) | | | | | | * | | |
James P. Nicoloff
|
| | | | 3,500(4) | | | | | | * | | |
Amanda S. Parker
|
| | | | 100 | | | | | | * | | |
Amber R. Phelps
|
| | | | 672(5) | | | | | | * | | |
Sherry C. Walton
|
| | | | 13,467 | | | | | | * | | |
Brian L. Wilkins
|
| | | | 20,158(6) | | | | | | 1.2% | | |
Mark A. Zupan
|
| | | | — | | | | | | * | | |
All officers, directors and nominees as a group (11 persons)
|
| | | | 159,669 | | | | | | 9.4% | | |
| | |
High
|
| |
Low
|
| |
Cash
Dividends Declared Per Share |
| |||||||||
Year Ending December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2019
|
| | | $ | 71.61 | | | | | $ | 59.85 | | | | | $ | 0.41 | | |
Quarter Ended September 30, 2019
|
| | | $ | 66.58 | | | | | $ | 59.36 | | | | | $ | 0.41 | | |
Quarter Ended June 30, 2019
|
| | | $ | 67.79 | | | | | $ | 60.25 | | | | | $ | 0.38 | | |
Quarter Ended March 31, 2019
|
| | | $ | 65.20 | | | | | $ | 56.58 | | | | | $ | 0.38 | | |
Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2018
|
| | | $ | 66.38 | | | | | $ | 54.46 | | | | | $ | 0.38 | | |
Quarter Ended September 30, 2018
|
| | | $ | 67.07 | | | | | $ | 58.65 | | | | | $ | 0.38 | | |
Quarter Ended June 30, 2018
|
| | | $ | 62.39 | | | | | $ | 52.26 | | | | | $ | 0.34 | | |
Quarter Ended March 31, 2018
|
| | | $ | 57.26 | | | | | $ | 50.72 | | | | | $ | 0.34 | | |
Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2017
|
| | | $ | 57.46 | | | | | $ | 50.69 | | | | | $ | 0.34 | | |
Quarter Ended September 30, 2017
|
| | | $ | 57.58 | | | | | $ | 48.89 | | | | | $ | 0.34 | | |
Quarter Ended June 30, 2017
|
| | | $ | 58.80 | | | | | $ | 51.38 | | | | | $ | 0.32 | | |
Quarter Ended March 31, 2017
|
| | | $ | 63.04 | | | | | $ | 51.60 | | | | | $ | 0.32 | | |
| | |
High
|
| |
Low
|
| |
Cash
Dividends Declared Per Share |
| |||||||||
Year Ending December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2019
|
| | | $ | 69.50 | | | | | $ | 42.01 | | | | | $ | 0.355 | | |
Quarter Ended September 30, 2019
|
| | | $ | 43.50 | | | | | $ | 39.10 | | | | | $ | 0.355 | | |
Quarter Ended June 30, 2019
|
| | | $ | 40.70 | | | | | $ | 38.00 | | | | | $ | 0.35 | | |
Quarter Ended March 31, 2019
|
| | | $ | 40.70 | | | | | $ | 38.01 | | | | | $ | 0.335 | | |
Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2018
|
| | | $ | 58.49 | | | | | $ | 40.00 | | | | | $ | 0.335 | | |
Quarter Ended September 30, 2018
|
| | | $ | 52.75 | | | | | $ | 45.68 | | | | | $ | 0.33 | | |
Quarter Ended June 30, 2018
|
| | | $ | 46.90 | | | | | $ | 44.49 | | | | | $ | 0.33 | | |
Quarter Ended March 31, 2018
|
| | | $ | 46.00 | | | | | $ | 40.00 | | | | | $ | 0.315 | | |
Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | |
Quarter Ended December 31, 2017
|
| | | $ | 54.00 | | | | | $ | 38.00 | | | | | $ | 0.315 | | |
Quarter Ended September 30, 2017
|
| | | $ | 39.00 | | | | | $ | 37.00 | | | | | $ | 0.31 | | |
Quarter Ended June 30, 2017
|
| | | $ | 40.00 | | | | | $ | 36.20 | | | | | $ | 0.31 | | |
Quarter Ended March 31, 2017
|
| | | $ | 40.00 | | | | | $ | 33.75 | | | | | $ | 0.30 | | |
| | |
Community
Bank System Common Stock |
| |
Steuben
Common Stock |
| |
Equivalent
Value Per Share of Steuben Common Stock(1) |
| |||||||||
October 18, 2019
|
| | | $ | 63.86 | | | | | $ | 42.01 | | | | | $ | 64.03 | | |
January 8, 2020
|
| | | $ | 70.71 | | | | | $ | 69.05 | | | | | $ | 69.55 | | |
Community Bank System Commission Filings (File No. 001-13695) |
| | ||
Annual Report on Form 10-K | | | Year ended December 31, 2018, filed on March 1, 2019 | |
Quarterly Report on Form 10-Q | | | | |
| | Filed on April 1, 2019 | | |
Current Reports on Form 8-K | | | Filed January 8, 2019, January 22, 2019, January 25, 2019, May 17, 2019, July 12, 2019, October 21, 2019 (announcing Merger), October 24, 2019, November 26, 2019 and January 7, 2020. | |
Registration Statements on Form 8-A | | | Filed December 9, 1997[Two Filings] and February 27, 1995 | |
(In thousands except per share data and
ratios) |
| |
Nine months ended
September 30, |
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||||||||||||||
|
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||||||||||
Noninterest operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest expenses (GAAP)
|
| | | $ | 276,757 | | | | | $ | 257,676 | | | | | $ | 345,289 | | | | | $ | 347,149 | | | | | $ | 266,848 | | | | | $ | 233,055 | | | | | $ | 226,580 | | |
Amortization of intangibles
|
| | | | (11,994) | | | | | | (13,780) | | | | | | (18,155) | | | | | | (16,941) | | | | | | (5,479) | | | | | | (3,663) | | | | | | (4,287) | | |
Acquisition expenses
|
| | | | (7,789) | | | | | | 769 | | | | | | 769 | | | | | | (25,986) | | | | | | (1,706) | | | | | | (7,037) | | | | | | (123) | | |
Litigation settlement
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | (2,800) | | |
Total adjusted noninterest expenses (non-GAAP)
|
| | | $ | 256,974 | | | | | $ | 244,665 | | | | | $ | 327,903 | | | | | $ | 304,222 | | | | | $ | 259,663 | | | | | $ | 222,355 | | | | | $ | 219,370 | | |
Efficiency ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted noninterest expenses (non-GAAP) – numerator
|
| | | $ | 256,974 | | | | | $ | 244,665 | | | | | $ | 327,903 | | | | | $ | 304,222 | | | | | $ | 259,663 | | | | | $ | 222,355 | | | | | $ | 219,370 | | |
Fully tax-equivalent net interest income
|
| | | $ | 269,418 | | | | | $ | 260,951 | | | | | $ | 349,400 | | | | | $ | 325,090 | | | | | $ | 283,857 | | | | | $ | 260,824 | | | | | $ | 259,961 | | |
Noninterest revenues
|
| | | | 173,496 | | | | | | 169,841 | | | | | | 224,059 | | | | | | 202,423 | | | | | | 155,625 | | | | | | 123,299 | | | | | | 119,020 | | |
Acquired non-impaired loan
accretion |
| | | | (4,269) | | | | | | (6,083) | | | | | | (7,921) | | | | | | (5,888) | | | | | | (2,868) | | | | | | (2,256) | | | | | | (3,338) | | |
Insurance-related recovery
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | (950) | | | | | | 0 | | | | | | 0 | | |
Gain on sales of investment securities, net
|
| | | | (4,882) | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Unrealized gain on equity
securities |
| | | | (28) | | | | | | (722) | | | | | | (657) | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Loss on debt extinguishment
|
| | | | 0 | | | | | | 318 | | | | | | 318 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Operating revenues (non-GAAP) – denominator
|
| | | $ | 433,735 | | | | | $ | 424,305 | | | | | $ | 565,199 | | | | | $ | 521,625 | | | | | $ | 435,664 | | | | | $ | 381,867 | | | | | $ | 375,643 | | |
Efficiency ratio (non-GAAP)
|
| | | | 59.2% | | | | | | 57.7% | | | | | | 58.0% | | | | | | 58.3% | | | | | | 59.6% | | | | | | 58.2% | | | | | | 58.4% | | |
Balance sheet data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets (GAAP)
|
| | | $ | 11,597,297 | | | | | $ | 10,659,567 | | | | | $ | 10,607,295 | | | | | $ | 10,746,198 | | | | | $ | 8,666,437 | | | | | $ | 8,552,669 | | | | | $ | 7,489,440 | | |
Intangible assets
|
| | | | (840,685) | | | | | | (811,700) | | | | | | (807,349) | | | | | | (825,088) | | | | | | (480,844) | | | | | | (484,146) | | | | | | (386,973) | | |
Deferred taxes on intangible
assets |
| | | | 46,048 | | | | | | 46,882 | | | | | | 46,370 | | | | | | 48,419 | | | | | | 43,504 | | | | | | 39,724 | | | | | | 35,842 | | |
Total tangible assets (non-GAAP)
|
| | | $ | 10,802,660 | | | | | $ | 9,894,749 | | | | | $ | 9,846,316 | | | | | $ | 9,969,529 | | | | | $ | 8,229,097 | | | | | $ | 8,108,247 | | | | | $ | 7,138,309 | | |
Total common equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders’ Equity (GAAP)
|
| | | $ | 1,840,421 | | | | | $ | 1,668,345 | | | | | $ | 1,713,783 | | | | | $ | 1,635,315 | | | | | $ | 1,198,100 | | | | | $ | 1,140,647 | | | | | $ | 987,904 | | |
Intangible assets
|
| | | | (840,685) | | | | | | (811,700) | | | | | | (807,349) | | | | | | (825,088) | | | | | | (480,844) | | | | | | (484,146) | | | | | | (386,973) | | |
Deferred taxes on intangible
assets |
| | | | 46,048 | | | | | | 46,882 | | | | | | 46,370 | | | | | | 48,419 | | | | | | 43,504 | | | | | | 39,724 | | | | | | 35,842 | | |
Total tangible common equity (non-GAAP)
|
| | | $ | 1,045,784 | | | | | $ | 903,527 | | | | | $ | 952,804 | | | | | $ | 858,646 | | | | | $ | 760,760 | | | | | $ | 696,225 | | | | | $ | 636,773 | | |
Net tangible equity-to-assets ratio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total tangible common equity (non-GAAP) – numerator
|
| | | $ | 1,045,784 | | | | | $ | 903,527 | | | | | $ | 952,804 | | | | | $ | 858,646 | | | | | $ | 760,760 | | | | | $ | 696,225 | | | | | $ | 636,773 | | |
Total tangible assets (non-GAAP) – denominator
|
| | | $ | 10,802,660 | | | | | $ | 9,894,749 | | | | | $ | 9,846,316 | | | | | $ | 9,969,529 | | | | | $ | 8,229,097 | | | | | $ | 8,108,247 | | | | | $ | 7,138,309 | | |
Net tangible equity-to-assets ratio (non-GAAP)
|
| | | | 9.68% | | | | | | 9.13% | | | | | | 9.68% | | | | | | 8.61% | | | | | | 9.24% | | | | | | 8.59% | | | | | | 8.92% | | |
| | |
Page
|
| |||
Article 1 | | | | | | | |
TRANSACTIONS AND TERMS OF MERGER | | | | | | | |
| | | | A-1 | | | |
| | | | A-1 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-2 | | | |
Article 2 | | | | | | | |
TREATMENT OF SECURITIES | | | | | | | |
| | | | A-2 | | | |
| | | | A-3 | | | |
| | | | A-5 | | | |
| | | | A-6 | | | |
| | | | A-6 | | | |
| | | | A-7 | | | |
Article 3 | | | | | | | |
REPRESENTATIONS AND WARRANTIES | | | | | | | |
| | | | A-7 | | | |
| | | | A-7 | | | |
| | | | A-23 | | | |
Article 4 | | | | | | | |
COVENANTS AND ADDITIONAL AGREEMENTS OF THE PARTIES | | | | | | | |
| | | | A-29 | | | |
| | | | A-30 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-40 | | |
| | |
Page
|
| |||
| | | | A-40 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
Article 5 | | | | | | | |
CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE | | | | | | | |
| | | | A-42 | | | |
| | | | A-43 | | | |
| | | | A-44 | | | |
Article 6 | | | | | | | |
TERMINATION | | | | | | | |
| | | | A-44 | | | |
| | | | A-46 | | | |
| | | | A-47 | | | |
Article 7 | | | | | | | |
MISCELLANEOUS | | | | | | | |
| | | | A-47 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-55 | | | |
| | | | A-55 | | | |
| | | | A-55 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
LIST OF EXHIBITS | | | | | | | |
Exhibit
Description
|
| | |||||
| | | | A-A-1 | | | |
| | | | A-B-1 | | | |
| | | | A-C-1 | | | |
| | | | A-D-1 | | |
| Adverse Recommendation Change | | | Section 4.12(c) | |
| Agreement | | | Preamble | |
| Anti-Corruption Laws | | | Section 3.2(h)(v) | |
| Anti-Money Laundering Laws | | | Section 3.2(h)(vi) | |
| Appraisal Rights | | | Section 2.3(a) | |
| Bank Merger | | | Recitals | |
| Bank Merger Agreement | | | Recitals | |
| Book-Entry Shares | | | Section 2.2(b) | |
| Capitalization Date | | | Section 3.2(c) | |
| Certificates of Merger | | | Section 1.4 | |
| Closing | | | Section 1.3 | |
| Closing Date | | | Section 1.3 | |
| Community | | | Preamble | |
| Community Bank | | | Recitals | |
| Community Disclosure Letter | | | Section 3.1 | |
| Community Fundamnetal Decisions | | | Section 5.3(a) | |
| Community Preferred Stock | | | Section 3.3(c) | |
| Community Regulatory Agreement | | | Section 3.3(f)(ii) | |
| Community Reports | | | Section 3.3(d)(ii) | |
| Continuing Employees | | | Section 4.14(a) | |
| CRA | | | Section 3.2(p) | |
| Delaware Secretary | | | Section 1.4 | |
| Delinquent Loans | | | Section 3.2(n)(ii) | |
| DGCL | | | Recitals | |
| Dissenting Shares | | | Section 2.3(a) | |
| Effective Time | | | Section 1.4 | |
| Exchange Agent | | | Section 2.2(a) | |
| Exchange Fund | | | Section 2.2(a) | |
| Expiration Date | | | Section 6.1(e) | |
| Fractional Share Consideration | | | Section 2.1(a) | |
| Indemnified Party | | | Section 4.16(a) | |
| IRS | | | Section 3.2(j)(i) | |
| Loans | | | Section 3.2(n)(i) | |
| Materially Burdensome Regulatory Condition | | | Section 4.8(h) | |
| Merger | | | Recitals | |
| Merger Consideration | | | Section 2.1(a) | |
| NYBCL | | | Recitals | |
| New York Secretary | | | Section 1.4 | |
| Per Share Cash Consideration | | | Section 2.1(a) | |
| Per Share Merger Consideration Value | | | Section 2.4(a) | |
| Per Share Stock Consideration | | | Section 2.1(a) | |
| Permitted Liens | | | Section 3.2(w) | |
| PIFI | | | Section 3.2(q)(i) | |
| Premium Cap | | | Section 4.16(b) | |
| Proposed Dissenting Shares | | | Section 2.3(a) | |
| Requisite Regulatory Approvals | | | Section 4.8(g) | |
| Sanctions | | | Section 3.2(h)(viii) | |
| Sanctioned Country | | | Section 3.2(h)(viii) | |
| Shareholder Support Agreement | | | Recitals | |
| Steuben | | | Preamble | |
| Steuben Bank | | | Recitals | |
| Steuben Certificates | | | Section 2.2(b) | |
| Steuben Directors’ Recommendation | | | Section 3.2(b)(ii) | |
| Steuben Disclosure Letter | | | Section 3.1 | |
| Steuben Financial Statements | | | Section 7.1 | |
| Steuben Owned Properties | | | Section 3.2(w) | |
| Steuben Real Property | | | Section 3.2(w) | |
| Steuben Regulatory Agreement | | | Section 3.2(h)(iv) | |
| Steuben Reports | | | Section 3.2(d)(ii) | |
| Steuben Shareholder Meeting | | | Section 4.5(a) | |
| Surviving Corporation | | | Section 1.1 | |
| Takeover Laws | | | Section 3.2(u) | |
| Termination Fee | | | Section 6.2(b) | |
| WARN | | | Section 3.2(i)(iii) | |
Grant Date
|
| |
Number of Options
|
| |
Exercise Price
|
| |
Type (Incentive
Stock Option (“ISO”) or Nonqualified Stock Option (“NQSO”)) |
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | ||
| | | | | | | | | | |
|
Exhibit
Number |
| |
Description of Exhibit
|
|
| | | Power of Attorney.* | | |
| | | Form of proxy card for the special meeting of the shareholders of Steuben Trust Corporation | | |
| | | Consent of PNC FIG Advisory, Inc.* | |
| | | | COMMUNITY BANK SYSTEM, INC. | | |||
| | | | By: | | |
/s/ Mark E. Tryniski
|
|
| | | | | | | Name: Mark E. Tryniski | |
| | | | | | | Title: President and Chief Executive Officer | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Mark E. Tryniski
Mark E. Tryniski
|
| | Director, President and Chief Executive Officer (Principal Executive Officer) |
| |
January 8, 2020
|
|
|
*
Joseph E. Sutaris
|
| | Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) |
| |
January 8, 2020
|
|
|
*
Brian R. Ace
|
| | Director | | |
January 8, 2020
|
|
|
*
Mark J. Bolus
|
| | Director | | |
January 8, 2020
|
|
|
*
Jeffrey L. Davis
|
| | Director | | |
January 8, 2020
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
*
Neil E. Fesette
|
| | Director | | |
January 8, 2020
|
|
|
*
Michael R. Kallet
|
| | Director | | |
January 8, 2020
|
|
|
*
Kerrie D. MacPherson
|
| | Director | | |
January 8, 2020
|
|
|
*
John Parente
|
| | Director | | |
January 8, 2020
|
|
|
*
Raymond C. Pecor, III
|
| | Director | | |
January 8, 2020
|
|
|
*
Sally A. Steele
|
| | Director and Chair of the Board of Directors | | |
January 8, 2020
|
|
|
*
Eric E. Stickels
|
| | Director | | |
January 8, 2020
|
|
|
*
John F. Whipple, Jr.
|
| | Director | | |
January 8, 2020
|
|
|
*By:
/s/ Mark E. Tryniski
Attorney-in-fact
|
|
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in this Registration Statement on Form S-4 of Community Bank System, Inc. of our report dated March 1, 2019 relating to the financial statements, and the effectiveness of internal control over financial reporting, which appears in Community Bank System, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Buffalo, NY
1/8/2020
Exhibit 99.1
SPECIAL MEETING OF SHAREHOLDERS
OF STEUBEN TRUST CORPORATION March 3, 2020 3:00 p.m., Eastern Time NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS: The Notice
of Meeting, Proxy Statement and Proxy Card information are available at http://www.astproxyportal.com/ast/08642 Please sign, date
and mail your proxy card in the envelope provided as soon as possible. Signature of Shareholder Date: Signature of Shareholder
Date: Note: Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign.
When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation,
please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign
in partnership name by authorized person. To change the address on your account, please check the box at right and indicate your
new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted
via this method. 1. To adopt the Agreement and Plan of Merger, dated as of October 18, 2019 (the “Merger Agreement”),
by and between Community Bank System, Inc., a Delaware corporation (“Community Bank System”), and Steuben Trust 14475
STEUBEN TRUST CORPORATION PROXY FOR SPECIAL MEETING OF SHAREHOLDERS March 3, 2020 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD
OF DIRECTORS The undersigned hereby appoints Karen S. Bailor and Kimberly A. Weyland, or either of them, to be my(our) lawful
attorney, substitute and proxy for me(us), and in my(our) name to vote upon all the stock of Steuben Trust Corporation of Hornell,
New York (SBHO) held of record by me(us), at the close of business on January 8, 2020, at the special meeting of the shareholders
of said corporation to be held at One Steuben Square, Hornell, NY 14843, on the 3rd day of March, 2020, at 3:00 p.m., and any
adjourned meeting thereof, as fully and with the same effect as I(we) might or could do were I(we) personally present at such
meeting, and I(we) do hereby revoke any proxy or proxies heretofore given by me(us) to any person or persons whatsoever, hereby
giving my(our) proxy full power of substitution and revocation. The undersigned hereby acknowledges receipt of a copy of the accompanying
Notice of Special Meeting and related Proxy Statement. This proxy may be revoked at any time before it is exercised. (Continued
and to be signed on the reverse side) 1.1
Signature of Shareholder Date: Signature of Shareholder Date: Note: Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person. To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. JOHN SMITH 1234 MAIN STREET APT. 203 NEW YORK, NY 10038 INTERNET - Access “www.voteproxy.com” and follow the on-screen instructions or scan the QR code with your smartphone. Have your proxy card available when you access the web page. TELEPHONE - Call toll-free 1-800-PROXIES (1-800-776-9437) in the United States or 1-718-921-8500 from foreign countries from any touch-tone telephone and follow the instructions. Have your proxy card available when you call. Vote online/phone until 11:59 PM EST the day before the meeting. MAIL - Sign, date and mail your proxy card in the envelope provided as soon as possible. IN PERSON - You may vote your shares in person by attending the Special Meeting at One Steuben Sq., Hornell, NY. GO GREEN - e-Consent makes it easy to go paperless. With e-Consent, you can quickly access your proxy material, statements and other eligible documents online, while reducing costs, clutter and paper waste. Enroll today via www.astfinancial.com to enjoy online access. PROXY VOTING INSTRUCTIONS Please detach along perforated line and mail in the envelope provided IF you are not voting via telephone or the Internet. THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" PROPOSALS 1 AND 2. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE x 00030000300000000000 1 030320 COMPANY NUMBER ACCOUNT NUMBER SPECIAL MEETING OF SHAREHOLDERS OF STEUBEN TRUST CORPORATION March 3, 2020 3:00 p.m., Eastern Time NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIAL: The Notice of Meeting, Proxy Statement and Proxy Card information are available at http://www.astproxyportal.com/ast/08642 1. To adopt the Agreement and Plan of Merger, dated as of October 18, 2019 (the “Merger Agreement”), by and between Community Bank System, Inc., a Delaware corporation (“Community Bank System”), and Steuben Trust Corporation, a New York Corporation (“Steuben”), which provides for the merger of Steuben with and into Community Bank System with Community Bank System as the surviving company (the “Merger”). 2. To approve one or more adjournments of the special meeting, if necessary or appropriate, to solicit additional proxies if there are insufficient votes at the time of the special meeting to adopt the Merger Agreement. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED PROPOSALS 1 AND 2. FOR AGAINST FOR AGAINST
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