[8-K] Community Financial System, Inc. Reports Material Event
Community Financial System (NYSE:CBU) announced its subsidiary Community Bank will acquire seven Santander Bank branches in the Allentown, Pennsylvania area. The transaction includes approximately $600 million in deposits and $33 million in branch-related loans. Community Bank will pay an 8.0% deposit premium, equating to roughly $48 million in cash consideration.
The deal also includes Nottingham Investment Services acquiring related wealth management relationships from Santander Securities LLC. The acquisition, subject to regulatory approvals and customary conditions, is expected to close in Q4 2025. The agreement includes standard employee retention provisions and non-compete covenants.
Community Financial System (NYSE:CBU) ha annunciato che la sua controllata Community Bank acquisirà sette filiali della Santander Bank nell'area di Allentown, Pennsylvania. L'operazione comprende circa 600 milioni di dollari in depositi e 33 milioni di dollari in prestiti legati alle filiali. Community Bank pagherà un premio sui depositi dell'8,0%, corrispondente a circa 48 milioni di dollari in contanti.
L'accordo prevede inoltre che Nottingham Investment Services acquisisca le relazioni di gestione patrimoniale correlate da Santander Securities LLC. L'acquisizione, soggetta all'approvazione normativa e alle condizioni consuete, è prevista per la chiusura nel quarto trimestre del 2025. L'intesa include clausole standard per la retention dei dipendenti e patti di non concorrenza.
Community Financial System (NYSE:CBU) anunció que su subsidiaria Community Bank adquirirá siete sucursales de Santander Bank en el área de Allentown, Pensilvania. La transacción incluye aproximadamente 600 millones de dólares en depósitos y 33 millones de dólares en préstamos relacionados con las sucursales. Community Bank pagará una prima del 8.0% sobre los depósitos, equivalente a aproximadamente 48 millones de dólares en efectivo.
El acuerdo también contempla que Nottingham Investment Services adquiera las relaciones de gestión patrimonial relacionadas de Santander Securities LLC. La adquisición, sujeta a aprobaciones regulatorias y condiciones habituales, se espera que se cierre en el cuarto trimestre de 2025. El acuerdo incluye disposiciones estándar de retención de empleados y cláusulas de no competencia.
Community Financial System (NYSE:CBU)는 자회사인 Community Bank가 펜실베이니아주 앨런타운 지역에 있는 Santander Bank의 7개 지점을 인수할 것이라고 발표했습니다. 이번 거래에는 약 6억 달러의 예금과 3,300만 달러의 지점 관련 대출이 포함됩니다. Community Bank는 예금에 대해 8.0%의 프리미엄을 지불하며, 이는 약 4,800만 달러의 현금 대가에 해당합니다.
이번 거래에는 Nottingham Investment Services가 Santander Securities LLC로부터 관련 자산 관리 고객 관계를 인수하는 내용도 포함되어 있습니다. 인수는 규제 승인 및 일반적인 조건을 거쳐 2025년 4분기에 완료될 예정입니다. 계약에는 표준 직원 유지 조항과 경쟁 금지 약관이 포함되어 있습니다.
Community Financial System (NYSE:CBU) a annoncé que sa filiale Community Bank va acquérir sept agences de la Santander Bank dans la région d'Allentown, en Pennsylvanie. La transaction comprend environ 600 millions de dollars de dépôts et 33 millions de dollars de prêts liés aux agences. Community Bank versera une prime de dépôt de 8,0 %, soit environ 48 millions de dollars en espèces.
L'accord prévoit également que Nottingham Investment Services acquière les relations de gestion de patrimoine associées auprès de Santander Securities LLC. Cette acquisition, soumise aux approbations réglementaires et aux conditions habituelles, devrait être finalisée au 4e trimestre 2025. Le contrat inclut des clauses standards de rétention du personnel et de non-concurrence.
Community Financial System (NYSE:CBU) gab bekannt, dass seine Tochtergesellschaft Community Bank sieben Filialen der Santander Bank im Raum Allentown, Pennsylvania, übernehmen wird. Die Transaktion umfasst etwa 600 Millionen US-Dollar an Einlagen und 33 Millionen US-Dollar an filialspezifischen Krediten. Community Bank zahlt eine Einlagenprämie von 8,0 %, was etwa 48 Millionen US-Dollar in bar entspricht.
Der Deal beinhaltet außerdem, dass Nottingham Investment Services die zugehörigen Vermögensverwaltungsbeziehungen von Santander Securities LLC übernimmt. Die Übernahme steht unter dem Vorbehalt behördlicher Genehmigungen und üblicher Bedingungen und soll im 4. Quartal 2025 abgeschlossen werden. Die Vereinbarung enthält Standardklauseln zur Mitarbeiterbindung und Wettbewerbsverbote.
- Strategic expansion into Allentown market with 7 new branches
- Acquisition of $600 million in deposits strengthens funding base
- Additional wealth management relationships enhance fee income potential
- Employee retention provisions help ensure business continuity
- $48 million cash consideration impacts capital allocation
- Integration and regulatory approval processes could pose execution risks
Insights
Strategic branch acquisition strengthens CBU's Pennsylvania presence with minimal integration risk and attractive deposit premium.
The 8.0% deposit premium appears reasonable given current market conditions and the high-quality deposit base being acquired. The transaction's structure as a clean branch acquisition minimizes integration complexity and regulatory hurdles. The $600M deposit base acquisition significantly enhances CBU's funding position in the Allentown market, while the minimal loan portfolio ($33M) reduces credit risk exposure. The inclusion of wealth management relationships adds a valuable fee income stream and cross-selling opportunities.
Deposit-rich acquisition provides immediate market expansion and funding advantages with manageable execution risk.
The transaction's deposit-to-loan ratio of approximately 18:1 indicates this is primarily a funding and market expansion play. The $600M deposit acquisition will provide immediate liquidity benefits and market presence in Allentown. The employee retention provisions and wealth management component suggest a focus on relationship continuity. The Q4 2025 closing timeline allows adequate preparation for systems integration and customer communication, reducing operational risk.
Community Financial System (NYSE:CBU) ha annunciato che la sua controllata Community Bank acquisirà sette filiali della Santander Bank nell'area di Allentown, Pennsylvania. L'operazione comprende circa 600 milioni di dollari in depositi e 33 milioni di dollari in prestiti legati alle filiali. Community Bank pagherà un premio sui depositi dell'8,0%, corrispondente a circa 48 milioni di dollari in contanti.
L'accordo prevede inoltre che Nottingham Investment Services acquisisca le relazioni di gestione patrimoniale correlate da Santander Securities LLC. L'acquisizione, soggetta all'approvazione normativa e alle condizioni consuete, è prevista per la chiusura nel quarto trimestre del 2025. L'intesa include clausole standard per la retention dei dipendenti e patti di non concorrenza.
Community Financial System (NYSE:CBU) anunció que su subsidiaria Community Bank adquirirá siete sucursales de Santander Bank en el área de Allentown, Pensilvania. La transacción incluye aproximadamente 600 millones de dólares en depósitos y 33 millones de dólares en préstamos relacionados con las sucursales. Community Bank pagará una prima del 8.0% sobre los depósitos, equivalente a aproximadamente 48 millones de dólares en efectivo.
El acuerdo también contempla que Nottingham Investment Services adquiera las relaciones de gestión patrimonial relacionadas de Santander Securities LLC. La adquisición, sujeta a aprobaciones regulatorias y condiciones habituales, se espera que se cierre en el cuarto trimestre de 2025. El acuerdo incluye disposiciones estándar de retención de empleados y cláusulas de no competencia.
Community Financial System (NYSE:CBU)는 자회사인 Community Bank가 펜실베이니아주 앨런타운 지역에 있는 Santander Bank의 7개 지점을 인수할 것이라고 발표했습니다. 이번 거래에는 약 6억 달러의 예금과 3,300만 달러의 지점 관련 대출이 포함됩니다. Community Bank는 예금에 대해 8.0%의 프리미엄을 지불하며, 이는 약 4,800만 달러의 현금 대가에 해당합니다.
이번 거래에는 Nottingham Investment Services가 Santander Securities LLC로부터 관련 자산 관리 고객 관계를 인수하는 내용도 포함되어 있습니다. 인수는 규제 승인 및 일반적인 조건을 거쳐 2025년 4분기에 완료될 예정입니다. 계약에는 표준 직원 유지 조항과 경쟁 금지 약관이 포함되어 있습니다.
Community Financial System (NYSE:CBU) a annoncé que sa filiale Community Bank va acquérir sept agences de la Santander Bank dans la région d'Allentown, en Pennsylvanie. La transaction comprend environ 600 millions de dollars de dépôts et 33 millions de dollars de prêts liés aux agences. Community Bank versera une prime de dépôt de 8,0 %, soit environ 48 millions de dollars en espèces.
L'accord prévoit également que Nottingham Investment Services acquière les relations de gestion de patrimoine associées auprès de Santander Securities LLC. Cette acquisition, soumise aux approbations réglementaires et aux conditions habituelles, devrait être finalisée au 4e trimestre 2025. Le contrat inclut des clauses standards de rétention du personnel et de non-concurrence.
Community Financial System (NYSE:CBU) gab bekannt, dass seine Tochtergesellschaft Community Bank sieben Filialen der Santander Bank im Raum Allentown, Pennsylvania, übernehmen wird. Die Transaktion umfasst etwa 600 Millionen US-Dollar an Einlagen und 33 Millionen US-Dollar an filialspezifischen Krediten. Community Bank zahlt eine Einlagenprämie von 8,0 %, was etwa 48 Millionen US-Dollar in bar entspricht.
Der Deal beinhaltet außerdem, dass Nottingham Investment Services die zugehörigen Vermögensverwaltungsbeziehungen von Santander Securities LLC übernimmt. Die Übernahme steht unter dem Vorbehalt behördlicher Genehmigungen und üblicher Bedingungen und soll im 4. Quartal 2025 abgeschlossen werden. Die Vereinbarung enthält Standardklauseln zur Mitarbeiterbindung und Wettbewerbsverbote.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01 | Other Matters. |
On June 24, 2025, Community Bank, N.A. (the “Community Bank”), the wholly-owned banking subsidiary of Community Financial System, Inc. (the “Company”), entered into a Purchase and Assumption Agreement (the “Agreement”) with Santander Bank, N.A. (“Santander”) pursuant to which Community Bank agreed to acquire certain assets and assume certain liabilities of seven Santander branch offices located in Allentown, Pennsylvania area (the “Branches”). Subject to the terms of the Agreement, Community Bank will acquire approximately $600 million in deposits and approximately $33 million in branch-related loans. Community Bank will pay a deposit premium of 8.0%, or approximately $48 million, in estimated cash consideration to Santander Bank for the branch assets and liabilities. In addition, Community Bank’s wholly-owned subsidiary, Nottingham Investment Services, Inc., has agreed to purchase related wealth management relationships from Santander’s affiliate, Santander Securities LLC.
The Agreement contains certain customary representations, warranties, and covenants of the parties, including, among others, covenants providing that (i) Community Bank offer employment to the Branch employees, (ii) Santander shall conduct the business at the Branches in the ordinary course during the period between the execution of the Agreement and consummation of the acquisition, and (iii) Santander is subject to certain non-compete and non-solicitation covenants relating to the Branches and the business being acquired by Community Bank. The acquisition is subject to receipt of all required regulatory approvals, as well as other customary conditions to closing, including the execution and delivery of related transaction documents. The acquisition is expected to be completed in the fourth quarter of 2025.
A copy of the press release, dated June 25, 2025, issued by the Company to announce the execution of the Agreement, is attached hereto as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| 99.1 | Press Release, dated June 25, 2025, issued by Community Financial System, Inc. |
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Community Financial System, Inc. | ||
| By: | /s/ Michael N. Abdo | |
| Name: | Michael N. Abdo | |
| Title: | Executive Vice President and General Counsel | |
| Dated: June 25, 2025 | ||
Exhibit Index
| Exhibit Number | Description |
| 99.1 | Press Release, dated June 25, 2025, issued by Community Financial System, Inc. |
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
FAQ
How many Santander branches is CBU acquiring in Allentown?
What is the value of deposits and loans being acquired by CBU?
How much is CBU paying for the Santander branches?
When is the CBU-Santander branch acquisition expected to close?
