NBT Bancorp to acquire Nasdaq-listed rival Salisbury Bancorp for $204m

NBT Bancorp has agreed to acquire rival Nasdaq-listed rival bank holding company Salisbury Bancorp in an all-stock deal worth around $204 million.

Salisbury Bancorp is a Connecticut-based community bank franchise, which had $1.51 billion in assets, $1.33 billion in deposits, and $1.18 billion in net loans as of 30 September 2022.

Its main subsidiary is Salisbury Bank and Trust Company, which is a chartered commercial bank with 14 branches in northwestern Connecticut, southwestern Massachusetts, and the Hudson Valley region of New York.

Headquartered in Norwich, New York, NBT Bancorp had $11.64 billion in total assets as of 30 September 2022. The financial holding company mainly operates via NBT Bank, a full-service community bank with 140 branches in New York, Vermont, Pennsylvania, New Hampshire, Massachusetts, Connecticut, and Maine.

According to NBT Bancorp, the merger, which has been unanimously approved by the boards of both the bank holding companies, will extend their markets.

John H. Watt, Jr — NBT Bancorp President and CEO said: “We are very excited to partner with Salisbury and to extend our footprint into their attractive and complementary markets.

“Importantly, the organizational values upheld by the Salisbury team align very well with those of NBT. We look forward to welcoming these dedicated financial professionals to NBT and growing our combined company together.”

As per the terms of the deal, each of Salisbury Bancorp’s shares will be exchanged for 0.745 shares of NBT Bancorp. The ratio values each of Salisbury Bancorp’s shares at $35.

Richard J. Cantele, Jr — Salisbury Bancorp President and CEO said: “We believe this combination will create significant value for Salisbury shareholders, both immediately and longer term. Furthermore, we are confident the operating philosophies shared by NBT and Salisbury will ensure that our customers continue to receive high-quality service from people they know and trust.

“NBT has been consistently recognized for superior customer satisfaction and offers comprehensive omni-channel solutions. Through the partnership between Salisbury and NBT, our customers will gain access to an expanded set of products, services and capabilities.”

The deal, which is subject to approval by Salisbury Bancorp’s shareholders, necessary regulatory approvals, and customary closing conditions, is likely to close in Q2 2023.