Niagara Bancorp to Acquire Iroquois Bancorp in $80.3 Million Merger Deal

Strategic Insights -

Niagara Bancorp, Inc., a leading community bank holding company, has signed a definitive merger agreement with Iroquois Bancorp, Inc. to acquire all outstanding shares for $33.25 per share in cash, totaling $80.3 million. The merger is expected to be completed in the third quarter of 2000 and will add Iroquois' $595 million in assets, $1.1 billion in deposits, and $235.7 million in equity to Niagara Bancorp's balance sheet. The acquisition will strengthen Niagara Bancorp's position in the market, enhance its services, and maintain its commitment to community banking.

Key Takeaways:

  • The merger agreement was signed on March 27, 2000, with a purchase price of $80.3 million, equivalent to nearly two times Iroquois Bancorp's December 31, 1999, book value.
  • The deal involves the acquisition of all outstanding shares of Iroquois Bancorp, Inc. common stock for $33.25 per share.
  • The merger is expected to be completed in the third quarter of 2000 and will be accounted for as a purchase transaction.
  • The transaction represents a 10.2% core deposit premium and will be accretive to Niagara Bancorp's earnings per share in 2001.
  • After completion, Cayuga Bank will become a subsidiary of NBCP and operate as a state-chartered commercial bank, with Iroquois Bancorp's President and CEO Richard D. Callahan continuing to serve as Cayuga Bank's President and CEO.
  • The acquisition adds commercial bank charter, trust services, and the ability to accept municipal deposits to Niagara Bancorp's franchise.

Statistics:

  • Total assets of Iroquois Bancorp: $595 million
  • Total deposits: $1.1 billion
  • Total equity: $235.7 million
  • Purchase price: $80.3 million
  • Price per share: $33.25
  • Acquisition multiple: nearly two times book value, 16.9 times 1999 earnings
  • Expected closing date: third quarter of 2000
  • Accretion to earnings per share: 2001

Sources:

  • Business Wire
  • Niagara Bancorp, Inc. press releases
  • Iroquois Bancorp investor inquiries
  • Marianne O'Connor, Treasurer and Chief Financial Officer, (315) 252-9521