ITHACA, NEW YORK (AP) — Tompkins Financial Corporation is buying VIST Financial Corporation in an all-stock deal valued at about $86 million as it looks to expand its presence in the mid-Atlantic region.
Tompkins Financial, based in Ithaca, N.Y., is the parent company of Tompkins Trust Co., The Bank of Castile, Mahopac National Bank, Tompkins Insurance Agencies Inc. and Tompkins Financial Advisors. VIST Financial, based in Wyomissing, Pa., is the parent company of VIST Bank, VIST Insurance and VIST Capital Management.
“Although southeastern Pennsylvania will be a new region for Tompkins, the communities served by VIST have similar demographics to markets we serve in New York State, where Tompkins Financials’ integrated financial services model has been well received,” Tompkins Financial President and CEO Stephen Romaine said in a statement.
The transaction represents $12.50 per VIST Financial share, an 81 percent premium to the company’s Wednesday closing stock price of $6.90.
VIST Financials’ stock jumped $4.25, or 61.6 percent, to $11.15 in Thursday afternoon trading. The shares hit a fresh 52-week high of $11.50 earlier in the session.
Each VIST Financial stockholder will receive 0.3127 shares of Tompkins Financial for each share of VIST Financial that they own.
Tompkins Financial expects the acquisition to add to its earnings per share in the first year and thereafter.
VIST Bank will become a Tompkins Financial subsidiary, with a separate banking charter, local management team, and local board. Robert Davis will remain VIST Bank president and CEO.
Both companies boards have approved the deal, which is targeted to close early in the third quarter.
Shares of Tompkins Financial shed 39 cents to $40.62.
Original Author: The Associated Press