Ballston Spa National Bank and National Bank of Coxsackie Announce Merger Creating $1.3 Billion Institution

The strategic combination of Ballston Spa National Bank and The National Bank of Coxsackie will establish a $1.3 billion community banking institution serving the greater Capital District and surrounding markets. The merger creates a stronger, more competitive bank with the scale to grow while maintaining local decision-making capabilities that benefit both consumer and business customers throughout the region.

Under the terms of the agreement, the combined bank will operate under the BSNB charter, with NBC locations rebranded as "Coxsackie Bank, a division of Ballston Spa National Bank." The leadership structure will see Richard P. Sleasman, current Chairman of BSNB's Board of Directors, serving as Chairperson of the combined company, while Christopher R. Dowd, President and CEO of BSNB, will become Chief Executive Officer. John A. Balli, President and CEO of NBC, will assume the role of President for the combined institution.

The transaction represents a significant consolidation in the regional banking landscape, with BSNB shareholders owning approximately 66% of the combined company and NBC shareholders owning 34%. This ownership structure reflects each institution's contribution of tangible book value to the new entity. In a stock-for-stock exchange, NBC shareholders will receive 0.8065 shares of BSNB stock for each share of NBC stock, representing a total transaction value of approximately $26.0 million based on BSNB's current stock price of $68.21 per share.

Christopher R. Dowd emphasized the strategic benefits, stating that the combination will provide "a larger market capitalization, greater lending limit and increased visibility and liquidity, unlocking value for both sets of shareholders." The merger addresses demonstrated customer needs for personalized service, greater flexibility, and diverse product offerings that the combined institution can deliver more effectively than either bank could achieve independently.

Customers will benefit from access to a wider network of branches and surcharge-free ATMs across the expanded footprint, along with enhanced digital tools and financial products tailored to various life stages. The combined bank's increased lending capacity will support local economic development while maintaining the community-focused approach that both institutions have historically championed. Additional information about the transaction is available in the investor presentation on both companies' websites, including at www.bsnb.com and https://investors.nbcoxsackie.com.

John A. Balli highlighted the cultural alignment between the two institutions, noting that "joining forces will expand our combined footprint, create a larger, more competitive institution in the Capital Region and open the door to new opportunities for lending, investment and community partnerships." The merger brings together two established community banks with complementary strengths and shared values, positioning the combined entity to better innovate and compete in an evolving financial services landscape.

The Boards of Directors of both companies have unanimously approved the transaction, with completion subject to customary closing conditions including regulatory approvals and shareholder consent. The merger is expected to close in the second quarter of 2026, with the combined holding company continuing to trade under the BSPA symbol. BSNB intends to raise approximately $20 million in subordinated debt prior to closing to fund growth opportunities in its expanded markets.

This strategic combination represents a significant development for community banking in New York's Capital Region, creating an institution with the resources to compete effectively while maintaining the local focus and personalized service that customers value. The merger demonstrates how community banks can achieve scale and efficiency through strategic partnerships without sacrificing their commitment to local communities and customer relationships.