Community Bank System, Inc. and First Liberty Bank Corp. Merger Receives Shareholder Approval

Apr 23, 2001, 01:00 ET from Community Bank System, Inc. and First Liberty Bank Corp.

    DEWITT, N.Y. and JERMYN, Pa., April 23 /PRNewswire Interactive News
 Release/ -- Community Bank System, Inc. (NYSE:   CBU) and First Liberty Bank
 Corp. (OTC Bulletin Board:   FLIB) jointly announce that they have received
 approval of the agreement and plan to merge from their shareholders at
 simultaneous meetings held Monday, April 23, 2001.  The merger agreement
 includes authorization for CBU to acquire all the stock of FLIB and to merge
 First Liberty Bank and Trust, FLIB's principal subsidiary, into Community
 Bank, N.A., CBU's banking subsidiary.  First Liberty will continue to operate
 under its present name in Pennsylvania as a division of Community Bank, N.A.
 The transaction is expected to close on May 11, 2001.
     CBU President and CEO, Sanford A. Belden stated, "This approval by an
 overwhelming majority of shareholders of both institutions confirms the
 strength of this merger.  It solidifies our growth into Pennsylvania through
 encompassing a bank which believes in and delivers on local decision making
 and high-quality products and services to customers."
     William M. Davis, President and CEO of First Liberty Bank and Trust
 continued, "We are very pleased to have this merger approved by such a high
 percentage of our shareholders.  This agreement ensures our customers and
 employees will continue to be associated with a strong organization which is
 bringing expanded services such as Internet banking, trust and investment
 services, and enhanced lending capabilities to our markets and customers.  We
 look forward to working with our new colleagues at CBU."
     CBU is a registered bank holding company with $2.3 billion in assets,
 based in the Syracuse suburb of DeWitt, New York, and FLIB is a $647 million
 asset bank holding company headquartered in Jermyn, Pennsylvania.  Pursuant to
 the definitive agreement, each share of FLIB will be exchanged on a tax-free
 basis for 0.56 shares of registered common stock of CBU.  At CBU's closing
 price on April 23 of $27.23, the shares of CBU to be received by FLIB
 shareholders would have a value of $97.1 million, or $15.25 per share,
 representing a price to book value of 150.6% and a price/trailing earnings
 ratio of 21.8 times.  Based on CBU's current annualized quarterly dividend,
 FLIB shareholders would realize a 37.5% increase in cash dividends per share.
 CBU will issue approximately 3,566,000 shares in the transaction, which will
 be recorded under the pooling method of accounting.
 
     First Liberty Bank Corp. (OTC Bulletin Board:   FLIB) is a registered bank
 holding company based in Jermyn, Pennsylvania with $647 million in assets as
 of December 31, 2000.  With predecessor banks dating back to the early 1900s,
 the holding company was organized in 1984 as The First Jermyn Corp.  It
 completed the acquisition of the $271 million asset Upper Valley Bancorp. Inc.
 in 1998, and concurrently adopted its present name.  In July 2000, the Bank
 acquired three offices of Mellon Bank, N.A. with approximately $39 million in
 deposits.  It presently operates thirteen branch offices in Lackawanna (11)
 and Luzerne (2) counties in Northeastern Pennsylvania and has 16 ATMs.  In
 addition to a full range of banking products, it offers personal trust and
 employee benefit trust services with approximately $300 million in assets
 under management.
 
     Community Bank System, Inc. (CBSI) is a registered bank holding company
 based in DeWitt, New York.  Its wholly-owned banking subsidiary, Community
 Bank, N.A. (http://www.communitybankna.com), is the fifth largest commercial
 banking franchise headquartered in Upstate New York, having 72 customer
 facilities and 54 ATMs stretching diagonally from Northern New York to the
 Southern Tier and west to Lake Erie.  Other subsidiaries within the CBSI
 family are Elias Asset Management, Inc., an investment management firm with
 $700 million under management, based in Williamsville, New York; Benefit Plans
 Administrative Services, Inc. (BPA), a pension administration and consulting
 firm located in Utica, New York, serving sponsors of defined benefit and
 defined contribution plans; Community Investment Services, Inc. (CISI), a
 broker-dealer delivering financial products from selected locations within
 Community Bank's branch system and from offices in Jamestown and Lockport, New
 York; and Community Financial Services, Inc. (CFSI), an insurance agency based
 in Olean, New York, specializing in long-term health care and other selected
 products.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995 with respect to the
 anticipated effects of the merger.  The following factors, among others, could
 cause the actual results of the merger to differ materially from CBU's
 expectations:  the satisfaction of contingencies for closing the merger,
 including regulatory approval; the successful integration of the operations of
 Citizens National Bank of Malone ($115 million in assets) and Community Bank's
 merger, as well as the subsequent consolidation with First Liberty Bank &
 Trust; competition; changes in economic conditions, interest rates and
 financial markets; and changes in legislation or regulatory requirements.  CBU
 does not assume any duty to update forward-looking statements.
 
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SOURCE Community Bank System, Inc. and First Liberty Bank Corp.
    DEWITT, N.Y. and JERMYN, Pa., April 23 /PRNewswire Interactive News
 Release/ -- Community Bank System, Inc. (NYSE:   CBU) and First Liberty Bank
 Corp. (OTC Bulletin Board:   FLIB) jointly announce that they have received
 approval of the agreement and plan to merge from their shareholders at
 simultaneous meetings held Monday, April 23, 2001.  The merger agreement
 includes authorization for CBU to acquire all the stock of FLIB and to merge
 First Liberty Bank and Trust, FLIB's principal subsidiary, into Community
 Bank, N.A., CBU's banking subsidiary.  First Liberty will continue to operate
 under its present name in Pennsylvania as a division of Community Bank, N.A.
 The transaction is expected to close on May 11, 2001.
     CBU President and CEO, Sanford A. Belden stated, "This approval by an
 overwhelming majority of shareholders of both institutions confirms the
 strength of this merger.  It solidifies our growth into Pennsylvania through
 encompassing a bank which believes in and delivers on local decision making
 and high-quality products and services to customers."
     William M. Davis, President and CEO of First Liberty Bank and Trust
 continued, "We are very pleased to have this merger approved by such a high
 percentage of our shareholders.  This agreement ensures our customers and
 employees will continue to be associated with a strong organization which is
 bringing expanded services such as Internet banking, trust and investment
 services, and enhanced lending capabilities to our markets and customers.  We
 look forward to working with our new colleagues at CBU."
     CBU is a registered bank holding company with $2.3 billion in assets,
 based in the Syracuse suburb of DeWitt, New York, and FLIB is a $647 million
 asset bank holding company headquartered in Jermyn, Pennsylvania.  Pursuant to
 the definitive agreement, each share of FLIB will be exchanged on a tax-free
 basis for 0.56 shares of registered common stock of CBU.  At CBU's closing
 price on April 23 of $27.23, the shares of CBU to be received by FLIB
 shareholders would have a value of $97.1 million, or $15.25 per share,
 representing a price to book value of 150.6% and a price/trailing earnings
 ratio of 21.8 times.  Based on CBU's current annualized quarterly dividend,
 FLIB shareholders would realize a 37.5% increase in cash dividends per share.
 CBU will issue approximately 3,566,000 shares in the transaction, which will
 be recorded under the pooling method of accounting.
 
     First Liberty Bank Corp. (OTC Bulletin Board:   FLIB) is a registered bank
 holding company based in Jermyn, Pennsylvania with $647 million in assets as
 of December 31, 2000.  With predecessor banks dating back to the early 1900s,
 the holding company was organized in 1984 as The First Jermyn Corp.  It
 completed the acquisition of the $271 million asset Upper Valley Bancorp. Inc.
 in 1998, and concurrently adopted its present name.  In July 2000, the Bank
 acquired three offices of Mellon Bank, N.A. with approximately $39 million in
 deposits.  It presently operates thirteen branch offices in Lackawanna (11)
 and Luzerne (2) counties in Northeastern Pennsylvania and has 16 ATMs.  In
 addition to a full range of banking products, it offers personal trust and
 employee benefit trust services with approximately $300 million in assets
 under management.
 
     Community Bank System, Inc. (CBSI) is a registered bank holding company
 based in DeWitt, New York.  Its wholly-owned banking subsidiary, Community
 Bank, N.A. (http://www.communitybankna.com), is the fifth largest commercial
 banking franchise headquartered in Upstate New York, having 72 customer
 facilities and 54 ATMs stretching diagonally from Northern New York to the
 Southern Tier and west to Lake Erie.  Other subsidiaries within the CBSI
 family are Elias Asset Management, Inc., an investment management firm with
 $700 million under management, based in Williamsville, New York; Benefit Plans
 Administrative Services, Inc. (BPA), a pension administration and consulting
 firm located in Utica, New York, serving sponsors of defined benefit and
 defined contribution plans; Community Investment Services, Inc. (CISI), a
 broker-dealer delivering financial products from selected locations within
 Community Bank's branch system and from offices in Jamestown and Lockport, New
 York; and Community Financial Services, Inc. (CFSI), an insurance agency based
 in Olean, New York, specializing in long-term health care and other selected
 products.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995 with respect to the
 anticipated effects of the merger.  The following factors, among others, could
 cause the actual results of the merger to differ materially from CBU's
 expectations:  the satisfaction of contingencies for closing the merger,
 including regulatory approval; the successful integration of the operations of
 Citizens National Bank of Malone ($115 million in assets) and Community Bank's
 merger, as well as the subsequent consolidation with First Liberty Bank &
 Trust; competition; changes in economic conditions, interest rates and
 financial markets; and changes in legislation or regulatory requirements.  CBU
 does not assume any duty to update forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X25265030
 
 SOURCE  Community Bank System, Inc. and First Liberty Bank Corp.