* Deal valued at about $233.4 mln
* Alliance shareholders to get 2.1779 NBT share for eachAlliance share
* NBT will get additional $1.4 billion in assets
(Adds background, details, updates share movement)
Oct 8 (Reuters) - NBT Bancorp Inc will buy AllianceFinancial Corporation in a deal valued at about $233.4million to expand its footprint in New York.
The deal is the latest in a spate of community bankacquisitions. Industry experts are expecting more mergers amongsmall banks, which are looking to build scale and cut costs asthey contend with historically low interest rates.
The NBT-Alliance deal is valued at $48.24 per share -- a 22percent premium to the stock's Friday close.
Alliance shareholders will receive 2.1779 common shares ofNBT for each Alliance share they own.
NBT, which had assets of $6 billion as of June 30, will getan additional $1.4 billion in assets through the deal. Thisincludes $890 million in net loans held for investment, and $1.1billion in deposits.
The deal is expected to close in the second quarter of 2013.
Ambassador Financial Group served as financial advisor toNBT, while Keefe, Bruyette & Woods Inc advised Alliance on thedeal.
Alliance shares rose as much as 16 percent to $45.86, whilethose of NBT were down 3 percent to $21.39 on Monday on theNasdaq.
(Reporting by Ashutosh Pandey in Bangalore; Editing by RoshniMenon)
Keywords: ALLIANCEFINANCIAL OFFER/