BPAS provides daily valuation, actuarial and employee benefit consulting services on a national scale, with offices in Upstate New York and Pittsburgh. With the addition of HBT and its operating subsidiaries, BPAS will enhance its service offerings in flexible spending account and collective investment fund administration services.
“This transaction represents a very attractive opportunity for us,” said Community Bank System President and Chief Executive Officer, Mark E. Tryniski. “Our benefits administration business has been, for many years, the most profitable and fastest-growing of all our financial services businesses. It has posted double-digit revenue increases for nine consecutive years, and currently accounts for more than 60% of our total financial services revenue. One of its most attractive attributes is that it´s not limited to the general footprint of our New York and Pennsylvania banking franchises, and presently serves clients in 32 states and Puerto Rico. The addition of HBT will clearly enhance our geographic diversity and service capabilities, further allowing BPAS to continue its impressive record of growth and profitability.”
The acquisition will give BPAS revenues of more than $20 million, and administration of over 140,000 defined contribution and flexible spending participant accounts with nearly $3.0 billion in assets under custody. It will also be additive to the Harbridge Consulting Group subsidiary of BPAS, which is the largest actuarial services practice in the state of New York, outside of metro-New York City. The transaction, which is subject to certain regulatory approvals, is expected to close during the second quarter.
Barry S. Kublin, President of BPAS added, “This acquisition will add valuable capacity to support our growing client base, and allow us to provide additional services to our clients and distributor partners. It will strengthen our organization, because HBT operates in a dynamic labor and business region, and is a highly respected employee benefit and trust company that has served its customers for 68 years.”
“I am excited about the expanded opportunities that the combined company will bring to the market place for both our clients and employees,” said David Hand, President of HBT. “BPAS is an ideal partner for us. I´m very familiar with their management team, and look forward to joining this group that has demonstrated product leadership, superior financial performance and exceptional customer service.”
Community Bank System, Inc. (NYSE: CBU) is a registered bank holding company based in DeWitt, N.Y., with approximately $4.5 billion in assets and more than 130 customer facilities. Its wholly-owned banking subsidiary operates as Community Bank, N.A. across Upstate New York, and as First Liberty Bank & Trust throughout Northeastern Pennsylvania. Its other subsidiaries include: BPA-Harbridge, which provides daily valuation, actuarial and employee benefit consulting services from offices in Upstate New York and Pittsburgh; Community Investment Services, Inc., a broker-dealer delivering financial products throughout the company´s branch network; and Nottingham Advisors, a wealth management and advisory firm with offices in Buffalo, N.Y., and North Palm Beach, Fla. For more information, please visit our websites at: www.communitybankna.com or www.firstlibertybank.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU´s operations to differ materially from CBU´s expectations: the successful integration of operations of its acquisitions; 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.
SOURCE: Community Bank System, Inc.