Community Bank System Acquires Fringe Benefits Design of Minnesota, Inc.
July 01 2021 - 5:15PM
Business Wire
Community Bank System, Inc. (NYSE: CBU) announced today that it
acquired Fringe Benefits Design of Minnesota, Inc. (“FBD”), a
provider of retirement plan administration and benefit consulting
services with offices in Minnesota and South Dakota. FBD will
become a subsidiary of Benefit Plans Administrative Services, Inc.
(“BPAS”), a wholly-owned subsidiary of Community Bank System.
BPAS, through its various subsidiaries provides daily valuation,
actuarial and employee benefit consulting, cafeteria plan and
institutional trust services on a national scale, from offices in
Utica and Syracuse, NY, Pittsburgh and Philadelphia, PA, Houston,
TX Boston, MA and Puerto Rico.
The acquisition of FBD is expected to give BPAS a profile of
over $110 million in annual revenues, administration of more than
510,000 retirement plan participant accounts, 4,200 employer
clients, approximately $13 billion in defined contribution plan
assets on its daily valuation system, and approximately $110
billion of total assets in trust.
“We are very excited to be partnering with FBD, a respected and
growing provider of retirement plan administration and benefit
consulting services,” said Community Bank System President and
Chief Executive Officer, Mark E. Tryniski. “The transaction will
strengthen and complement our existing BPAS businesses, and
represents an attractive opportunity to expand our benefits
business in the Midwest. We are delighted to welcome the entire FBD
team to the Community Bank System organization and look forward to
the future of the combined company.”
Community Bank System, Inc. operates more than 225 customer
facilities across Upstate New York, Northeastern Pennsylvania,
Vermont, and Western Massachusetts through its banking subsidiary,
Community Bank, N.A. With assets of over $14.6 billion, the DeWitt,
N.Y. headquartered company is among the country’s 125 largest
banking institutions. In addition to a full range of retail,
business, and municipal banking services, the Company offers
comprehensive financial planning, insurance and wealth management
services through its Community Bank Wealth Management Group and
OneGroup NY, Inc. operating units. The Company's Benefit Plans
Administrative Services, Inc. subsidiary is a leading provider of
employee benefits administration, trust services, collective
investment fund administration and actuarial consulting services to
customers on a national scale. Community Bank System, Inc. is
listed on the New York Stock Exchange and the Company's stock
trades under the symbol CBU. For more information about Community
Bank visit www.cbna.com or https://ir.communitybanksystem.com.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current beliefs and
expectations of CBU’s management and are subject to significant
risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements. The following factors,
among others, could cause the actual results of CBU’s operations to
differ materially from its expectations: the macroeconomic and
other challenges and uncertainties related to the COVID-19
pandemic, including the negative impacts and disruptions on public
health, corporate and consumer customers, the communities CBU
serves, and the domestic and global economy, including various
actions taken in response by governments, central banks and others,
which may have an adverse effect on CBU’s business; current and
future economic and market conditions, including the effects of
declines in housing prices, high unemployment rates, U.S. fiscal
debt, budget and tax matters, geopolitical matters, and any
slowdown in global economic growth; fiscal and monetary policies of
the Federal Reserve Board; the effect of changes in the level of
checking or savings account deposits on CBU’s funding costs and net
interest margin; future provisions for credit losses on loans and
debt securities; changes in nonperforming assets; the effect of a
fall in stock market prices on CBU’s fee income businesses,
including its employee benefit services, wealth management, and
insurance businesses; the successful integration of operations of
its acquisitions; competition; changes in legislation or regulatory
requirements; and the timing for receiving regulatory approvals and
completing pending transactions. For more information about factors
that could cause actual results to differ materially from CBU’s
expectations, refer to its reports filed with the Securities and
Exchange Commission (“SEC”), including the discussion under “Risk
Factors” as filed with the SEC and available on CBU’s website at
https://ir.communitybanksystem.com and on the SEC’s website at
www.sec.gov. Further, any forward-looking statement speaks only as
of the date on which it is made, and CBU undertakes no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20210701005845/en/
Joseph E. Sutaris, EVP & Chief Financial Officer Office:
(315) 445-7396
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