Community Bank System, Inc. Expands Benefits Administration Business
SYRACUSE, N.Y. -- December 5, 2013
Community Bank System, Inc. (NYSE:CBU), through its subsidiary Benefit Plans
Administrative Services, Inc. (BPAS), has reached an agreement to acquire from
EBS-RMSCO, Inc., a subsidiary of The Lifetime Healthcare Companies, its
professional services practice that provides actuarial valuation and
consulting services to clients who sponsor pension and post-retirement medical
and welfare plans.
BPAS, through its three principal subsidiaries (Benefit Plans Administrative
Services, LLC, Harbridge Consulting Group, LLC (Harbridge), and Hand Benefits
& Trust Company), employs 240 professionals and provides daily valuation,
actuarial and employee benefit consulting, VEBA / HRA and employee benefit
trust services on a national scale, from offices located in Syracuse, Utica,
and New York, New York; East Hanover, New Jersey; Pittsburgh and Philadelphia,
Pennsylvania; Houston, Texas; and San Juan, Puerto Rico.
The practice to be acquired provides defined benefit and post-retirement
medical benefit valuation services to 150 organizations, principally in New
York State. Upon completion of this transaction, BPAS will generate over $41
million in annual revenue, administer over 3,600 plans with 350,000
participants and provide custodial services to $13.5 billion in assets.
Harbridge plans to hire the entire service team directly associated with the
acquired actuarial practice and BPAS will open an office in Rochester, New
York to accommodate the new employees and expanded practice area.
“This transaction represents a very attractive opportunity for us,” said Mark
E. Tryniski, Community Bank System, Inc.’s President and Chief Executive
Officer. “Our employee benefits administration business continues to grow
through organic and acquisition strategies, expanding its national footprint,
diversifying its service offerings, and providing meaningful returns. We look
forward to welcoming these new clients, assuring them of our commitment to
pro-active actuarial consulting and introducing them to our broader array of
Bill Naylon, Senior Vice President of Finance of EBS-RMSCO, stated, “This
transaction will allow EBS-RMSCO to focus on its core TPA and employee benefit
offerings, and we expect to continue servicing many of these same clients.”
Headquartered in DeWitt, New York, Community Bank System, Inc. has $7.3
billion in assets and over 180 customer facilities. The Company’s banking
subsidiary, Community Bank, N.A. operates across Upstate New York and
Northeastern Pennsylvania. Its other subsidiaries include: Benefit Plans
Administrative Services, Inc., a national employee benefits consulting and
trust administration firm; the CBNA Insurance Agency, with offices in five
northern New York communities; Community Investment Services, Inc., a wealth
management firm delivering a wide range of financial products throughout the
Company’s branch network; and Nottingham Advisors, an investment management
and advisory firm. For more information, visit: www.communitybankna.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
Community Bank System, Inc.
Scott A. Kingsley, 315-445-3121
E.V.P. and Chief Financial Officer
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