Community Bank wraps up Elmira Savings acquisition

DeWITT, N.Y. — The acquisition of Elmira Savings Bank by Community Bank System, Inc. (NYSE: CBU) does more than just add branches to its Community Bank, N.A. unit.

The purchase brings a broader and deeper set of services to bank customers, says Mark E. Tryniski, president and CEO of Community Bank System, which is based in DeWitt.

“They have a very nice mortgage business,” he says of the Elmira bank. “It makes a lot of sense for us to add a little more scale. They actually offered certain mortgage products that we did not offer.” Those products, including Federal Housing Administration (FHA) loans, combine with Community Bank’s existing mortgage offerings to create a more robust product portfolio, notes Tryniski, who has been Community’s top executive for almost 16 years.

The acquisition, which closed on May 13 in an all-cash deal worth $82.8 million, is about the eighth deal Community Bank System has closed on in the past decade, he says.

“We have always grown through a combination of organic growth and [mergers and acquisitions],” Tryniski adds.

The Elmira Savings Bank deal adds eight branches across a five-county area in Central New York and the Southern Tier and gives Community Bank more than 220 locations, $16.2 billion in assets, and $13.8 billion in deposits.

Despite its now larger size, Community Bank still operates as a community bank, Tryniski contends. That means decision making remains at the local level, allowing customers to form solid relationships with their local branch. “We tell our branch managers, ‘You are the bank president in that town,’ ” he explains.

The Elmira Savings Bank acquisition comes on the heels of Community Bank’s sixth-place ranking in the banking category in Newsweek magazine’s 2022 “America’s Most Trusted Companies” listing.

“That’s pretty good because trust is our product,” Tryniski says. “The entire organization is thrilled by this recognition.” He credits the care and pride of the Community Bank team for serving customers and the community.

Community Bank consolidated a small number of branches, Tryniski notes, and also cut some back-office positions while integrating the Elmira Savings Bank acquisition. He did not specify the number of jobs that were cut. The Elmira–based bank operated 12 branches before its sale to Community Bank.

Along with being given the option to apply for one of the 250 open jobs at Community Bank, the affected employees were also provided severance and outplacement assistance, he adds.

Under the terms of the agreement, Elmira Savings Bank’s shareholders are entitled to receive $23.10 per share in cash for each share of common stock. Computershare Trust Company, N.A. is in the process of mailing the transmittal paperwork to each Elmira Savings Bank shareholder in order to process the merger payment.

Stephens Inc. acted as financial advisor to Community Bank System, and Squire Patton Boggs (US) LLP served as legal advisor. Boenning & Scattergood, Inc. served as financial advisor to Elmira Savings Bank while Vorys, Sater, Seymour and Pease LLP was its legal advisor.

Community Bank System first announced its agreement to purchase Elmira Savings Bank last Oct. 4. Then on April 22 of this year, it announced that is had received regulatory approval from the U.S. Office of the Comptroller of the Currency for the transaction. Community Bank also said it had obtained a waiver from filing an application with the Federal Reserve Bank of New York for the deal.

Community Bank System has locations across upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts. The banking company offers financial planning, insurance, and wealth-management services through its Community Bank Wealth Management Group and OneGroup NY, Inc. operating units. The Benefit Plans Administrative Services, Inc. (BPAS) subsidiary provides employee-benefits administration, trust services, collective investment-fund administration, and actuarial-consulting services.