SALINA — Community Bank System, Inc. (NYSE: CBU) in early January acquired a Salina–based financial-services firm as it continues to add to its non-banking business portfolio. On Jan. 2, the DeWitt–based banking company — through its subsidiary, Community Investment Services, Inc. (CISI), which is part of Community Bank Wealth Management — completed its acquisition of […]
SALINA — Community Bank System, Inc. (NYSE: CBU) in early January acquired a Salina–based financial-services firm as it continues to add to its non-banking business portfolio.
On Jan. 2, the DeWitt–based banking company — through its subsidiary, Community Investment Services, Inc. (CISI), which is part of Community Bank Wealth Management — completed its acquisition of certain assets of Wealth Resources Network, Inc. That firm provides wealth-management services including financial, retirement, and estate planning.
Community Bank System paid $1.2 million in cash to acquire the assets of Wealth Resources Network, according to Community Bank’s Form 10-K filed with the U.S. Securities & Exchange Commission on March 1. The banking company recorded a $1.2 million customer-list intangible asset on its balance sheet in conjunction with the acquisition.
Wealth Resources Network (WRN) is headquartered at 406 Old Liverpool Road. The firm’s president is Jeffrey Layhew.
A total of six WRN employees joined CISI, including Layhew. “Everyone was retained,” Paul A. Restante, president and CEO of Community Bank Wealth Management, tells CNYBJ in an email.
All clients have transitioned over to CISI, but they continue to be serviced by the WRN team. No WRN buildings or equipment were purchased in the acquisition, he says.
“Community Bank Wealth Management is always looking for acquisition or affiliation opportunities with financial firms that have a similar business and growth model as we have, if it is additive for all involved,” Restante says in explaining the rationale for the acquisition. “We have been engaged in conversations with WRN for some time but, both parties felt that joining together best served their clients using a calendar year move,” he adds, explaining the timing of the deal, at the start of 2019.
The acquisition increases Community Bank Wealth Management’s concentration in the Central New York marketplace, he says.
The company plans to continue using the Wealth Resources Network name “to avoid client confusion,” and will evaluate it after year one, per Restante.
WRN joins the Community Bank Wealth Management umbrella, which consists of Community Investment Services (brokerage), Community Bank Trust Services (trust administration and investment management), Nottingham Advisors (RIA and money manager), One Group Retirement Advisors (401(k) and retirement-plan consulting firm) and, Carta Group (fee-based planning and executive benefits firm), he explains.
The WRN acquisition came a year after Community Bank System, through, CISI, paid $700,000 in cash to acquire a customer list from Styles Bridges Associates, a financial-services business headquartered in Canton, according to the 10-K filing.
Community Bank System says the acquisition of financial-services businesses is part of its objective to increase the noninterest component of its revenue.