Envisage envisions continued rapid growth trajectory

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LANSING — For the third year in a row, Envisage Information Systems was included in Inc. Magazine’s Inc. 5000 list, which honors the fastest growing private companies in America. The software-development company, which has additional offices in Syracuse and Endicott, ranked number 883 on the list with three-year revenue growth of 504 percent. Revenue jumped […]

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LANSING — For the third year in a row, Envisage Information Systems was included in Inc. Magazine’s Inc. 5000 list, which honors the fastest growing private companies in America.

The software-development company, which has additional offices in Syracuse and Endicott, ranked number 883 on the list with three-year revenue growth of 504 percent. Revenue jumped from $2.8 million in 2009 to $17 million in 2012.

Over the past five years, employment at the firm has grown from 30 people to 260 employees, says Steff McGonagle, principal and co-founder of Envisage.

In 2012, the company ranked number 382 on the Inc. 5000 list and placed 808th on the list in 2011.

“We’ve been very blessed,” McGonagle says of the company’s inclusion on the Inc. rankings.

Founded in 1990, Envisage specializes in software that provides web access, data connection, and workflow automation products to the retirement industry. With an increasing number of people participating in retirement plans as well as the complex nature of the industry and its regulations, Envisage has seen success by offering products that help make solving complex problems easy for the companies that manage those retirement plans, says Daren Free, Envisage’s COO. “That capability is rare in our industry,” he says. “That’s a big piece of what’s driving that demand and that growth.”

McGonagle says he expects that growth to continue as Envisage continues to gain market share. “We’re looking to double in size again over the next 18 months,” and then double again after that, he says. He expects the company will have added a total of 100 employees in 2013. Annual revenue is now above $20 million and growing.

Surprisingly, Envisage does not have a sales force and gains the majority of its new clients through word-of-mouth marketing and recommendations from current clients, he says.

Inclusion on the Inc. 5000 list certainly helps win new clients over, McGonagle says. Being on the list has also become a valuable recruiting tool as the company looks for new employees, Free adds.

“We are constantly looking to hire developers, business analysts, people who really understand this retirement space,” he says. The company looks frequently to new college graduates to fill those roles, he notes, but in the past it wasn’t always easy to convince them to come to Ithaca. “People are starting to understand who we are and seek us out,” he says since the company has made the Inc. 5000 list three times. Now, Free says, when he encounters soon-to-be college graduates, not only have they heard of Envisage, but the often know someone who is working there and may already have plans to apply for a job themselves.

The Inc. 5000 list has also benefited the company in another way, McGonagle says, and that is boosting current employee morale. “It feeds the culture of people having autonomy and self-direction and pride of accomplishment,” he says.

Envisage prides itself on its laid-back and family-like work atmosphere, says James Mandle, head of marketing and communications, for the company. “It’s not the typical corporate America,” he says. With a “fun room” where employees can take breaks, a family atmosphere where everyone goes by their first name instead of a title, and heavy emphasis on teamwork, Envisage’s work environment is more of a Google-type workplace, he says. Google is known for its employee perks that include things like game rooms, massages, and the like.

This past spring, Envisage was named one of the top 10 companies in the Central New York’s Best Places to Work awards for employers with 51 or more employees. More than 1,100 employees participated in the surveys conducted by Research and Marketing Strategies Inc. (RMS), which determined the top ranked companies. CNY’s Best Places to Work is a BizEventz and Central New York Business Journal event.

Headquartered at 31 Dutch Mill Rd. in the town of Lansing, Envisage (www.envisagesystems.com) also has offices at 306 E. Main St. in Endicott and in the Jefferson Towers at 50 Presidential Plaza in Syracuse. The company employs just over 20 people in each of those offices.

On its website, Envisage describes itself as the largest independent software development company providing web, common remitter, and workflow solutions for the retirement industry. Since 1995, it has been exclusively serving mid- to large-scale record keepers and financial companies.

Contact The Business Journal at news@cnybj.com

Fleet Feet Sports franchise opens location in Clay

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CLAY — The local franchise of Fleet Feet Sports on Nov. 1 opened a second store located at 4136 Route 31 in Clay in the Market Fair North Plaza, across from the Great Northern Mall. Franchise co-owners Edward and Ellen Griffin opened the 5,000-square-foot store, citing business growth in the past three years at the

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CLAY — The local franchise of Fleet Feet Sports on Nov. 1 opened a second store located at 4136 Route 31 in Clay in the Market Fair North Plaza, across from the Great Northern Mall.

Franchise co-owners Edward and Ellen Griffin opened the 5,000-square-foot store, citing business growth in the past three years at the store’s location in DeWitt.

The local Fleet Feet Sports franchise, founded and opened in May 2000, focuses on the fitting of running, walking, and cross-training shoes as well as accessories and apparel for the active lifestyle.

The expanded 10,000-square-foot DeWitt location, which opened in June 2010, operates at 5800 Bridge St. The firm had earlier operated in a 3,000-square-foot location at 3453 Erie Boulevard East in DeWitt.

“We grew 62 percent in 30 months at [the current] Bridge Street [location],” says Edward (Ed) Griffin.

Many of those customers are from the Liverpool, Clay, Baldwinsville, and Cicero areas, says Elizabeth (Liz) Knickerbocker, local marketing manager for Fleet Feet Sports.

“We know that there’s already a good customer base here [in Clay] and a growing customer base is possible,” she says.

In analyzing the DeWitt store’s customer data using ZIP codes, Ed Griffin found that 20 percent of its business was coming from the Baldwinsville, Clay, and Cicero areas.

So, making it easier to generate revenue from those customers became a priority, but their travel time, in Fleet Feet’s view, has become an issue.

A decade ago, Knickerbocker says, customers from the northwest area of Onondaga County didn’t have a lot of traffic to contend with to reach Interstate 481.

But now, with the State Route 31 corridor much more developed, traffic is heavier resulting in a trip to the DeWitt store that “can almost take a half-hour,” according to the marketing manager.

“So, we heard a lot of ‘Well, I don’t want to come across town to get to [your store],” she adds.

Plus, Fleet Feet also sees customers from the Central Square, Oswego, and Watertown areas, and the Clay location will provide them a shorter drive, Knickerbocker says.

In addition to increased sales, the Fleet Feet Sports training programs have also grown, with programs training more than 1,000 participants each year. Fleet Feet Sports has added winter training programs, citing “high demand,” the company said.

Finding, securing the new space

The company started researching the possibility of a new store in Clay in the summer of 2012 and checked with the stores that are already operating in the area, says Ed Griffin.

Fleet Feet worked with CBD Companies of Syracuse to locate the space for its new store.

Negotiations for the space began toward the end of last year, he adds. Griffin then secured the space in July, he says.

Fleet Feet Sports is leasing its space from M & J Wilkow, Ltd., a Chicago–based real-estate firm that owns the Market Fair North Plaza, says Knickerbocker.

A location of Dallas, Texas–based Tuesday Morning previously occupied the space in which Fleet Feet is now operating.

On its website, Tuesday Morning describes itself as an “upscale deep discount off-price retailer specializing in domestic and international, designer and name-brand closeout merchandise.”

Knickerbocker declined to disclose how much it cost Fleet Feet Sports to open the Clay location, but she indicated the local franchise financed the new store using its own assets.

Boulder, Colo.–based 3 Dots Design handled the design of the new space, she adds.

CBD Construction served as the contractor on the project. It also built the franchise’s current DeWitt location, says James Wade, assistant project manager with CBD Construction.

Subcontractors for the work at the Clay store included Steven Segal of Down to Earth Electronics, LLC of DeWitt, which handled the electrical work; Dannan Plumbing, LLC of Onondaga; Jett Painting, Inc. of Phoenix, which handled the painting work; and The Effect Group, Inc. of Syracuse was responsible for the flooring work at the store.

Efforts to prepare the space for the Nov. 1 opening continued in the final days of October.

“I think that we really want to make sure that customers know that both locations have the same materials, the same quality staff,” Knickerbocker says.

The Clay location will house the local franchise’s training department, and its purchasing department will work at the DeWitt location, she adds.

The store’s products will arrive at the DeWitt store before shipment to the Clay store, if necessary.

The local franchise of Fleet Feet Sports employs 40 people, including a mix of full- and part-time employees. The company has plans to hire 10 additional workers to service both locations, Knickerbocker says.

About 98 percent of Fleet Feet’s customers are consumers, but the store also provides shoes and uniforms for track-and-field teams at Le Moyne College, Colgate University, the State University of New York Institute of Technology at Utica/Rome (SUNYIT), and several area high schools.

Besides merchandise, Fleet Feet Sports can also analyze a customer’s gait (a manner of walking or moving on foot), while the person runs or walks on an indoor track.

All Fleet Feet employees are trained on basic biomechanics and use a barefoot-analysis system of the foot in motion to understand a customer’s foot function.

The iPad gait analysis and the barefoot analysis systems allow for “more accuracy” when fitting customers for sneakers, Fleet Feet said.

Fleet Feet, Inc. is a national 89-store chain that Sally Edwards and Elizabeth Jansen opened in Sacramento, Calif. in 1976. The company is now headquartered in Carrboro, N.C., according to the website of Entrepreneur magazine.

Contact Reinhardt at ereinhardt@cnybj.com

CNYIBA relaunches with new programs

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DeWITT — The Central New York International Business Alliance (CNYIBA), an organization formed to enhance global sales of companies in the 12-county region, relaunched on Oct. 24 with the announcement of new programs and services to support growth through exporting. “We are a group of local business, government, and community leaders, who’ve come together in

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“We are a group of local business, government, and community leaders, who’ve come together in this nonprofit organization to create a local, one-stop shop for all export-related advice and assistance for other local companies,” said Peter Maier, president of Switzerland–based Inficon, Inc., who spoke at an Oct. 24 press event at the Inficon location at 2 Technology Place in DeWitt.

Inficon is a manufacturer of scientific instrumentation, sensor technologies, and advanced process-control software for the high-tech sector and other industries, said Maier, who serves on the CNYIBA board.

The CNYIBA held its inaugural event later in the day at the Crowne Plaza Syracuse hotel.

The CNYIBA provides mentoring and consulting services, educational programs, and will offer trips to international trade shows in places such as South Africa and Singapore, Steven King, export director of the CNYIBA, said during his remarks at the press event.

“There’s a lot of opportunity out there. There are many, many markets in the world that haven’t been tapped by the regional companies,” King said.

King has been exporting for more than 25 years and has significant international sales and marketing experience, according to the CNYIBA website.

He served more than 10 years with New York City–based Colgate-Palmolive Co. (NYSE: CL) from its offices in London and Paris, the CNYIBA website says.

President Barack Obama in his 2010 State of the Union address called for a doubling of exports by 2015. Inficon “doubled” its exports by the end of 2012, Maier said.

As a result, the U.S. Department of Commerce on May 20 awarded Inficon the President’s “E” Award for Exports, the “highest recognition any U.S. entity may receive for making a significant contribution to the expansion of U.S. exports,” according to the Inficon website.

CNYIBA is looking for regional small and medium-sized businesses that want to expand their efforts in exporting, David Mankiewicz, senior vice president and director of infrastructure and urban activities at CenterState CEO, said in his remarks at the event.

“Collectively, this region right now has $8.7 billion worth of exports. Even with that number, we’re an underperformer,” Mankiewicz said.

To capture more of that global market, the region must boost its international orientation and become more globally engaged. To do that, the CNYIBA needs “buy in” from the business community, Mankiewicz added.

“And that’s why we encourage businesses of all sizes to make exporting a strategic priority and to get involved with the new CNYIBA,” he said.

The relaunch of CNYIBA follows the 2011 development of the CenterState Export Plan, which a group of regional partners devised with the Brookings Institution, a private, Washington, D.C.–based nonprofit organization that focuses on independent research.

The plan called for a lead agency to provide export services and guidance to local companies, and the CNYIBA holds the designation, the organization said.

The CNYIBA dates back to the mid-1990s, and, in assuming its new role in guiding local companies in the exporting process, the organization has “transitioned,” Mankiewicz said.

“The IBA before was a great effort, but it was an all volunteer effort,” Mankiewicz said in answering a reporter’s question.

Several of its programs, such as Export New York, will continue, he said. Export New York trains companies on how to export their products.

When another reporter asked how this CNYIBA is different from the original organization, Maier replied that one of the “significant” differences is that board membership includes “a number” of companies that are involved in exporting.

“I would say it’s a more balanced board … as experienced exporters, we believe that we can bring something to the table and that’s experience,” Maier said.

Membership in the CNYIBA is open to any business or individual located in the CenterState region with an interest in learning about, assisting with, or participating in international- business activities, according to the CNYIBA website.

CNYIBA offers four distinct levels of membership; price is determined by business size and affiliation with its economic-development partners, the website says.

Contact Reinhardt at ereinhardt@cnybj.com

Wealth management boosts Community Bank’s growth

Banks & Credit Unions, Subscriber Only

DeWITT — Community Bank System, Inc.’s (NYSE: CBU) wealth-management services are a key growth driver for the company, producing nearly 20-percent revenue growth in the third quarter and almost 23-percent growth through nine months of 2013. Along with being the parent company of Community Bank, N.A., Community Bank System also operates four subsidiaries that operate

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Along with being the parent company of Community Bank, N.A., Community Bank System also operates four subsidiaries that operate collectively as its financial-services division under the Community Bank Wealth Management moniker.

Those subsidiaries are: Community Investment Services, Inc., a full-service brokerage and wealth-management firm offering products through the bank’s branches; Nottingham Advisors, Inc., a national boutique investment headquartered in Buffalo; CBNA Insurance Agency, Inc. a property and casualty insurance firm with five northern New York offices; and Community Bank Trust Services, which offers a range of trust services, such as estate settlement, as well as investment management.

Community Bank decided to align those business units and create Community Bank Wealth Management (CBWM) about two years ago, says Paul Restante, managing director of CBWM and president of Community Investment Services. Each of the business units has generated growth, and collectively contributes to Community Bank System’s top and bottom lines, he notes.

CBWM, which has nearly $3.75 billion in assets under management, generated over $3.8 million in revenue in the third quarter, up from nearly $3.2 million a year ago — driven by business expansion in trust services, asset management and advisory services, and favorable market conditions, Community Bank System said in its earnings report. Through three quarters of 2013, CBWM has produced almost $11.6 million in revenue, up from more than $9.4 million in the year-ago period.

Wealth-management services contributed more than one-eighth of Community Bank System’s reported non-interest income of $27.6 million in the third quarter (see side bar article for more on the earnings report).

Knowing that the work CBWM is doing contributes directly to the bank’s financial results is a pretty good feeling, Restante says. “That really relates to the share price,” he says. Community Bank System’s stock price is up about 35 percent year to date (as of Oct. 25.)

To help CBWM continue its upward trend, Restante is looking at the four subsidiaries individually to target growth opportunities.

Community Investment Services, with a staff of 30 full-time financial consultants, is already poised to grow about 46 percent this year, with revenue projected to rise to $7 million, compared to $3.9 million last year, Restante says. That growth has come from a variety of factors including better integration with Community Bank branch personnel, he says. Branch employees are being trained to better identify customers with a need for investment services and help arrange meetings between customers and Community Investment Services financial consultants.

Restante plans to continue that growth by continuing to promote that integration, sharpening the focus on advisory fee-based planning, new hires to increase the sales force, and encouraging employees to concentrate on developing relationships with their clients, which can boost cross-selling of other products.

Community Bank Trust Services is producing growth as many other banks get out of the trust business, Restante says, as well as from an increased market need for investment-management services. That opens up opportunity for CBWM to capture new clients as individuals and institutions are looking for a new provider of trust, estate settlement, and fiduciary services, he notes. Trust services are also growing as CBWM expands geographically. It already provides such services in Wisconsin, Florida, Maryland, and Virginia and is able to branch out “anywhere where we have clients that have gravitated to other states that need trust services,” Restante says.

Nottingham Advisors, which has offices in Williamsville as well as in Palm Beach, Fla., works with businesses, institutional investors, and high-net worth individuals. The firm has produced growth by marketing to other independent broker/dealers and financial advisors, many of whom are looking for the services Nottingham offers without the hassle and paperwork that comes with staying on top of regulations on their own. Growth will also come from expanding further in Florida. The firm, which currently has an office in North Palm Beach, is looking at making inroads along the west coast of the Sunshine State, particularly in the Tampa and Naples areas. Both are strategic areas that make sense to target, Restante says.

CBNA Insurance Company, which started in Tupper Lake and has multiple offices across northern New York, has grown a great deal over the past five years through a series of strategic acquisitions, Restante says. He sees a lot of acquisition opportunities as many independent agencies have owners looking to retire or to align with a larger agency that can provide a broader selection of products as well as tech support and regulatory oversight, he says. However, not every opportunity is a good fit, so CBNA is very selective in the process, often taking a year or more to conduct its due diligence. That said, Restante says the firm is currently in negotiations with about seven different agencies it is considering acquiring.

Community Bank System also operates Benefit Plan Administrative Services, Inc. (BPAS), which has clients in 45 states and Puerto Rico, more than 250 employees, annual revenue of $40 million, and $6.2 billion in assets under administration. BPAS, in partnership with more than 190 financial “intermediaries,” provides retirement-plan administration and provides actuarial services. Local offices include Harbridge Consulting Group, LLC in Syracuse and BPAS locations in Utica and Syracuse.

Community Bank System’s headquarters office is located at 5790 Widewaters Parkway in DeWitt. Community Bank, N.A. has more than 180 branches across New York and Pennsylvania and more than $7 billion in assets.

Contact The Business Journal at news@cnybj.com

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Community Bank third-quarter profit jumps nearly 20 percent

DeWITT — Community Bank System, Inc. (NYSE: CBU) reported net income of $22 million in the third quarter, up almost 20 percent from $18.4 million in the year-ago period.

The DeWitt–based banking company generated earnings per share (EPS) of 54 cents in the latest quarter, up 17 percent from 46 cents in third quarter of 2012, which included eight cents per share of acquisition expenses. This quarter’s EPS beat analysts’ expectations for 52 cents, according to Yahoo Finance/Thomson Financial data.

Community Bank produced revenue of $88.2 million in the third quarter of 2013, up 4.2 percent from a year prior. Revenue growth was bolstered by higher non-interest income from a larger core deposit account base, along with continued organic growth in wealth management and benefits-administration services, the banking company said.

Non-interest income rose nearly 7 percent to $27.6 million, and net interest income climbed more than 3 percent to $60.6 million, respectively, when compared to the year-ago quarter, Community Bank reported.

“We continued to perform at a very high level during the third quarter of 2013, generating record earnings, solid organic loan growth, high single-digit, year-over-year growth in financial services revenue, and continued strong asset quality metrics,” Mark E. Tryniski, president and CEO of Community Bank, said in the earnings report. “During the third quarter, we also announced an agreement to acquire eight branch-banking locations from Bank of America, N.A., which will further expand and strengthen our market presence across our Northeast Pennsylvania service footprint.”

Community Bank System has more than $7.3 billion in assets.

Contact Rombel at arombel@cnybj.com

Cybersecurity Awareness Month: Partner with your bank to prevent account takeover

Banks & Credit Unions, Subscriber Only

Cyber attacks against small businesses are growing increasingly sophisticated. Criminals use spoofed emails, malicious software, and online social networks to obtain login credentials to businesses’ accounts, transfer funds from the accounts, and steal private information, a fraud referred to as “corporate account takeover.” To combat this type of fraud, the American Bankers Association is providing

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“Our nation’s small businesses remain in the crosshairs of cybercriminals,” said Frank Keating, ABA president and CEO. “A strong partnership with your financial institution is the best way to prevent and protect your business against these attacks.”

As part of National Cybersecurity Awareness Month, ABA offers small businesses these tips to help prevent account takeover:

Protect your online environment.

It is important to protect your cyber environment just as you would your physical location. Do not use unprotected Internet connections. Encrypt sensitive data and keep updated anti-virus and anti-spyware protection on your computers. Change passwords from the default to something complex, including at point-of-sale terminals.

Partner with your bank for payment authentication.

Talk to your banker about services that offer call backs, device authentication, multi-person approval processes, batch limits, and other tools that help protect you from unauthorized transactions.

Pay attention to suspicious activity and react quickly.

Put your employees on alert. Look out for strange network activity, do not open suspicious emails, and never share account information. If you suspect a problem, disconnect the compromised computer from your network and contact your banker. Keep records of what happened.

Understand your responsibilities and liabilities.

The account agreement with your financial institution will detail what commercially reasonable security measures are required in your business. It is critical that you understand and implement the security safeguards in the agreement. If you don’t, you could be liable for losses resulting from a takeover. Talk to your banker if you have any questions about your responsibilities.

To learn more, see ABA’s Small Business Guide to Corporate Account Takeover (http://www.aba.com/Tools/Function/Fraud/Pages/CorporateAccountTakeoverSmallBusiness.aspx).

The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $14 trillion banking industry and its 2 million employees. The majority of ABA’s members are banks with less than $185 million in assets. Learn more at aba.com.

Banks & Credit Unions, Subscriber Only, Technology

The popularity of mobile banking continues to grow, according to a recent survey by the American Bankers Association (ABA). The survey of 1,000 U.S. adults revealed that while the Internet remains the most popular banking method, mobile banking has eclipsed the popularity of the telephone and U.S. mail and is now preferred by 8 percent of

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The annual survey of 1,000 U.S. adults was conducted for the ABA by Ipsos Public Affairs, an independent market research firm, this summer. This is the fifth year in a row that customers have named the Internet as their favorite way of conducting their banking business, with 39 percent of respondents once again saying it is the method they use most often to manage their bank accounts, the ABA said. The second most popular way to bank — visiting a branch — remained at 18 percent.

“Digital and mobile banking is increasingly popular with today’s consumers who want account management tools at their fingertips,” Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments, said in a news release.

“As consumer banking preferences evolve, banks remain committed to offering a variety of choices that meet the needs of all customers,” she said.

When asked, “Which method do you use most often to manage your bank account(s)?” customers responded as follows in 2013 (compared to 2012):

§ Internet banking (laptop or PC): 39 percent

(39 percent in 2012)

§ Branches: 18 percent (18 percent in 2012)

§ ATMs: 11 percent (12 percent in 2012)

§ Mobile (cell phone, smartphone, tablet etc.): 8 percent (6 percent in 2012)

§ Mail: 7 percent (8 percent in 2012)

§ Telephone: 7 percent (9 percent in 2012)

§ Don’t know: 11 percent (8 percent in 2012)

“It’s not surprising that branches remain the second most popular option,” said Feddis. “Many people prefer sitting down with someone to discuss complex transactions like opening an account or applying for a home or business loan.”

Online banking first became the most-preferred banking method in 2009 with 25 percent of customers naming it as their favorite. Previously, visiting a branch was the most popular method, followed by ATMs.

The American Bankers Association says it represents banks of all sizes and charters and is the voice for the nation’s $14 trillion banking industry and its 2 million employees. The majority of ABA’s members are banks with less than $185 million in assets, the association says.

Elmira Savings Bank’s expansion into Broome County was “next logical step,” Carr says

Banks & Credit Unions, Regional News, Subscriber Only

VESTAL — Elmira Savings Bank (NASDAQ: ESBK) recently established a physical presence in Broome County by opening an office in Vestal that focuses on making residential mortgage loans. The limited-service, loan-production office, located at 3439 Vestal Parkway E. in Vestal, opened on Sept. 3. “We just looked at that Binghamton market as the next logical

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VESTAL — Elmira Savings Bank (NASDAQ: ESBK) recently established a physical presence in Broome County by opening an office in Vestal that focuses on making residential mortgage loans.

The limited-service, loan-production office, located at 3439 Vestal Parkway E. in Vestal, opened on Sept. 3.

“We just looked at that Binghamton market as the next logical step for us to do residential lending,” Thomas M. Carr, president and chief operating officer of Elmira Savings Bank, says. He notes that Broome County was the natural next step after the bank opened a loan office in Cortland two years ago and a full-service branch in Erwin (west of Corning) early this year.

Elmira Savings Bank, originally founded in 1869, never had a branch in Broome County before, Carr says, though it has occasionally made loans to Broome County residents through its other offices.

The new, 1,600-square-foot Vestal office employs three full-time mortgage-loan professionals, Carr says. The office is open 8:30 a.m. to 5:00 p.m. Monday through Friday, or by appointment.

The bank leases the space from Kradjian Properties, a Binghamton–based real-estate development and management business, Carr says. Kradjian’s real-estate portfolio includes several properties along Vestal Parkway.

Elmira Savings Bank’s research indicates that Broome County is about a $250 million residential mortgage-loan market, and the bank hopes to capture six to 10 percent of that, Carr says.

The new Vestal office is not targeting Tioga County customers but Carr believes that the location, not far from the Tioga County line, does open the door for business from that county as well.

Elmira Savings Bank originated $150 million in mortgage loans last year and is on that same pace this year, Carr says. About 70 percent of its mortgage business is new loans, while 30 percent involves refinancing existing mortgage loans. “Our mortgage business is very strong,” he adds.

Carr says it’s too early to say if Elmira Savings Bank will open a full-service branch in Broome County, but says that if the loan office is a success that increases the likelihood.

Elmira Savings Bank, with $520 million in total assets, is a state-chartered bank with six branches in Chemung County, three branches and a loan center in Tompkins County, two offices in Steuben County, one branch in Cayuga County, one office in Schuyler County, and loan centers in Cortland and Broome counties.

The banking company’s main headquarters office is located at 333 E. Water St. in Elmira.

Contact Rombel at arombel@cnybj.com

Chemung Canal Trust names Krebs new CFO

Banks & Credit Unions, Regional News, Subscriber Only

ELMIRA — Chemung Canal Trust Co. announced Oct. 17 that Karl F. Krebs has joined the bank’s management team as chief financial officer and treasurer. He was also appointed CFO and treasurer of parent company Chemung Financial Corp. (NASDAQ: CHMG). Krebs, who has more than 30 years of banking experience, began his career in 1982

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ELMIRA — Chemung Canal Trust Co. announced Oct. 17 that Karl F. Krebs has joined the bank’s management team as chief financial officer and treasurer.

He was also appointed CFO and treasurer of parent company Chemung Financial Corp. (NASDAQ: CHMG).

Krebs, who has more than 30 years of banking experience, began his career in 1982 and most recently served as CFO of Financial Institutions Inc. and subsidiary Five Star Bank, in Warsaw, N.Y.

Krebs replaces John R. Battersby, Jr., who had come out of retirement in mid-September to serve as Chemung’s interim CFO and treasurer, after Mark A. Severson left to take the CFO job at Cordia Bancorp Inc. (NASDAQ: BVA), parent of Bank of Virginia.

Krebs earned a bachelor’s degree in accounting from Canisius College and an MBA, with a concentration in finance and accounting, from SUNY Buffalo.

Krebs’ annual base salary will be $200,000, the bank said in a U.S. Securities & Exchange Commission regulatory filing.

During his banking career, he has held management positions at Goldome Bank, Key Corp, National City, and HSBC, before joining Financial Institutions and Five Star Bank.

Elmira–based Chemung Canal Trust currently operates 23 full-service banking offices in Broome, Chemung, Schuyler, Steuben, Tioga, and Tompkins counties in New York and Bradford County in Pennsylvania. It also operates five full-service banking offices under the name Capital Bank in Albany and Saratoga counties.

On Nov. 22, Chemung Canal Trust is expected to complete the acquisition of six Bank of America branches in Central New York, expanding its presence in Tompkins County, while entering new markets in Cayuga, Cortland, and Seneca counties.

Started in 1833, Chemung Canal Trust is the oldest locally owned and managed community bank in New York state. Chemung Financial is also the parent of CFS Group, Inc., a financial-services subsidiary offering mutual funds, annuities, brokerage services, tax-preparation services, and insurance.

Contact Rombel at arombel@cnybj.com

Solvay Bank announces new branch, unveils renovated downtown office

Banks & Credit Unions, Construction, Design & Real Estate, Subscriber Only

SOLVAY — Solvay Bank recently unveiled renovations that turned its downtown Syracuse location into a “smart branch” and will soon break ground on new branch location in DeWitt. “A few years ago, we developed a concept called a smart branch,” says Paul Mello, president and CEO of Solvay Bank. A smart branch is one that

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SOLVAY — Solvay Bank recently unveiled renovations that turned its downtown Syracuse location into a “smart branch” and will soon break ground on new branch location in DeWitt.

“A few years ago, we developed a concept called a smart branch,” says Paul Mello, president and CEO of Solvay Bank. A smart branch is one that uses technology to help make the branch more efficient. The bank just completed work to convert its Syracuse branch in the State Tower Building at 109 Warren St. into such a location.

The biggest change that comes with the smart concept is training and enabling employees to perform a variety of job functions, Mello says. Typically, bank branches have very segmented jobs, he says. Tellers handle deposits and withdrawals. Loan officers handle loan applications. While that setup may have worked well in the past, he says, today’s customers want to be able to handle their business efficiently. Solvay Bank has solved that problem by training employees to handle a variety of functions, he explains. An employee can handle a deposit for one customer and then turn around and help a new customer open an account, for example.

“We’re trying to create an environment where it’s easy to do business with us,” Mello says. The smart branch blends personal service with technology, providing the best of both worlds to the bank’s clients.

In addition, Solvay Bank added a coffee bar, community conference room, an electronics charging station, and offers Wi-Fi while still providing all the typical commercial and retail banking products that customers expect, Mello says.

With new housing and new businesses opening almost daily, downtown Syracuse is hopping, he says, and it was the right time for Solvay Bank’s branch to invest in it. Along with converting to the smart branch concept, the bank also added 1,000 square feet to its space there, bringing the total square footage for that branch to nearly 3,400 square feet.

Before the dust even settles on the smart branch renovations, Solvay Bank hopes to break ground on its next project, a new branch on East Genesee Street in DeWitt across from Wegmans.

“We’re going to make that a smart office as well,” Mello notes. The DeWitt area is a good location for the bank, he says. “We do have pretty good demand from customers out there who do business with us.” The new branch, which will open in late spring or early summer of 2014, will better serve existing clients in that area and, Mello adds, hopefully attract new customers to Solvay Bank.

The banking landscape has changed a lot in recent years, he notes, with many acquisitions taking place. That creates opportunity for Solvay Bank to reach out to customers who are looking for the blend of technology and services coupled with the personal attention that Solvay Bank offers, Mello says.

Technology is important, he says, and that’s why Solvay Bank offers products such as mobile banking, but at the same time, customers want the ability to talk to someone when they need to.

Mello says the bank is working with a developer, whom he declined to name, on the new branch project. While he didn’t have a total cost for the project to share, Mello says he does expect the bank will expand its current staff of 150 employees by about six people once that branch opens.

Earlier this year, Solvay Bank expanded is main office at 1537 Milton Ave. in Solvay, adding about 13,000 square feet and creating enough space to centralize all of the bank’s support functions for improved efficiency. The bank worked with Parsons-McKenna Construction Co. on the project, which broke ground last June, with work wrapping up this past January.

The company also launched a new branding campaign over the summer with the tagline, “We’re local and we mean it.”

Founded in 1917, Solvay Bank (www.solvaybank.com) has eight branches located in Solvay, Fairmount, Camillus, Liverpool, North Syracuse, Cicero, downtown Syracuse, and Westvale. As of July 15, when the company announced its first-quarter results, the bank had total assets of $647.5 million. The company also operates Solvay Bank Insurance Agency, Inc.

Contact The Business Journal at news@cnybj.com

Responding to Negative Posts on Social Media

Business Mentors, Subscriber Only

Today’s technology makes it easy to engage with customers when things are going great. But what about when things are not going so well? How you engage with your audiences during difficult situations can be crucial to your organization’s survival. If a problem arises, it’s important to respond quickly, address the concerns with empathy, and

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