Community Bank System acquires employee benefits company
Community Bank System in DeWitt, New York, has acquired Fringe Benefits Design, a Bloomington, Minnesota-based provider of pension administration and benefits advisory services.
Fringe Benefits Design will become a subsidiary of the community benefit plans administrative services unit with $ 14.6 billion in assets, the bank said in an announcement Friday. The deal brings BPAS’s expected annual revenue to $ 110 million and gives it 510,000 participating pension accounts and $ 110 billion in total trust assets.
The roots of Fringe Benefits Design go back to 1990, when it was created from the merger of two administration companies in Minneapolis. She acts as a pension plan administrator, consultant and record keeper.
The agreement “will strengthen and complement our existing BPAS business and represents an exciting opportunity to expand our benefits business in the Midwest,” Community President and CEO Mark Tryniski said in a press release. The companies did not disclose the price of the deal.
CFO Joseph Sutaris said in an interview on Friday that Community was serving a handful of benefits clients in the Midwest prior to Friday’s deal.
“It will definitely give us a bigger profile there,” added Sutaris.
Benefits services represent the largest source of non-interest revenue for Community, generating revenue totaling $ 26.5 million in the first quarter of 2021 and $ 101.3 million across the board. year 2020. If it meets the new 2021 revenue target for the segment, Community will achieve a combined annual growth rate of 13.28% since 2011.
The Fringe Benefits design is Community’s fifth benefits acquisition since 2011, but the first since 2018 when it acquired HR Consultants in Puerto Rico.
“It’s been part of our business model for quite some time,” Sutaris said of the employee benefits line of business. “We have experienced organic growth and through acquisitions. He’s a big contributor to us. “