HORNELL — Community Bank System, Inc. (ticker: CBU), parent of Community Bank, N.A., on Oct. 21 announced it has agreed to acquire Steuben Trust Corporation (ticker: SBHO), parent company of Steuben Trust Company, in a stock and cash deal valued at $106.8 million. 

DeWitt–based Community Bank says the deal extends its reach in Western New York (WNY). Hornell–based Steuben Trust provides Community Bank, with improved scale in several more WNY markets, including Buffalo and Rochester, with total assets of nearly $580 million, deposits of $480 million, and 15 branch offices across a six-county area.

“Our acquisition of Steuben Trust will enhance and extend our banking footprint in Western New York, in markets which we successfully compete in and aspire to continue to grow,” Mark E. Tryniski, president and CEO of Community Bank System, said in a news release. “Our move to establish a broader and deeper banking presence in this region is reflective of these growth objectives. We are confident that the Steuben Trust franchise will further support our efforts to grow our retail and business banking presence in Western New York.

Steuben Trust has offices in the Southern Tier and WNY communities of Alfred, Andover, Arkport, Bath, Belmont, Bolivar, Canseraga, Canisteo, Clarence, Elma, Geneseo, Henrietta, Hornell, Warsaw, Wellsville, and Whitesville, according to its website.

Acquisition price details

Under the terms of the agreement, shareholders of Steuben Trust will receive, for each share of common stock they own, a combination of $12.60 cash and 0.8054 shares of Community Bank System common stock, for total consideration valued at about $63 per share, based on Community Bank System’s recent average price. The sale price is about 167 percent of Steuben Trust Corp.’s tangible book value as of June 30, 2019, the release stated.

The transaction is being arranged to qualify as a reorganization for federal income-tax purposes, which allows Steuben Trust shareholders to receive Community Bank System common stock tax-free, the banking companies said.

Upon completion of the acquisition, Community Bank System expects to have more than $12 billion in total assets. Community Bank expects the transaction to add about 8-9 cents per share to its first full year of GAAP earnings and 9-10 cents a share to its cash earnings, excluding one-time transaction costs.

The acquisition is expected to close in the second quarter of 2020 and is subject to customary closing conditions, including approval by the shareholders of Steuben Trust and required regulatory approvals.

D.A. Davidson & Co. Inc., a national financial-services and investment banking firm, was the financial advisor for Community Bank System and New York City–based law firm Cadwalader, Wickersham & Taft LLP acted as its legal advisor. PNC FIG Advisory was the financial advisor for Steuben Trust and Pillar Aught LLC served as its legal advisor.   

ONONDAGA — AmeriCU Credit Union is now operating in its new Onondaga Hill branch at 4865 West Seneca Turnpike in the town of Onondaga.

The new office started operations in that location in late September, says Ron Belle, chief experience officer at AmeriCU. The branch had previously operated at Onondaga Community College (OCC) for the past seven years.

“We feel that this location really provides us an opportunity to expand our presence on Onondaga Hill,” he adds.

When the space became available, AmeriCU wanted to take advantage of it, figuring it could continue providing service to the OCC campus but from another location. It gives the credit union a “better option” for its other members who are not coming to campus on a regular basis. 

“[The new] location really kind of checked all the boxes for us,” says Belle, who spoke with CNYBJ on Oct. 22. 

AmeriCU leases the space, and Belle describes the new office as bigger with more office space and a larger conference room and “new and more” technology. 

He declined to disclose both how much it cost AmeriCU to prepare the new space for operations and the general contractor that handled the construction work.

AmeriCU has five employees in the new Onondaga Hill branch, and more than 300 employees overall, according to Belle. 

“We could not be more excited to be open for business in Onondaga Hill,” Kyle Halpin, manager of the new financial center, said in a news release about the new branch. “AmeriCU is in a better position to serve our members, to serve this community, and to build new and lasting relationships with local residents and businesses.”

AmeriCU formally opened its new Onondaga Hill financial center on Oct. 9 with a ribbon-cutting ceremony. 

“We’re able to offer more services, more convenience, and more value for our members,” Nicholas Cray, VP of member relations and marketing, added in the release. 

The nonprofit AmeriCU first opened in 1950 at Griffiss Air Force Base in Rome. With more than 136,000 members, AmeriCU now has 19 branches across Central and Northern New York.   

Scholarship program helps 30 students       

ALBANY — Executives from federal credit unions operating in Central New York are serving on the board of directors of the New York Credit Union Association (NYCUA).

NYCUA also announced that its scholarship program provided financial help to more than two dozen college-bound credit-union members this year.

Board members

Laurie Baker, senior VP and COO of the Rochester–based Summit Federal Credit Union (FCU), is serving on the NYCUA board. Summit operates a half-dozen branch offices in Central New York.

The NYCUA board also includes Mark Pfisterer, president and CEO of Rome–based AmeriCU Credit Union.

Baker was elected to serve a three-year term in the more than $100 million asset category during NYCUA’s 2019 annual meeting held in June, per a news release on the NYCUA website. The board seat that Baker occupies was one of four seats for which NYCUA held elections during the annual meeting.

In addition, Mark Welshoff of O&R Utilities FCU in Orange County was elected in the $25 million asset category; Vicky Burdick of Jamestown Area Community FCU was selected in the $25 million to $100 million asset category; and Ann Hynes of SPX FCU in Chili, near Rochester, was also chosen in the $25 million to $100 million asset category. Hynes was also appointed board chairwoman, NYCUA said. Robyn Young of Great Erie FCU in Orchard Park was named vice chair and Tony Rohrmeier of Hudson Valley FCU was appointed treasurer. John Gibardi of Entertainment Industries FCU was again named secretary.

Besides AmeriCU’s Pfisterer, the 10-member board also includes Marie Betti of Western New York FCU, Barbara Dillon of SUNY Geneseo FCU, and Frank DeGraw of Sunmark FCU.

Scholarship program

NYCUA’s Statewide Scholarship Program provided $21,500 in financial assistance to 30 college-bound credit-union members this year. The students represent 18 New York credit unions and 10 regional chapters from throughout New York.

Nearly 1,500 students from more than 75 credit unions applied for the scholarships, which ranged from $500 to $1,250, NYCUA said.

The program was open to New York credit-union members who are high-school seniors planning to enroll in a two- or four-year college. Award recipients were selected based on academic performance, honors and awards, extracurricular activities, community activities, leadership roles, and an essay.

“As college costs continue to rise, families are being forced to look for alternatives to pay for higher education,” Tanya Buechner, director of marketing at the Albany–based SEFCU, which operates five branches in the Binghamton region and five offices in the Syracuse area. “The New York Credit Union Association’s scholarship program recognizes students who excel in the classroom, on the field, and as a leader, and students who receive these awards can focus on their studies and not how to pay tuition.”

In addition to the scholarships awarded through NYCUA’s statewide program, New York state credit unions awarded more than $2.7 million in total scholarships to college-bound members last year.