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How a Bank Can Help Your Business Succession Planning
Whether you’re getting ready for retirement, just starting out in the leadership of your business, or are considering an ownership role in your future career, the best thing you can do to prepare yourself and your current or future business for success is to build a relationship with a commercial banker. Two of the most […]
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Whether you’re getting ready for retirement, just starting out in the leadership of your business, or are considering an ownership role in your future career, the best thing you can do to prepare yourself and your current or future business for success is to build a relationship with a commercial banker.
Two of the most common types of business succession are the sale of a business or an internal leadership change. Internal leadership changes are most common in family businesses. I’d like to take a minute to recognize the impressive work that goes into starting, running, and continuing the legacy of a family business. This is no small feat, and that’s why NBT Bank is the presenting sponsor for the 4th annual Family Business Awards of CNY on Dec. 4, 2018, produced by BizEventz.
Even if business succession seems far in the future, if you don’t have a succession plan and a successor (family member, current employee, or outside party) identified, it’s important to start thinking about it now.
Your commercial banker is an excellent place to start if you are a current business owner. Your banker has access to a team of financial professionals at his or her bank that can take the necessary time now to understand your current financial position as well as your goals for retirement and business continuity. This team will then help you build a plan that considers timing, financial needs, ideal sale/purchase terms, and the continued legacy of your business.
If you are on the other side of the succession equation and are planning to take over a business-ownership role, then it is even more critical to build a relationship with a commercial banker as soon as possible. To best position yourself for an optimal purchase structure and to ensure you are able to secure the necessary funding for the purchase or buyout of a business, your bank will need to get to know you, see your personal financial history, review your business plan, and understand your goals for the future of the business.
While many people only think about the initial loan from a bank that may be required to purchase a business, the most successful business leaders are already thinking much farther down the road. If you are planning to buy into an existing company, then you should also be talking with your commercial-banking team about how you plan to finance operations, banking products to support cash management and employee services, as well as plans for future growth.
There is a lot of information that will be required to prepare for that first meeting. Among other things, a bank will evaluate and help new owners to consider the following questions:
• What connections, management, and other attributes did the prior owner bring to the business?
• How reliant is the business sustainability upon the previous owner?
• What is the expertise of the people who are staying in the business to help ensure continued success?
• Is there a non-compete agreement and/or management contract with the prior owner?
• What was the last owner taking from the company via salary and benefits?
• Is the projected annual loan servicing that is being taken out to purchase the business offset by what the prior owner was taking? (The goal for the new owner is to not exceed the amount of his/her annual loan payments to what the previous owner was taking out of the business.)
• How many new owners will there be? If there will be more than one owner, what is their strategy for managing and decision-making?
We have worked with plenty of current and potential business owners who work hard to make sure they consider all these components for their business (and personal) success. We have also seen many who are not nearly as prepared as they thought they needed to be. It’s important to discuss with your bankers the myriad scenarios involved in local business transitions so you can set up the company for long-term sustainability.
Richard Shirtz is NBT Bank’s regional president serving Onondaga, Oswego, and Cortland counties. He is responsible for NBT’s commercial banking business and geographic oversight of all other area business units. Shirtz joined NBT as part of the bank’s acquisition of Alliance Bank in 2013 and has more than 30 years of commercial-banking experience.

NBT Bank’s Q3 net income rises more than 30 percent
NORWICH — NBT Bancorp Inc. (NASDAQ: NBTB), parent of NBT Bank, recently reported that its net income rose more than 30 percent in the third quarter to a record $29.8 million, or 68 cents a share from $22.9 million, or 52 cents, in the year-ago period. Growth in deposits, loans, and fee-based income, as well
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NORWICH — NBT Bancorp Inc. (NASDAQ: NBTB), parent of NBT Bank, recently reported that its net income rose more than 30 percent in the third quarter to a record $29.8 million, or 68 cents a share from $22.9 million, or 52 cents, in the year-ago period.
Growth in deposits, loans, and fee-based income, as well as an improved net interest margin contributed to the growth, the Norwich–based banking company said.
NBT’s earnings per share of 68 cents in the quarter topped the consensus analyst estimate of 65 cents, according to Zacks Equity Research.
NBT’s net income for the first nine months of 2018 also grew 30 percent to a record $83.9 million, or $1.91 per share, from $64.5 million, or $1.47, for the same period last year.
“For the third quarter and through the first nine months of the year, we have achieved record net income and earnings per share,” NBT President and CEO John H. Watt, Jr., said in the company’s earnings report. “These results reflect the continuing efforts of our team to drive organic growth in loans and deposits and to grow our fee-based businesses while making important and ongoing technology investments that enable NBT to continually enhance the customer experience and create long-term shareholder value. Our ability to successfully manage deposit costs in a rising rate environment and to maintain strong asset quality is fundamental to our business.”
NBT’s fully taxable equivalent net interest margin was 3.57 percent in the third quarter of this year, up from 3.47 percent a year prior.
Net loans increased to more than $6.8 billion at the end of the third quarter from nearly $6.4 billion a year earlier. The banking company’s total deposits topped $7.4 billion in the latest quarter, up from more than $7.2 billion in the third quarter of 2017.
NBT’s total assets rose to $9.55 billion from $9.15 billion in the past year.
The banking company posted noninterest income of $33.4 million for the three months ended Sept. 30, 2018, up 8.5 percent from the third quarter of 2017. The increase was driven by higher retirement-plan administration fees resulting from NBT’s acquisition of Retirement Plan Services, LLC in the second quarter of 2018. Also contributing were higher insurance and other financial-services revenue gains due to account growth that were somewhat offset by lower other noninterest income due primarily to lower swap fees, the earnings report stated.
NBT’s board of directors approved a fourth-quarter 2018 cash dividend of 26 cents per share, up 1 cent, or 4 percent, from the previous dividend. The banking company will pay the new dividend on Dec. 14, to shareholders of record as of Nov. 30. Combined with NBT’s previous dividend increase in the second quarter, the quarterly dividend payable to its shareholders has risen 13 percent in 2018.
NBT Bank has 152 branches in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. NBT Bancorp also owns EPIC Retirement Plan Services, which is a Rochester–based 401(k) plan recordkeeping firm, and NBT Insurance Agency, LLC, a Norwich–headquartered full-service insurance agency.
Community Bank’s third-quarter profit up 22 percent
DeWITT — Community Bank System, Inc. (NYSE: CBU) reported third quarter net income of $43.1 million, or 83 cents a share, up 22 percent from $35.2 million, or 68 cents, in the year-earlier period. Higher net interest income, increased noninterest revenue, and a lower effective tax rate led the growth, offset partly by higher operating
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DeWITT — Community Bank System, Inc. (NYSE: CBU) reported third quarter net income of $43.1 million, or 83 cents a share, up 22 percent from
$35.2 million, or 68 cents, in the year-earlier period.
Higher net interest income, increased noninterest revenue, and a lower effective tax rate led the growth, offset partly by higher operating expenses, the DeWitt–based banking company said in its earnings report issued on Oct. 22.
Community Bank’s earnings per share of 83 cents in the quarter topped the consensus analyst estimate of 79 cents, according to Zacks Equity Research. The research firm says Community has topped analyst estimates in each of the last four quarters.
The banking company’s revenue in the third quarter totaled $142 million, up 3.4 percent over the year-earlier period. Community recorded a 2.1 percent increase in net interest income and 5.4 percent rise in noninterest revenue.
Community Bank generated $14.4 million of wealth management and insurance services revenue in the third quarter, a nearly 20 percent increase over the third quarter of 2017. In the last year, the banking company acquired four small insurance and wealth management practices, contributing to revenue growth.
Community’s employee-benefit services revenue of $23.3 million in the latest quarter was up 12 percent from a year prior, led by organic increases in plan asset and participant levels, the earnings report stated.
“Looking forward, we have significant revenue and earnings momentum, reasonable credit demand, a solid funding base, and we continue to accrete capital at a substantial pace,” Mark Tryniski, CEO and president of Community Bank System, said on the company’s earnings conference call with analysts and investors. “The strategic focus for 2019, will be on capital allocation to ensure the continuation of above-average shareholder returns with below-average balance sheet and operating risk.”
Community Bank operates more than 230 branches across upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts.
If You Think Our Health Care is Screwy, Try Britain’s
You likely have read or heard about the British health system. But you probably haven’t been caught in the thick of it — lying about in a big London hospital and waiting for a procedure on your heart. That is my fate at the moment. As I write this, I wait for a heart doc
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You likely have read or heard about the British health system. But you probably haven’t been caught in the thick of it — lying about in a big London hospital and waiting for a procedure on your heart.
That is my fate at the moment. As I write this, I wait for a heart doc to explore my heart for blockages. And to perhaps clear a blockage and add a stent or two to my collection of 30.
You might be surprised at the contrasts. Quality treatment in the U.S. — shoddy treatment here. For instance, I came by ambulance to emergency care. Treatment was identical to what I’ve experienced in the U.S. Prompt, sensible procedures.
But then I was dumped into a holding pen. A waiting room chock-a-block with various deliveries from ambulances. The ambulance crews trundled patients in and dumped them onto chairs to wait a few hours for attention.
If you were there, you would have had a guy with a bloody noggin’ installed at your elbow. You would have dodged his vomit as he spewed into a cardboard mini-bucket provided by the staff. Your other elbow would have been prodded by a young woman who seemed to be having mini-seizures. Across from you, a poor homeless creature. He screamed obscenities at the staff. And shouted at creatures only he could see.
After several hours, I was finally evaluated and after more hours, admitted.
Again, the contrast. For one spell, a nurse of quality. For the next, a nurse who can barely manage the language. She spends much of her time on the phone disputing bills from her cable company and clearly neglecting her patients.
This, in a ward full of people with really fragile hearts. Any of them could suffer a heart attack at any moment — which is why they are here. Not one is on a monitor. My nurse says, “Use your buzzer if you have a problem.” I will remember to do that if I crash.
The quality nurse follows sensible procedures. Latex gloves when handling pills and needles. Hand cleansers at every turn. The slovenly nurse ignores the gloves and cleansers. And cannot keep the medications straight.
Contrasts. The staff use laptops to record your data. Sometimes. Much of the time they scribble on scraps of paper, on the back of forms. Many have a habit of writing your data on the skin of the backs of their hands. Or on the latex gloves on those hands.
At breakfast, a woman rolls in a rickety wagon that holds a few choices. I choose porridge. She lifts a piece of cardboard off a big pot of porridge and wields an old ladle to slop out a bowl of the stuff. She plucks a few slabs of toast and drops them onto your tray. No gloves in sight.
The cardiologist and other docs seem to know their stuff. They give the impression that they are informed and thoughtful.
Ah, but when will they do this intervention on my heart? Well, maybe later today. Or maybe tomorrow. Or the day after that. “If we get into Friday, we’ll have to wait until Monday. We don’t do any interventions on the weekend.”
At some juncture we can choose to go private. That is, to abandon the government-run system and have the procedure done in a private system. Which is probably what we will do. If we ever get to that juncture. Who would then do the procedure? Probably the same team that will do it in the government hospital. They will do it in the evening — after they finish their shift for the government. And they will likely do it in the same surgical rooms.
The incompetent nurse has just taken my blood pressure, pulse, and temperature. Her blood-pressure equipment is modern. Her thermometer is super-modern. A new type I have never seen. But she scribbles the numbers onto the back of a crumpled form. She adds them to a mass of similar scribbles. There must be 500 sets of them she has scribbled helter-skelter on the paper. How she knows which are mine is a mystery. Then she casually drops the paper into a wee basket on the blood pressure trolley and waddles away.
I need to have an X-ray. The nurse hands me a folder and gives me directions to find radiology. In my hospital gown and slippers I make my way down eight floors, wander through the lobby, past a fast-food restaurant and into a connecting building and up another lift. Alongside people munching French fries. I wake the guy who handles traffic at radiology. He does his thing. Stuffing something into my folder, he sends me back to my hospital room — aka the lobby and fast-food restaurant.
I’m listening to a nurse prep the guy with whom I share a room. He will have bypass surgery on his heart tomorrow. Or maybe the next day. Or maybe … and not on the weekend. “Your surgeon will be Dr. Jeffries. Or maybe Dr. Lewis. Or perhaps …” Clearly, the patient will not meet his surgeon. And he has no choice as to who will rip him open. Imagine this, however: He suffered a heart attack three weeks ago. He has been waiting since then to have his surgery.
This is a major London hospital. This is the British health system. This is weird, in places. Sensible in others. I hope to still be with you next week. But one never knows, does one?
Bernie Sanders, you should spend time here — before you urge us to increase government’s role in our health care.
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home in upstate New York. He has a new novel out, call “The Last Columnist,” which is available on Amazon. Contact Tom at tomasinmorgan@yahoo.com, read more of his writing at tomasinmorgan.com, or find him on Facebook.
What Does It Mean to Be an American?
What does it actually mean to be an American? Day to day, we may not think about this much. Yet it’s a crucial question, one that each generation in this country is called upon to answer for itself. Despite our differences, there are some traits that I think we and our predecessors would recognize —
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What does it actually mean to be an American? Day to day, we may not think about this much. Yet it’s a crucial question, one that each generation in this country is called upon to answer for itself.
Despite our differences, there are some traits that I think we and our predecessors would recognize — characteristics to being an American that resonate with most of us, regardless of our age or our political beliefs. For instance, I believe the aim of our representative democracy is to enhance the liberty of free people, and to offer them the opportunity to make the most of their talents.
Perhaps the most eloquent expression of this view is the awe-inspiring Declaration of Independence, which remains a core inspiration both for our political values and our shared identity. The notion that all people are created equal, that we possess God-given inalienable rights, including to life, liberty, and the pursuit of happiness — these are beliefs that undergird our democracy.
They suggest that our country can be an example to the world of what a government of liberty can mean in the lives of citizens. And that we should never stop trying to make the world a better place. Bringing these values into our policies and our politics depends on all of us.
Often people ask, “Where are the Jeffersons or Lincolns in this time of need?” They understand that the quality of our elected leaders makes all the difference, and that bold, decisive, thoughtful leadership is essential for our country’s success. While I recognize that, I believe ultimately our success as a nation rests on the strength and capabilities of our citizens. The Founding Fathers spoke often of the need for citizens of virtue and talent, for people capable of governing themselves.
We do so through our political institutions, within a framework set out in our Constitution. While our system is not perfect, it has provided us with the tools to meet our challenges — and in a better fashion than any likely alternative.
Politics as it is practiced in our country can bring despair and crushing defeat. But it can also produce splendid achievements. If you enter politics, you have to be prepared for both. I know that a lot of people view politics with disdain and disapproval, yet over the course of a long political life, I never felt the desire to escape it. Just the opposite, in fact. I knew a lot was at stake in the battles, and I embraced them.
To be sure, I pursued them at a time when it was possible to find common ground across partisan divides, and when respecting one’s opponents did not bring immediate censure from donors and primary voters. The atmosphere is different now. Yet the basic need — for using the political system to resolve fundamental challenges — has not changed.
Nor has one of its most basic features: a permanent tension between the preservation and expansion of individual freedom on the one hand, and the stability and strength of the nation on the other.
Government must have enough power to protect the national interest and to be capable of addressing deep-seated problems. It must secure and enlarge personal liberties while maintaining order and stability. It must provide the national security necessary for the preservation of freedom.
These are not contradictory goals, but they do rub against each other. How we interpret them — how far in one direction or the other we go as our national circumstances change — is a constant challenge. Being an American means not shying away from that task, but instead embracing it as part of our birthright.
Lee Hamilton is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at the IU School of Global and International Studies, and professor of practice at the IU School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years, representing a district in south central Indiana.
CAITLIN ESPOSITO has been named the new chair and program director for the Le Moyne College Master of Science in Occupational Therapy (OT) program. She will also teach as an assistant professor. Prior to being named chair, Esposito has been involved with Le Moyne’s OT program in a number of ways, including serving as an
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CAITLIN ESPOSITO has been named the new chair and program director for the Le Moyne College Master of Science in Occupational Therapy (OT) program. She will also teach as an assistant professor. Prior to being named chair, Esposito has been involved with Le Moyne’s OT program in a number of ways, including serving as an academic fieldwork coordinator from 2015 to 2018, teaching several courses, and student advising. She spent more than a decade in clinical practice in the areas of community-based mental health and sub-acute rehabilitation. She received her bachelor’s and master’s degrees from Quinnipiac University and her doctorate in OT from Rocky Mountain University of Health Professions.
Mohawk Valley Community College
Mohawk Valley Community College (MVCC) announced several personnel moves. DOMINIC DIMAGGIO transitioned to head coach/athletics specialist. He has led the MVCC men’s soccer team and served as a physical education faculty member since 2017. DiMaggio previously worked as part of the Southern New Hampshire University men’s soccer staff as an assistant coach, was the director
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Mohawk Valley Community College (MVCC) announced several personnel moves. DOMINIC DIMAGGIO transitioned to head coach/athletics specialist. He has led the MVCC men’s soccer team and served as a physical education faculty member since 2017. DiMaggio previously worked as part of the Southern New Hampshire University men’s soccer staff as an assistant coach, was the director of Goalkeeping for Seacoast United, and an assistant coach for the U18, U16, and U14 U.S. Soccer Development Academy teams. DiMaggio coached in the state of New Hampshire for six years. He holds a bachelor’s degree in accounting and finance from Southern New Hampshire University and a master’s degree in finance with a concentration in investments with securities. MARYROSE EANNACE was named VP emerita, in recognition of her “many outstanding years of service” to MVCC. NICHOLAS EVANOFF was appointed head coach/athletics specialist and will serve as the men’s lacrosse coach. He previously was a volunteer assistant boy’s lacrosse coach for Whitesboro High School, assistant lacrosse coach for men’s and women’s lacrosse at Utica College, and supervisor at the Syracuse University Lacrosse Camp. Evanoff holds a bachelor’s degree in criminal justice from Syracuse University and a master’s degree in childhood education from Utica College. MICHAEL HENNINGSEN has transitioned to coordinator of University Partnerships and Transfer Center. He has worked at MVCC since 2010 and also previously served as a residence hall director at Broome Community College and an assistant hall director at the University of Buffalo. Henningsen holds an associate degree in human services from Broome Community College, a bachelor’s degree in social work from SUNY Brockport, and a master’s degree in college student personnel administration from Canisius College.
CRISTINA HATEM has joined WCNY as VP & chief marketing officer. She brings more than 25 years of integrated marketing, sales, event, and community engagement experience to WCNY. She previously was marketing communications manager at JADAK; manager of corporate marketing communications, customer & market research at Preferred Mutual Insurance Co.; and held other positions at
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CRISTINA HATEM has joined WCNY as VP & chief marketing officer. She brings more than 25 years of integrated marketing, sales, event, and community engagement experience to WCNY. She previously was marketing communications manager at JADAK; manager of corporate marketing communications, customer & market research at Preferred Mutual Insurance Co.; and held other positions at Beard Miller Company, Mower, and Sage Marcom Inc. Hatem earned a bachelor’s degree in public relations from Syracuse University’s S.I. Newhouse School of Public Communications, and a master’s degree in teaching from Le Moyne College.
WILL LANDRY has joined WCNY as media sales account executive. He brings more than 14 years of sales and relationship development experience to WCNY. Landry was previously a media buyer and strategist at ABC Creative Group. He earned a bachelor’s degree from SUNY Oswego.
MARTHA LEMONDES has joined WCNY as VP & chief people officer. She brings more than 20 years of training, human resources, and organizational development experience to WCNY. She has led teams of training professionals, partnered with senior executives, and managed projects that span all areas of human performance. She previously was a human resource business partner at Charter Communications, director of people development at AOL, and owner of a human capital solutions practice in the Washington D.C./Baltimore area. Lemondes earned a bachelor’s degree from Michigan State University and a master’s degree from American University.
CAROLINE MARRA has joined WCNY as associate director, education. She previously served as the lead universal pre-kindergarten teacher at Cayuga Seneca Community Action Agency. Marra earned a dual bachelor’s degree in childhood education and special education, with a concentration in French from SUNY Geneseo.
SHANNON HANRAHAN was promoted from director, individual giving to VP & chief development officer at WCNY. She was recognized for her commitment and donor-centric approach to propelling WCNY’s membership goals to new record highs. Hanrahan was previously a major gifts officer at sister station WSKG in Binghamton. She earned a bachelor’s degree in writing and art history from Ithaca College and a master’s degree in art history from the Courtauld Institute of Art.
Cumulus Radio Station Group has hired RICK NUZZO as local sales manager. He spent the last 14 years gaining broadcast sales and marketing experience as an account executive at NewsChannel 9. Nuzzo studied broadcast journalism at Onondaga Community College and attended the University at Buffalo for communications.
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Cumulus Radio Station Group has hired RICK NUZZO as local sales manager. He spent the last 14 years gaining broadcast sales and marketing experience as an account executive at NewsChannel 9. Nuzzo studied broadcast journalism at Onondaga Community College and attended the University at Buffalo for communications.
The YMCA of Greater Syracuse has hired DARNELL HAYES as the Eastern District VP. He will be responsible for the leadership of the Y’s East Area Operations, which includes the Hal Welsh East Area and Manlius YMCAs, as well as Camp Iroquois. Hayes comes to Syracuse with many years of distinguished service in the Y
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The YMCA of Greater Syracuse has hired DARNELL HAYES as the Eastern District VP. He will be responsible for the leadership of the Y’s East Area Operations, which includes the Hal Welsh East Area and Manlius YMCAs, as well as Camp Iroquois. Hayes comes to Syracuse with many years of distinguished service in the Y movement. He most recently served as a branch executive director with the River Valley Regional YMCA in Williamsport, Pennsylvania. Prior to that, Hayes served as a branch director with the Ocean Community YMCAs in Rhode Island. He is involved on the national level as a YMCA of the USA member experience trainer.
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