• Wealth management and insurance are most attractive targets
• Looks for wealth managers with AUM of USD 1bn-USD 2bn
• Targets insurance agencies with USD 500k-USD 15m in annual revenue

Community Financial System is searching actively for acquisition targets to grow its four Northeastern-based financial services platforms, CEO Dimitar Karaivanov said.

The firm has been especially active looking for M&A opportunities for insurance and wealth management, Karaivanov said.

In wealth management, Community generally targets firms with assets under management (AUM) in the range of USD 1bn-USD 2bn and with revenue of USD 10m to USD 20m, Karaivanov said. Transaction sizes fall between USD 20m and USD 50m, he added.

For insurance agencies, the company looks for brokers with annual revenues of USD 500,000-USD 15m, he said, noting that Community has acquired brokers with as much as USD 20m in revenue.

The company is more opportunistic about bank transactions, which have been less frequent lately, Karaivanov said. It prefers targets with assets from USD 500m-USD 2bn, he said.

Community on 25 June announced a deal with Santander to buy seven branches that will augment Community Bank in the Allentown, Pennsylvania area. Community Financial completed its last whole bank acquisition in 2022, Karaivanov said.

The firm also looks for companies with fund administration capabilities for its trustee division, which administers employee retirement plans and other collective investment pools, Karaivanov said. Community looks for targets that serve wealth managers and collect revenue as a percentage of assets, the CEO said.

The firm prefers banking deals that add to its footprint of upstate New York, eastern Pennsylvania, southern New Hampshire, Vermont and the Springfield, Massachusetts, area, he said.

Community’s insurance footprint is similar in geography but includes Florida and South Carolina, he said. Its wealth business is roughly half local to the Northeast and half national. Its employee benefits unit, which includes the trust administration line, is national with 13 offices, Karaivanov said.

Headquartered in Syracuse, New York, Community Financial has maintained its diversified financial services model because it stabilizes financial performance through economic cycles, the CEO said.

The company doesn’t target M&A goals or acquisition pace but uses its model for a flexible strategy, Karaivanov said.

“Capital has never been a constraint, so it’s really about balancing opportunities for those that fit our buckets,” he said.

Through 1H25, Community had completed two insurance deals, three benefits administration deals, and the Santander transaction, he said.

The firm employs about 3,000 people in 32 states, Karaivanov said.

Community Financial on 22 July reported 2Q25 total revenue of USD 199.3m, compared to USD 183.8m in 2Q24. Net income was USD 51.3m, a climb from USD 47.9m in 2Q24.

Its share price closed at USD 54.40 on 24 July, which was down 9.5% in the last 12 months and off about 12% year to date.

The company’s market cap was USD 2.88bn.

Lazard advised on the Santander deal, and PwC provides accounting services.