By Christine Graf
After two years of negotiations, the agreement which would have allowed Pioneer Bank to purchase Jaeger & Flynn for $12.75 million has been terminated.
With more than 85 employees working in offices in Clifton Park, Saratoga Springs, and Glens Falls, Jaeger & Flynn is the third largest health insurance broker in the region. They also offer human resources consulting and a variety of other services.
According to Pioneer Bank CEO Tom Amell, it was Jaeger & Flynn President and CEO Thomas Flynn who ultimately made the decision to terminate the agreement.
“His reasoning for it made good business sense,” said Amell. “The decision was made primarily because of COVID-19 unrest. It happened at a time when there was an out clause in the contract. We were so close to getting final touches on it, and then the world changed on us. We mutually agreed to take a deep breath, step back, and make sure our underlying business are strong.”
Although the agreement has been terminated, Amell is hopeful that Pioneer Bank will be able to move forward with the acquisition at a later date.
“We hope to revisit this by the end of the year when people get back to work and our economy strengthen—when the world goes back to normal again,” he said. “We have a great relationship, and it’s a perfect strategic fit for the two companies. The clients that they attract are in our sweet spot—middle market businesses that are local companies. We were already referring clients back and forth.”
The acquisition would have been Pioneer’s largest to date. In 2016, they acquired Anchor Agency Insurance, a personal and commercial insurance company with 25 employees.
“As a community bank, we don’t want to just be transactional,” said Amell. “We want to build relationships, and that’s important to them (Jaeger & Flynn). We want to be in a relationship business where we help our clients with things like health insurance, wellness programs and consultation on HR-related topics. That’s what small businesses need. I firmly believe that the pain points for business owners are in that space. We want to be that company that really helps them.”
In addition to putting a halt to the acquisition, the COVID-19 pandemic has impacted Pioneer Bank’s daily operations. Their branches are open for drive through banking, and many employees are working from home. They are an approved lender for the Small Business Administration’s Paycheck Protection Program and received over 400 applications for the initial $349 billion that was made available.
Applications are now being processed for the additional $310 billion in funding was added on April 27. “It’s been a 24/7 effort,” said Amell.
