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COMMUNITY FINANCIAL SYSTEM, INC.
0000723188
0000723188
2024-07-23
2024-07-23
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 23, 2024
(Exact name of registrant as specified in
its charter)
| Delaware |
001-13695 |
16-1213679 |
(State or other
jurisdiction of
incorporation) |
(Commission File Number) |
(IRS Employer Identification
No.) |
| 5790 Widewaters Parkway, DeWitt, New York |
13214 |
| (Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (315)
445-2282
Community Bank System, Inc.
(Former name or former
address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading
Symbol(s) |
Name
of each exchange on which registered |
| Common Stock, $1.00 par value per share |
CBU |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On July 23, 2024, Community Financial System, Inc.
announced its results of operations for the quarter ended June 30, 2024. The public announcement was made by means of a news release,
the text of which is furnished as Exhibit 99.1.
The information in this Form 8-K, including Exhibit
99.1 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under
the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibit is being furnished pursuant
to Item 2.02 above.
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
Community Financial System, Inc. |
| |
By: |
/s/ Joseph E. Sutaris |
| |
Name: |
Joseph E. Sutaris |
| |
Title: |
Executive Vice President and Chief Financial Officer |
Dated: July 23, 2024
Exhibit Index
Exhibit 99.1
 |
News Release
For further information, please contact: |
| 5790 Widewaters Parkway, DeWitt, N.Y. 13214 |
Joseph E. Sutaris, EVP & Chief Financial Officer
Office: (315) 445-7396 |
Community Financial System,
Inc. Reports Second Quarter 2024 Results
SYRACUSE,
N.Y. — July 23, 2024 — Community Financial System, Inc. (the “Company”) (NYSE: CBU) reported second quarter 2024
results that are included in the attached supplement. This earnings release, including supporting financial tables, is also available
within the press releases section of the Company's investor relations website at: https://ir.communityfinancialsystem.com/news-presentations/press-releases/.
An archived webcast of the earnings call will be available on this site for one full year.
Second Quarter 2024 Performance Summary
| · | Net income of $47.9 million, or $0.91 per fully diluted share, increased $0.02 per fully diluted share from the prior year’s
second quarter and increased $0.15 per fully diluted share from the first quarter of 2024 |
| · | Operating net income, a non-GAAP measure that excludes from net income the after-tax effects of acquisition expenses, acquisition-related
contingent consideration adjustments, litigation accrual, loss on sales of investment securities, unrealized gain (loss) on equity securities
and amortization of intangible assets, of $50.5 million, or $0.95 per fully diluted share, decreased $0.01 per fully diluted share from
the prior year’s second quarter and increased $0.13 per fully diluted share from the first quarter of 2024 |
| · | Total revenues of $183.8 million, a new quarterly record for the Company, increased $8.5 million, or 4.9%, from the prior year’s
second quarter and increased $6.5 million, or 3.7%, from the first quarter of 2024 |
| · | Net interest income of $109.4 million increased $0.1 million, or 0.1%, from the prior year’s second quarter and increased
$2.4 million, or 2.3%, from the first quarter of 2024 |
| · | Total financial services (employee benefit services, insurance services and wealth management services) revenues of $54.1 million,
also a new quarterly record for the Company, increased $5.8 million, or 12.1%, from the prior year’s second quarter and increased
$2.1 million, or 4.0%, from the first quarter of 2024 |
| · | Operating pre-tax, pre-provision net revenue, a non-GAAP measure that excludes from income before income taxes the provision for
credit losses, acquisition expenses, acquisition-related contingent consideration adjustments, litigation accrual, loss on sales of investment
securities, unrealized gain (loss) on equity securities and amortization of intangible assets, of $68.1 million, or $1.29 per fully diluted
share, increased $0.05 per fully diluted share from the prior year’s second quarter and increased $0.11 per fully diluted share
from the first quarter of 2024 |
| · | Total ending loans of $10.02 billion increased $140.4 million, or 1.4%, from the end of the first quarter of 2024, marking the
twelfth consecutive quarter of loan growth, and increased $853.1 million, or 9.3%, from the end of the prior year’s second quarter |
| · | Total ending deposits of $13.14 billion decreased $214.1 million, or 1.6%, from the end of the first quarter of 2024 and increased
$266.1 million, or 2.1%, from the end of the prior year’s second quarter |
| · | Annualized loan net charge-offs were 0.05% for the quarter |
| · | Tier 1 leverage ratio of 9.07% at the end of the quarter continues to substantially exceed the regulatory well-capitalized standard
of 5.0% |
Company management
will conduct an investor call at 11:00 a.m. (ET) today, July 23, 2024, to discuss the second quarter 2024 results. The conference call
can be accessed at 1-833-630-0464 (1-412-317-1809 if outside the United States and Canada). Investors may also listen live via the Internet
at: https://app.webinar.net/VN97qOvz8pd.
CBU Investor Day – September 6, 2024
Community Financial System, Inc. (NYSE: CBU) will host its Investor
Day on September 6, 2024, which will be available both in person at the New York Stock Exchange conference facilities and virtually. The
event will provide an opportunity for investors to engage directly with Company management, gain insights into strategic initiatives,
and explore the Company's future growth prospects.
Registration Details:
| · | In-Person Attendance:
Register here – https://edge.media-server.com/mmc/p/ko6picw9 |
| · | Virtual Attendance:
Register here – https://edge.media-server.com/mmc/p/77ifdrya |
Additional details, including the agenda, will be available on the
Company's website.
About Community Financial System, Inc.
Community Financial System, Inc. is a diversified financial services
company that is focused on four main business lines – banking, employee benefit services, insurance services and wealth management
services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest banking institutions with over $15 billion
in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western
Massachusetts. The Company’s Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits
administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national
scale. The Company’s OneGroup NY, Inc. subsidiary is a top 75 U.S. insurance agency. The Company also offers comprehensive financial
planning, trust administration and wealth management services through its Community Bank Wealth Management operating unit. The Company
is listed on the New York Stock Exchange and the Company’s stock trades under the symbol CBU. For more information about the Company
visit www.cbna.com or www.communityfinancialsystem.com.
| |
News
Release
For
further information, please contact: |
| 5790 Widewaters
Parkway, DeWitt, N.Y. 13214 |
Joseph
E. Sutaris, EVP & Chief Financial Officer
Office:
(315) 445-7396 |
Community
Financial System, Inc. Reports Second Quarter 2024 Results
SYRACUSE,
N.Y. — July 23, 2024
Community
Financial System, Inc. (the “Company”) (NYSE: CBU) reported second quarter 2024
net income of $47.9 million, or $0.91 per fully diluted share and non-GAAP operating net
income of $50.5 million, or $0.95 per fully diluted share.
|
| |
“Our
Company continued to execute on our below average risk and above average return investment
profile through our diverse revenue streams, best-in-class core funding, strong credit and
regulatory capital position, and robust liquidity levels. For the third consecutive quarter,
the Company established a new record for quarterly revenues as noninterest revenues continued
to grow while expansion in interest income outpaced pressure on funding costs,” commented
Dimitar A. Karaivanov, President and CEO.
“Strong
results in all of our businesses combined with cost control and strong credit performance in our banking business all contributed to
a $0.15, or 19.7%, increase in diluted earnings per share over the linked first quarter. In addition, the Company’s operating pre-tax,
pre-provision net revenue per share, a non-GAAP measure, increased $0.05, or 4.0%, over the prior year’s second quarter, demonstrating
solid improvement in the Company’s year-over-year core operating performance.
The opportunity
set in all of our businesses remains excellent. Looking forward, we anticipate executing on these opportunities to support our diversified
revenue business model, while maintaining our foundational balance sheet strength.” |
During
the second quarter of 2024, the Company announced the change of its corporate name from Community
Bank System, Inc. to Community Financial System, Inc. to reflect the Company’s broader
business model and mission in contributing to the prosperity of its community, including
its clients, colleagues and shareholders by providing comprehensive financial services across
its four main business lines.
Additionally, during the second quarter the Company announced it will host an in-person and virtual Investor Day on September 6, 2024
at the New York Stock Exchange conference facilities where the senior leadership team will provide insights into the strategies, performance
and future outlook on each of the Company’s lines of business – Banking, Employee Benefit Services, Insurance Services and
Wealth Management Services. |
Second
Quarter 2024 Performance
| Operating
Performance |
·
Diluted Earnings Per Share
o
$0.91 per share, an increase of $0.02 per share from the second quarter of 2023 and an increase of $0.15 per share from the first
quarter of 2024
·
Operating Diluted Earnings Per Share (non-GAAP)
o
$0.95 per share, a decrease of $0.01 per share from the second quarter of 2023 and an increase of $0.13 per share from the first
quarter of 2024
·
Operating Pre-Tax, Pre-Provision Net Revenue Per Share (non-GAAP)
o
$1.29 per share, an increase of $0.05 per share from the second quarter of 2023 and an increase of $0.11 per share from the first
quarter of 2024 |
| |
|
| Return
Metrics |
·
Return on Assets | Operating Return on Assets (non-GAAP)
o
1.22% | 1.29%
·
Return on Equity | Operating Return on Equity (non-GAAP)
o
11.79% | 12.43% |
| Revenues |
·
Total Revenues
o $183.8
million, an increase of $8.5 million, or 4.9%, from the second quarter of 2023 and an increase of $6.5 million, or 3.7%, from the
first quarter of 2024
·
Total Operating Revenues (non-GAAP)
o
$183.2 million, an increase of $7.9 million, or 4.5%, from the second quarter of 2023 and an increase of $5.9 million, or 3.3%, from
the first quarter of 2024
·
Noninterest Revenues
o
$74.4 million, an increase of $8.4 million, or 12.7%, from the second quarter of 2023 and an increase of $4.1 million, or 5.8%, from
the first quarter of 2024
·
Total Operating Noninterest Revenues (non-GAAP)
o
$73.8 million, an increase of $7.7 million, or 11.7%, from the second quarter of 2023 and an increase of $3.5 million, or 5.0%, from
the first quarter of 2024
·
Noninterest Revenues/Total Revenues | Operating Noninterest Revenues/Operating Revenues (FTE) (non-GAAP)
o
40.5% | 40.1% |
| |
|
| Net
Interest Income and Net Interest Margin |
·
Net Interest Income
o $109.4
million, an increase of $2.4 million, or 2.3%, from the first quarter of 2024 and an increase of $0.1 million, or 0.1%, from the
second quarter of 2023
·
Net Interest Margin
o
3.01%, an increase of six basis points from 2.95% for the first quarter of 2024 and a decrease of 13 basis points from 3.14% for
the second quarter of 2023
·
Net Interest Margin (Fully Tax-Equivalent) (non-GAAP)
o
3.04%, an increase of six basis points from 2.98% for the first quarter of 2024 and a decrease of 14 basis points from 3.18% for
the second quarter of 2023 |
| |
|
| Balance
Sheet and Funding |
·
Total Ending Loans
o $10.02
billion, an increase of $140.4 million, or 1.4%, from March 31, 2024, and an increase of $853.1 million, or 9.3%, from one year ago
·
Total Ending Deposits
o
$13.14 billion, a decrease of $214.1 million, or 1.6%, from March 31, 2024, and an increase of $266.1 million, or 2.1%, from one
year ago
·
Total Deposit Funding Costs | Total Cost of Funds
o
1.23% | 1.37% |
| |
|
| Risk
Metrics |
·
Annualized Loan Net Charge-Offs
o 0.05%
·
Tier 1 Leverage Ratio
o
9.07%
·
Loan-to-deposit ratio
o
76.3%
·
Non-owner occupied and multifamily commercial real estate (“CRE”) / total bank-level regulatory capital
o
198% |
Second
Quarter 2024 Business Segment Revenues
| Banking |
·
Total Revenues of $129.0 million increased $2.0 million, or 1.6%, from the second quarter of 2023 and increased $3.8 million, or
3.0%, from the first quarter of 2024.
·
The increases between both periods were due to an increase in noninterest revenues primarily resulting from higher mortgage banking
revenues and higher net interest income. |
| |
|
| Employee
Benefit Services |
·
Total Revenues of $32.1 million increased $3.5 million, or 12.4%, from the second quarter of 2023 and increased $0.4 million, or
1.3%, from the first quarter of 2024.
·
The increases between both periods were reflective of increases in the total participants under administration along with growth
in asset-based fee revenues and the acquisition of certain assets of Creative Plan Designs Limited on February 1, 2024. |
| |
|
| Insurance
Services |
·
Total Revenues of $13.3 million increased $1.4 million, or 12.2%, from the second quarter of 2023 and increased $2.2 million, or
19.8%, from the first quarter of 2024.
·
The increases between both periods were reflective of organic and acquired growth in commissions revenues including the incremental
revenues resulting from the acquisition of a New York-based insurance agency on April 1, 2024. |
| |
|
| Wealth
Management Services |
·
Total Revenues of $8.7 million increased $0.8 million, or 10.6%, from the second quarter of 2023 and decreased $0.5 million, or 5.6%,
from the first quarter of 2024.
·
The increase from the prior year’s second quarter was reflective of more favorable investment market conditions that drove
increases in assets under management between the periods while the decrease from the linked first quarter was driven by seasonal
factors. |
Results
of Operations
The Company
reported second quarter 2024 net income of $47.9 million, or $0.91 per fully diluted share. This compares to net income of $48.3 million,
or $0.89 per fully diluted share, for the second quarter of 2023. The $0.02 increase in earnings per share was driven by increases in
noninterest revenues and net interest income and a decrease in the number of fully diluted shares outstanding, partially offset by increases
in noninterest expenses, the provision for credit losses and income taxes. Comparatively, the Company’s diluted earnings per share
increased $0.15 from $0.76 per share for the linked first quarter of 2024 due to increases in noninterest revenues and net interest income
and decreases in the provision for credit losses and the number of fully diluted shares outstanding, partially offset by increases in
income taxes and noninterest expenses.
Net
Interest Income and Net Interest Margin
The Company’s
twelfth consecutive quarter of loan growth supported continued expansion in interest income that more than offset higher interest expense
driven by funding cost pressures, resulting in net interest income growth and margin expansion.
| · | Net
interest income in the second quarter of 2024 was $109.4 million, up $0.1 million, or 0.1%,
compared to the second quarter of 2023, and up $2.4 million, or 2.3%, from the first quarter
of 2024. |
| · | Net
interest margin in the second quarter of 3.01% and fully tax-equivalent net interest margin,
a non-GAAP measure, of 3.04% decreased by 13 basis points and 14 basis points, respectively,
from the second quarter of 2023. These decreases were primarily the result of an increase
in the cost of interest-bearing liabilities, partially offset by higher yields on interest-earning
assets and a higher proportion of those assets being comprised of loan balances. The change
in composition of interest-earning assets was primarily due to strong organic loan growth
and a decrease in investment securities balances driven by maturities between the periods
and the sales of certain available-for-sale investment securities in the second quarter of
2024. |
| · | The
yield on interest-earning assets increased 53 basis points to 4.35% over the prior year’s
second quarter primarily as a result of higher loan yields due to higher interest rates on
new loans, an increase in variable and adjustable-rate loan yields driven by higher market
interest rates, including the prime rate, and a high level of new loan originations. |
| · | The
cost of interest-bearing liabilities increased 89 basis points from 0.94% in the second quarter
of 2023 to 1.83% in the second quarter of 2024 as a result of market-driven higher deposit
and borrowing rates and change in deposit mix as the proportion of time deposit balances
increased. |
| · | On
a linked quarter basis, net interest margin and tax-equivalent net interest margin, a non-GAAP
measure, both increased by six basis points. The cost of funds also increased six basis points,
including a six basis point increase in the cost of interest-bearing liabilities, while the
yield on interest-earning assets increased 11 basis points. The increase in the cost of interest-bearing
liabilities included a 12 basis point increase in the average interest-bearing deposit rate
and a 10 basis point decrease in the average borrowing rate impacted by the Company’s
short-term utilization of the Federal Reserve’s Bank Term Funding Program during the
first quarter which temporarily reduced the proportion of lower rate customer repurchase
agreements to total borrowings. |
Noninterest
Revenues
The Company’s
banking and financial services (including employee benefit services, insurance services and wealth management services) noninterest revenue
streams continue to reduce its dependence on net interest income and provide a solid foundation for future growth and opportunities.
| · | Banking
noninterest revenues, comprised of deposit service and other banking fees and mortgage banking
revenues, were $19.6 million for the second quarter of 2024, an increase of $1.9 million,
or 10.6%, from the second quarter of 2023 and $1.4 million, or 7.6%, from the first quarter
of 2024. The increases between both periods were primarily due to higher mortgage banking
revenues as sales of secondary market eligible residential mortgage loans rose. |
| · | Employee
benefit services revenues for the second quarter of 2024 were $32.1 million, an increase
of $3.5 million, or 12.4%, in comparison to the second quarter of 2023 and $0.4 million,
or 1.3%, from the first quarter of 2024, driven by new business and increases in the total
participants under administration, along with growth in asset-based fee revenues resulting
from market appreciation and the acquisition of certain assets of Creative Plan Designs Limited
on February 1, 2024 that added fee revenues related to employee benefit plan design, administration
and consulting. |
| · | Insurance
services revenues for the second quarter of 2024 were $13.3 million, which represents a $1.4
million, or 12.2%, increase versus the prior year’s second quarter and $2.2 million,
or 19.8%, from the first quarter of 2024, due to organic and acquired growth in commissions
revenues including the incremental revenues resulting from the acquisition of a New York-based
insurance agency for $4.6 million in total consideration on April 1, 2024. |
| · | Wealth
management services revenues for the second quarter of 2024 were $8.7 million, an increase
of $0.8 million, or 10.6%, from the second quarter of 2023 and a decrease of $0.5 million,
or 5.6%, from the first quarter of 2024. The increase from the prior year’s second
quarter was reflective of more favorable investment market conditions that drove increases
in assets under management between the periods, while the decrease from the linked first
quarter was driven by a decline in certain trust administration fee income streams that are
seasonally higher in the first quarter. |
Noninterest
Expenses and Income Taxes
The Company
continues to maintain a focus on managing expenses consistent with its organic growth strategies and scale objectives, while evaluating
efficiency opportunities and the enhancement of operating leverage in all lines of business.
| · | The
Company recorded $119.0 million in total noninterest expenses in the second quarter of 2024,
compared to $113.0 million of total noninterest expenses in the prior year’s second
quarter. The $6.0 million, or 5.3%, increase between the periods was mainly driven by higher
salaries and employee benefits and data processing and communications expenses. |
| · | The
$5.4 million, or 8.0%, increase in salaries and employee benefits expenses was primarily
driven by merit and market-related increases in employee wages and acquisitions between the
periods, partially offset by the impact of the previously announced retail customer service
workforce optimization plan. |
| · | The
$1.0 million, or 6.9%, increase in data processing and communications expenses is reflective
of the Company’s continued investment in customer-facing and back-office technologies
including investments being made in additional technology to enhance its cybersecurity infrastructure
including the detection and prevention of customer payment-related fraud. |
| · | The
effective tax rate for the second quarter of 2024 was 22.8%, up from 21.4% in the second
quarter of 2023. Excluding the impact of tax expense and benefits related to stock-based
compensation activity and income tax credit amortization, the effective tax rate for the
second quarter of 2024 was 22.3%, up from 21.4% in the second quarter of 2023. |
Financial
Position and Liquidity
The Company’s
financial position and liquidity profile remain strong, demonstrating the effectiveness of its strategic asset and liability management
and prudent financial planning.
| · | The
Company’s total assets were $15.91 billion at June 30, 2024, representing a $798.8
million, or 5.3%, increase from one year prior and a $48.1 million, or 0.3%, increase from
the end of the first quarter of 2024. The increase in the Company’s total assets during
the twelve-month period was primarily driven by organic loan growth, partially offset by
the maturities and sales of certain available-for-sale investment securities. The increase
in total assets from the end of the prior quarter was reflective of continued organic loan
growth partially offset by a net decrease in deposit balances due to seasonal municipal outflows. |
| · | At
June 30, 2024, the Company’s readily available sources of liquidity totaled $4.44 billion,
including cash and cash equivalents balances of $201.5 million, investment securities unpledged
as collateral totaling $1.89 billion, unused borrowing capacity at the Federal Home Loan
Bank of New York of $1.18 billion and $1.17 billion of funding availability at the Federal
Reserve Bank’s discount window. |
| · | The
available sources of immediately available liquidity represent over 200% of the Company’s
estimated uninsured deposits, net of collateralized and intercompany deposits. |
| · | Estimated
insured deposits, net of collateralized and intercompany deposits, represent greater than
80% of second quarter total ending deposits. |
Deposits
and Funding
The Company
continues to leverage its robust core deposit base, characterized by low funding costs, to support its financial operations.
| · | Ending
deposits at June 30, 2024 of $13.14 billion were $214.1 million, or 1.6%, lower than the
end of the first quarter of 2024 due to seasonal municipal outflows and $266.1 million, or
2.1%, higher than one year prior primarily driven by higher municipal deposit balances reflective
of competitive offerings and expansion of its municipal deposit relationship base due in
part to the Company’s business development efforts. |
| · | Ending
borrowings of $932.2 million at June 30, 2024, which included $533.8 million of fixed rate
Federal Home Loan Bank of New York term borrowings, $215.5 million of customer repurchase
agreements, $177.6 million of overnight borrowings and $5.3 million of finance lease liabilities,
increased $249.8 million, or 36.6%, from March 31, 2024 and increased $447.4 million, or
92.3%, from the year prior to fund net loan growth. |
| · | The
Company’s average cost of funds increased 70 basis points, from 0.67% in the second
quarter of 2023 to 1.37% in the second quarter of 2024, while the average cost of total deposits
remained comparatively low relative to the industry at 1.23% for the quarter. |
| · | Through
the end of the second quarter of 2024, the Company’s cycle-to-date deposit beta was
22% and the cycle-to-date total funding beta was 24%. The target Federal Funds rate has increased
525 basis points since December 31, 2021, while the Company’s total deposit costs and
total funding costs increased 115 basis points and 128 basis points, respectively, over the
same period. |
| · | The
Company’s deposit base is well diversified across customer segments, comprised of approximately
61% consumer, 26% business and 13% municipal at the end of the current quarter, and broadly
dispersed as illustrated by an average deposit balance per account of under $20,000. |
| · | 66%
of the Company’s total deposits were in checking and low interest-bearing savings accounts
at the end of the second quarter and the Company does not currently utilize brokered or wholesale
deposits. Time deposit accounts represented 16% of the Company’s total deposits at
the end of the second quarter of 2024, up six percentage points from the end of the second
quarter of 2023 and one percentage point from the end of the prior quarter reflective of
customers responding to changes in market interest rates by moving funds into higher yielding
products. |
Loans
and Credit Quality
The Company’s
predominantly footprint-based loan portfolio is growing and diversified, with a core focus on credit quality.
| · | Ending
loans at June 30, 2024 of $10.02 billion were $140.4 million, or 1.4%, higher than March
31, 2024 and $853.1 million, or 9.3%, higher than one year prior driven by increases in all
loan categories between both periods due to net organic growth. |
| · | At
June 30, 2024, the Company’s allowance for credit losses totaled $71.4 million, or
0.71% of total loans outstanding, compared to $70.1 million, or 0.71% of total loans outstanding,
at March 31, 2024 and $63.3 million, or 0.69% of total loans outstanding, at June 30, 2023. |
| · | Reflective
of an increase in loans outstanding and a stable economic forecast, the Company recorded
a $2.7 million provision for credit losses during the second quarter of 2024. While certain
macroeconomic concerns are persisting related to non-owner occupied and multifamily CRE,
the Company’s exposure to these portfolios remains diverse both geographically and
by property type, and relatively low at 15% of total assets, 24% of total loans and 198%
of total bank-level regulatory capital. Additionally, the current levels of delinquencies
and charge-offs within these portfolios remain below long-term historical averages and credit
risk ratings remain stable, reflecting the solid asset quality of these portfolios. |
| · | The
Company recorded net charge-offs of $1.3 million, or an annualized 0.05% of average loans,
in the second quarter of 2024 compared to net charge-offs of $0.7 million, or an annualized
0.03% of average loans, in the second quarter of 2023 and net charge-offs of $2.8 million,
or an annualized 0.12% of average loans, in the first quarter of 2024. |
| · | Total
delinquent loans, which includes loans 30 or more days past due and nonaccrual loans, as
a percentage of total loans outstanding was 0.95% at the end of the second quarter of 2024.
This compares to 0.83% at the end of the second quarter of 2023 and 0.93% at March 31, 2024. |
| · | At
June 30, 2024, nonperforming (90 or more days delinquent and non-accruing) loans were $50.5
million, or 0.50% of total loans outstanding compared to $49.5 million, or 0.50% of total
loans outstanding at March 31, 2024 and $33.3 million, or 0.36% of total loans outstanding
one year earlier. |
| · | Loans
30 to 89 days delinquent (categorized by the Company as delinquent but performing), which
tend to exhibit seasonal characteristics, were 0.45% of total loans outstanding at June 30,
2024, up from 0.43% at the end of the first quarter of 2024 and down from 0.47% one year
earlier. |
Shareholders’
Equity and Regulatory Capital
The Company’s
capital planning and management activities, coupled with its diversified streams of revenue and prudent dividend practices, have allowed
it to build and maintain a strong capital position. At June 30, 2024, all of the Company’s and the Bank’s regulatory capital
ratios significantly exceeded well-capitalized standards.
| · | Shareholders’
equity of $1.67 billion at June 30, 2024 was $52.8 million, or 3.3%, higher than one year
ago, primarily due to a $71.0 million increase in retained earnings due to net income retention
and a $20.5 million decrease in accumulated other comprehensive loss related to the Company’s
investment securities portfolio, partially offset by a $54.4 million increase in treasury
stock due to share repurchases. Shareholders’ equity increased $13.2 million, or 0.8%,
from March 31, 2024, primarily driven by a $24.1 million increase in retained earnings due
to net income retention, partially offset by a $11.4 million increase in treasury stock due
to share repurchases. |
| · | The
Company’s shareholders’ equity to assets ratio was 10.50% at June 30, 2024, down
from 10.71% at June 30, 2023 and up from 10.45% at March 31, 2024. |
| · | The
Company’s tier 1 leverage ratio of 9.07% at June 30, 2024 decreased 28 basis points
from one year earlier and increased six basis points from March 31, 2024, remaining substantially
above the regulatory well-capitalized standard of 5.0%. |
| · | The
Company’s tangible equity to tangible assets ratio (non-GAAP) was 5.38% at June 30,
2024, up from 5.34% a year earlier and 5.32% at March 31, 2024. Tangible assets (non-GAAP)
increased $794.6 million, or 5.6%, from the prior year due primarily to organic loan growth,
partially offset by the maturities and sales of certain available-for-sale investment securities.
Tangible equity (non-GAAP) increased $48.6 million, or 6.4%, from one year prior due to the
aforementioned net income retention and decrease in accumulated other comprehensive loss
related to the Company’s investment securities portfolio, partially offset by the impact
of share repurchases between the periods. |
Dividend
Increase and Stock Repurchase Program
The payment
of a meaningful and growing dividend is an important component of the Company’s commitment to provide consistent and favorable
long-term returns to its shareholders, and it reflects the continued strength of the Company’s long-term operating results and
capital position, and management’s confidence in the future performance of the Company. The $0.01 increase in the quarterly dividend
declared in the third quarter of 2024 marked the 32nd consecutive year of dividend increases for the Company.
| · | During
the second quarter of 2024, the Company declared a quarterly cash dividend of $0.45 per share
on its common stock, up 2.3% from the $0.44 dividend declared in the second quarter of 2023. |
| · | On
July 17, 2024, the Company announced an additional one cent, or 2.2%, increase in the quarterly
dividend to $0.46 per share on its common stock, payable on October 10, 2024 to shareholders
of record as of September 13, 2024, representing an annualized yield of 3.1% based upon on
the $59.38 closing price of the Company’s stock on July 22, 2024. This increase marked
the 32nd consecutive year of dividend increases for the Company. |
| · | As
previously announced, in December 2023 the Company’s Board of Directors (the “Board”)
approved a stock repurchase program authorizing the repurchase of up to 2.70 million shares
of the Company’s common stock during a twelve-month period starting January 1, 2024.
Such repurchases may be made at the discretion of the Company’s senior management based
on market conditions and other relevant factors and will be acquired through open market
or privately negotiated transactions as permitted under Rule 10b-18 of the Securities Exchange
Act of 1934 and other applicable regulatory and legal requirements. There were 1,000,000
shares repurchased pursuant to the 2024 stock repurchase program in the first six months
of 2024, including 250,000 shares in the second quarter of 2024. |
Non-GAAP
Measures
The Company
also provides supplemental reporting of its results on an “operating” and “tangible” basis. Results on an “operating”
basis exclude the after-tax effects of acquisition expenses, acquisition-related contingent consideration adjustments, restructuring
expenses, litigation accrual, loss on sales of investment securities, unrealized gain (loss) on equity securities and amortization of
intangible assets. Results on a “tangible” basis exclude goodwill and intangible asset balances, net of accumulated amortization
and applicable deferred tax amounts. In addition, the Company provides supplemental reporting for “operating pre-tax, pre-provision
net revenues,” which subtracts the provision for credit losses, acquisition expenses, acquisition-related contingent consideration
adjustments, restructuring expenses, litigation accrual, loss on sales of investment securities, unrealized gain (loss) on equity securities
and amortization of intangible assets from income before income taxes. Although these items are non-GAAP measures, the Company’s
management believes this information helps investors and analysts measure underlying core performance and provides better comparability
to other organizations that have not engaged in acquisitions or restructuring activities. The Company also provides supplemental reporting
of its net interest income and net interest margin on a “fully tax-equivalent” basis, which includes an adjustment to net
interest income that represents taxes that would have been paid had nontaxable investment securities and loans been taxable. Although
fully tax-equivalent net interest income and net interest margin are non-GAAP measures, the Company’s management believes this
information helps enhance comparability of the performance of assets that have different tax liabilities. The amounts for such items
are presented in the tables that accompany this release. Operating diluted earnings per share, a non-GAAP measure, was $0.95 in the second
quarter of 2024, a decrease from $0.96 in the second quarter of 2023 and an increase from $0.82 in the first quarter of 2024. Operating
pre-tax, pre-provision net revenue per share, a non-GAAP measure, was $1.29 in the second quarter of 2024, an increase from $1.24 in
the second quarter of 2023 and from $1.18 in the first quarter of 2024.
Conference
Call Scheduled
Company management
will conduct an investor call at 11:00 a.m. (ET) today, July 23, 2024, to discuss the second quarter 2024 results. The conference call
can be accessed at 1-833-630-0464 (1-412-317-1809 if outside the United States and Canada). Investors may also listen live via the Internet
at: https://app.webinar.net/VN97qOvz8pd.
This earnings
release, including supporting financial tables, is also available within the press releases section of the Company's investor relations
website at: https://ir.communityfinancialsystem.com/news-presentations/press-releases/. An archived
webcast of the earnings call will be available on this site for one full year.
CBU
Investor Day – September 6, 2024
Community
Financial System, Inc. (NYSE: CBU) will host its Investor Day on September 6, 2024, which will be available both in person at the New
York Stock Exchange conference facilities and virtually. The event will provide an opportunity for investors to engage directly with
Company management, gain insights into strategic initiatives, and explore the Company's future growth prospects.
Registration
Details:
| · | In-Person
Attendance: Register here – https://edge.media-server.com/mmc/p/ko6picw9 |
| · | Virtual
Attendance: Register here – https://edge.media-server.com/mmc/p/77ifdrya |
Additional
details, including the agenda, will be available on the Company's website.
About
Community Financial System, Inc.
Community
Financial System, Inc. is a diversified financial services company that is focused on four main business lines – banking, employee
benefit services, insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s
100 largest banking institutions with over $15 billion in assets and operates approximately 200 customer facilities across Upstate New
York, Northeastern Pennsylvania, Vermont and Western Massachusetts. The Company’s Benefit Plans Administrative Services, Inc. subsidiary
is a leading provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting
services to customers on a national scale. The Company’s OneGroup NY, Inc. subsidiary is a top 75 U.S. insurance agency. The Company
also offers comprehensive financial planning, trust administration and wealth management services through its Community Bank Wealth Management
operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol CBU. For more
information about Community Bank visit www.cbna.com or www.communityfinancialsystem.com.
Forward-Looking
Statements
This press
release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements
are based on the current beliefs and expectations of CBU’s management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause the actual
results of CBU’s operations to differ materially from its expectations: the macroeconomic and other challenges and uncertainties
related to or resulting from recent bank failures; current and future economic and market conditions, including the effects on CRE and
housing or vehicle prices, unemployment rates, high inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters, and global
economic growth; fiscal and monetary policies of the Federal Reserve Board; the potential adverse effects of unusual and infrequently
occurring events; litigation and actions of regulatory authorities; management’s estimates and projections of interest rates and
interest rate policies; the effect of changes in the level of checking, savings, or money market account deposit balances and other factors
that affect net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; ability
to contain costs in inflationary conditions; the effect on financial market valuations on CBU’s fee income businesses, including
its employee benefit services, wealth management services, and insurance services businesses; the successful integration of operations
of its acquisitions and performance of new branches; competition; changes in legislation or regulatory requirements, including capital
requirements; and the timing for receiving regulatory approvals and completing pending merger and acquisition transactions. For more
information about factors that could cause actual results to differ materially from CBU’s expectations, refer to its annual, periodic
and other reports filed with the Securities and Exchange Commission (“SEC”), including the discussion under the “Risk
Factors” section of such reports filed with the SEC and available on CBU’s website at https://ir.communityfinancialsystem.com
and on the SEC’s website at www.sec.gov. Further, any forward-looking statement
speaks only as of the date on which it is made, and CBU undertakes no obligation to update any forward-looking statement to reflect events
or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
| Summary of
Financial Data (unaudited) |
|
|
|
|
| (Dollars in thousands,
except per share data) |
|
|
|
|
| |
Quarter
Ended |
Year-to-Date |
| |
June
30, 2024 |
June
30, 2023 |
June
30, 2024 |
June
30, 2023 |
| Earnings |
|
|
|
|
| Loan
income |
$133,159 |
$107,275 |
$260,657 |
$207,637 |
| Investment
income |
23,879 |
24,349 |
49,040 |
49,869 |
| Total
interest income |
157,038 |
131,624 |
309,697 |
257,506 |
| Interest
expense |
47,629 |
22,345 |
93,298 |
37,197 |
| Net
interest income |
109,409 |
109,279 |
216,399 |
220,309 |
| Provision
for credit losses |
2,708 |
752 |
8,856 |
4,252 |
| Net
interest income after provision for credit losses |
106,701 |
108,527 |
207,543 |
216,057 |
| Deposit
service and other banking fees |
17,364 |
17,740 |
35,271 |
33,896 |
| Mortgage
banking |
2,275 |
11 |
2,620 |
286 |
| Employee
benefit services |
32,118 |
28,565 |
63,816 |
57,949 |
| Insurance
services |
13,307 |
11,860 |
24,416 |
23,382 |
| Wealth
management services |
8,691 |
7,858 |
17,901 |
16,103 |
| Loss
on sales of investment securities |
(232) |
0 |
(232) |
(52,329) |
| Gain
on debt extinguishment |
0 |
0 |
0 |
242 |
| Unrealized
gain (loss) on equity securities |
867 |
(50) |
883 |
(50) |
| Total
noninterest revenues |
74,390 |
65,984 |
144,675 |
79,479 |
| Salaries
and employee benefits |
73,447 |
68,034 |
146,510 |
139,521 |
| Data
processing and communications |
15,274 |
14,291 |
29,622 |
27,420 |
| Occupancy
and equipment |
10,715 |
10,453 |
22,077 |
21,477 |
| Amortization
of intangible assets |
3,877 |
3,705 |
7,453 |
7,372 |
| Legal
and professional fees |
3,459 |
3,102 |
7,800 |
8,303 |
| Business
development and marketing |
4,139 |
4,567 |
7,184 |
7,468 |
| Acquisition-related
contingent consideration adjustments |
0 |
1,000 |
0 |
1,000 |
| Litigation
accrual |
0 |
0 |
119 |
0 |
| Acquisition
expenses |
104 |
(1) |
139 |
56 |
| Other |
7,984 |
7,887 |
16,179 |
14,473 |
| Total
noninterest expenses |
118,999 |
113,038 |
237,083 |
227,090 |
| Income
before income taxes |
62,092 |
61,473 |
115,135 |
68,446 |
| Income
taxes |
14,177 |
13,182 |
26,348 |
14,357 |
| Net
income |
$47,915 |
$48,291 |
$88,787 |
$54,089 |
| Basic
earnings per share |
$0.91 |
$0.90 |
$1.67 |
$1.00 |
| Diluted
earnings per share |
$0.91 |
$0.89 |
$1.67 |
$1.00 |
Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Earnings |
|
|
|
|
|
| Loan
income |
$133,159 |
$127,498 |
$122,392 |
$115,138 |
$107,275 |
| Investment
income |
23,879 |
25,161 |
23,934 |
22,418 |
24,349 |
| Total
interest income |
157,038 |
152,659 |
146,326 |
137,556 |
131,624 |
| Interest
expense |
47,629 |
45,669 |
37,136 |
29,770 |
22,345 |
| Net
interest income |
109,409 |
106,990 |
109,190 |
107,786 |
109,279 |
| Provision
for credit losses |
2,708 |
6,148 |
4,073 |
2,878 |
752 |
| Net
interest income after provision for credit losses |
106,701 |
100,842 |
105,117 |
104,908 |
108,527 |
| Deposit
service and other banking fees |
17,364 |
17,907 |
18,003 |
17,478 |
17,740 |
| Mortgage
banking |
2,275 |
345 |
196 |
113 |
11 |
| Employee
benefit services |
32,118 |
31,698 |
30,015 |
29,997 |
28,565 |
| Insurance
services |
13,307 |
11,109 |
11,599 |
12,113 |
11,860 |
| Wealth
management services |
8,691 |
9,210 |
7,904 |
7,934 |
7,858 |
| Loss
on sales of investment securities |
(232) |
0 |
0 |
0 |
0 |
| Unrealized
gain (loss) on equity securities |
867 |
16 |
52 |
(49) |
(50) |
| Total
noninterest revenues |
74,390 |
70,285 |
67,769 |
67,586 |
65,984 |
| Salaries
and employee benefits |
73,447 |
73,063 |
71,595 |
70,687 |
68,034 |
| Data
processing and communications |
15,274 |
14,348 |
14,685 |
15,480 |
14,291 |
| Occupancy
and equipment |
10,715 |
11,362 |
10,715 |
10,358 |
10,453 |
| Amortization
of intangible assets |
3,877 |
3,576 |
3,563 |
3,576 |
3,705 |
| Legal
and professional fees |
3,459 |
4,341 |
3,792 |
3,826 |
3,102 |
| Business
development and marketing |
4,139 |
3,045 |
3,635 |
4,628 |
4,567 |
| Acquisition-related
contingent consideration adjustments |
0 |
0 |
2,200 |
80 |
1,000 |
| Litigation
accrual |
0 |
119 |
5,800 |
0 |
0 |
| Acquisition
expenses |
104 |
35 |
7 |
0 |
(1) |
| Restructuring
expenses |
0 |
0 |
1,163 |
0 |
0 |
| Other |
7,984 |
8,195 |
11,936 |
7,869 |
7,887 |
| Total
noninterest expenses |
118,999 |
118,084 |
129,091 |
116,504 |
113,038 |
| Income
before income taxes |
62,092 |
53,043 |
43,795 |
55,990 |
61,473 |
| Income
taxes |
14,177 |
12,171 |
10,089 |
11,861 |
13,182 |
| Net
income |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
$48,291 |
| Basic
earnings per share |
$0.91 |
$0.77
|
$0.63
|
$0.82
|
$0.90 |
| Diluted
earnings per share |
$0.91 |
$0.76
|
$0.63
|
$0.82
|
$0.89 |
| Profitability
(GAAP) |
|
|
|
|
|
| Return
on assets (GAAP) |
1.22% |
1.04% |
0.87% |
1.16% |
1.28% |
| Return
on equity (GAAP) |
11.79% |
9.78% |
8.53% |
10.90% |
11.86% |
| Noninterest
revenues/total revenues (GAAP) |
40.5% |
39.6% |
38.3% |
38.5% |
37.6% |
| Efficiency
ratio (GAAP) |
64.7% |
66.6% |
72.9% |
66.4% |
64.5% |
| Profitability
(non-GAAP) |
|
|
|
|
|
| Operating
return on assets (non-GAAP) |
1.29% |
1.11% |
1.13% |
1.23% |
1.38% |
| Operating
return on equity (non-GAAP) |
12.43% |
10.47% |
11.10% |
11.62% |
12.78% |
| Return
on tangible equity (non-GAAP) |
24.90% |
19.94% |
18.75% |
23.34% |
24.89% |
| Operating
return on tangible equity (non-GAAP) |
26.25% |
21.36% |
24.38% |
24.89% |
26.82% |
| Operating
noninterest revenues/operating revenues (FTE) (non-GAAP) |
40.1% |
39.4% |
38.1% |
38.3% |
37.4% |
| Operating
efficiency ratio (non-GAAP) |
62.5% |
64.1% |
65.4% |
64.0% |
61.4% |
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Components
of Net Interest Margin (FTE) |
|
|
|
|
|
| Loan
yield |
5.38% |
5.25% |
5.08% |
4.92% |
4.75% |
| Cash
equivalents yield |
5.10% |
5.39% |
5.49% |
4.97% |
4.27% |
| Investment
yield |
2.11% |
2.02% |
2.03% |
1.96% |
2.07% |
| Earning
asset yield |
4.35% |
4.24% |
4.11% |
3.94% |
3.82% |
| Interest-bearing
deposit rate |
1.68% |
1.56% |
1.37% |
1.09% |
0.84% |
| Borrowing
rate |
3.71% |
3.81% |
3.12% |
3.34% |
2.60% |
| Cost
of all interest-bearing funds |
1.83% |
1.77% |
1.48% |
1.23% |
0.94% |
| Cost
of total deposits |
1.23% |
1.14% |
0.98% |
0.76% |
0.59% |
| Cost
of funds (includes noninterest-bearing deposits) |
1.37% |
1.31% |
1.08% |
0.88% |
0.67% |
| Net
interest margin |
3.01% |
2.95% |
3.05% |
3.07% |
3.14% |
| Net
interest margin (FTE) (non-GAAP) |
3.04% |
2.98% |
3.07% |
3.10% |
3.18% |
| Fully
tax-equivalent adjustment (non-GAAP) |
$953 |
$1,014 |
$1,037 |
$1,034 |
$1,080 |
| Average
Balances |
|
|
|
|
|
| Loans |
$9,969,462 |
$9,788,707 |
$9,583,396 |
$9,303,479 |
$9,072,956 |
| Cash
equivalents |
48,872 |
230,299 |
113,071 |
53,279 |
28,491 |
| Taxable
investment securities |
4,119,882 |
4,071,256 |
4,032,386 |
4,080,835 |
4,313,875 |
| Nontaxable
investment securities |
466,757 |
488,381 |
493,434 |
508,356 |
525,314 |
| Total
interest-earning assets |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
13,940,636 |
| Total
assets |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
15,150,001 |
| Interest-bearing
deposits |
9,679,296 |
9,462,083 |
9,266,908 |
8,961,895 |
9,053,199 |
| Borrowings |
785,946 |
936,588 |
665,322 |
619,510 |
523,585 |
| Total
interest-bearing liabilities |
10,465,242 |
10,398,671 |
9,932,230 |
9,581,405 |
9,576,784 |
| Noninterest-bearing
deposits |
3,534,516 |
3,570,902 |
3,706,781 |
3,810,542 |
3,836,341 |
| Shareholders'
equity |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
1,632,992 |
| Balance
Sheet Data |
|
|
|
|
|
| Cash
and cash equivalents |
$201,493 |
$338,381 |
$190,962 |
$455,807 |
$222,779 |
| Investment
securities |
4,166,562 |
4,152,114 |
4,165,312 |
3,960,001 |
4,231,899 |
| Loans: |
|
|
|
|
|
| Business
lending |
4,294,173 |
4,220,199 |
4,084,396 |
3,914,935 |
3,833,697 |
| Consumer
mortgage |
3,368,166 |
3,317,467 |
3,285,018 |
3,196,764 |
3,072,090 |
| Consumer
indirect |
1,723,002 |
1,716,028 |
1,703,440 |
1,708,302 |
1,644,811 |
| Home
equity |
452,013 |
446,056 |
446,515 |
444,764 |
439,186 |
| Consumer
direct |
186,503 |
183,750 |
185,229 |
185,301 |
180,985 |
| Total
loans |
10,023,857 |
9,883,500 |
9,704,598 |
9,450,066 |
9,170,769 |
| Allowance
for credit losses |
71,442 |
70,091 |
66,669 |
64,945 |
63,284 |
| Goodwill
and intangible assets, net |
905,780 |
904,439 |
897,987 |
901,334 |
901,709 |
| Other
assets |
680,566 |
650,327 |
663,563 |
684,059 |
644,178 |
| Total
assets |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
15,108,050 |
| Deposits: |
|
|
|
|
|
| Noninterest-bearing |
3,649,389 |
3,554,686 |
3,638,527 |
3,780,519 |
3,855,085 |
| Non-maturity
interest-bearing |
7,446,935 |
7,835,543 |
7,569,131 |
7,755,916 |
7,740,818 |
| Time |
2,041,564 |
1,961,793 |
1,720,463 |
1,494,353 |
1,275,883 |
| Total
deposits |
13,137,888 |
13,352,022 |
12,928,121 |
13,030,788 |
12,871,786 |
| Customer
repurchase agreements |
215,453 |
287,241 |
304,595 |
330,252 |
233,469 |
| Other
borrowings |
716,721 |
395,122 |
460,603 |
316,837 |
251,284 |
| Accrued
interest and other liabilities |
166,574 |
167,330 |
164,497 |
153,506 |
134,105 |
| Total
liabilities |
14,236,636 |
14,201,715 |
13,857,816 |
13,831,383 |
13,490,644 |
| Shareholders'
equity |
1,670,180 |
1,656,955 |
1,697,937 |
1,554,939 |
1,617,406 |
| Total
liabilities and shareholders' equity |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
15,108,050 |
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Capital
and Other |
|
|
|
|
|
| Shareholders’
equity/total assets (GAAP) |
10.50% |
10.45% |
10.92% |
10.11% |
10.71% |
| Tangible
equity/tangible assets (non-GAAP) |
5.38% |
5.32% |
5.75% |
4.81% |
5.34% |
| Tier
1 leverage ratio |
9.07% |
9.01% |
9.34% |
9.44% |
9.35% |
| Loan-to-deposit
ratio |
76.3% |
74.0% |
75.1% |
72.5% |
71.2% |
| Diluted
weighted average common shares outstanding |
52,935 |
53,467 |
53,665 |
53,798 |
54,008 |
| Period
end common shares outstanding |
52,523 |
52,765 |
53,327 |
53,427 |
53,528 |
| Cash
dividends declared per common share |
$0.45
|
$0.45
|
$0.45
|
$0.45
|
$0.44
|
| Book
value (GAAP) |
$31.80
|
$31.40
|
$31.84
|
$29.10
|
$30.22
|
| Tangible
book value (non-GAAP) |
$15.41
|
$15.12
|
$15.85
|
$13.07
|
$14.21
|
| Common
stock price at quarter-end |
$47.21
|
$48.03
|
$52.11
|
$42.21
|
$46.88
|
| Asset
Quality |
|
|
|
|
|
| Nonaccrual
loans |
$47,407 |
$44,904 |
$48,687 |
$33,122 |
$29,923 |
| Accruing
loans 90+ days delinquent |
3,106 |
4,554 |
5,886 |
3,731 |
3,395 |
| Total
nonperforming loans |
50,513 |
49,458 |
54,573 |
36,853 |
33,318 |
| Other
real estate owned (OREO) |
1,662 |
1,742 |
1,159 |
578 |
623 |
| Total
nonperforming assets |
52,175 |
51,200 |
55,732 |
37,431 |
33,941 |
| Net
charge-offs |
1,286 |
2,840 |
2,337 |
1,249 |
706 |
| Allowance
for credit losses/loans outstanding |
0.71% |
0.71% |
0.69% |
0.69% |
0.69% |
| Nonperforming
loans/loans outstanding |
0.50% |
0.50% |
0.56% |
0.39% |
0.36% |
| Allowance
for credit losses/nonperforming loans |
141% |
142% |
122% |
176% |
190% |
| Net
charge-offs/average loans |
0.05% |
0.12% |
0.10% |
0.05% |
0.03% |
| Delinquent
loans/ending loans |
0.95% |
0.93% |
1.06% |
0.90% |
0.83% |
| Provision
for credit losses/net charge-offs |
211% |
216% |
174% |
230% |
106% |
| Nonperforming
assets/total assets |
0.33% |
0.32% |
0.36% |
0.24% |
0.22% |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating
pre-tax, pre-provision net revenue (non-GAAP) |
|
|
|
|
|
| Net
income (GAAP) |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
$48,291 |
| Income
taxes |
14,177 |
12,171 |
10,089 |
11,861 |
13,182 |
| Income
before income taxes |
62,092 |
53,043 |
43,795 |
55,990 |
61,473 |
| Provision
for credit losses |
2,708 |
6,148 |
4,073 |
2,878 |
752 |
| Pre-tax,
pre-provision net revenue (non-GAAP) |
64,800 |
59,191 |
47,868 |
58,868 |
62,225 |
| Acquisition
expenses |
104 |
35 |
7 |
0 |
(1) |
| Acquisition-related
contingent consideration adjustments |
0 |
0 |
2,200 |
80 |
1,000 |
| Restructuring
expenses |
0 |
0 |
1,163 |
0 |
0 |
| Litigation
accrual |
0 |
119 |
5,800 |
0 |
0 |
| Loss
on sales of investment securities |
232 |
0 |
0 |
0 |
0 |
| Unrealized
(gain) loss on equity securities |
(867) |
(16) |
(52) |
49 |
50 |
| Amortization
of intangible assets |
3,877 |
3,576 |
3,563 |
3,576 |
3,705 |
| Operating
pre-tax, pre-provision net revenue (non-GAAP) |
$68,146 |
$62,905 |
$60,549 |
$62,573 |
$66,979 |
| |
|
|
|
|
|
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating
pre-tax, pre-provision net revenue per share (non-GAAP) |
|
|
|
|
|
| Diluted
earnings per share (GAAP) |
$0.91 |
$0.76 |
$0.63 |
$0.82 |
$0.89 |
| Income
taxes |
0.26 |
0.23 |
0.19 |
0.22 |
0.25 |
| Income
before income taxes |
1.17 |
0.99 |
0.82 |
1.04 |
1.14 |
| Provision
for credit losses |
0.06 |
0.12 |
0.07 |
0.05 |
0.01 |
| Pre-tax,
pre-provision net revenue per share (non-GAAP) |
1.23 |
1.11 |
0.89 |
1.09 |
1.15 |
| Acquisition
expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Acquisition-related
contingent consideration adjustments |
0.00 |
0.00 |
0.04 |
0.00 |
0.02 |
| Restructuring
expenses |
0.00 |
0.00 |
0.02 |
0.00 |
0.00 |
| Litigation
accrual |
0.00 |
0.00 |
0.11 |
0.00 |
0.00 |
| Loss
on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Unrealized
(gain) loss on equity securities |
(0.01) |
0.00 |
0.00 |
0.00 |
0.00 |
| Amortization
of intangible assets |
0.07 |
0.07 |
0.07 |
0.07 |
0.07 |
| Operating
pre-tax, pre-provision net revenue per share (non-GAAP) |
$1.29 |
$1.18 |
$1.13 |
$1.16 |
$1.24 |
| |
|
|
|
|
|
| Operating
net income (non-GAAP) |
|
|
|
|
|
| Net
income (GAAP) |
$47,915
|
$40,872
|
$33,706
|
$44,129
|
$48,291
|
| Acquisition
expenses |
104 |
35 |
7 |
0 |
(1) |
| Tax
effect of acquisition expenses |
(23) |
(8) |
(1) |
0 |
0 |
| Subtotal
(non-GAAP) |
47,996 |
40,899 |
33,712 |
44,129 |
48,290 |
| Acquisition-related
contingent consideration adjustments |
0 |
0 |
2,200 |
80 |
1,000 |
| Tax
effect of acquisition-related contingent consideration adjustments |
0 |
0 |
(443) |
(17) |
(214) |
| Subtotal
(non-GAAP) |
47,996 |
40,899 |
35,469 |
44,192 |
49,076 |
| Restructuring
expenses |
0 |
0 |
1,163 |
0 |
0 |
| Tax
effect of restructuring expenses |
0 |
0 |
(234) |
0 |
0 |
| Subtotal
(non-GAAP) |
47,996 |
40,899 |
36,398 |
44,192 |
49,076 |
| Litigation
accrual |
0 |
119 |
5,800 |
0 |
0 |
| Tax
effect of litigation accrual |
0 |
(26) |
(1,168) |
0 |
0 |
| Subtotal
(non-GAAP) |
47,996 |
40,992 |
41,030 |
44,192 |
49,076 |
| Loss
on sales of investment securities |
232 |
0 |
0 |
0 |
0 |
| Tax
effect of loss on sales of investment securities |
(52) |
0 |
0 |
0 |
0 |
| Subtotal
(non-GAAP) |
48,176 |
40,992 |
41,030 |
44,192 |
49,076 |
| Unrealized
(gain) loss on equity securities |
(867) |
(16) |
(52) |
49 |
50 |
| Tax
effect of unrealized (gain) loss on equity securities |
193 |
4 |
10 |
(10) |
(11) |
| Subtotal
(non-GAAP) |
47,502 |
40,980 |
40,988 |
44,231 |
49,115 |
| Amortization
of intangible assets |
3,877 |
3,576 |
3,563 |
3,576 |
3,705 |
| Tax
effect of amortization of intangible assets |
(864) |
(787) |
(718) |
(757) |
(793) |
| Operating
net income (non-GAAP) |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
$52,027 |
| |
|
|
|
|
|
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating
diluted earnings per share (non-GAAP) |
|
|
|
|
|
| Diluted
earnings per share (GAAP) |
$0.91
|
$0.76
|
$0.63
|
$0.82
|
$0.89
|
| Acquisition
expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Tax
effect of acquisition expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.91 |
0.76 |
0.63 |
0.82 |
0.89 |
| Acquisition-related
contingent consideration adjustments |
0.00 |
0.00 |
0.04 |
0.00 |
0.02 |
| Tax
effect of acquisition-related contingent consideration adjustments |
0.00 |
0.00 |
(0.01) |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.91 |
0.76 |
0.66 |
0.82 |
0.91 |
| Restructuring
expenses |
0.00 |
0.00 |
0.02 |
0.00 |
0.00 |
| Tax
effect of restructuring expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.91 |
0.76 |
0.68 |
0.82 |
0.91 |
| Litigation
accrual |
0.00 |
0.00 |
0.11 |
0.00 |
0.00 |
| Tax
effect of litigation accrual |
0.00 |
0.00 |
(0.03) |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.91 |
0.76 |
0.76 |
0.82 |
0.91 |
| Loss
on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Tax
effect of loss on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.91 |
0.76 |
0.76 |
0.82 |
0.91 |
| Unrealized
(gain) loss on equity securities |
(0.01) |
0.00 |
0.00 |
0.00 |
0.00 |
| Tax
effect of unrealized (gain) loss on equity securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal
(non-GAAP) |
0.90 |
0.76 |
0.76 |
0.82 |
0.91 |
| Amortization
of intangible assets |
0.07 |
0.07 |
0.07 |
0.07 |
0.07 |
| Tax
effect of amortization of intangible assets |
(0.02) |
(0.01) |
(0.01) |
(0.02) |
(0.02) |
| Operating
diluted earnings per share (non-GAAP) |
$0.95 |
$0.82 |
$0.82 |
$0.87 |
$0.96 |
| |
|
|
|
|
|
| Return
on assets |
|
|
|
|
|
| Net
income (GAAP) |
$47,915 |
$40,872 |
$33,706
|
$44,129
|
$48,291
|
| Average
total assets |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
15,150,001 |
| Return
on assets (GAAP) |
1.22% |
1.04% |
0.87% |
1.16% |
1.28% |
| |
|
|
|
|
|
| Operating
return on assets (non-GAAP) |
|
|
|
|
|
| Operating
net income (non-GAAP) |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
$52,027
|
| Average
total assets |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
15,150,001 |
| Operating
return on assets (non-GAAP) |
1.29% |
1.11% |
1.13% |
1.23% |
1.38% |
| |
|
|
|
|
|
| Return
on equity |
|
|
|
|
|
| Net
income (GAAP) |
$47,915
|
$40,872
|
$33,706
|
$44,129
|
$48,291
|
| Average
total equity |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
1,632,992 |
| Return
on equity (GAAP) |
11.79% |
9.78% |
8.53% |
10.90% |
11.86% |
| |
|
|
|
|
|
| Operating
return on equity (non-GAAP) |
|
|
|
|
|
| Operating
net income (non-GAAP) |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
$52,027
|
| Average
total equity |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
1,632,992 |
| Operating
return on equity (non-GAAP) |
12.43% |
10.47% |
11.10% |
11.62% |
12.78% |
| |
|
|
|
|
|
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Net
interest margin |
|
|
|
|
|
| Net
interest income |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
$109,279 |
| Total
average interest-earning assets |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
13,940,636 |
| Net
interest margin |
3.01% |
2.95% |
3.05% |
3.07% |
3.14% |
| |
|
|
|
|
|
| Net
interest margin (FTE) (non-GAAP) |
|
|
|
|
|
| Net
interest income |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
$109,279 |
| Fully
tax-equivalent adjustment (non-GAAP) |
953 |
1,014 |
1,037 |
1,034 |
1,080 |
| Fully
tax-equivalent net interest income (non-GAAP) |
110,362 |
108,004 |
110,227 |
108,820 |
110,359 |
| Total
average interest-earning assets |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
13,940,636 |
| Net
interest margin (FTE) (non-GAAP) |
3.04% |
2.98% |
3.07% |
3.10% |
3.18% |
| |
|
|
|
|
|
| Operating
noninterest revenues (non-GAAP) |
|
|
|
|
|
| Noninterest
revenues (GAAP) |
$74,390 |
$70,285 |
$67,769 |
$67,586 |
$65,984 |
| Loss
on sales of investment securities |
232 |
0 |
0 |
0 |
0 |
| Unrealized
(gain) loss on equity securities |
(867) |
(16) |
(52) |
49 |
50 |
| Total
operating noninterest revenues (non-GAAP) |
$73,755 |
$70,269 |
$67,717 |
$67,635 |
$66,034 |
| |
|
|
|
|
|
| Operating
noninterest expenses (non-GAAP) |
|
|
|
|
|
| Noninterest
expenses (GAAP) |
$118,999 |
$118,084 |
$129,091 |
$116,504 |
$113,038 |
| Acquisition
expenses |
(104) |
(35) |
(7) |
0 |
1 |
| Acquisition-related
contingent consideration adjustments |
0
|
0
|
(2,200)
|
(80)
|
(1,000)
|
| Restructuring
expenses |
0 |
0 |
(1,163) |
0 |
0 |
| Litigation
accrual |
0 |
(119) |
(5,800) |
0 |
0 |
| Amortization
of intangible assets |
(3,877) |
(3,576) |
(3,563) |
(3,576) |
(3,705) |
| Total
operating noninterest expenses (non-GAAP) |
$115,018 |
$114,354 |
$116,358 |
$112,848 |
$108,334 |
| |
|
|
|
|
|
| Operating
revenues (non-GAAP) |
|
|
|
|
|
| Net
interest income (GAAP) |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
$109,279 |
| Noninterest
revenues (GAAP) |
74,390 |
70,285 |
67,769 |
67,586 |
65,984 |
| Total
revenues (GAAP) |
183,799 |
177,275 |
176,959 |
175,372 |
175,263 |
| Loss
on sales of investment securities |
232 |
0 |
0 |
0 |
0 |
| Unrealized
(gain) loss on equity securities |
(867) |
(16) |
(52) |
49 |
50 |
| Total
operating revenues (non-GAAP) |
$183,164 |
$177,259 |
$176,907 |
$175,421 |
$175,313 |
| |
|
|
|
|
|
| Noninterest
revenues/total revenues |
|
|
|
|
|
| Total
noninterest revenues (GAAP) – numerator |
$74,390 |
$70,285 |
$67,769 |
$67,586 |
$65,984 |
| Total
revenues (GAAP) – denominator |
183,799 |
177,275 |
176,959 |
175,372 |
175,263 |
| Noninterest
revenues/total revenues (GAAP) |
40.5% |
39.6% |
38.3% |
38.5% |
37.6% |
| |
|
|
|
|
|
| Operating
noninterest revenues/operating revenues (FTE) (non-GAAP) |
|
|
|
|
|
| Total
operating noninterest revenues (non-GAAP) – numerator |
$73,755 |
$70,269 |
$67,717 |
$67,635 |
$66,034 |
| Total
operating revenues (non-GAAP) |
183,164 |
177,259 |
176,907 |
175,421 |
175,313 |
| Fully
tax-equivalent adjustment (non-GAAP) |
953 |
1,014 |
1,037 |
1,034 |
1,080 |
| Total
operating revenues (FTE) (non-GAAP) – denominator |
184,117 |
178,273 |
177,944 |
176,455 |
176,393 |
| Operating
noninterest revenues/operating revenues (FTE) (non-GAAP) |
40.1% |
39.4% |
38.1% |
38.3% |
37.4% |
| |
|
|
|
|
|
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Efficiency
ratio (GAAP) |
|
|
|
|
|
| Total
noninterest expenses (GAAP) – numerator |
$118,999 |
$118,084 |
$129,091 |
$116,504 |
$113,038 |
| Total
revenues (GAAP) – denominator |
183,799 |
177,275 |
176,959 |
175,372 |
175,263 |
| Efficiency
ratio (GAAP) |
64.7% |
66.6% |
72.9% |
66.4% |
64.5% |
| |
|
|
|
|
|
| Operating
efficiency ratio (non-GAAP) |
|
|
|
|
|
| Total
operating noninterest expenses (non-GAAP) - numerator |
$115,018 |
$114,354 |
$116,358 |
$112,848 |
$108,334 |
| Total
operating revenues (FTE) (non-GAAP) - denominator |
184,117 |
178,273 |
177,944 |
176,455 |
176,393 |
| Operating
efficiency ratio (non-GAAP) |
62.5% |
64.1% |
65.4% |
64.0% |
61.4% |
| |
|
|
|
|
|
| Total
tangible assets (non-GAAP) |
|
|
|
|
|
| Total
assets (GAAP) |
$15,906,816 |
$15,858,670 |
$15,555,753 |
$15,386,322 |
$15,108,050 |
| Goodwill
and intangible assets, net |
(905,780) |
(904,439) |
(897,987) |
(901,334) |
(901,709) |
| Deferred
taxes on goodwill and intangible assets, net |
44,921 |
45,433 |
45,198 |
44,593 |
45,003 |
| Total
tangible assets (non-GAAP) |
$15,045,957 |
$14,999,664 |
$14,702,964 |
$14,529,581 |
$14,251,344 |
| |
|
|
|
|
|
| Total
tangible common equity (non-GAAP) |
|
|
|
|
|
| Shareholders'
equity (GAAP) |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
$1,617,406 |
| Goodwill
and intangible assets, net |
(905,780) |
(904,439) |
(897,987) |
(901,334) |
(901,709) |
| Deferred
taxes on goodwill and intangible assets, net |
44,921 |
45,433 |
45,198 |
44,593 |
45,003 |
| Total
tangible common equity (non-GAAP) |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
$760,700 |
| |
|
|
|
|
|
| Shareholders’
equity-to-assets ratio at quarter end |
|
|
|
|
|
| Total
shareholders’ equity (GAAP) – numerator |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
$1,617,406 |
| Total
assets (GAAP) – denominator |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
15,108,050 |
| Shareholders’
equity-to-assets ratio at quarter end (GAAP) |
10.50% |
10.45% |
10.92% |
10.11% |
10.71% |
| |
|
|
|
|
|
| Tangible
equity-to-tangible assets ratio at quarter end (non-GAAP) |
|
|
|
|
|
| Total
tangible common equity (non-GAAP) - numerator |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
$760,700 |
| Total
tangible assets (non-GAAP) - denominator |
15,045,957 |
14,999,664 |
14,702,964 |
14,529,581 |
14,251,344 |
| Tangible
equity-to-tangible assets ratio at quarter end (non-GAAP) |
5.38% |
5.32% |
5.75% |
4.81% |
5.34% |
| |
|
|
|
|
|
| Return
on tangible equity (non-GAAP) |
|
|
|
|
|
| Net
income (GAAP) |
$47,915
|
$40,872
|
$33,706
|
$44,129
|
$48,291
|
| Average
shareholders’ equity |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
1,632,992 |
| Average
goodwill and intangible assets, net |
(905,134) |
(902,215) |
(899,027) |
(900,562) |
(900,038) |
| Average
deferred taxes on goodwill and intangible assets, net |
45,177 |
45,315 |
44,896 |
44,798 |
45,186 |
| Average
tangible common equity (non-GAAP) |
773,918 |
824,311 |
713,250 |
750,034 |
778,140 |
| Return
on tangible equity (non-GAAP) |
24.90% |
19.94% |
18.75% |
23.34% |
24.89% |
| |
|
|
|
|
|
| Operating
return on tangible equity (non-GAAP) |
|
|
|
|
|
| Operating
net income (non-GAAP) |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
$52,027 |
| Average
tangible common equity (non-GAAP) |
773,918 |
824,311 |
713,250 |
750,034 |
778,140 |
| Operating
return on tangible equity (non-GAAP) |
26.25% |
21.36% |
24.38% |
24.89% |
26.82% |
| |
|
|
|
|
|
| Summary
of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars
in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
2nd
Qtr |
1st
Qtr |
4th
Qtr |
3rd
Qtr |
2nd
Qtr |
| Quarterly
GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Book
value (GAAP) |
|
|
|
|
|
| Total
shareholders’ equity (GAAP) – numerator |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
$1,617,406 |
| Period
end common shares outstanding – denominator |
52,523 |
52,765 |
53,327 |
53,427 |
53,528 |
| Book
value (GAAP) |
$31.80
|
$31.40
|
$31.84
|
$29.10
|
$30.22
|
| |
|
|
|
|
|
| Tangible
book value (non-GAAP) |
|
|
|
|
|
| Total
tangible common equity (non-GAAP) – numerator |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
$760,700 |
| Period
end common shares outstanding – denominator |
52,523 |
52,765 |
53,327 |
53,427 |
53,528 |
| Tangible
book value (non-GAAP) |
$15.41
|
$15.12
|
$15.85
|
$13.07
|
$14.21
|
| |
|
|
|
|
|
# # #
v3.24.2
Cover
|
Jul. 23, 2024 |
| Cover [Abstract] |
|
| Document Type |
8-K
|
| Amendment Flag |
false
|
| Document Period End Date |
Jul. 23, 2024
|
| Entity File Number |
001-13695
|
| Entity Registrant Name |
COMMUNITY FINANCIAL SYSTEM, INC.
|
| Entity Central Index Key |
0000723188
|
| Entity Tax Identification Number |
16-1213679
|
| Entity Incorporation, State or Country Code |
DE
|
| Entity Address, Address Line One |
5790 Widewaters Parkway
|
| Entity Address, City or Town |
DeWitt
|
| Entity Address, State or Province |
NY
|
| Entity Address, Postal Zip Code |
13214
|
| City Area Code |
315
|
| Local Phone Number |
445-2282
|
| Written Communications |
false
|
| Soliciting Material |
false
|
| Pre-commencement Tender Offer |
false
|
| Pre-commencement Issuer Tender Offer |
false
|
| Title of 12(b) Security |
Common Stock, $1.00 par value per share
|
| Trading Symbol |
CBU
|
| Security Exchange Name |
NYSE
|
| Entity Emerging Growth Company |
false
|
| Entity Information, Former Legal or Registered Name |
Community Bank System, Inc.
|
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Grafico Azioni Community Financial System (NYSE:CBU)
Storico
Da Mar 2025 a Apr 2025
Grafico Azioni Community Financial System (NYSE:CBU)
Storico
Da Apr 2024 a Apr 2025
