- 10% Earnings per share improvement year-over-year
- Achieved record levels of noninterest income generation
- Quarterly dividend increased for the 22nd
consecutive year
SYRACUSE, N.Y.--(BUSINESS WIRE)--
Community Bank System, Inc. (NYSE:CBU) reported second quarter 2014 net
income of $23.7 million, an increase of 12.1% compared with $21.1
million earned for the second quarter of 2013. Diluted earnings per
share totaled $0.57 for the second quarter of 2014, up 9.6% from the
$0.52 reported in the second quarter of 2013. Second quarter 2014 net
income, noninterest income, and earnings per share were the highest
quarterly amounts ever recorded by the Company. Earnings per share for
the six months ended June 30, 2014 of $1.11 were $0.09, or 8.8% higher
than the first six months of 2013.
Total revenue for the second quarter of 2014 was $90.8 million, an
increase of $5.3 million, or 6.2%, over the second quarter of 2013.
Higher revenue was generated as a result of a 6.0% average increase in
earning assets and continued strong noninterest income generation which
more than offset a four basis point margin decline from the prior year
quarter. Continued organic growth drove a $1.4 million, or 10.7%
increase in the Company’s revenue from its wealth management and
employee benefit services businesses. Revenue from deposit and other
banking services, and mortgage banking increased $1.4 million
year-over-year, while linked quarter revenues were higher, reflecting
normal seasonal activity. Revenue growth was supported by an increased
core deposit account base resulting from solid organic growth in
addition to the successful integration of eight branch locations
acquired in Pennsylvania in late 2013. The quarterly provision for loan
losses of $1.9 million was $0.6 million higher than the second quarter
of 2013, reflective of higher, but still historically low levels of net
charge-offs and the continuation of generally stable and favorable asset
quality metrics. Total operating expenses of $55.2 million for the
quarter were $0.8 million, or 1.5%, higher than the second quarter of
2013, driven by the additional operating costs associated with the
branch acquisition completed in December 2013.
“For the second consecutive quarter, our team’s efforts provided record
net income and noninterest income exceeding the exceptional results
achieved in the first half of last year,” said President and Chief
Executive Officer Mark E. Tryniski. “Along with the strong performance
of our financial services businesses and revenue growth in banking
noninterest income sources, we continued to benefit from our successful
balance sheet restructuring initiatives and branch acquisition completed
in 2013. Our Board demonstrated their confidence in the Company’s
ability to continue to perform at a high level by raising our quarterly
cash dividend by more than seven percent. Our record of 22 consecutive
yearly dividend increases illustrates the strength of our diversified
franchise, along with the consistency of our results regardless of the
prevailing economic environment.”
Second quarter 2014 net interest income was $61.2 million, an increase
of $2.7 million, or 4.7%, compared to the second quarter of 2013. In
addition to the $0.6 million benefit to interest expense from continued
core deposit growth and an improved funding mix, growth in net interest
income was driven by a $2.1 million decrease in borrowing interest
expense resulting from last year’s balance sheet repositioning actions.
These actions contributed significantly to the lowering of the cost of
borrowed funds by 245 basis points year-over-year. Improved funding
costs were partially offset by a 23-basis point decline in earning asset
yields, driven by lower blended interest rates on loans and investment
securities. While average loan balances grew $222.2 million, or 5.7%,
average loan yields declined 28 basis points year-over-year, resulting
in a $0.3 million reduction in loan income. Investment income increased
$0.3 million as average investment securities balances (including cash
equivalents) grew by $152.3 million compared to the prior year’s second
quarter, while yields fell 13 basis points.
Second quarter noninterest income increased $2.6 million to $29.7
million, representing an increase of 9.5% compared to last year’s second
quarter. Income expanded across all banking and financial services
categories. Financial services revenue again reached record levels as
wealth management revenues increased $0.4 million, or 9.7% over second
quarter 2013, while employee benefit services revenue grew 11.2% to
$10.4 million. Strong customer expansion and market momentum from 2013
continued in the first half of 2014 and drove the improved performance.
Deposit service revenues grew $0.8 million, or 6.7%, to $13.2 million,
reflecting meaningful core deposit account growth as a result of the
branch acquisition and organic growth initiatives across the franchise.
Income from other banking services increased $0.6 million from the
second quarter of 2013 primarily from increased insurance-related gains.
The second quarter of 2013 noninterest income included $0.3 million of
net gains from securities sales and debt extinguishments, related to the
previously-mentioned balance sheet restructuring activities.
Quarterly operating expenses of $55.2 million increased $0.8 million, or
1.5%, over the second quarter of 2013. Occupancy and equipment costs
grew $0.2 million, or 2.5%, primarily as a result of the December 2013
branch acquisition. Salaries and employee benefits grew $0.1 million, or
0.4%, and included the additional personnel from the branch acquisition
as well as planned merit increases. These increases were partially
offset by lower retirement plan expenses related to plan asset
performance and discount rate changes. Other expenses increased 3.3% and
reflected the increased costs of operating an expanded franchise and
continued investment in technology infrastructure.
The second quarter 2014 effective income tax rate of 29.9% increased
compared to 29.2% in last year’s second quarter, reflecting a higher
proportion of income being generated from fully taxable sources.
Financial Position
Average earning assets of $6.63 billion for the second quarter of 2014
were up $49 million from the first quarter of 2014, and were $375
million higher than the second quarter of 2013. Compared to the prior
year, overall average earning asset balances included growth of $222
million in average loan balances, while average investment securities
and cash balances increased by $152 million. Average deposits increased
$44 million compared to the first quarter of 2014, and were up $302
million from the second quarter of 2013, principally due to the branch
acquisition.
Ending loans at June 30, 2014 increased $211.8 million, or 5.4%,
year-over-year, reflecting strong organic growth in the Company’s
consumer lending portfolios. Ending loans increased $51.4 million from
March 31, 2014, also driven by growth in the consumer installment
products. Ending investment securities totaled $2.53 billion at June 30,
2014, or $167.9 million higher than the prior year level. Quarter-end
borrowings of $319.4 million were consistent with the year-ago
quarter-end. Deposit balances at June 30, 2014 totaled $5.97 billion, up
$301.2 million, or 5.3%, from the year earlier quarter. Ending deposit
balances declined $67.6 million from March 31, 2014, and included the
expected seasonal decrease in municipal funds.
Shareholders’ equity of $955.0 million at June 30, 2014 was $105.0
million, or 12.4%, higher than the prior year quarter-end, primarily due
to strong earnings generation and retention over the last four quarters.
The Company’s net tangible equity to net tangible assets ratio was 8.44%
at June 30, 2014, up from 7.43% at June 30, 2013. Its Tier 1 leverage
ratio grew to 9.64% for the current quarter, up 21 basis points from the
second quarter of 2013.
Asset Quality
The Company’s asset quality metrics continue to be favorable relative to
comparative peer and industry averages and illustrate the long-term
effectiveness of the Company’s disciplined risk management and
underwriting standards. Net charge-offs were $1.5 million for the second
quarter, compared to $0.8 million for the second quarter of 2013 and
$1.1 million for first quarter of 2014. As an annualized percentage of
average loans, net charge-offs measured 0.14% in the second quarter of
2014, compared to 0.08% and 0.11% in the year-ago and linked quarters,
respectively. Nonperforming loans as a percentage of total loans at June
30, 2014 were 0.58%, consistent with 0.58% at March 31, 2014, and down
from 0.62% of total loans at June 30, 2013. The total loan delinquency
ratio of 1.24% at the end of the second quarter was down 26 basis points
from the end of the second quarter of 2013. The second quarter provision
for loan losses of $1.9 million was $0.6 million, or 43.8% higher than
the second quarter of 2013, and $0.9 million, or 90.0%, higher than the
first quarter of 2014 due to loan growth and higher net charge-off
levels. The allowance for loan losses to nonperforming loans was 187% at
both June 30, 2014 and March 31, 2014, compared to 178% at June 30, 2013.
Increased Cash Dividend Declared
On July 16, 2014, the Company’s Board of Directors declared a quarterly
cash dividend to shareholders of $0.30 per share on its common stock.
The dividend will be paid on October 10, 2014 to shareholders of record
as of September 15, 2014. The $0.30 quarterly dividend is a $0.02 per
share or 7.1% increase over the $0.28 per share declared in the prior
four quarters. This marks the Company’s 22nd consecutive year
of increased dividend payouts to shareholders. Using the closing price
of $34.63 a share on the Company’s common stock as of Thursday, July 17th,
the increased dividend provides a 3.47% annualized yield.
Also, as previously announced, the Company’s Board of Directors approved
a stock repurchase program authorizing the repurchase of up to 2,000,000
shares of the Company’s common stock during a twelve-month period
starting January 1, 2014. Such repurchases may be made at the discretion
of senior management depending 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 legal requirements. The Company did not
repurchase any stock in the first six months of 2014.
Investor Day Planned for October
Community Bank System, Inc. will hold an Investor Day presentation for
investors and security analysts at the New York Stock Exchange on the
morning of October 29, 2014. Professional investors who wish to attend
the Company’s presentation should contact Josephine Rurka (josie.rurka@communitybankna.com)
or Julie Senulis (Senulis@csirfirm.com).
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
today (Monday) to discuss second quarter results. The conference call
can be accessed at 888-430-8694 (1-719-457-2628 if outside United States
and Canada) using the conference ID code 5166632. Investors may also
listen live via the Internet at: http://www.videonewswire.com/event.asp?id=99875.
This earnings release, including supporting financial tables, is
available within the press releases section of the Company's investor
relations website at: http://ir.communitybanksystem.com.
An archived webcast of the earnings call will be available on this site
for one full year.
Community Bank System, Inc. operates more than 190 customer facilities
across Upstate New York and Northeastern Pennsylvania through its
banking subsidiary, Community Bank, N.A. With assets of approximately
$7.5 billion, the DeWitt, N.Y. headquartered company is among the
country's 100 largest financial institutions. In addition to a full
range of retail and business banking services, the Company offers
comprehensive financial planning and wealth management services and
operates a full service insurance agency providing personal and business
insurance needs. The Company's Benefit Plans Administrative Services,
Inc. subsidiary is a leading provider of employee benefits
administration and trust services, actuarial and consulting services to
customers on a national scale. Community Bank System, Inc. 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.communitybankna.com
or http://ir.communitybanksystem.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.The
following factors, among others, could cause the actual results of CBU’s
operations to differ materially from CBU’s expectations: the successful
integration of operations of its acquisitions; competition; changes in
economic conditions, interest rates and financial markets; and changes
in legislation or regulatory requirements.These statements are
based on the current beliefs and expectations of CBU’s management and
CBU does not assume any duty to update forward-looking statements.
|
| |
|
|
| |
|
| |
|
|
| |
| Summary of Financial Data | | | | | | | | | | | | | |
| (Dollars in thousands, expect per share data) | |
|
|
|
|
| | |
|
|
|
|
|
| | Quarter Ended | | | Year-to-Date |
|
| | June 30, | | | | June 30, | | | June 30, | | | | June 30, |
| Earnings |
|
| 2014 |
|
|
|
| 2013 |
|
|
|
| 2014 |
|
|
|
| 2013 |
|
|
Loan income
| |
$
|
46,073
| | | |
$
|
46,412
| | | |
$
|
91,766
| | | |
$
|
93,530
| |
|
Investment income
| | |
18,036
| | | | |
17,728
| | | | |
35,582
| | | | |
38,535
| |
|
Total interest income
| | |
64,109
| | | | |
64,140
| | | | |
127,348
| | | | |
132,065
| |
|
Interest expense
| | |
2,938
| | | | |
5,708
| | | | |
6,069
| | | | |
15,208
| |
|
Net interest income
| | |
61,171
| | | | |
58,432
| | | | |
121,279
| | | | |
116,857
| |
|
Provision for loan losses
| | |
1,900
| | | | |
1,321
| | | | |
2,900
| | | | |
2,714
| |
|
Net interest income after provision for loan losses
| | |
59,271
| | | | |
57,111
| | | | |
118,379
| | | | |
114,143
| |
|
Deposit service fees
| | |
13,172
| | | | |
12,345
| | | | |
25,427
| | | | |
23,940
| |
|
Mortgage banking revenues
| | |
345
| | | | |
341
| | | | |
629
| | | | |
512
| |
|
Other banking services
| | |
1,263
| | | | |
679
| | | | |
2,169
| | | | |
1,546
| |
|
Wealth management services
| | |
4,438
| | | | |
4,045
| | | | |
8,912
| | | | |
7,743
| |
|
Employee benefit services
| | |
10,448
| | | | |
9,397
| | | | |
20,883
| | | | |
19,167
| |
|
Gain on sales of investment securities
| | |
0
| | | | |
16,008
| | | | |
0
| | | | |
63,799
| |
|
Loss on debt extinguishments
| | |
0
| | | | |
(15,717
|
)
| | | |
0
| | | | |
(63,500
|
)
|
|
Total noninterest income
| | |
29,666
| | | | |
27,098
| | | | |
58,020
| | | | |
53,207
| |
|
Salaries and employee benefits
| | |
30,409
| | | | |
30,286
| | | | |
61,149
| | | | |
60,769
| |
|
Occupancy and equipment
| | |
6,917
| | | | |
6,750
| | | | |
14,608
| | | | |
13,815
| |
|
Amortization of intangible assets
| | |
1,101
| | | | |
1,140
| | | | |
2,242
| | | | |
2,319
| |
|
Acquisition expenses
| | |
0
| | | | |
0
| | | | |
123
| | | | |
5
| |
|
Other
| | |
16,738
| | | | |
16,200
| | | | |
32,964
| | | | |
32,020
| |
|
Total operating expenses
| | |
55,165
| | | | |
54,376
| | | | |
111,086
| | | | |
108,928
| |
|
Income before income taxes
| | |
33,772
| | | | |
29,833
| | | | |
65,313
| | | | |
58,422
| |
|
Income taxes
| | |
10,095
| | | | |
8,711
| | | | |
19,463
| | | | |
17,059
| |
|
Net income
| |
$
|
23,677
| | | |
$
|
21,122
| | | |
$
|
45,850
| | | |
$
|
41,363
| |
|
Basic earnings per share
| |
$
|
0.58
| | | |
$
|
0.53
| | | |
$
|
1.13
| | | |
$
|
1.03
| |
|
Diluted earnings per share
|
|
$
|
0.57
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.11
|
|
|
|
$
|
1.02
|
|
| | | | | | | | | | | | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
Summary of Financial Data | | | | | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
| | |
|
|
|
|
|
|
|
| | 2014 | | | 2013 |
|
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan income
| |
$
|
46,073
| | | |
$
|
45,693
| | | |
$
|
47,061
| | | |
$
|
47,606
| | | |
$
|
46,412
| |
|
Investment income
| | |
18,036
| | | | |
17,546
| | | | |
18,901
| | | | |
18,526
| | | | |
17,728
| |
|
Total interest income
| | |
64,109
| | | | |
63,239
| | | | |
65,962
| | | | |
66,132
| | | | |
64,140
| |
|
Interest expense
| | |
2,938
| | | | |
3,131
| | | | |
5,326
| | | | |
5,531
| | | | |
5,708
| |
|
Net interest income
| | |
61,171
| | | | |
60,108
| | | | |
60,636
| | | | |
60,601
| | | | |
58,432
| |
|
Provision for loan losses
| | |
1,900
| | | | |
1,000
| | | | |
3,185
| | | | |
2,093
| | | | |
1,321
| |
|
Net interest income after provision for loan losses
| | |
59,271
| | | | |
59,108
| | | | |
57,451
| | | | |
58,508
| | | | |
57,111
| |
|
Deposit service fees
| | |
13,172
| | | | |
12,255
| | | | |
12,714
| | | | |
12,703
| | | | |
12,345
| |
|
Mortgage banking revenues
| | |
345
| | | | |
284
| | | | |
562
| | | | |
599
| | | | |
341
| |
|
Other banking services
| | |
1,263
| | | | |
906
| | | | |
954
| | | | |
1,072
| | | | |
679
| |
|
Wealth management services
| | |
4,438
| | | | |
4,474
| | | | |
3,984
| | | | |
3,823
| | | | |
4,045
| |
|
Employee benefit services
| | |
10,448
| | | | |
10,435
| | | | |
10,032
| | | | |
9,397
| | | | |
9,397
| |
|
Gain on sales of investment securities
| | |
0
| | | | |
0
| | | | |
16,969
| | | | |
0
| | | | |
16,008
| |
|
Loss on debt extinguishments
| | |
0
| | | | |
0
| | | | |
(23,836
|
)
| | | |
0
| | | | |
(15,717
|
)
|
|
Total noninterest income
| | |
29,666
| | | | |
28,354
| | | | |
21,379
| | | | |
27,594
| | | | |
27,098
| |
|
Salaries and employee benefits
| | |
30,409
| | | | |
30,740
| | | | |
30,412
| | | | |
30,448
| | | | |
30,286
| |
|
Occupancy and equipment
| | |
6,917
| | | | |
7,691
| | | | |
6,782
| | | | |
6,448
| | | | |
6,750
| |
|
Amortization of intangible assets
| | |
1,101
| | | | |
1,141
| | | | |
1,061
| | | | |
1,089
| | | | |
1,140
| |
|
Acquisition expenses
| | |
0
| | | | |
123
| | | | |
2,105
| | | | |
71
| | | | |
0
| |
|
Other
| | |
16,738
| | | | |
16,226
| | | | |
16,923
| | | | |
16,988
| | | | |
16,200
| |
|
Total operating expenses
| | |
55,165
| | | | |
55,921
| | | | |
57,283
| | | | |
55,044
| | | | |
54,376
| |
|
Income before income taxes
| | |
33,772
| | | | |
31,541
| | | | |
21,547
| | | | |
31,058
| | | | |
29,833
| |
|
Income taxes
| | |
10,095
| | | | |
9,368
| | | | |
6,070
| | | | |
9,069
| | | | |
8,711
| |
|
Net income
| | |
23,677
| | | | |
22,173
| | | | |
15,477
| | | | |
21,989
| | | | |
21,122
| |
|
Basic earnings per share
| |
$
|
0.58
| | | |
$
|
0.55
| | | |
$
|
0.38
| | | |
$
|
0.55
| | | |
$
|
0.53
| |
|
Diluted earnings per share
|
|
$
|
0.57
|
|
|
|
$
|
0.54
|
|
|
|
$
|
0.38
|
|
|
|
$
|
0.54
|
|
|
|
$
|
0.52
|
|
| Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
| | |
1.28
|
%
| | | |
1.23
|
%
| | | |
0.84
|
%
| | | |
1.22
|
%
| | | |
1.21
|
%
|
|
Return on equity
| | |
10.13
|
%
| | | |
9.92
|
%
| | | |
7.04
|
%
| | | |
10.26
|
%
| | | |
9.70
|
%
|
|
Return on tangible equity(3) | | |
16.34
|
%
| | | |
16.37
|
%
| | | |
11.78
|
%
| | | |
17.57
|
%
| | | |
16.38
|
%
|
|
Noninterest income/operating income (FTE) (1) | | |
31.3
|
%
| | | |
30.7
|
%
| | | |
30.5
|
%
| | | |
30.0
|
%
| | | |
30.2
|
%
|
|
Efficiency ratio (2) |
|
|
57.0
|
%
|
|
|
|
59.2
|
%
|
|
|
|
58.5
|
%
|
|
|
|
58.6
|
%
|
|
|
|
59.9
|
%
|
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield
| | |
4.51
|
%
| | | |
4.55
|
%
| | | |
4.61
|
%
| | | |
4.76
|
%
| | | |
4.79
|
%
|
|
Cash equivalents yield
| | |
0.23
|
%
| | | |
0.25
|
%
| | | |
0.22
|
%
| | | |
0.22
|
%
| | | |
0.26
|
%
|
|
Investment yield
| | |
3.48
|
%
| | | |
3.46
|
%
| | | |
3.54
|
%
| | | |
3.52
|
%
| | | |
3.83
|
%
|
|
Earning asset yield
| | |
4.12
|
%
| | | |
4.13
|
%
| | | |
4.20
|
%
| | | |
4.28
|
%
| | | |
4.35
|
%
|
|
Interest-bearing deposit rate
| | |
0.17
|
%
| | | |
0.19
|
%
| | | |
0.21
|
%
| | | |
0.22
|
%
| | | |
0.24
|
%
|
|
Borrowing rate
| | |
0.91
|
%
| | | |
0.90
|
%
| | | |
1.86
|
%
| | | |
2.02
|
%
| | | |
3.36
|
%
|
|
Cost of all interest-bearing funds
| | |
0.23
|
%
| | | |
0.25
|
%
| | | |
0.41
|
%
| | | |
0.43
|
%
| | | |
0.46
|
%
|
|
Cost of funds (includes DDA)
| | |
0.19
|
%
| | | |
0.20
|
%
| | | |
0.33
|
%
| | | |
0.35
|
%
| | | |
0.38
|
%
|
|
Net interest margin (FTE)
| | |
3.94
|
%
| | | |
3.94
|
%
| | | |
3.88
|
%
| | | |
3.94
|
%
| | | |
3.98
|
%
|
|
Fully tax-equivalent adjustment
|
|
$
|
3,972
|
|
|
|
$
|
3,834
|
|
|
|
$
|
3,666
|
|
|
|
$
|
3,728
|
|
|
|
$
|
3,644
|
|
| | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
| Summary of Financial Data | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
| |
|
|
|
|
|
| | 2014 |
| | 2013 |
|
|
|
| 2nd Qtr |
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| Average Balances |
|
|
|
|
|
|
|
|
|
|
|
Loans
| |
$
|
4,121,976
| | |
$
|
4,099,827
| | |
$
|
4,069,204
| | |
$
|
3,985,755
| | |
$
|
3,899,744
| |
|
Cash equivalents
| | |
9,535
| | | |
9,782
| | | |
11,085
| | | |
8,644
| | | |
148,188
| |
|
Taxable investment securities
| | |
1,839,488
| | | |
1,833,296
| | | |
1,861,206
| | | |
1,833,355
| | | |
1,565,756
| |
|
Nontaxable investment securities
| | |
659,662
| | | |
638,975
| | | |
639,199
| | | |
644,728
| | | |
642,424
| |
|
Total interest-earning assets
| | |
6,630,661
| | | |
6,581,880
| | | |
6,580,694
| | | |
6,472,482
| | | |
6,256,112
| |
|
Total assets
| | |
7,407,151
| | | |
7,333,082
| | | |
7,278,167
| | | |
7,154,796
| | | |
7,003,823
| |
|
Interest-bearing deposits
| | |
4,754,636
| | | |
4,736,746
| | | |
4,546,591
| | | |
4,511,199
| | | |
4,581,206
| |
|
Borrowings
| | |
385,150
| | | |
402,549
| | | |
634,472
| | | |
589,065
| | | |
358,627
| |
|
Total interest-bearing liabilities
| | |
5,139,786
| | | |
5,139,295
| | | |
5,181,063
| | | |
5,100,264
| | | |
4,939,833
| |
|
Noninterest-bearing deposits
| | |
1,224,515
| | | |
1,197,922
| | | |
1,149,873
| | | |
1,138,039
| | | |
1,095,774
| |
|
Shareholders' equity
|
|
|
937,532
|
|
|
|
906,787
|
|
|
|
872,567
|
|
|
|
850,238
|
|
|
|
873,108
|
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
| |
$
|
161,903
| | |
$
|
153,417
| | |
$
|
149,647
| | |
$
|
174,205
| | |
$
|
148,573
| |
|
Investment securities
| | |
2,534,419
| | | |
2,506,221
| | | |
2,218,725
| | | |
2,518,574
| | | |
2,366,512
| |
|
Loans:
| | | | | | | | | | |
|
Business lending
| | |
1,247,129
| | | |
1,246,070
| | | |
1,260,364
| | | |
1,214,796
| | | |
1,225,671
| |
|
Consumer mortgage
| | |
1,580,584
| | | |
1,579,322
| | | |
1,582,058
| | | |
1,570,607
| | | |
1,527,341
| |
|
Consumer indirect
| | |
797,297
| | | |
755,849
| | | |
740,002
| | | |
713,310
| | | |
663,924
| |
|
Home equity
| | |
339,345
| | | |
340,760
| | | |
346,520
| | | |
348,246
| | | |
347,335
| |
|
Consumer direct
| | |
183,448
| | | |
174,357
| | | |
180,139
| | | |
178,496
| | | |
171,727
| |
|
Total loans
| | |
4,147,803
| | | |
4,096,358
| | | |
4,109,083
| | | |
4,025,455
| | | |
3,935,998
| |
|
Allowance for loan losses
| | |
44,615
| | | |
44,197
| | | |
44,319
| | | |
44,083
| | | |
43,473
| |
|
Intangible assets, net
| | |
389,018
| | | |
390,119
| | | |
390,499
| | | |
383,735
| | | |
384,815
| |
|
Other assets
| | |
272,815
| | | |
295,310
| | | |
272,229
| | | |
244,131
| | | |
228,291
| |
|
Total assets
| | |
7,461,343
| | | |
7,397,228
| | | |
7,095,864
| | | |
7,302,017
| | | |
7,020,716
| |
|
Deposits:
| | | | | | | | | | |
|
Noninterest-bearing
| | |
1,257,223
| | | |
1,225,977
| | | |
1,203,346
| | | |
1,158,013
| | | |
1,120,683
| |
|
Non-maturity interest-bearing
| | |
3,872,262
| | | |
3,928,230
| | | |
3,766,145
| | | |
3,630,684
| | | |
3,608,829
| |
|
Time
| | |
841,810
| | | |
884,681
| | | |
926,553
| | | |
898,636
| | | |
940,618
| |
|
Total deposits
| | |
5,971,295
| | | |
6,038,888
| | | |
5,896,044
| | | |
5,687,333
| | | |
5,670,130
| |
|
Borrowings
| | |
319,408
| | | |
217,110
| | | |
141,913
| | | |
567,116
| | | |
322,319
| |
|
Subordinated debt held by unconsolidated subsidiary trusts
| | |
102,109
| | | |
102,103
| | | |
102,097
| | | |
102,091
| | | |
102,085
| |
|
Accrued interest and other liabilities
| | |
113,516
| | | |
120,991
| | | |
79,998
| | | |
79,798
| | | |
76,151
| |
|
Total liabilities
| | |
6,506,328
| | | |
6,479,092
| | | |
6,220,052
| | | |
6,436,338
| | | |
6,170,685
| |
|
Shareholders' equity
| | |
955,015
| | | |
918,136
| | | |
875,812
| | | |
865,679
| | | |
850,031
| |
|
Total liabilities and shareholders' equity
|
|
|
7,461,343
|
|
|
|
7,397,228
|
|
|
|
7,095,864
|
|
|
|
7,302,017
|
|
|
|
7,020,716
|
|
| Capital |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
| | |
9.64
|
%
| | |
9.48
|
%
| | |
9.29
|
%
| | |
9.39
|
%
| | |
9.43
|
%
|
|
Tangible equity/net tangible assets (3) | | |
8.44
|
%
| | |
7.97
|
%
| | |
7.68
|
%
| | |
7.38
|
%
| | |
7.43
|
%
|
|
Diluted weighted average common shares O/S
| | |
41,269
| | | |
41,152
| | | |
41,061
| | | |
40,850
| | | |
40,558
| |
|
Period end common shares outstanding
| | |
40,688
| | | |
40,658
| | | |
40,431
| | | |
40,296
| | | |
40,099
| |
|
Cash dividends declared per common share
| |
$
|
0.28
| | |
$
|
0.28
| | |
$
|
0.28
| | |
$
|
0.28
| | |
$
|
0.27
| |
|
Book value
| |
$
|
23.47
| | |
$
|
22.58
| | |
$
|
21.66
| | |
$
|
21.48
| | |
$
|
21.20
| |
|
Tangible book value(3) | |
$
|
14.74
| | |
$
|
13.79
| | |
$
|
12.80
| | |
$
|
12.73
| | |
$
|
12.35
| |
|
Common stock price (end of period)
|
|
$
|
36.20
|
|
|
$
|
39.02
|
|
|
$
|
39.68
|
|
|
$
|
34.12
|
|
|
$
|
30.85
|
|
| | | | | | | | | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
| Summary of Financial Data | | | | | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
| | |
|
|
|
|
|
|
|
| | 2014 | | | 2013 |
|
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| |
$
|
21,991
| | | |
$
|
21,669
| | | |
$
|
19,473
| | | |
$
|
21,713
| | | |
$
|
22,997
| |
|
Accruing loans 90+ days delinquent
| | |
1,929
| | | | |
1,977
| | | | |
2,555
| | | | |
2,650
| | | | |
1,439
| |
|
Total nonperforming loans
| | |
23,920
| | | | |
23,646
| | | | |
22,028
| | | | |
24,363
| | | | |
24,436
| |
|
Other real estate owned (OREO)
| | |
4,281
| | | | |
4,914
| | | | |
5,060
| | | | |
5,218
| | | | |
5,066
| |
|
Total nonperforming assets
| | |
28,201
| | | | |
28,560
| | | | |
27,088
| | | | |
29,581
| | | | |
29,502
| |
|
Net charge-offs
| | |
1,482
| | | | |
1,122
| | | | |
2,949
| | | | |
1,483
| | | | |
761
| |
|
Allowance for loan losses/loans outstanding
| | |
1.08
|
%
| | | |
1.08
|
%
| | | |
1.08
|
%
| | | |
1.10
|
%
| | | |
1.10
|
%
|
|
Nonperforming loans/loans outstanding
| | |
0.58
|
%
| | | |
0.58
|
%
| | | |
0.54
|
%
| | | |
0.61
|
%
| | | |
0.62
|
%
|
|
Allowance for loan losses/nonperforming loans
| | |
187
|
%
| | | |
187
|
%
| | | |
201
|
%
| | | |
181
|
%
| | | |
178
|
%
|
|
Net charge-offs/average loans
| | |
0.14
|
%
| | | |
0.11
|
%
| | | |
0.29
|
%
| | | |
0.14
|
%
| | | |
0.08
|
%
|
|
Delinquent loans/ending loans
| | |
1.24
|
%
| | | |
1.25
|
%
| | | |
1.49
|
%
| | | |
1.48
|
%
| | | |
1.50
|
%
|
|
Loan loss provision/net charge-offs
| | |
128
|
%
| | | |
89
|
%
| | | |
108
|
%
| | | |
147
|
%
| | | |
173
|
%
|
|
Nonperforming assets/total assets
|
|
|
0.38
|
%
|
|
|
|
0.39
|
%
|
|
|
|
0.38
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.42
|
%
|
| Asset Quality (excluding loans acquired since 1/1/09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | |
18,147
| | | |
$
|
17,755
| | | |
$
|
16,065
| | | |
$
|
17,365
| | | |
$
|
18,272
| |
|
Accruing loans 90+ days delinquent
| | |
1,813
| | | | |
1,826
| | | | |
2,418
| | | | |
2,471
| | | | |
1,349
| |
|
Total nonperforming loans
| | |
19,960
| | | | |
19,581
| | | | |
18,483
| | | | |
19,836
| | | | |
19,621
| |
|
Other real estate owned (OREO)
| | |
2,303
| | | | |
2,645
| | | | |
2,832
| | | | |
2,767
| | | | |
2,963
| |
|
Total nonperforming assets
| | |
22,263
| | | | |
22,226
| | | | |
21,315
| | | | |
22,603
| | | | |
22,584
| |
|
Net charge-offs
| | |
1,204
| | | | |
1,086
| | | | |
1,956
| | | | |
1,583
| | | | |
604
| |
|
Allowance for loan losses/loans outstanding
| | |
1.15
|
%
| | | |
1.15
|
%
| | | |
1.15
|
%
| | | |
1.16
|
%
| | | |
1.19
|
%
|
|
Nonperforming loans/loans outstanding
| | |
0.52
|
%
| | | |
0.52
|
%
| | | |
0.49
|
%
| | | |
0.54
|
%
| | | |
0.55
|
%
|
|
Allowance for loan losses/nonperforming loans
| | |
221
|
%
| | | |
222
|
%
| | | |
234
|
%
| | | |
215
|
%
| | | |
215
|
%
|
|
Net charge-offs/average loans
| | |
0.13
|
%
| | | |
0.12
|
%
| | | |
0.21
|
%
| | | |
0.17
|
%
| | | |
0.07
|
%
|
|
Delinquent loans/ending loans
| | |
1.19
|
%
| | | |
1.17
|
%
| | | |
1.44
|
%
| | | |
1.45
|
%
| | | |
1.44
|
%
|
|
Loan loss provision/net charge-offs
| | |
155
|
%
| | | |
121
|
%
| | | |
130
|
%
| | | |
126
|
%
| | | |
210
|
%
|
|
Nonperforming assets/total assets
|
|
|
0.31
|
%
|
|
|
|
0.31
|
%
|
|
|
|
0.32
|
%
|
|
|
|
0.33
|
%
|
|
|
|
0.34
|
%
|
| | | | | | | | | | | | | |
|
(1) Excludes gains and losses on sales of
investment securities and debt prepayments. |
(2) Excludes intangible amortization,
acquisition expenses, litigation settlement charge, gains and
losses on sales of investment securities and losses on debt
extinguishments. |
(3) Includes deferred tax liabilities (of
approximately $33.8 million at 6/30/14) generated from tax
deductible goodwill. |
|
|
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.The
following factors, among others, could cause the actual results of CBU’s
operations to differ materially from CBU’s expectations: the successful
integration of operations of its acquisitions; competition; changes in
economic conditions, interest rates and financial markets; and changes
in legislation or regulatory requirements.CBU does not assume
any duty to update forward-looking statements.
Community Bank System, Inc.
Scott A. Kingsley, 315-445-3121
EVP
& Chief Financial Officer
Source: Community Bank System, Inc.