-Record full year GAAP earnings of $2.22 per share
-Achieved 9% year-over-year growth in noninterest income
-Quarterly cash dividend increased for the 22nd
consecutive year
SYRACUSE, N.Y.--(BUSINESS WIRE)--
Community Bank System, Inc. (NYSE:CBU) reported fourth quarter 2014 net
income of $23.1 million, an increase of 49.5% compared with $15.5
million earned for the fourth quarter of 2013. Diluted earnings per
share totaled $0.56 for the fourth quarter of 2014, compared with $0.38
per share reported in the fourth quarter of 2013, which included $0.15
per share of acquisition expenses and net losses on sales of investment
securities and debt extinguishments. Full year net income increased by
$12.5 million, or 15.9%, and earnings per share of $2.22 were $0.28 or
14.4% higher than 2013.
“Our fourth quarter results mirrored a strong 2014 operating performance
characterized by solid revenue growth, organic expansion of the loan
portfolio, a continuation of our stable and favorable asset quality
profile and improved operating leverage,” said President and Chief
Executive Officer Mark E. Tryniski. “We continue to focus on building
additional value into our enterprise through selective acquisitions,
disciplined lending and a consistent approach to business regardless of
economic conditions. In July we increased our quarterly dividend by 7.1%
to $0.30 per share, marking the twenty-second consecutive year of
dividend increases for the Company. We believe that this demonstrates
the Company’s commitment to the payment of a meaningful and growing
dividend as an important component of providing consistent and favorable
long-term returns to our shareholders.”
Total revenue for the fourth quarter of 2014 was $91.7 million, an
increase of $2.8 million, or 3.2%, over the prior year quarter
(excluding the $6.9 million of net losses on sales of investment
securities and debt extinguishments recorded in the fourth quarter of
2013). Higher revenue was generated as a result of a 1.6% increase in
average earning assets along with continued strong noninterest income
generation, as well as a one basis point improvement in the net interest
margin from the prior year quarter. Continued organic growth drove a
$1.3 million, or 9.0% 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
year-over-year by $0.4 million, or 2.9%. The year-over-year 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 from Bank of America in
late 2013. The quarterly provision for loan losses of $2.5
million was $0.7 million lower than the fourth quarter of 2013,
reflective of lower levels of net charge-offs and improved
non-performing asset and delinquent loan ratios. Total operating
expenses of $56.7 million for the quarter were $1.5 million higher, or
2.7%, than the fourth quarter of 2013, excluding $2.1 million of
acquisition expenses incurred in the fourth quarter of 2013. The
additional $1.5 million of recurring operating expenses in the current
quarter compared to the fourth quarter of 2013 were driven primarily by
the additional operating costs associated with the branch acquisition
completed in December 2013.
Fourth quarter 2014 net interest income was $61.8 million, an increase
of $1.1 million, or 1.8%, compared to the fourth quarter of 2013. In
addition to the $0.4 million benefit to interest expense from an
improved deposit funding mix, growth in net interest income was driven
by a $2.1 million decrease in borrowing interest expense resulting from
the balance sheet repositioning actions completed in 2013. These actions
contributed significantly to the lowering of the cost of borrowed funds
by 98 basis points, year-over-year. Improved funding costs were offset
by a 14-basis point decline in earning asset yields, driven by lower
blended interest rates on loans and investment securities. While average
loan balances grew $154.4 million, or 3.8%, average loan yields declined
18 basis points year-over-year, resulting in a $0.2 million reduction in
quarterly loan income. Investment income was $1.2 million lower than the
fourth quarter of 2013 as average investment securities balance
(including cash equivalents) declined by $47.5 million, and the yield
fell 12 basis points.
Fourth quarter noninterest income increased $1.7 million to $29.9
million, representing an increase of 6.0% compared to last year’s fourth
quarter, excluding the $6.9 million of net losses incurred on sales of
investment securities and debt extinguishments in the fourth quarter of
2013. Income expanded across virtually all banking and financial
services categories, with the lone exceptions being a $0.4 million
decline in other banking services and mortgage banking-related revenues.
Financial services revenue continued to grow as wealth management
revenues increased $0.4 million or 9.0% over fourth quarter 2013, while
employee benefit services revenue grew 9.1% to $10.9 million. Strong
customer expansion and market momentum from 2013 continued in 2014 and
drove the improved performance. Deposit service revenues grew $0.8
million, or 6.2%, to $13.5 million, reflecting solid core deposit
account growth as a result of the branch acquisition and organic growth
initiatives across the franchise.
Fourth quarter 2014 operating expenses of $56.7 million increased $1.5
million, or 2.7% over the fourth quarter of 2013, excluding $2.1 million
of acquisition expenses incurred in the prior year quarter. Salaries and
employee benefits increased $0.6 million, or 1.9%, 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 favorable plan asset performance and
discount rate changes. All other expenses, excluding acquisition
expenses, increased 3.8% and reflected the increased costs of operating
an expanded franchise as well as continued investment in the Company’s
technology infrastructure.
The fourth quarter 2014 effective income tax rate of 28.8% was higher
than the 28.2% in last year’s fourth quarter, reflecting a higher
proportion of income being generated from fully taxable sources.
Financial Position
Average earning assets of $6.69 billion for the fourth quarter of 2014
were up $22.4 million from the third quarter of 2014, and were $107.0
million higher than the fourth quarter of 2013. Compared to the prior
year, overall average earning asset balances included growth of $154.4
million in average loan balances, while average investment securities
and interest-earning cash balances declined by $47.5 million. Average
deposit balances grew $30.7 million compared to the third quarter of
2014, and were $287.1 million higher than the fourth quarter of 2013,
principally due to the branch acquisition. Average borrowings in the
fourth quarter of 2014 of $406.6 million were $227.9 million, or 35.9%
lower than the prior year quarter.
Ending loans at December 31, 2014 increased $127.1 million, or 3.1%,
year-over-year, reflecting solid organic growth in the Company’s
consumer lending portfolios, which was generally consistent with market
demand characteristics. Ending loans increased $19.0 million from
September 30, 2014, driven by growth in business lending and consumer
mortgages. Investment securities totaled $2.51 billion at December 31,
2014, a level consistent with the end of the third quarter of 2014, and
up $294.2 million from the end of 2013.
Shareholders’ equity of $987.9 million at December 31, 2014 was $112.1
million, or 12.8% higher than the prior year quarter-end, primarily due
to strong earnings generation and capital retention over the last four
quarters, as well as the impact in AOCI of a higher level of unrealized
gains from investment securities at the end of 2014. The Company’s net
tangible equity to net tangible assets ratio was 8.92% at December 31,
2014, up from 7.68% at December 31, 2013. The Company’s Tier 1 leverage
ratio grew to 9.96% for the current quarter, up 67 basis points from the
fourth 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 $2.5 million for the fourth
quarter, compared to $2.9 million for the fourth quarter of 2013 and
$1.1 million for the third quarter of 2014. Net charge-offs as an
annualized percentage of average loans measured 0.23% in the fourth
quarter of 2014, compared to 0.29% in the prior year fourth quarter and
0.10% in the third quarter of 2014. Full year net charge-offs were 0.15%
of average loans compared to 0.17% in 2013. Nonperforming loans as a
percentage of total loans at December 31, 2014 were 0.56%, consistent
with 0.57% at September 30, 2014 and 0.54% of total loans at December
31, 2013. The total loan delinquency ratio of 1.46% at the end of the
fourth quarter was down three basis points from the end of the fourth
quarter of 2013. The fourth quarter provision for loan losses of $2.5
million was $0.8 million, or 44.9% higher than the third quarter of
2014, and $0.7 million, or 20.5%, lower than the fourth quarter of 2013
due primarily to lower net charge-off levels than the previous year’s
fourth quarter. The allowance for loan losses to nonperforming loans was
190% at December 31, 2014, comparable with the 189% and 201% levels at
the end of the third quarter of 2014 and the end of the fourth quarter
of 2013, respectively.
Increased Cash Dividend Declared
In July and November of 2014, the Company’s Board of Directors declared
quarterly cash dividends of $0.30 per share on its’ common stock. The
$0.30 quarterly dividend was a $0.02 per share or 7.1% increase over the
$0.28 per share paid in the prior four quarters. This marked the
Company’s 22nd consecutive year of increased dividend payouts
to shareholders. Using the closing price of $34.85 a share on the
Company’s common stock as of Tuesday, January 20th, the $0.30
quarterly dividend provides an annualized yield of 3.44%.
Also, as previously announced, in December 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, 2015. 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 repurchased 123,000 shares of its common stock
in 2014.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
tomorrow (Thursday, January 22nd) to discuss fourth quarter and full
year results. The conference call can be accessed at 888-430-8691
(1-719-325-2177 if outside United States and Canada) using the
conference ID code 9818037. Investors may also listen live via the
Internet at: http://www.videonewswire.com/event.asp?id=101346.
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 150 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 products. 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 Ended |
|
| | | | December 31, |
|
| December 31, |
|
| December 31, |
|
| December 31, |
| Earnings |
|
|
| 2014 |
|
| 2013 |
|
| 2014 |
|
| 2013 |
|
Loan income
| | | | $46,878 | | | $47,061 | | | $185,527 | | | $188,197 |
|
Investment income
| | | |
17,707
| | |
18,901
| | |
70,693
| | |
75,962
|
|
Total interest income
| | | |
64,585
| | |
65,962
| | |
256,220
| | |
264,159
|
|
Interest expense
| | | |
2,829
| | |
5,326
| | |
11,792
| | |
26,065
|
|
Net interest income
| | | |
61,756
| | |
60,636
| | |
244,428
| | |
238,094
|
|
Provision for loan losses
| | | |
2,531
| | |
3,185
| | |
7,178
| | |
7,992
|
|
Net interest income after provision for loan losses
| | | |
59,225
| | |
57,451
| | |
237,250
| | |
230,102
|
|
Deposit service fees
| | | |
13,496
| | |
12,714
| | |
52,756
| | |
49,357
|
|
Revenues from mortgage banking and other banking services
| | | |
1,149
| | |
1,516
| | |
5,814
| | |
5,245
|
|
Wealth management services
| | | |
4,341
| | |
3,984
| | |
17,870
| | |
15,550
|
|
Employee benefit services
| | | |
10,942
| | |
10,032
| | |
42,580
| | |
38,596
|
|
Gain on sales of investment securities
| | | |
0
| | |
16,969
| | |
0
| | |
80,768
|
|
Loss on debt extinguishments
| | | |
0
| | |
(23,836)
| | |
0
| | |
(87,336)
|
|
Total noninterest income
| | | |
29,928
| | |
21,379
| | |
119,020
| | |
102,180
|
|
Salaries and employee benefits
| | | |
30,987
| | |
30,412
| | |
123,077
| | |
121,629
|
|
Occupancy and equipment
| | | |
6,724
| | |
6,782
| | |
27,948
| | |
27,045
|
|
Amortization of intangible assets
| | | |
994
| | |
1,061
| | |
4,287
| | |
4,469
|
|
Litigation settlement
| | | |
0
| | |
0
| | |
2,800
| | |
0
|
|
Acquisition expenses
| | | |
0
| | |
2,105
| | |
123
| | |
2,181
|
|
Other
| | | |
17,979
| | |
16,923
| | |
68,345
| | |
65,931
|
|
Total operating expenses
| | | |
56,684
| | |
57,283
| | |
226,580
| | |
221,255
|
|
Income before income taxes
| | | |
32,469
| | |
21,547
| | |
129,690
| | |
111,027
|
|
Income taxes
| | | |
9,336
| | |
6,070
| | |
38,337
| | |
32,198
|
|
Net income
| | | | $23,133 | | | $15,477 | | | $91,353 | | | $78,829 |
|
Basic earnings per share
| | | | $0.57 | | | $0.38 | | | $2.24 | | | $1.96 |
|
Diluted earnings per share
|
|
|
| $0.56 |
|
| $0.38 |
|
| $2.22 |
|
| $1.94 |
| | | | | | | | | | | | |
|
|
|
Summary of Financial Data |
|
|
| |
| (Dollars in thousands, except per share data) | | | |
|
| | | | 2014 |
|
| 2013 |
|
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan income
| | | | $46,878 |
|
| $46,883 |
|
| $46,073 |
|
| $45,693 |
|
| $47,061 |
|
Investment income
| | | |
17,707
| | |
17,404
| | |
18,036
| | |
17,546
| | |
18,901
|
|
Total interest income
| | | |
64,585
| | |
64,287
| | |
64,109
| | |
63,239
| | |
65,962
|
|
Interest expense
| | | |
2,829
| | |
2,893
| | |
2,939
| | |
3,131
| | |
5,326
|
|
Net interest income
| | | |
61,756
| | |
61,394
| | |
61,170
| | |
60,108
| | |
60,636
|
|
Provision for loan losses
| | | |
2,531
| | |
1,747
| | |
1,900
| | |
1,000
| | |
3,185
|
|
Net interest income after provision for loan losses
| | | |
59,225
| | |
59,647
| | |
59,270
| | |
59,108
| | |
57,451
|
|
Deposit service fees
| | | |
13,496
| | |
13,833
| | |
13,172
| | |
12,255
| | |
12,714
|
|
Revenues from mortgage banking and other banking services
| | | |
1,149
| | |
1,867
| | |
1,608
| | |
1,190
| | |
1,516
|
|
Wealth management services
| | | |
4,341
| | |
4,617
| | |
4,438
| | |
4,474
| | |
3,984
|
|
Employee benefit services
| | | |
10,942
| | |
10,755
| | |
10,448
| | |
10,435
| | |
10,032
|
|
Gain on sales of investment securities
| | | |
0
| | |
0
| | |
0
| | |
0
| | |
16,969
|
|
Loss on debt extinguishments
| | | |
0
| | |
0
| | |
0
| | |
0
| | |
(23,836)
|
|
Total noninterest income
| | | |
29,928
| | |
31,072
| | |
29,666
| | |
28,354
| | |
21,379
|
|
Salaries and employee benefits
| | | |
30,987
| | |
30,941
| | |
30,409
| | |
30,740
| | |
30,412
|
|
Occupancy and equipment
| | | |
6,724
| | |
6,617
| | |
6,916
| | |
7,691
| | |
6,782
|
|
Amortization of intangible assets
| | | |
994
| | |
1,051
| | |
1,101
| | |
1,141
| | |
1,061
|
|
Litigation settlement
| | | |
0
| | |
2,800
| | |
0
| | |
0
| | |
0
|
|
Acquisition expenses
| | | |
0
| | |
0
| | |
0
| | |
123
| | |
2,105
|
|
Other
| | | |
17,979
| | |
17,402
| | |
16,738
| | |
16,226
| | |
16,923
|
|
Total operating expenses
| | | |
56,684
| | |
58,811
| | |
55,164
| | |
55,921
| | |
57,283
|
|
Income before income taxes
| | | |
32,469
| | |
31,908
| | |
33,772
| | |
31,541
| | |
21,547
|
|
Income taxes
| | | |
9,336
| | |
9,537
| | |
10,096
| | |
9,368
| | |
6,070
|
|
Net income
| | | |
23,133
| | |
22,371
| | |
23,676
| | |
22,173
| | |
15,477
|
|
Basic earnings per share
| | | | $0.57 | | | $0.55 | | | $0.58 | | | $0.55 | | | $0.38 |
|
Diluted earnings per share
|
|
|
| $0.56 |
|
| $0.54 |
|
| $0.57 |
|
| $0.54 |
|
| $0.38 |
| Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
| | | |
1.22%
| | |
1.19%
| | |
1.28%
| | |
1.23%
| | |
0.84%
|
|
Return on equity
| | | |
9.35%
| | |
9.25%
| | |
10.13%
| | |
9.92%
| | |
7.04%
|
|
Return on tangible equity(3) | | | |
14.57%
| | |
14.66%
| | |
16.34%
| | |
16.37%
| | |
11.78%
|
|
Noninterest income/operating income (FTE) (1) | | | |
31.3%
| | |
32.2%
| | |
31.3%
| | |
30.7%
| | |
30.5%
|
|
Efficiency ratio (2) |
|
|
|
58.3%
|
|
|
57.0%
|
|
|
57.0%
|
|
|
59.2%
|
|
|
58.5%
|
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield
| | | |
4.43%
| | |
4.48%
| | |
4.51%
| | |
4.55%
| | |
4.61%
|
|
Cash equivalents yield
| | | |
0.19%
| | |
0.17%
| | |
0.23%
| | |
0.25%
| | |
0.22%
|
|
Investment yield
| | | |
3.43%
| | |
3.37%
| | |
3.48%
| | |
3.46%
| | |
3.54%
|
|
Earning asset yield
| | | |
4.06%
| | |
4.06%
| | |
4.12%
| | |
4.13%
| | |
4.20%
|
|
Interest-bearing deposit rate
| | | |
0.16%
| | |
0.17%
| | |
0.17%
| | |
0.19%
| | |
0.21%
|
|
Borrowing rate
| | | |
0.88%
| | |
0.87%
| | |
0.91%
| | |
0.90%
| | |
1.86%
|
|
Cost of all interest-bearing funds
| | | |
0.22%
| | |
0.23%
| | |
0.23%
| | |
0.25%
| | |
0.41%
|
|
Cost of funds (includes DDA)
| | | |
0.18%
| | |
0.18%
| | |
0.19%
| | |
0.20%
| | |
0.33%
|
|
Net interest margin (FTE)
| | | |
3.89%
| | |
3.89%
| | |
3.94%
| | |
3.94%
| | |
3.88%
|
|
Fully tax-equivalent adjustment
|
|
|
| $3,804 |
|
| $3,923 |
|
| $3,972 |
|
| $3,834 |
|
| $3,666 |
| | | | | | | | | | | | | | | |
|
|
|
| Summary of Financial Data |
|
|
| |
| (Dollars in thousands, except per share data) | | | |
|
| | | | 2014 |
|
| 2013 |
|
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
| Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
| | | | $4,223,653 |
|
| $4,180,283 |
|
| $4,121,976 |
|
| $4,099,827 |
|
| $4,069,204 |
|
Cash equivalents
| | | |
11,260
| | |
8,225
| | |
9,535
| | |
9,782
| | |
11,085
|
|
Taxable investment securities
| | | |
1,830,375
| | |
1,834,590
| | |
1,839,488
| | |
1,833,296
| | |
1,861,206
|
|
Nontaxable investment securities
| | | |
622,365
| | |
642,114
| | |
659,662
| | |
638,975
| | |
639,199
|
|
Total interest-earning assets
| | | |
6,687,653
| | |
6,665,212
| | |
6,630,661
| | |
6,581,880
| | |
6,580,694
|
|
Total assets
| | | |
7,495,814
| | |
7,457,409
| | |
7,407,151
| | |
7,333,082
| | |
7,278,167
|
|
Interest-bearing deposits
| | | |
4,689,788
| | |
4,671,216
| | |
4,754,636
| | |
4,736,746
| | |
4,546,591
|
|
Borrowings
| | | |
406,610
| | |
427,051
| | |
385,150
| | |
402,549
| | |
634,472
|
|
Total interest-bearing liabilities
| | | |
5,096,398
| | |
5,098,267
| | |
5,139,786
| | |
5,139,295
| | |
5,181,063
|
|
Noninterest-bearing deposits
| | | |
1,293,760
| | |
1,281,626
| | |
1,224,515
| | |
1,197,922
| | |
1,149,873
|
|
Shareholders' equity
|
|
|
|
981,737
|
|
|
959,484
|
|
|
937,532
|
|
|
906,787
|
|
|
872,567
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
| | | | $138,396 | | | $157,500 | | | $161,903 | | | $153,417 | | | $149,647 |
|
Investment securities
| | | |
2,512,974
| | |
2,506,242
| | |
2,534,419
| | |
2,506,221
| | |
2,218,725
|
|
Loans:
| | | | | | | | | | | | | | | | |
|
Business lending
| | | |
1,262,484
| | |
1,251,178
| | |
1,247,129
| | |
1,246,070
| | |
1,260,364
|
|
Consumer mortgage
| | | |
1,613,384
| | |
1,598,298
| | |
1,580,584
| | |
1,579,322
| | |
1,582,058
|
|
Consumer indirect
| | | |
833,968
| | |
841,975
| | |
797,297
| | |
755,849
| | |
740,002
|
|
Home equity
| | | |
342,342
| | |
339,121
| | |
339,345
| | |
340,760
| | |
346,520
|
|
Consumer direct
| | | |
184,028
| | |
186,672
| | |
183,448
| | |
174,357
| | |
180,139
|
|
Total loans
| | | |
4,236,206
| | |
4,217,244
| | |
4,147,803
| | |
4,096,358
| | |
4,109,083
|
|
Allowance for loan losses
| | | |
45,341
| | |
45,273
| | |
44,615
| | |
44,197
| | |
44,319
|
|
Intangible assets, net
| | | |
386,973
| | |
387,966
| | |
389,018
| | |
390,119
| | |
390,499
|
|
Other assets
| | | |
260,232
| | |
278,964
| | |
272,815
| | |
295,310
| | |
272,229
|
|
Total assets
| | | |
7,489,440
| | |
7,502,643
| | |
7,461,343
| | |
7,397,228
| | |
7,095,864
|
|
Deposits:
| | | | | | | | | | | | | | | | |
|
Noninterest-bearing
| | | |
1,324,661
| | |
1,279,052
| | |
1,257,223
| | |
1,225,977
| | |
1,203,346
|
|
Non-maturity interest-bearing
| | | |
3,837,603
| | |
3,881,249
| | |
3,872,262
| | |
3,928,230
| | |
3,766,145
|
|
Time
| | | |
773,000
| | |
807,030
| | |
841,810
| | |
884,681
| | |
926,553
|
|
Total deposits
| | | |
5,935,264
| | |
5,967,331
| | |
5,971,295
| | |
6,038,888
| | |
5,896,044
|
|
Borrowings
| | | |
338,000
| | |
343,805
| | |
319,408
| | |
217,110
| | |
141,913
|
|
Subordinated debt held by unconsolidated subsidiary trusts
| | | |
102,122
| | |
102,115
| | |
102,109
| | |
102,103
| | |
102,097
|
|
Accrued interest and other liabilities
| | | |
126,150
| | |
123,868
| | |
113,516
| | |
120,991
| | |
79,998
|
|
Total liabilities
| | | |
6,501,536
| | |
6,537,119
| | |
6,506,328
| | |
6,479,092
| | |
6,220,052
|
|
Shareholders' equity
| | | |
987,904
| | |
965,524
| | |
955,015
| | |
918,136
| | |
875,812
|
|
Total liabilities and shareholders' equity
|
|
|
|
7,489,440
|
|
|
7,502,643
|
|
|
7,461,343
|
|
|
7,397,228
|
|
|
7,095,864
|
| Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
| | | |
9.96%
| | |
9.79%
| | |
9.64%
| | |
9.48%
| | |
9.29%
|
|
Tangible equity/net tangible assets (3) | | | |
8.92%
| | |
8.57%
| | |
8.44%
| | |
7.97%
| | |
7.68%
|
|
Diluted weighted average common shares O/S
| | | |
41,248
| | |
41,260
| | |
41,269
| | |
41,152
| | |
41,061
|
|
Period end common shares outstanding
| | | |
40,748
| | |
40,707
| | |
40,688
| | |
40,658
| | |
40,431
|
|
Cash dividends declared per common share
| | | | $0.30 | | | $0.30 | | | $0.28 | | | $0.28 | | | $0.28 |
|
Book value
| | | | $24.24 | | | $23.72 | | | $23.47 | | | $22.58 | | | $21.66 |
|
Tangible book value(3) | | | | $15.63 | | | $15.04 | | | $14.74 | | | $13.79 | | | $12.80 |
|
Common stock price (end of period)
|
|
|
| $38.13 |
|
| $33.59 |
|
| $36.20 |
|
| $39.02 |
|
| $39.68 |
|
|
|
|
| Summary of Financial Data |
|
|
| |
| (Dollars in thousands, except per share data) | | | |
|
| | | | 2014 |
|
| 2013 |
|
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | | | $20,731 |
|
| $21,323 |
|
| $21,991 |
|
| $21,669 |
|
| $19,473 |
|
Accruing loans 90+ days delinquent
| | | |
3,105
| | |
2,690
| | |
1,930
| | |
1,977
| | |
2,555
|
|
Total nonperforming loans
| | | |
23,836
| | |
24,013
| | |
23,921
| | |
23,646
| | |
22,028
|
|
Other real estate owned (OREO)
| | | |
1,855
| | |
3,619
| | |
4,281
| | |
4,914
| | |
5,060
|
|
Total nonperforming assets
| | | |
25,691
| | |
27,632
| | |
28,202
| | |
28,560
| | |
27,088
|
|
Net charge-offs
| | | |
2,461
| | |
1,090
| | |
1,482
| | |
1,122
| | |
2,949
|
|
Allowance for loan losses/loans outstanding
| | | |
1.07%
| | |
1.07%
| | |
1.08%
| | |
1.08%
| | |
1.08%
|
|
Nonperforming loans/loans outstanding
| | | |
0.56%
| | |
0.57%
| | |
0.58%
| | |
0.58%
| | |
0.54%
|
|
Allowance for loan losses/nonperforming loans
| | | |
190%
| | |
189%
| | |
187%
| | |
187%
| | |
201%
|
|
Net charge-offs/average loans
| | | |
0.23%
| | |
0.10%
| | |
0.14%
| | |
0.11%
| | |
0.29%
|
|
Delinquent loans/ending loans
| | | |
1.46%
| | |
1.32%
| | |
1.24%
| | |
1.25%
| | |
1.49%
|
|
Loan loss provision/net charge-offs
| | | |
103%
| | |
160%
| | |
128%
| | |
89%
| | |
108%
|
|
Nonperforming assets/total assets
|
|
|
|
0.34%
|
|
|
0.37%
|
|
|
0.38%
|
|
|
0.39%
|
|
|
0.38%
|
| Asset Quality (excluding loans acquired since 1/1/09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | | | $17,676 | | | $17,313 | | | $18,147 | | | $17,755 | | | $16,065 |
|
Accruing loans 90+ days delinquent
| | | |
2,827
| | |
2,545
| | |
1,813
| | |
1,826
| | |
2,418
|
|
Total nonperforming loans
| | | |
20,503
| | |
19,858
| | |
19,960
| | |
19,581
| | |
18,483
|
|
Other real estate owned (OREO)
| | | |
1,469
| | |
1,794
| | |
2,303
| | |
2,645
| | |
2,832
|
|
Total nonperforming assets
| | | |
21,972
| | |
21,652
| | |
22,263
| | |
22,226
| | |
21,315
|
|
Net charge-offs
| | | |
2,098
| | |
1,088
| | |
1,204
| | |
1,086
| | |
1,956
|
|
Allowance for loan losses/loans outstanding
| | | |
1.14%
| | |
1.14%
| | |
1.15%
| | |
1.15%
| | |
1.15%
|
|
Nonperforming loans/loans outstanding
| | | |
0.52%
| | |
0.51%
| | |
0.52%
| | |
0.52%
| | |
0.49%
|
|
Allowance for loan losses/nonperforming loans
| | | |
221%
| | |
226%
| | |
221%
| | |
222%
| | |
234%
|
|
Net charge-offs/average loans
| | | |
0.21%
| | |
0.11%
| | |
0.13%
| | |
0.12%
| | |
0.21%
|
|
Delinquent loans/ending loans
| | | |
1.39%
| | |
1.23%
| | |
1.19%
| | |
1.17%
| | |
1.44%
|
|
Loan loss provision/net charge-offs
| | | |
122%
| | |
160%
| | |
155%
| | |
121%
| | |
130%
|
|
Nonperforming assets/total assets
|
|
|
|
0.30%
|
|
|
0.30%
|
|
|
0.31%
|
|
|
0.31%
|
|
|
0.32%
|
| | | | | | | | | | | | | | | |
|
(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 $35.8
million at 12/31/14) 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.