-Completed the acquisition of Oneida Financial Corp.
- Dividend increased for the 23rd
consecutive year
- Full year organic loan growth of 4%
- Full year operating EPS improves to $2.30 per share
SYRACUSE, N.Y.--(BUSINESS WIRE)--
Community Bank System, Inc. (NYSE:CBU) reported fourth quarter 2015 net
income of $20.1 million, compared with $23.1 million earned in the
fourth quarter of 2014. Diluted earnings per share totaled $0.47 for the
fourth quarter of 2015, nine cents per share lower than the $0.56 per
share reported in the fourth quarter of 2014, and included $5.7 million
of acquisition expenses, or nine cents per share. Full year 2015 net
income of $91.2 million, or $2.19 per share, was 1.4% below 2014’s
earnings per share of $2.22 , and included $7.0 million of acquisition
expenses, or $0.11 per share, while 2014’s full year results included
$0.1 million of acquisition expenses and a $2.8 million litigation
settlement charge, or $0.05 per share. Operating earnings per share,
which adds back the tax-effected impact of acquisition expenses and the
litigation settlement charge was $2.30 in 2015 and was 1.8%, or $0.04
per share, above 2014’s operating earnings of $2.26 per share.
“Our record annual operating results were driven by productive
earning-asset growth, a continuation of excellent credit quality, and
disciplined expense management,” said President and Chief Executive
Officer Mark E. Tryniski. “After a very slow start to our lending
activity in the first quarter of 2015, we were able to generate solid
volume growth in each of the last three quarters, resulting in full-year
organic loan growth of four percent. We completed the acquisition of
Oneida Financial Corp. in early December 2015, which further extends and
strengthens our Central New York service area by expanding our market
presence in the Syracuse and Utica-Rome metropolitan areas. This
transaction also adds to our product and service offerings in insurance,
benefits administration, and wealth management, while combining two
organizations with similar cultures and the same history of exceptional
service to our customers and our communities.”
Total revenue for the fourth quarter of 2015 was $98.1 million, an
increase of $6.5 million, or 7.0%, over the prior year quarter, and
included the activities of Oneida Financial Corp. (“Oneida Financial” or
“Oneida”) after December 4, 2015. The higher revenue was generated as a
result of a 9.2% increase in average earning assets and growth in
noninterest income from acquired and organic sources, which more than
offset a 19 basis-point reduction in net interest margin from the prior
year quarter. Fourth quarter net interest income was $65.0 million, an
increase of $3.2 million, or 5.2%, compared to the fourth quarter of
2014. Modestly lower funding costs were offset by a 20-basis point
decline in earning asset yields, the result of lower interest rates on
investment securities. Average loan balances grew $235.9 million, or
5.6%, and average loan yields remained stable at 4.43% year-over-year,
resulting in a $2.4 million increase in quarterly loan interest income.
Investment income was $1.0 million higher than the fourth quarter of
2014, as average investment securities (including cash equivalents)
increased by $378.0 million, more than offsetting the yield decline of
44 basis points, principally the result of the decision to pre-invest
and retain the net liquidity provided by the Oneida Financial
transaction earlier in 2015. Wealth management and insurance services
increased $2.5 million, or 57.2%, compared to fourth quarter of 2014,
principally from the Oneida Financial acquisition. Fourth quarter
revenues from employee benefit services increased $0.7 million, or 6.6%
year-over-year, capping off another record annual performance. Revenues
from mortgage banking and other services were in-line with the fourth
quarter of 2014, and were $1.0 million lower than the third quarter’s
results which included the Company’s annual dividend from certain pooled
retail insurance programs of $0.7 million, or just over one cent per
share. Quarterly deposit service fees increased 0.8% year-over-year,
principally from the Oneida acquisition, as slightly higher core
card-related revenues were more than offset by the continuing trend of
lower fees from account overdraft protection programs.
Fourth quarter 2015 operating expenses of $65.0 million increased $8.3
million versus the fourth quarter of 2014, and included $5.7 million of
acquisition expenses, as well as the core operating expenses of the
Oneida transaction since December 4, 2015.
The fourth quarter 2015 provision for loan losses of $3.3 million was
$0.8 million higher than the fourth quarter of 2014, and reflected net
charge-offs of $3.5 million, including one large commercial net
charge-off of $1.0 million, and organic loan growth of $95.2 million
during the quarter. The one large commercial net charge-off in the
quarter related to a relationship that had been partially reserved for
in a prior quarter.
The Company’s effective tax rate for the fourth quarter of 2015 was
32.7%, compared to the 28.8% rate in the fourth quarter of 2014, with
the majority of the increase related to certain statutory changes to
state tax rates and reporting structures enacted over the past two years.
Financial Position
Average earning assets of $7.30 billion for the fourth quarter of 2015
were up $614.0 million from the fourth quarter of 2014, and were $178.7
million higher than the third quarter of 2015. Compared to the prior
year, quarterly average earning asset balances included growth of $235.9
million in average loan balances, including the impact of the acquired
Oneida loans for the month of December, while average investment
securities and interest-earning cash balances increased by $378.0
million, predominantly from incremental investment purchases related to
the net liquidity provided by the Oneida Financial acquisition. Average
deposit balances grew $365.1 million, or 6.1%, compared to the fourth
quarter of 2014. Average borrowings in the fourth quarter of 2015 of
$607.8 million were $201.2 million higher than the prior year quarter,
reflective of the liquidity pre-investment decision related to the
Oneida Financial transaction.
Ending loans at December 31, 2015 increased $565.2 million, or 13.3%
year-over-year, reflecting productive organic growth in each of the
Company’s lending portfolios, and $396.1 million of loans acquired in
the Oneida transaction. Investment securities totaled $2.85 billion at
December 31, 2015, up $335.0 million from the end of 2014. Total
deposits of $6.87 billion at year-end were $938.2 million above the end
of 2014, and included $678.8 million of deposits acquired in the Oneida
transaction. Ending borrowings of $403.4 million were $256.8 million
lower than the end of the third quarter, reflective of the payoff of
certain short-term instruments in December after the Oneida closing,
which were replaced by acquired deposit funding.
Shareholders’ equity of $1.14 billion at December 31, 2015 was $152.7
million, or 15.5%, higher than the prior year-end, due to strong
earnings generation and capital retention over the last four quarters,
and the issuance of 2.38 million shares of common stock, or $102.2
million, reflecting the equity portion of the consideration in the
Oneida transaction. The Company’s net tangible equity to net tangible
assets ratio was 8.59% at December 31, 2015, compared to 8.92% at the
end of 2014, reflective of the growth of the Company’s balance sheet,
including the intangible assets created, in the Oneida acquisition. The
Company’s Tier 1 leverage ratio rose to 10.32% for the current quarter,
up 36 basis points from the fourth quarter of 2014.
As previously announced, in December 2014 the Company’s Board of
Directors approved a stock repurchase program authorizing the repurchase
of up to 2.0 million 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 the Company’s 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 265,230 shares of
its common stock in the first quarter of 2015. No additional shares were
repurchased in the last three quarters of 2015. In December 2015, the
Company’s directors approved a similar program for 2016, authorizing the
repurchase of up to 2.2 million shares of the Company’s common stock.
Asset Quality
The Company’s asset quality metrics continue to be favorable and stable
and illustrate the long-term effectiveness of the Company’s disciplined
risk management and underwriting standards. Net charge-offs were $3.5
million for the fourth quarter, compared to $2.5 million for the fourth
quarter of 2014 and $1.6 million for the third quarter of 2015. The
fourth quarter’s results included a net charge-off of $1.0 million
related to one commercial relationship that had been partially reserved
for in a prior quarter. Net charge-offs as an annualized percentage of
average loans measured 0.31% in the fourth quarter of 2015, compared to
0.23% in the prior year fourth quarter and 0.15% in the third quarter of
2015. Full year 2015 net charge-offs were $6.4 million, or 0.15% of
average loans, consistent with $6.2 million of net charge-offs in 2014,
which was also 0.15% of average loans. Nonperforming loans as a
percentage of total loans at December 31, 2015 were 0.50%, compared to
0.56% of total loans at December 31, 2014. The total loan delinquency
ratio of 1.16% at the end of the fourth quarter was down 30 basis points
from the end of the fourth quarter of 2014. The fourth quarter provision
for loan losses of $3.3 million was $0.8 million, or 31.5%, higher than
the fourth quarter of 2014. The allowance for loan losses to
nonperforming loans was 190% at December 31, 2015, comparable with the
190% and 181% levels at the end of the fourth quarter of 2014 and the
third quarter of 2015, respectively.
Dividend Increase
In August the Company declared a quarterly cash dividend of $0.31 per
share on its common stock, marking its 23rd consecutive year
of dividend increases. President and Chief Executive Officer, Mark E.
Tryniski, commented, “The payment of a meaningful and growing dividend
is an important component of our commitment to provide consistent and
favorable long-term returns to our shareholders. The increase reflected
the continued strength of both our current operating performance and
capital position.” The one cent increase in the Company’s quarterly cash
dividend over the same quarter of the prior year, or 3.3% higher,
represents an annualized yield of 3.4% based on its’ closing price of
$36.13 on January 19, 2016.
Oneida Financial Corp
In the first quarter of 2015, the Company announced the signing of a
definitive agreement to acquire Oneida Financial Corp., the parent
company of Oneida Savings Bank. Under the terms of the agreement,
shareholders of Oneida Financial Corp. received merger consideration
equivalent to 0.5635 shares of Community Bank System, Inc. common stock
or $20.00 in cash for each share of Oneida Financial Corp. common stock
they held, subject to the election and proration provisions of the
agreement providing for an overall 60% stock and 40% cash apportionment.
The transaction was completed on December 4, 2015. The total
consideration for the acquisition was approximately $158.5 million,
comprised of the issuance of 2.38 million shares of Community Bank
System, Inc. common stock and $56.3 million in cash. The Company
acquired approximately $399 million of loans, $308 million of cash
equivalents and investment securities, and $699 million of deposits, as
well as the business assets and activities associated with Oneida’s
insurance, wealth management and employee benefit services businesses.
CBU Highly Ranked in Forbes Analysis
Forbes.com published its seventh annual ranking of the country’s
100 largest banks in early January 2015. The analysis considers 10
metrics related to our industry which includes asset quality, capital
adequacy, growth and profitability, and includes financial institutions
which range in size from $7 billion to $2.4 trillion in assets. Once
again, Community Bank System, Inc. appeared near the top of the list as
the 8th highest rated financial institution based the Forbes
analysis. In the seven years that Forbes has produced this
comparison, the Company has never been ranked lower than 12th,
and has been in the top 10 for five of the years. The Company believes
that this reflects its consistently strong operating performance during
this period.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
tomorrow (Thursday, January 21st) to discuss fourth quarter and full
year results. The conference call can be accessed at 888-337-8169
(719-325-2454 if outside United States and Canada) using the conference
ID code 2415903. Investors may also listen live via the Internet at: http://www.webcaster4.com/Webcast/Page/995/12715.
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 200 customer facilities
across Upstate New York and Northeastern Pennsylvania through its
banking subsidiary, Community Bank, N.A. With assets of approximately
$8.6 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, insurance and wealth management
services. 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, except per share data) |
|
|
|
|
| Quarter Ended | Year-to-Date |
|
| December 31,
2015 | December 31,
2014 | December 31,
2015 | December 31,
2014 |
| Earnings |
|
|
|
|
|
Loan income
| $49,321 | $46,878 | $187,743 | $185,527 |
|
Investment income
|
18,683
|
17,707
|
71,879
|
70,693
|
|
Total interest income
|
68,004
|
64,585
|
259,622
|
256,220
|
|
Interest expense
|
3,015
|
2,829
|
11,202
|
11,792
|
|
Net interest income
|
64,989
|
61,756
|
248,420
|
244,428
|
|
Provision for loan losses
|
3,327
|
2,531
|
6,447
|
7,178
|
|
Net interest income after provision for loan losses
|
61,662
|
59,225
|
241,973
|
237,250
|
|
Deposit service fees
|
13,605
|
13,496
|
52,747
|
52,756
|
|
Revenues from mortgage banking and other banking services
|
1,061
|
1,149
|
4,960
|
5,814
|
|
Wealth management and insurance services
|
6,825
|
4,341
|
20,208
|
17,870
|
|
Employee benefit services
|
11,661
|
10,942
|
45,388
|
42,580
|
|
Gain(loss) on sale of investments
|
(4)
|
0
|
(4)
|
0
|
|
Total noninterest income
|
33,148
|
29,928
|
123,299
|
119,020
|
|
Salaries and employee benefits
|
33,138
|
30,987
|
126,356
|
123,077
|
|
Occupancy and equipment
|
6,702
|
6,724
|
27,593
|
27,948
|
|
Amortization of intangible assets
|
1,021
|
994
|
3,663
|
4,287
|
|
Litigation settlement
|
0
|
0
|
0
|
2,800
|
|
Acquisition expenses
|
5,720
|
0
|
7,038
|
123
|
|
Other
|
18,408
|
17,979
|
68,414
|
68,345
|
|
Total operating expenses
|
64,989
|
56,684
|
233,064
|
226,580
|
|
Income before income taxes
|
29,821
|
32,469
|
132,208
|
129,690
|
|
Income taxes
|
9,759
|
9,336
|
40,987
|
38,337
|
|
Net income
|
20,062
|
23,133
|
91,221
|
91,353
|
|
Basic earnings per share
| $0.48 | $0.57 | $2.21 | $2.24 |
|
Diluted earnings per share
| $0.47 | $0.56 | $2.19 | $2.22 |
| |
|
| |
|
| |
|
| |
|
| |
Summary of Financial Data | | | | | | | | | | | | | |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
| 2014 |
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan income
| $49,321 | | | $47,040 | | | $45,791 | | | $45,591 | | | $46,878 |
|
Investment income
|
18,683
| | |
18,244
| | |
18,089
| | |
16,863
| | |
17,707
|
|
Total interest income
|
68,004
| | |
65,284
| | |
63,880
| | |
62,454
| | |
64,585
|
|
Interest expense
|
3,015
| | |
2,921
| | |
2,652
| | |
2,614
| | |
2,829
|
|
Net interest income
|
64,989
| | |
62,363
| | |
61,228
| | |
59,840
| | |
61,756
|
|
Provision for loan losses
|
3,327
| | |
1,906
| | |
591
| | |
623
| | |
2,531
|
|
Net interest income after provision for loan losses
|
61,662
| | |
60,457
| | |
60,637
| | |
59,217
| | |
59,225
|
|
Deposit service fees
|
13,605
| | |
13,459
| | |
13,213
| | |
12,470
| | |
13,496
|
|
Revenues from mortgage banking and other banking services
|
1,061
| | |
2,045
| | |
799
| | |
1,055
| | |
1,149
|
|
Wealth management and insurance services
|
6,825
| | |
4,552
| | |
4,385
| | |
4,446
| | |
4,341
|
|
Employee benefit services
|
11,661
| | |
11,330
| | |
11,322
| | |
11,075
| | |
10,942
|
|
Gain(loss) on sale of investments
|
(4)
| | |
0
| | |
0
| | |
0
| | |
0
|
|
Total noninterest income
|
33,148
| | |
31,386
| | |
29,719
| | |
29,046
| | |
29,928
|
|
Salaries and employee benefits
|
33,138
| | |
31,179
| | |
31,010
| | |
31,029
| | |
30,987
|
|
Occupancy and equipment
|
6,702
| | |
6,652
| | |
6,844
| | |
7,395
| | |
6,724
|
|
Amortization of intangible assets
|
1,021
| | |
843
| | |
880
| | |
919
| | |
994
|
|
Acquisition expenses
|
5,720
| | |
562
| | |
361
| | |
395
| | |
0
|
|
Other
|
18,408
| | |
16,843
| | |
16,953
| | |
16,210
| | |
17,979
|
|
Total operating expenses
|
64,989
| | |
56,079
| | |
56,048
| | |
55,948
| | |
56,684
|
|
Income before income taxes
|
29,821
| | |
35,764
| | |
34,308
| | |
32,315
| | |
32,469
|
|
Income taxes
|
9,759
| | |
10,742
| | |
10,468
| | |
10,018
| | |
9,336
|
|
Net income
|
20,062
| | |
25,022
| | |
23,840
| | |
22,297
| | |
23,133
|
|
Basic earnings per share
| $0.48 | | | $0.61 | | | $0.58 | | | $0.55 | | | $0.57 |
|
Diluted earnings per share
| $0.47 |
|
| $0.60 |
|
| $0.58 |
|
| $0.54 |
|
| $0.56 |
| Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
|
0.98%
| | |
1.25%
| | |
1.25%
| | |
1.21%
| | |
1.22%
|
|
Return on equity
|
7.41%
| | |
9.77%
| | |
9.44%
| | |
8.97%
| | |
9.35%
|
|
Return on tangible equity(3) |
10.98%
| | |
14.82%
| | |
14.40%
| | |
13.74%
| | |
14.57%
|
|
Noninterest income/operating income (FTE) (1) |
32.8%
| | |
32.4%
| | |
31.6%
| | |
31.6%
| | |
31.3%
|
|
Efficiency ratio (2) |
57.6%
|
|
|
56.4%
|
|
|
58.3%
|
|
|
59.4%
|
|
|
58.3%
|
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield
|
4.43%
| | |
4.40%
| | |
4.40%
| | |
4.45%
| | |
4.43%
|
|
Cash equivalents yield
|
0.25%
| | |
0.22%
| | |
0.28%
| | |
0.20%
| | |
0.19%
|
|
Investment yield
|
2.98%
| | |
2.94%
| | |
3.15%
| | |
3.22%
| | |
3.43%
|
|
Earning asset yield
|
3.86%
| | |
3.81%
| | |
3.92%
| | |
3.99%
| | |
4.06%
|
|
Interest-bearing deposit rate
|
0.14%
| | |
0.14%
| | |
0.15%
| | |
0.16%
| | |
0.16%
|
|
Borrowing rate
|
0.83%
| | |
0.72%
| | |
0.84%
| | |
1.01%
| | |
0.88%
|
|
Cost of all interest-bearing funds
|
0.22%
| | |
0.21%
| | |
0.20%
| | |
0.21%
| | |
0.22%
|
|
Cost of funds (includes DDA)
|
0.17%
| | |
0.17%
| | |
0.16%
| | |
0.17%
| | |
0.18%
|
|
Net interest margin (FTE)
|
3.70%
| | |
3.65%
| | |
3.76%
| | |
3.83%
| | |
3.89%
|
|
Fully tax-equivalent adjustment
| $3,041 |
|
| $3,162 |
|
| $3,115 |
|
| $3,085 |
|
| $3,804 |
| |
|
| |
|
| |
|
| |
|
| |
| Summary of Financial Data | | | | | | | | | | | | | |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
| 2014 |
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
|
| 1st Qtr |
|
| 4th Qtr |
| Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
| $4,459,575 | | | $4,287,062 | | | $4,211,962 | | | $4,190,823 | | | $4,223,653 |
|
Cash equivalents
|
12,448
| | |
12,395
| | |
11,325
| | |
18,080
| | |
11,260
|
|
Taxable investment securities
|
2,214,690
| | |
2,187,818
| | |
2,031,234
| | |
1,845,295
| | |
1,830,375
|
|
Nontaxable investment securities
|
614,891
| | |
635,627
| | |
607,585
| | |
611,330
| | |
622,365
|
|
Total interest-earning assets
|
7,301,604
| | |
7,122,902
| | |
6,862,106
| | |
6,665,528
| | |
6,687,653
|
|
Total assets
|
8,161,843
| | |
7,919,966
| | |
7,678,719
| | |
7,489,179
| | |
7,495,814
|
|
Interest-bearing deposits
|
4,943,210
| | |
4,739,513
| | |
4,777,195
| | |
4,704,003
| | |
4,689,788
|
|
Borrowings
|
607,771
| | |
675,958
| | |
438,931
| | |
327,791
| | |
406,610
|
|
Total interest-bearing liabilities
|
5,550,981
| | |
5,415,471
| | |
5,216,126
| | |
5,031,794
| | |
5,096,398
|
|
Noninterest-bearing deposits
|
1,405,416
| | |
1,363,022
| | |
1,321,738
| | |
1,319,499
| | |
1,293,760
|
|
Shareholders' equity
|
1,074,243
|
|
|
1,016,448
|
|
|
1,012,470
|
|
|
1,008,394
|
|
|
981,737
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
| $153,210 | | | $156,836 | | | $143,047 | | | $150,533 | | | $138,396 |
|
Investment securities
|
2,847,939
| | |
2,917,263
| | |
2,868,050
| | |
2,656,424
| | |
2,512,974
|
|
Loans:
| | | | | | | | | | | | | |
|
Consumer mortgage
|
1,769,754
| | |
1,621,862
| | |
1,608,064
| | |
1,605,019
| | |
1,613,384
|
|
Business lending
|
1,497,271
| | |
1,288,772
| | |
1,295,889
| | |
1,239,529
| | |
1,262,484
|
|
Consumer indirect
|
935,760
| | |
872,988
| | |
837,449
| | |
804,300
| | |
833,968
|
|
Home equity
|
403,514
| | |
345,446
| | |
340,578
| | |
338,979
| | |
342,342
|
|
Consumer direct
|
195,076
| | |
184,479
| | |
181,623
| | |
176,084
| | |
184,028
|
|
Total loans
|
4,801,375
| | |
4,313,547
| | |
4,263,603
| | |
4,163,911
| | |
4,236,206
|
|
Allowance for loan losses
|
45,401
| | |
45,588
| | |
45,282
| | |
45,005
| | |
45,341
|
|
Intangible assets, net
|
484,146
| | |
384,525
| | |
385,515
| | |
386,054
| | |
386,973
|
|
Other assets
|
311,400
| | |
270,583
| | |
293,838
| | |
264,122
| | |
260,232
|
|
Total assets
|
8,552,669
| | |
7,997,166
| | |
7,908,771
| | |
7,576,039
| | |
7,489,440
|
|
Deposits:
| | | | | | | | | | | | | |
|
Noninterest-bearing
|
1,499,616
| | |
1,357,554
| | |
1,337,101
| | |
1,316,621
| | |
1,324,661
|
|
Non-maturity interest-bearing
|
4,569,310
| | |
4,081,796
| | |
4,020,192
| | |
4,055,976
| | |
3,837,603
|
|
Time
|
804,548
| | |
708,760
| | |
729,527
| | |
753,950
| | |
773,000
|
|
Total deposits
|
6,873,474
| | |
6,148,110
| | |
6,086,820
| | |
6,126,547
| | |
5,935,264
|
|
Borrowings
|
301,300
| | |
558,100
| | |
566,200
| | |
195,700
| | |
338,000
|
|
Subordinated debt held by unconsolidated subsidiary trusts
|
102,146
| | |
102,140
| | |
102,134
| | |
102,128
| | |
102,122
|
|
Accrued interest and other liabilities
|
135,102
| | |
143,790
| | |
153,278
| | |
138,262
| | |
126,150
|
|
Total liabilities
|
7,412,022
| | |
6,952,140
| | |
6,908,432
| | |
6,562,637
| | |
6,501,536
|
|
Shareholders' equity
|
1,140,647
| | |
1,045,026
| | |
1,000,339
| | |
1,013,402
| | |
987,904
|
|
Total liabilities and shareholders' equity
|
8,552,669
|
|
|
7,997,166
|
|
|
7,908,771
|
|
|
7,576,039
|
|
|
7,489,440
|
| Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
10.32%
| | |
10.09%
| | |
10.20%
| | |
10.23%
| | |
9.96%
|
|
Tangible equity/net tangible assets (3) |
8.59%
| | |
9.14%
| | |
8.63%
| | |
9.19%
| | |
8.92%
|
|
Diluted weighted average common shares O/S
|
42,373
| | |
41,470
| | |
41,265
| | |
41,247
| | |
41,248
|
|
Period end common shares outstanding
|
43,775
| | |
41,019
| | |
40,877
| | |
40,724
| | |
40,748
|
|
Cash dividends declared per common share
| $0.31 | | | $0.31 | | | $0.30 | | | $0.30 | | | $0.30 |
|
Book value
| $26.06 | | | $25.48 | | | $24.47 | | | $24.88 | | | $24.24 |
|
Tangible book value(3) | $15.90 | | | $17.05 | | | $15.96 | | | $16.31 | | | $15.63 |
|
Common stock price (end of period)
| $39.94 |
|
| $37.17 |
|
| $37.77 |
|
| $35.39 |
|
| $38.13 |
| | | | |
|
| Summary of Financial Data | | | | | |
(Dollars in thousands, except per share data) |
|
|
|
|
|
| 2015 | 2014 |
|
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr |
| Asset Quality |
|
|
|
|
|
|
Nonaccrual loans
| $21,727 | $23,133 | $21,440 | $20,984 | $20,731 |
|
Accruing loans 90+ days delinquent
|
2,196
|
2,075
|
1,558
|
1,699
|
3,106
|
|
Total nonperforming loans
|
23,923
|
25,208
|
22,998
|
22,683
|
23,837
|
|
Other real estate owned (OREO)
|
2,088
|
2,531
|
2,324
|
1,767
|
1,855
|
|
Total nonperforming assets
|
26,011
|
27,739
|
25,322
|
24,450
|
25,692
|
|
Net charge-offs
|
3,515
|
1,600
|
314
|
959
|
2,462
|
|
Allowance for loan losses/loans outstanding
|
0.95%
|
1.06%
|
1.06%
|
1.08%
|
1.07%
|
|
Nonperforming loans/loans outstanding
|
0.50%
|
0.58%
|
0.54%
|
0.54%
|
0.56%
|
|
Allowance for loan losses/nonperforming loans
|
190%
|
181%
|
197%
|
198%
|
190%
|
|
Net charge-offs/average loans
|
0.31%
|
0.15%
|
0.03%
|
0.09%
|
0.23%
|
|
Delinquent loans/ending loans
|
1.16%
|
1.19%
|
1.09%
|
1.19%
|
1.46%
|
|
Loan loss provision/net charge-offs
|
95%
|
119%
|
188%
|
65%
|
103%
|
|
Nonperforming assets/total assets
|
0.30%
|
0.35%
|
0.32%
|
0.32%
|
0.34%
|
| Asset Quality (excluding loans acquired since 1/1/09) |
|
|
|
|
|
|
Nonaccrual loans
| $18,804 | $20,504 | $18,558 | $18,278 | $17,676 |
|
Accruing loans 90+ days delinquent
|
1,802
|
1,876
|
1,463
|
1,325
|
2,828
|
|
Total nonperforming loans
|
20,606
|
22,380
|
20,021
|
19,603
|
20,504
|
|
Other real estate owned (OREO)
|
1,546
|
1,720
|
1,518
|
1,357
|
1,469
|
|
Total nonperforming assets
|
22,152
|
24,100
|
21,539
|
20,960
|
21,973
|
|
Net charge-offs
|
3,420
|
1,473
|
425
|
877
|
2,098
|
|
Allowance for loan losses/loans outstanding
|
1.05%
|
1.10%
|
1.11%
|
1.14%
|
1.14%
|
|
Nonperforming loans/loans outstanding
|
0.49%
|
0.55%
|
0.50%
|
0.50%
|
0.52%
|
|
Allowance for loan losses/nonperforming loans
|
212%
|
201%
|
223%
|
226%
|
221%
|
|
Net charge-offs/average loans
|
0.34%
|
0.14%
|
0.04%
|
0.09%
|
0.21%
|
|
Delinquent loans/ending loans
|
1.19%
|
1.14%
|
1.04%
|
1.11%
|
1.39%
|
|
Loan loss provision/net charge-offs
|
62%
|
127%
|
191%
|
61%
|
125%
|
|
Nonperforming assets/total assets
|
0.28%
|
0.31%
|
0.28%
|
0.29%
|
0.30%
|
| | | | |
|
| (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 $39.7 million at 12/31/15) 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160120006601/en/
Community Bank System, Inc.
Scott A. Kingsley, Office: 315-445-3121
EVP
& Chief Financial Officer
Source: Community Bank System, Inc.