-GAAP earnings of $25.9 million, or $0.58 per share
- Generated 7% annualized quarterly loan growth
SYRACUSE, N.Y.--(BUSINESS WIRE)--
Community Bank System, Inc. (NYSE:CBU) reported second quarter 2016 net
income of $25.9 million, an increase of 8.5% compared with $23.8 million
earned for the second quarter of 2015. Diluted earnings per share
totaled $0.58 for the second quarter of 2016, equivalent to the second
quarter of last year. Fully diluted shares outstanding increased 3.4
million shares from the second quarter of 2015, principally from shares
issued in the fourth quarter of 2015 for the stock portion of
consideration for the Oneida Financial acquisition. 2016 year-to-date
net income of $50.3 million, or $1.13 per share, was 8.9% above the
first six months of 2015’s earnings of $46.1 million, or $1.12 per share.
“Our solid second quarter operating results were driven by meaningful
loan growth, particularly in our business and auto lending portfolios, a
continuation of exceptional credit quality, disciplined expense
management, and continued improvement in our non-interest income
generation,” said President and Chief Executive Officer Mark E.
Tryniski. “A 7% annualized growth in loans in the second quarter has
allowed us to report over $100 million in loan growth year-to-date, a
very productive outcome in this challenging low interest rate
environment.” Mr. Tryniski also commented, “As we celebrate our 150th
year anniversary in 2016, the strength of our company continues to be
driven by the commitment of our employees. Through their hard work and
dedication, we continue to consistently deliver above-peer financial
results. We remain well positioned to provide the right products and
services to our customers so that they may achieve their financial
objectives as we continue to create value for our shareholders.”
Total revenue for the second quarter of 2016 was $107.1 million, an
increase of $16.1 million, or 17.7%, over the prior year quarter, and
included the impact of the Oneida Financial transaction completed in the
fourth quarter of last year. The higher revenue was generated as a
result of an 11.5% increase in average earning assets and continued
acquired and organic growth in noninterest income, which more than
offset a three basis-point reduction in net interest margin from the
prior year quarter. A combination of acquired and organic growth
resulted in a $6.5 million, or 41.1% increase in wealth management,
insurance, and employee benefit services revenues. Deposit service fees
increased 13.6% year-over-year, the result of increased card-related
revenues and offset by modestly lower fees from account overdraft
protection programs, including the additional activities from the Oneida
transaction. The quarterly provision for loan losses of $2.3
million was $1.7 million higher than the historically low second quarter
of 2015, reflective of comparably higher levels of net charge-offs and
portfolio growth. Non-performing asset and delinquent loan ratios were
generally stable. Total operating expenses of $66.4 million for the
quarter were $10.3 million, or 18.4% above the second quarter of 2015,
and included the operating expenses of the Oneida Financial acquisition.
Certain statutory changes to state tax rates and structures along with a
lower proportion of tax-exempt income resulted in a quarterly effective
tax rate of 32.7% in the second quarter of 2016, compared to 30.5% in
the second quarter of 2015, an outcome that resulted in a two cent per
share headwind compared to the prior year.
Second quarter 2016 net interest income was $68.3 million, an increase
of $7.1 million, or 11.6%, compared to the second quarter of 2015.
Modestly improved funding costs were offset by a five basis point
decline in earning asset yields, which were driven by lower blended
interest rates on loans and investment securities. While average loan
balances grew $654.6 million, or 15.5%, average loan yields declined
five basis points year-over-year, resulting in a $6.7 million increase
in quarterly loan interest income. Investment interest income was $0.5
million higher than the second quarter of 2015 as average investment
securities (including cash equivalents) increased by $136.7 million, and
the yield declined ten basis points. Interest expense was $0.2 million
higher than the previous year’s quarter, driven by a $950.7 million
increase in average deposits and a $189.7 million decline in average
borrowings, including the Oneida acquisition.
Wealth management, insurance and employee benefit services revenues
increased $6.5 million, or 41.1%, to $22.2 million compared to second
quarter 2015, principally from the acquired activities of Oneida
Financial. Revenues from mortgage banking and other services increased
$0.8 million from the second quarter of 2015, and included nearly $0.4
million in non-recurring gains.
Second quarter 2016 operating expenses of $66.4 million increased $10.3
million over the second quarter of 2015, including the operating
activities of Oneida Financial. Salaries and employee benefits increased
$6.9 million, or 22.4%, and included personnel added from the Oneida
transaction as well as planned merit increases. All other expenses
increased 13.4% and reflected the occupancy, equipment and other
operating costs of Oneida, including higher intangible amortization,
compared to the second quarter of 2015. The second quarter and
year-to-date 2016 effective income tax rates of 32.7% and 32.6%,
respectively, were higher than the 30.5% and 30.8%, respectively, in
last year’s comparable periods. Second quarter 2016 operating expenses
were $1.3 million lower than the first quarter of this year, and
reflected seasonally expected reductions in certain payroll tax expenses
and utility costs. Both the first and second quarters of 2016 included
65 payroll days.
Financial Position
Average earning assets of $7.65 billion for the second quarter of 2016
were up $791.3 million from the second quarter of 2015, and were $42.2
million higher than the first quarter of 2016. Compared to the prior
year, total average earning asset balances included acquired and organic
growth of $654.6 million in average loan balances, while average
investment securities and interest-earning cash balances increased by
$136.7 million. Average deposit balances grew $950.7 million compared to
the second quarter of 2015, and were $63.8 million higher than the first
quarter of 2016. Average borrowings in the second quarter of 2016 of
$249.3 million, were $47.7 million, or 16.1%, lower than the first
quarter of this year.
Ending loans at June 30, 2016 increased $641.2 million, or 15.0%,
year-over-year, reflecting productive organic growth in almost every one
of the Company’s lending portfolios, and loans acquired in the Oneida
Financial transaction. Investment securities totaled $2.93 billion at
June 30, 2016, a level consistent with the previous four quarter-ends.
Shareholders’ equity of $1.24 billion at June 30, 2016 was $236.6
million, or 23.7%, higher than the prior year second quarter-end, from
strong earnings generation and capital retention over the last four
quarters as well as 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 9.58% at June 30, 2016, up from 8.63% at June
30, 2015. The Company’s Tier 1 leverage ratio stood at 10.14% at the end
of the second quarter.
As previously announced, in December 2015 the Company’s Board of
Directors approved a stock repurchase program authorizing the repurchase
of up to 2.2 million shares of the Company’s common stock during a
twelve-month period starting January 1, 2016. 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. No shares were repurchased under this
authorization in the first half of 2016.
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 $1.4 million for the second
quarter, compared to a historically low $0.3 million for the second
quarter of 2015 and $1.1 million for the first quarter of 2016. Net
charge-offs as an annualized percentage of average loans measured 0.11%
in the second quarter of 2016, compared to 0.03% in the prior year
second quarter and 0.10% in the first quarter of 2016. Nonperforming
loans as a percentage of total loans at June 30, 2016 were 0.49%,
improved from 0.54% at both June 30, 2015 and March 31, 2016. The total
loan delinquency ratio of 1.10% at the end of the second quarter was up
one basis point from the end of the second quarter of 2015. The second
quarter provision for loan losses of $2.3 million was $1.7 million
higher than the second quarter of 2015, and $1.0 million higher than the
first quarter of 2016, due primarily to comparably higher net charge-off
levels than the previous year’s second quarter, and solid organic loan
growth. The allowance for loan losses to nonperforming loans was 193% at
June 30, 2016, compared with the 197% and 175% levels at the end of the
second quarter of 2015 and the first quarter of 2016, respectively.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
tomorrow (Thursday, July 21st) to discuss second quarter results. The
conference call can be accessed at 888-461-2024 (1-719-325-2393 if
outside United States and Canada) using the conference ID code 3525466.
Investors may also listen live via the Internet at: http://www.webcaster4.com/Webcast/Page/995/15903.
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
$8.7 billion, the DeWitt, N.Y. headquartered company is among the
country's 150 largest financial institutions. In addition to a full
range of retail, business, and governmental banking services, the
Company offers comprehensive financial planning, insurance and wealth
management services through its’ Community Bank Wealth Management Group
and OneGroup NY, Inc. operating subsidiaries. The Company's Benefit
Plans Administrative Services, Inc. subsidiary is a leading provider of
employee benefits administration, trust services, and actuarial
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 |
|
|
|
|
|
| June 30, 2016 |
|
| June 30, 2015 |
|
| June 30, 2016 |
|
| June 30, 2015 |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan income
| | | | | $52,509 |
|
| $45,791 |
|
| $104,159 |
|
| $91,382 |
|
Investment income
| | | | |
18,601
| | |
18,089
| | |
36,707
| | |
34,952
|
|
Total interest income
| | | | |
71,110
| | |
63,880
| | |
140,866
| | |
126,334
|
|
Interest expense
| | | | |
2,804
| | |
2,652
| | |
5,679
| | |
5,266
|
|
Net interest income
| | | | |
68,306
| | |
61,228
| | |
135,187
| | |
121,068
|
|
Provision for loan losses
| | | | |
2,305
| | |
591
| | |
3,646
| | |
1,214
|
|
Net interest income after provision for loan losses
| | | | |
66,001
| | |
60,637
| | |
131,541
| | |
119,854
|
|
Deposit service fees
| | | | |
15,008
| | |
13,213
| | |
28,742
| | |
25,683
|
|
Revenues from mortgage banking and other banking services
| | | | |
1,597
| | |
799
| | |
3,176
| | |
1,854
|
|
Wealth management and insurance services
| | | | |
10,496
| | |
4,385
| | |
21,453
| | |
8,831
|
|
Employee benefit services
| | | | |
11,671
| | |
11,322
| | |
23,682
| | |
22,397
|
|
Total noninterest income
| | | | |
38,772
| | |
29,719
| | |
77,053
| | |
58,765
|
|
Salaries and employee benefits
| | | | |
37,950
| | |
31,010
| | |
77,088
| | |
62,039
|
|
Occupancy and equipment
| | | | |
7,409
| | |
6,844
| | |
15,072
| | |
14,239
|
|
Amortization of intangible assets
| | | | |
1,403
| | |
880
| | |
2,845
| | |
1,799
|
|
Acquisition expenses
| | | | |
263
| | |
361
| | |
340
| | |
756
|
|
Other
| | | | |
19,331
| | |
16,953
| | |
38,680
| | |
33,163
|
|
Total operating expenses
| | | | |
66,356
| | |
56,048
| | |
134,025
| | |
111,996
|
|
Income before income taxes
| | | | |
38,417
| | |
34,308
| | |
74,569
| | |
66,623
|
|
Income taxes
| | | | |
12,560
| | |
10,468
| | |
24,309
| | |
20,486
|
|
Net income
| | | | | $25,857 | | | $23,840 | | | $50,260 | | | $46,137 |
|
Basic earnings per share
| | | | | $0.58 | | | $0.58 | | | $1.14 | | | $1.13 |
|
Diluted earnings per share
|
|
|
|
| $0.58 |
|
| $0.58 |
|
| $1.13 |
|
| $1.12 |
|
|
|
|
Summary of Financial Data |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | 2016 |
|
|
|
| 2015 |
|
|
|
|
|
| 2nd Qtr |
|
| 1st Qtr |
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan income
| | | | | $52,509 |
|
| $51,650 |
|
|
|
| $49,321 |
|
| $47,040 |
|
| $45,791 |
|
Investment income
| | | | |
18,601
| | |
18,106
| | | | |
18,683
| | |
18,244
| | |
18,089
|
|
Total interest income
| | | | |
71,110
| | |
69,756
| | | | |
68,004
| | |
65,284
| | |
63,880
|
|
Interest expense
| | | | |
2,804
| | |
2,875
| | | | |
3,015
| | |
2,921
| | |
2,652
|
|
Net interest income
| | | | |
68,306
| | |
66,881
| | | | |
64,989
| | |
62,363
| | |
61,228
|
|
Provision for loan losses
| | | | |
2,305
| | |
1,341
| | | | |
3,327
| | |
1,906
| | |
591
|
|
Net interest income after provision for loan losses
| | | | |
66,001
| | |
65,540
| | | | |
61,662
| | |
60,457
| | |
60,637
|
|
Deposit service fees
| | | | |
15,008
| | |
13,734
| | | | |
13,605
| | |
13,459
| | |
13,213
|
|
Revenues from mortgage banking and other banking services
| | | | |
1,597
| | |
1,579
| | | | |
1,061
| | |
2,045
| | |
799
|
|
Wealth management and insurance services
| | | | |
10,496
| | |
10,957
| | | | |
6,825
| | |
4,552
| | |
4,385
|
|
Employee benefit services
| | | | |
11,671
| | |
12,011
| | | | |
11,661
| | |
11,330
| | |
11,322
|
|
Loss on sale of investments
| | | | |
0
| | |
0
| | | | |
(4)
| | |
0
| | |
0
|
|
Total noninterest income
| | | | |
38,772
| | |
38,281
| | | | |
33,148
| | |
31,386
| | |
29,719
|
|
Salaries and employee benefits
| | | | |
37,950
| | |
39,138
| | | | |
33,138
| | |
31,179
| | |
31,010
|
|
Occupancy and equipment
| | | | |
7,409
| | |
7,663
| | | | |
6,702
| | |
6,652
| | |
6,844
|
|
Amortization of intangible assets
| | | | |
1,403
| | |
1,442
| | | | |
1,021
| | |
843
| | |
880
|
|
Acquisition expenses
| | | | |
263
| | |
77
| | | | |
5,719
| | |
562
| | |
361
|
|
Other
| | | | |
19,331
| | |
19,349
| | | | |
18,400
| | |
16,843
| | |
16,953
|
|
Total operating expenses
| | | | |
66,356
| | |
67,669
| | | | |
64,980
| | |
56,079
| | |
56,048
|
|
Income before income taxes
| | | | |
38,417
| | |
36,152
| | | | |
29,830
| | |
35,764
| | |
34,308
|
|
Income taxes
| | | | |
12,560
| | |
11,749
| | | | |
9,759
| | |
10,742
| | |
10,468
|
|
Net income
| | | | |
25,857
| | |
24,403
| | | | |
20,071
| | |
25,022
| | |
23,840
|
|
Basic earnings per share
| | | | | $0.58 | | | $0.55 | | | | | $0.48 | | | $0.61 | | | $0.58 |
|
Diluted earnings per share
|
|
|
|
| $0.58 |
|
| $0.55 |
|
|
|
| $0.47 |
|
| $0.60 |
|
| $0.58 |
| Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
| | | | |
1.20%
| | |
1.14%
| | | | |
0.98%
| | |
1.25%
| | |
1.25%
|
|
Return on equity
| | | | |
8.62%
| | |
8.34%
| | | | |
7.41%
| | |
9.77%
| | |
9.44%
|
|
Return on tangible equity(3) | | | | |
13.63%
| | |
13.38%
| | | | |
10.98%
| | |
14.82%
| | |
14.40%
|
|
Noninterest income/operating income (FTE) (1) | | | | |
35.3%
| | |
35.5%
| | | | |
32.8%
| | |
32.4%
| | |
31.6%
|
|
Efficiency ratio (2) |
|
|
|
|
59.0%
|
|
|
61.4%
|
|
|
|
|
57.6%
|
|
|
56.4%
|
|
|
58.3%
|
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield
| | | | |
4.35%
| | |
4.33%
| | | | |
4.43%
| | |
4.40%
| | |
4.40%
|
|
Cash equivalents yield
| | | | |
0.46%
| | |
0.47%
| | | | |
0.25%
| | |
0.22%
| | |
0.28%
|
|
Investment yield
| | | | |
3.06%
| | |
2.97%
| | | | |
2.98%
| | |
2.94%
| | |
3.15%
|
|
Earning asset yield
| | | | |
3.87%
| | |
3.82%
| | | | |
3.86%
| | |
3.81%
| | |
3.92%
|
|
Interest-bearing deposit rate
| | | | |
0.14%
| | |
0.14%
| | | | |
0.14%
| | |
0.14%
| | |
0.15%
|
|
Borrowing rate
| | | | |
1.50%
| | |
1.33%
| | | | |
0.83%
| | |
0.72%
| | |
0.84%
|
|
Cost of all interest-bearing funds
| | | | |
0.20%
| | |
0.20%
| | | | |
0.22%
| | |
0.21%
| | |
0.20%
|
|
Cost of funds (includes DDA)
| | | | |
0.15%
| | |
0.16%
| | | | |
0.17%
| | |
0.17%
| | |
0.16%
|
|
Net interest margin (FTE)
| | | | |
3.73%
| | |
3.67%
| | | | |
3.70%
| | |
3.65%
| | |
3.76%
|
|
Fully tax-equivalent adjustment
|
|
|
|
| $2,605 |
|
| $2,524 |
|
|
|
| $3,041 |
|
| $3,162 |
|
| $3,115 |
|
|
|
|
| Summary of Financial Data |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| | | | | 2016 |
|
|
|
| 2015 |
|
|
|
|
|
| 2nd Qtr |
|
| 1st Qtr |
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
| Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
| | | | | $4,866,574 |
|
| $4,812,575 |
|
|
|
| $4,459,575 |
|
| $4,287,062 |
|
| $4,211,962 |
|
Cash equivalents
| | | | |
19,456
| | |
22,355
| | | | |
12,448
| | |
12,395
| | |
11,325
|
|
Taxable investment securities
| | | | |
2,178,448
| | |
2,172,983
| | | | |
2,214,690
| | |
2,187,818
| | |
2,031,234
|
|
Nontaxable investment securities
| | | | |
588,897
| | |
603,297
| | | | |
614,891
| | |
635,627
| | |
607,585
|
|
Total interest-earning assets
| | | | |
7,653,375
| | |
7,611,210
| | | | |
7,301,604
| | |
7,122,902
| | |
6,862,106
|
|
Total assets
| | | | |
8,656,653
| | |
8,604,264
| | | | |
8,161,843
| | |
7,919,966
| | |
7,678,719
|
|
Interest-bearing deposits
| | | | |
5,517,287
| | |
5,458,273
| | | | |
4,943,210
| | |
4,739,513
| | |
4,777,195
|
|
Borrowings
| | | | |
249,263
| | |
296,964
| | | | |
607,771
| | |
675,958
| | |
438,931
|
|
Total interest-bearing liabilities
| | | | |
5,766,550
| | |
5,755,237
| | | | |
5,550,981
| | |
5,415,471
| | |
5,216,126
|
|
Noninterest-bearing deposits
| | | | |
1,532,322
| | |
1,527,585
| | | | |
1,405,416
| | |
1,363,022
| | |
1,321,738
|
|
Shareholders' equity
|
|
|
|
|
1,206,353
|
|
|
1,177,246
|
|
|
|
|
1,074,243
|
|
|
1,016,448
|
|
|
1,012,470
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
| | | | | $161,634 | | | $138,513 | | | | | $153,210 | | | $156,836 | | | $143,047 |
|
Investment securities
| | | | |
2,931,302
| | |
2,902,878
| | | | |
2,847,940
| | |
2,917,263
| | |
2,868,050
|
|
Loans:
| | | | | | | | | | | | | | | | | | | |
|
Consumer mortgage
| | | | |
1,779,295
| | |
1,777,792
| | | | |
1,769,754
| | |
1,621,862
| | |
1,608,064
|
|
Business lending
| | | | |
1,536,546
| | |
1,509,421
| | | | |
1,497,271
| | |
1,288,772
| | |
1,295,889
|
|
Consumer indirect
| | | | |
993,132
| | |
941,151
| | | | |
935,760
| | |
872,988
| | |
837,449
|
|
Home equity
| | | | |
399,870
| | |
403,273
| | | | |
403,514
| | |
345,446
| | |
340,578
|
|
Consumer direct
| | | | |
195,959
| | |
189,535
| | | | |
195,076
| | |
184,479
| | |
181,623
|
|
Total loans
| | | | |
4,904,802
| | |
4,821,172
| | | | |
4,801,375
| | |
4,313,547
| | |
4,263,603
|
|
Allowance for loan losses
| | | | |
46,526
| | |
45,596
| | | | |
45,401
| | |
45,588
| | |
45,282
|
|
Intangible assets, net
| | | | |
483,478
| | |
484,881
| | | | |
484,146
| | |
384,525
| | |
385,515
|
|
Other assets
| | | | |
307,421
| | |
314,053
| | | | |
311,399
| | |
270,583
| | |
293,838
|
|
Total assets
| | | | |
8,742,111
| | |
8,615,901
| | | | |
8,552,669
| | |
7,997,166
| | |
7,908,771
|
|
Deposits:
| | | | | | | | | | | | | | | | | | | |
|
Noninterest-bearing
| | | | |
1,546,253
| | |
1,533,085
| | | | |
1,499,616
| | |
1,357,554
| | |
1,337,101
|
|
Non-maturity interest-bearing
| | | | |
4,664,635
| | |
4,808,650
| | | | |
4,569,310
| | |
4,081,796
| | |
4,020,192
|
|
Time
| | | | |
746,966
| | |
777,327
| | | | |
804,548
| | |
708,760
| | |
729,527
|
|
Total deposits
| | | | |
6,957,854
| | |
7,119,062
| | | | |
6,873,474
| | |
6,148,110
| | |
6,086,820
|
|
Borrowings
| | | | |
267,600
| | |
33,700
| | | | |
301,300
| | |
558,100
| | |
566,200
|
|
Subordinated debt held by unconsolidated subsidiary trusts
| | | | |
102,158
| | |
102,152
| | | | |
102,146
| | |
102,140
| | |
102,134
|
|
Accrued interest and other liabilities
| | | | |
177,570
| | |
160,322
| | | | |
135,102
| | |
143,790
| | |
153,278
|
|
Total liabilities
| | | | |
7,505,182
| | |
7,415,236
| | | | |
7,412,022
| | |
6,952,140
| | |
6,908,432
|
|
Shareholders' equity
| | | | |
1,236,929
| | |
1,200,665
| | | | |
1,140,647
| | |
1,045,026
| | |
1,000,339
|
|
Total liabilities and shareholders' equity
|
|
|
|
|
8,742,111
|
|
|
8,615,901
|
|
|
|
|
8,552,669
|
|
|
7,997,166
|
|
|
7,908,771
|
| Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
| | | | |
10.14%
| | |
9.95%
| | | | |
10.32%
| | |
10.09%
| | |
10.20%
|
|
Tangible equity/net tangible assets (3) | | | | |
9.58%
| | |
9.25%
| | | | |
8.59%
| | |
9.14%
| | |
8.63%
|
|
Diluted weighted average common shares O/S | | | | |
44,636
| | |
44,356
| | | | |
42,373
| | |
41,470
| | |
41,265
|
|
Period end common shares outstanding
| | | | |
44,179
| | |
44,070
| | | | |
43,775
| | |
41,019
| | |
40,877
|
|
Cash dividends declared per common share
| | | | | $0.31 | | | $0.31 | | | | | $0.31 | | | $0.31 | | | $0.30 |
|
Book value
| | | | | $28.00 | | | $27.24 | | | | | $26.06 | | | $25.48 | | | $24.47 |
|
Tangible book value(3) | | | | | $17.99 | | | $17.16 | | | | | $15.90 | | | $17.05 | | | $15.96 |
|
Common stock price (end of period)
|
|
|
|
| $41.09 |
|
| $38.21 |
|
|
|
| $39.94 |
|
| $37.17 |
|
| $37.77 |
|
|
|
|
| Summary of Financial Data |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| | | | | 2016 |
|
|
|
| 2015 |
|
|
|
|
|
| 2nd Qtr |
|
| 1st Qtr |
|
|
|
| 4th Qtr |
|
| 3rd Qtr |
|
| 2nd Qtr |
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | | | | $22,149 |
|
| $23,765 |
|
|
|
| $21,728 |
|
| $23,133 |
|
| $21,440 |
|
Accruing loans 90+ days delinquent
| | | | |
1,910
| | |
2,327
| | | | |
2,195
| | |
2,075
| | |
1,558
|
|
Total nonperforming loans
| | | | |
24,059
| | |
26,092
| | | | |
23,923
| | |
25,208
| | |
22,998
|
|
Other real estate owned (OREO)
| | | | |
1,726
| | |
2,031
| | | | |
2,088
| | |
2,531
| | |
2,324
|
|
Total nonperforming assets
| | | | |
25,785
| | |
28,123
| | | | |
26,011
| | |
27,739
| | |
25,322
|
|
Net charge-offs
| | | | |
1,376
| | |
1,146
| | | | |
3,514
| | |
1,600
| | |
314
|
|
Allowance for loan losses/loans outstanding
| | | | |
0.95%
| | |
0.95%
| | | | |
0.95%
| | |
1.06%
| | |
1.06%
|
|
Nonperforming loans/loans outstanding
| | | | |
0.49%
| | |
0.54%
| | | | |
0.50%
| | |
0.58%
| | |
0.54%
|
|
Allowance for loan losses/nonperforming loans
| | | | |
193%
| | |
175%
| | | | |
190%
| | |
181%
| | |
197%
|
|
Net charge-offs/average loans
| | | | |
0.11%
| | |
0.10%
| | | | |
0.31%
| | |
0.15%
| | |
0.03%
|
|
Delinquent loans/ending loans
| | | | |
1.10%
| | |
1.00%
| | | | |
1.16%
| | |
1.19%
| | |
1.09%
|
|
Loan loss provision/net charge-offs
| | | | |
168%
| | |
117%
| | | | |
95%
| | |
119%
| | |
188%
|
|
Nonperforming assets/total assets
|
|
|
|
|
0.29%
|
|
|
0.33%
|
|
|
|
|
0.30%
|
|
|
0.35%
|
|
|
0.32%
|
| Asset Quality (excluding loans acquired since 1/1/09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | | | | $18,259 | | | $20,045 | | | | | $18,804 | | | $20,504 | | | $18,558 |
|
Accruing loans 90+ days delinquent
| | | | |
1,574
| | |
1,837
| | | | |
1,802
| | |
1,876
| | |
1,463
|
|
Total nonperforming loans
| | | | |
19,833
| | |
21,882
| | | | |
20,606
| | |
22,380
| | |
20,021
|
|
Other real estate owned (OREO)
| | | | |
1,258
| | |
1,497
| | | | |
1,546
| | |
1,720
| | |
1,518
|
|
Total nonperforming assets
| | | | |
21,091
| | |
23,379
| | | | |
22,152
| | |
24,100
| | |
21,539
|
|
Net charge-offs
| | | | |
1,404
| | |
898
| | | | |
3,420
| | |
1,473
| | |
425
|
|
Allowance for loan losses/loans outstanding
| | | | |
1.02%
| | |
1.04%
| | | | |
1.05%
| | |
1.10%
| | |
1.11%
|
|
Nonperforming loans/loans outstanding
| | | | |
0.46%
| | |
0.52%
| | | | |
0.49%
| | |
0.55%
| | |
0.50%
|
|
Allowance for loan losses/nonperforming loans
| | | | |
224%
| | |
200%
| | | | |
212%
| | |
201%
| | |
223%
|
|
Net charge-offs/average loans
| | | | |
0.13%
| | |
0.09%
| | | | |
0.34%
| | |
0.14%
| | |
0.04%
|
|
Delinquent loans/ending loans
| | | | |
1.08%
| | |
1.00%
| | | | |
1.19%
| | |
1.14%
| | |
1.04%
|
|
Loan loss provision/net charge-offs
| | | | |
120%
| | |
112%
| | | | |
62%
| | |
127%
| | |
191%
|
|
Nonperforming assets/total assets
|
|
|
|
|
0.26%
|
|
|
0.29%
|
|
|
|
|
0.28%
|
|
|
0.31%
|
|
|
0.28%
|
|
|
(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 $41.5 million at 6/30/16) 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/20160720006369/en/
Community Bank System, Inc.
Scott A. Kingsley, 315-445-3121
EVP
& Chief Financial Officer
Source: Community Bank System, Inc.