- First Quarter GAAP EPS of $0.57 per share
- Completed the acquisition of Northeast Retirement Services
SYRACUSE, N.Y.--(BUSINESS WIRE)--
Community Bank System, Inc. (NYSE:CBU) reported first quarter 2017 net
income of $26.3 million, an increase of 7.6% compared with $24.4 million
reported for the first quarter of 2016. Diluted earnings per share
totaled $0.57 for the first quarter of 2017, compared to $0.55 per share
in the first quarter of 2016. First quarter 2017 results included
approximately $1.7 million, or three cents per share of acquisition
expenses.
During the first quarter of 2017 the company adopted new accounting
guidance for share-based transactions. That guidance requires that all
excess tax benefits and tax deficiencies associated with share-based
compensation be recognized as income tax expense or benefit in the
income statement. Previously, tax effects resulting from changes in the
company’s share price subsequent to the grant date of equity instruments
were recorded through shareholders’ equity at the time of vesting or
exercise. The adoption of the amended accounting guidance resulted in a
$2.2 million reduction of income tax expense in the first quarter of
2017, or $0.04 of diluted earnings per common share, net.
“We continued our trend of solid quarterly operating results despite
achieving only modest seasonal growth in our overall earning asset base.
Our results included a continuation of excellent credit quality,
disciplined expense management and continued improvement in our
non-interest income generation,” said President and Chief Executive
Officer Mark E. Tryniski. “In February, we successfully completed the
acquisition of Northeast Retirement Services, Inc. (“NRS”), a leading
provider of benefit plan accounting, transfer agency, fund
administration, trust and retirement plan services.” Mr. Tryniski
continued, “We also anticipate receiving final regulatory approvals for
our previously announced plan to merge with Merchants Bancshares, Inc.
(“Merchants”), a high-quality $2.0 billion-asset company providing
banking and other financial services across the State of Vermont and in
Western Massachusetts. We anticipate completing the transaction in
mid-May.”
Total revenue for the first quarter of 2017 was $111.6 million, an
increase of $6.4 million, or 6.1%, over the prior year quarter, and
included approximately $5.0 million of revenues from the NRS transaction
completed in early February. Higher revenue was generated as a result of
a 1.5% increase in average earning assets and continued growth in
noninterest income, partially offset by a two basis-point decline in net
interest margin from the prior year quarter. A combination of acquired
and organic growth resulted in a $5.5 million, or 23.9% increase in
wealth management, insurance, and employee benefit services revenues.
Deposit service fees increased 7.1% year-over-year, primarily the result
of increased card-related revenues. Other banking services declined $0.4
million from the first quarter of 2016, entirely related to an
insurance-related gain experienced last year. The quarterly provision
for loan losses of $1.8 million was $0.5 million higher than the first
quarter of 2016, reflective of higher quarterly net charge-off levels.
Non-performing asset and delinquent loan ratios were generally stable
compared to the most recent four quarter-ends. Excluding acquisition
expenses from both periods, total operating expenses of $71.9
million for the quarter were $4.3 million, or 6.3% above the first
quarter of 2016, and included a partial quarter of operating expenses
from NRS, as well as an additional $1.5 million of intangible
amortization from that transaction.
First quarter 2017 net interest income was $67.3 million, an increase of
$0.4 million, or 0.6%, compared to the first quarter of 2016. Slightly
lower funding costs and a two basis-point decline in the earning asset
yield resulted in a two basis point decrease in net interest margin
year-over-year. Average loan balances grew $126.5 million, or 2.6%, but
were partially offset by average loan yields declining two basis points
year-over-year, resulting in a $0.7 million increase in quarterly loan
interest income. Investment interest income was $0.5 million lower than
the first quarter of 2016 as average investment securities (including
cash equivalents) balances decreased by $14.7 million, and the yield on
investments declined six basis points. Interest expense was $0.2 million
lower than the previous year’s quarter, driven by a one-basis point
decline in cost of funds, and a $119.4 million decline in average
borrowings, partially offset by a $177.7 million increase in average
deposit balances. Wealth management and insurance services revenues
increased $0.3 million, or 2.8%, compared to the first quarter of 2016,
to $11.3 million. Employee benefit services revenues increased $5.2
million from the first quarter of 2016, almost entirely related to the
NRS acquisition.
Excluding acquisition expenses, first quarter 2017 operating expenses of
$71.9 million, which included the partial quarter of operating
activities of NRS, increased $4.3 million over the first quarter of
2016. Salaries and employee benefits increased $2.3 million, or 5.8%,
and included the personnel added from the NRS transaction as well as
planned merit increases. All other expenses increased 7.0%, and
reflected the occupancy, equipment and other operating costs of NRS,
including significantly higher intangible amortization, compared to the
first quarter of 2016. The first quarter 2017 effective income tax was
27.4%, and reflected the previously mentioned $2.2 million reduction in
income tax expense related to the change in accounting for share-based
transactions. Excluding that change, the core effective income tax rate
would have been approximately 33.5%, compared to 32.5% in the first
quarter of 2016, reflective of a higher proportion of income being
generated from fully taxable sources.
The Company also provides supplemental reporting of its results on a
“net adjusted” or “tangible” basis, from which it excludes the after-tax
effect of amortization of core deposit and other intangible assets (and
the related goodwill, core deposit intangible and other intangible asset
balances, net of applicable deferred tax amounts) and expenses
associated with acquisitions. The amounts of such expenses are presented
in the tables that accompany this release. Although “adjusted net
income” as defined by the Company is not a GAAP measure, the Company’s
management believes this information helps investors understand the
effect of acquisition activity in reported results. Diluted adjusted net
earnings per share were $0.64 in the first quarter of 2017.
Financial Position
Average earning assets of $7.72 billion for the first quarter of 2017
were up $111.8 million from the first quarter of 2016, and were
consistent with the fourth quarter of 2016. Compared to the prior year,
total average earning asset balances included organic loan growth of
$126.5 million, while average investment securities and interest-earning
cash balances declined by $14.7 million. Average deposit balances grew
$177.7 million compared to the first quarter of 2016, and were $87.4
million higher than the fourth quarter of 2016. Average borrowings in
the first quarter of 2017 of $177.6 million, were $36.3 million, or
17.0%, lower than the fourth quarter of last year.
Ending loans at March 31, 2017 increased $111.0 million, or 2.3%,
year-over-year, reflecting productive organic growth in the Company’s
consumer lending portfolios. Investment securities totaled $2.79 billion
at March 31, 2017, down somewhat from three of the previous four
quarter-ends, and reflective of limited reinvestment of securities cash
flows over the last twelve months.
Shareholders’ equity of $1.30 billion at March 31, 2017 was $95.4
million, or 7.9%, higher than the prior year period, a result of strong
earnings generation and capital retention over the last four quarters,
as well as incremental shares issued in conjunction with the NRS
acquisition in February. The Company’s net tangible equity to net
tangible assets ratio was 8.91% at March 31, 2017. The Company’s Tier 1
leverage ratio was 10.35% at the end of the first quarter, compared to
9.95% a year earlier.
As previously announced, in December 2016 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, 2017. Such repurchases may be
made at the discretion of the Company’s senior management based on
market conditions and other relevant factors and will be acquired
through open market or privately negotiated transactions as permitted
under Rule 10b-18 of the Securities Exchange Act of 1934 and other
applicable legal requirements. There were no shares repurchased in the
first quarter of 2017.
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 $2.0 million for the first
quarter, compared to $2.2 million for the fourth quarter of 2016 and
$1.1 million for the first quarter of 2016. Net charge-offs as an
annualized percentage of average loans measured 0.16% in the first
quarter of 2017, compared to 0.18% in last year’s fourth quarter and
0.10% in the first quarter of 2016. Nonperforming loans as a percentage
of total loans at March 31, 2017 were 0.46%, improved from 0.48% at
December 31, 2016 and 0.54% at March 31, 2016. The total loan
delinquency ratio of 0.94% at the end of the first quarter was 25 basis
points lower than the level at December 31, 2016, and six basis points
lower than last year’s first quarter-end. The first quarter provision
for loan losses of $1.8 million was $0.8 million lower than the fourth
quarter of 2016, and $0.5 million higher than the first quarter of 2016.
The allowance for loan losses to nonperforming loans was 206% at March
31, 2017, compared with the 199% and 175% levels at the end of the
fourth quarter and first quarter of 2016, respectively.
Dividend Increase
In August 2016, the Company declared a quarterly cash dividend of $0.32
per share on its common stock, marking the 24th 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, or 3.2%, in
the Company’s quarterly cash dividend over the same quarter of the prior
year, represents an annualized yield of 2.4% based upon its’ closing
price of $54.44 on April 21, 2017.
Merchants Bancshares, Inc.
On October 24, 2016, the Company announced that it had entered into a
definitive agreement to acquire Merchants Bancshares, Inc.
("Merchants"), parent company of Merchants Bank headquartered in South
Burlington, Vermont, for approximately $335 million in Company stock and
cash. The acquisition will extend the Company's footprint into the
Vermont and Western Massachusetts markets. Upon the completion of the
merger, Community Bank will add 31 branch locations in Vermont and one
location in Western Massachusetts with approximately $2.0 billion of
assets, and deposits of $1.5 billion. The Company and Merchants have
received regulatory approval from the Office of the Comptroller of the
Currency for the proposed merger and anticipate closing the merger in
mid-May, subject to the receipt of approval from the Board of Governors
of the Federal Reserve System and satisfaction of customary closing
conditions.
Northeast Retirement Services, Inc.
On December 5, 2016, the Company announced that it had entered into a
definitive agreement to acquire Northeast Retirement Services, Inc.
(“NRS”), a leading provider of plan accounting, transfer agency, fund
administration, trust and retirement plan services for approximately
$148.6 million in Company stock and cash. The acquisition was completed
on February 3, 2017.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
tomorrow, April 25, 2017, to discuss first quarter results. The
conference call can be accessed at 877-852-6576 (1-719-325-4896 if
outside United States and Canada) using the conference ID code 4779182.
Investors may also listen live via the Internet at: http://www.webcaster4.com/Webcast/Page/995/20523.
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
$8.9 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 (which includes the
recently acquired NRS) is a leading provider of employee benefits
administration, trust services, fund administration 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; changes in
legislation or regulatory requirements; and the timing for receiving
regulatory approvals and completing pending transactions.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) | |
|
|
|
|
|
|
|
|
|
| | 2017 |
| 2016 |
|
|
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| Earnings |
|
|
|
|
|
|
|
|
|
|
|
Loan income
| | $52,384 | | $53,602 | | $53,706 | | $52,509 | | $51,650 |
|
Investment income
| |
17,574
| |
19,397
| |
17,616
| |
18,601
| |
18,106
|
|
Total interest income
| |
69,958
| |
72,999
| |
71,322
| |
71,110
| |
69,756
|
|
Interest expense
| |
2,684
| |
2,753
| |
2,859
| |
2,804
| |
2,875
|
|
Net interest income
| |
67,274
| |
70,246
| |
68,463
| |
68,306
| |
66,881
|
|
Provision for loan losses
| |
1,828
| |
2,640
| |
1,790
| |
2,305
| |
1,341
|
|
Net interest income after provision for loan losses
| |
65,446
| |
67,606
| |
66,673
| |
66,001
| |
65,540
|
|
Deposit service fees
| |
14,707
| |
14,959
| |
14,894
| |
15,008
| |
13,734
|
|
Revenues from mortgage banking and other banking services
| |
1,159
| |
1,438
| |
2,863
| |
1,597
| |
1,579
|
|
Wealth management and insurance services
| |
11,261
| |
10,544
| |
10,928
| |
10,496
| |
10,957
|
|
Employee benefit services
| |
17,189
| |
11,679
| |
11,267
| |
11,671
| |
12,011
|
|
Gain on sale of investments
| |
2
| |
0
| |
0
| |
0
| |
0
|
|
Total noninterest income
| |
44,318
| |
38,620
| |
39,952
| |
38,772
| |
38,281
|
|
Salaries and employee benefits
| |
41,400
| |
36,259
| |
38,300
| |
37,950
| |
39,138
|
|
Occupancy and equipment
| |
8,196
| |
7,633
| |
7,373
| |
7,409
| |
7,663
|
|
Amortization of intangible assets
| |
2,768
| |
1,275
| |
1,359
| |
1,403
| |
1,442
|
|
Acquisition expenses
| |
1,716
| |
1,364
| |
2
| |
263
| |
77
|
|
Other
| |
19,495
| |
20,066
| |
19,192
| |
19,331
| |
19,349
|
|
Total operating expenses
| |
73,575
| |
66,597
| |
66,226
| |
66,356
| |
67,669
|
|
Income before income taxes
| |
36,189
| |
39,629
| |
40,399
| |
38,417
| |
36,152
|
|
Income taxes
| |
9,932
| |
13,237
| |
13,239
| |
12,560
| |
11,749
|
|
Net income
| |
26,257
| |
26,392
| |
27,160
| |
25,857
| |
24,403
|
|
Basic earnings per share
| | $0.58 | | $0.59 | | $0.61 | | $0.58 | | $0.55 |
|
Diluted earnings per share
|
| $0.57 |
| $0.59 |
| $0.61 |
| $0.58 |
| $0.55 |
| Profitability |
|
|
|
|
|
|
|
|
|
|
|
Return on assets
| |
1.22%
| |
1.21%
| |
1.24%
| |
1.20%
| |
1.14%
|
|
Return on equity
| |
8.47%
| |
8.59%
| |
8.71%
| |
8.62%
| |
8.34%
|
|
Return on tangible equity(2) | |
13.57%
| |
13.40%
| |
13.52%
| |
13.63%
| |
13.38%
|
|
Noninterest income/operating income (FTE) (1) | |
38.9%
| |
34.7%
| |
36.0%
| |
35.3%
| |
35.5%
|
|
Efficiency ratio
|
|
60.7%
|
|
57.5%
|
|
59.0%
|
|
59.0%
|
|
61.4%
|
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
|
|
|
|
|
|
Loan yield
| |
4.31%
| |
4.33%
| |
4.36%
| |
4.35%
| |
4.33%
|
|
Cash equivalents yield
| |
0.79%
| |
0.48%
| |
0.46%
| |
0.46%
| |
0.47%
|
|
Investment yield
| |
2.90%
| |
3.14%
| |
2.88%
| |
3.06%
| |
2.97%
|
|
Earning asset yield
| |
3.80%
| |
3.90%
| |
3.82%
| |
3.87%
| |
3.82%
|
|
Interest-bearing deposit rate
| |
0.13%
| |
0.13%
| |
0.13%
| |
0.14%
| |
0.14%
|
|
Borrowing rate
| |
2.18%
| |
1.80%
| |
1.31%
| |
1.50%
| |
1.33%
|
|
Cost of all interest-bearing funds
| |
0.19%
| |
0.19%
| |
0.20%
| |
0.20%
| |
0.20%
|
|
Cost of funds (includes DDA)
| |
0.15%
| |
0.15%
| |
0.16%
| |
0.15%
| |
0.16%
|
|
Net interest margin (FTE)
| |
3.65%
| |
3.76%
| |
3.67%
| |
3.73%
| |
3.67%
|
|
Fully tax-equivalent adjustment
|
| $2,310 |
| $2,382 |
| $2,450 |
| $2,605 |
| $2,524 |
| | | | | | | | | |
|
|
| |
| |
| |
| |
| |
| Summary of Financial Data | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
|
|
|
|
|
|
| | 2017 |
| 2016 |
|
|
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| Average Balances |
|
|
|
|
|
|
|
|
|
|
|
Loans
| | $4,939,092 | | $4,934,034 | | $4,913,517 | | $4,866,574 | | $4,812,575 |
|
Cash equivalents
| |
40,209
| |
15,367
| |
19,110
| |
19,456
| |
22,355
|
|
Taxable investment securities
| |
2,203,175
| |
2,179,840
| |
2,179,044
| |
2,178,448
| |
2,172,983
|
|
Nontaxable investment securities
| |
540,518
| |
556,774
| |
571,327
| |
588,897
| |
603,297
|
|
Total interest-earning assets
| |
7,722,994
| |
7,686,015
| |
7,682,998
| |
7,653,375
| |
7,611,210
|
|
Total assets
| |
8,747,266
| |
8,665,948
| |
8,712,758
| |
8,656,653
| |
8,604,264
|
|
Interest-bearing deposits
| |
5,543,046
| |
5,472,420
| |
5,405,180
| |
5,517,287
| |
5,458,273
|
|
Borrowings
| |
177,587
| |
213,930
| |
327,578
| |
249,263
| |
296,964
|
|
Total interest-bearing liabilities
| |
5,720,633
| |
5,686,350
| |
5,732,758
| |
5,766,550
| |
5,755,237
|
|
Noninterest-bearing deposits
| |
1,620,473
| |
1,603,703
| |
1,569,960
| |
1,532,322
| |
1,527,585
|
|
Shareholders' equity
|
|
1,256,888
|
|
1,222,124
|
|
1,239,927
|
|
1,206,353
|
|
1,177,246
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
| | $291,186 | | $173,857 | | $161,542 | | $161,634 | | $138,513 |
|
Investment securities
| |
2,788,718
| |
2,784,392
| |
2,877,644
| |
2,931,301
| |
2,902,878
|
|
Loans:
| | | | | | | | | | |
|
Consumer mortgage
| |
1,830,800
| |
1,819,701
| |
1,798,748
| |
1,779,295
| |
1,777,792
|
|
Business lending
| |
1,468,465
| |
1,490,076
| |
1,506,878
| |
1,536,546
| |
1,509,421
|
|
Consumer indirect
| |
1,055,112
| |
1,044,972
| |
1,037,077
| |
993,132
| |
941,151
|
|
Home equity
| |
393,769
| |
401,998
| |
401,784
| |
399,870
| |
403,273
|
|
Consumer direct
| |
184,067
| |
191,815
| |
196,134
| |
195,959
| |
189,535
|
|
Total loans
| |
4,932,213
| |
4,948,562
| |
4,940,621
| |
4,904,802
| |
4,821,172
|
|
Allowance for loan losses
| |
47,096
| |
47,233
| |
46,789
| |
46,526
| |
45,596
|
|
Intangible assets, net
| |
618,977
| |
480,844
| |
482,119
| |
483,478
| |
484,881
|
|
Other assets
| |
329,862
| |
326,015
| |
312,609
| |
307,422
| |
314,053
|
|
Total assets
| |
8,913,860
| |
8,666,437
| |
8,727,746
| |
8,742,111
| |
8,615,901
|
|
Deposits:
| | | | | | | | | | |
|
Noninterest-bearing
| |
1,642,158
| |
1,646,039
| |
1,577,194
| |
1,546,253
| |
1,533,085
|
|
Non-maturity interest-bearing
| |
5,010,516
| |
4,726,787
| |
4,771,436
| |
4,664,635
| |
4,808,650
|
|
Time
| |
684,203
| |
703,128
| |
728,789
| |
746,966
| |
777,327
|
|
Total deposits
| |
7,336,877
| |
7,075,954
| |
7,077,419
| |
6,957,854
| |
7,119,062
|
|
Borrowings
| |
0
| |
146,200
| |
133,900
| |
267,600
| |
33,700
|
|
Subordinated debt held by unconsolidated subsidiary trusts
| |
102,177
| |
102,170
| |
102,164
| |
102,158
| |
102,152
|
|
Accrued interest and other liabilities
| |
178,776
| |
144,013
| |
173,681
| |
177,570
| |
160,322
|
|
Total liabilities
| |
7,617,830
| |
7,468,337
| |
7,487,164
| |
7,505,182
| |
7,415,236
|
|
Shareholders' equity
| |
1,296,030
| |
1,198,100
| |
1,240,582
| |
1,236,929
| |
1,200,665
|
|
Total liabilities and shareholders' equity
|
|
8,913,860
|
|
8,666,437
|
|
8,727,746
|
|
8,742,111
|
|
8,615,901
|
| Capital |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
| |
10.35%
| |
10.55%
| |
10.35%
| |
10.14%
| |
9.95%
|
|
Tangible equity/net tangible assets (2) | |
8.91%
| |
9.24%
| |
9.66%
| |
9.58%
| |
9.25%
|
|
Diluted weighted average common shares O/S
| |
46,227
| |
45,025
| |
44,835
| |
44,636
| |
44,356
|
|
Period end common shares outstanding
| |
45,956
| |
44,437
| |
44,357
| |
44,179
| |
44,070
|
|
Cash dividends declared per common share
| | $0.32 | | $0.32 | | $0.32 | | $0.31 | | $0.31 |
|
Book value per share
| | $28.20 | | $26.96 | | $27.97 | | $28.00 | | $27.24 |
|
Tangible book value per share(2) | | $16.22 | | $17.12 | | $18.06 | | $17.99 | | $17.16 |
|
Common stock price (end of period)
|
| $54.98 |
| $61.79 |
| $48.11 |
| $41.09 |
| $38.21 |
| | | | | | | | | |
|
|
| |
| |
| |
| |
| |
| Summary of Financial Data | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
|
|
|
|
|
|
| | 2017 |
| 2016 |
|
|
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| | $20,066 | | $20,619 | | $21,301 | | $22,150 | | $23,765 |
|
Accruing loans 90+ days delinquent
| |
2,809
| |
3,076
| |
2,015
| |
1,909
| |
2,327
|
|
Total nonperforming loans
| |
22,875
| |
23,695
| |
23,316
| |
24,059
| |
26,092
|
|
Other real estate owned (OREO)
| |
2,486
| |
1,966
| |
2,060
| |
1,726
| |
2,031
|
|
Total nonperforming assets
| |
25,361
| |
25,661
| |
25,376
| |
25,785
| |
28,123
|
|
Net charge-offs
| |
1,965
| |
2,196
| |
1,527
| |
1,375
| |
1,146
|
|
Allowance for loan losses/loans outstanding
| |
0.95%
| |
0.95%
| |
0.95%
| |
0.95%
| |
0.95%
|
|
Nonperforming loans/loans outstanding
| |
0.46%
| |
0.48%
| |
0.47%
| |
0.49%
| |
0.54%
|
|
Allowance for loan losses/nonperforming loans
| |
206%
| |
199%
| |
201%
| |
193%
| |
175%
|
|
Net charge-offs/average loans
| |
0.16%
| |
0.18%
| |
0.12%
| |
0.11%
| |
0.10%
|
|
Delinquent loans/ending loans
| |
0.94%
| |
1.19%
| |
1.06%
| |
1.10%
| |
1.00%
|
|
Loan loss provision/net charge-offs
| |
93%
| |
120%
| |
117%
| |
168%
| |
117%
|
|
Nonperforming assets/total assets
|
|
0.28%
|
|
0.30%
|
|
0.29%
|
|
0.29%
|
|
0.33%
|
| Asset Quality (excluding loans acquired since 1/1/09) |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
| |
15,268
| |
16,600
| | $16,966 | | $18,259 | | $20,045 |
|
Accruing loans 90+ days delinquent
| |
1,707
| |
1,963
| |
1,869
| |
1,573
| |
1,837
|
|
Total nonperforming loans
| |
16,975
| |
18,563
| |
18,835
| |
19,832
| |
21,882
|
|
Other real estate owned (OREO)
| |
2,225
| |
1,658
| |
1,594
| |
1,258
| |
1,497
|
|
Total nonperforming assets
| |
19,200
| |
20,221
| |
20,429
| |
21,090
| |
23,379
|
|
Net charge-offs
| |
1,866
| |
1,846
| |
1,432
| |
1,404
| |
898
|
|
Allowance for loan losses/loans outstanding
| |
1.01%
| |
1.02%
| |
1.02%
| |
1.02%
| |
1.04%
|
|
Nonperforming loans/loans outstanding
| |
0.38%
| |
0.42%
| |
0.43%
| |
0.46%
| |
0.52%
|
|
Allowance for loan losses/nonperforming loans
| |
266 %
| |
245%
| |
238%
| |
224%
| |
200%
|
|
Net charge-offs/average loans
| |
0.17%
| |
0.17%
| |
0.13%
| |
0.13%
| |
0.09%
|
|
Delinquent loans/ending loans
| |
0.86%
| |
1.14%
| |
1.01%
| |
1.08%
| |
1.00%
|
|
Loan loss provision/net charge-offs
| |
85%
| |
133%
| |
124%
| |
144%
| |
112%
|
|
Nonperforming assets/total assets
| |
0.23%
| |
0.25%
| |
0.25%
| |
0.26%
| |
0.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
| |
| Summary of Financial Data | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
|
|
|
|
|
|
| | 2017 |
| 2016 |
|
|
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
|
|
|
|
|
| Income statement data | | | | | | | | | | |
| Net income | | | | | | | | | | |
|
Net income (GAAP)
| | $26,257 | | $26,392 | | $27,160 | | $25,857 | | $24,403 |
|
Amortization of intangibles (3) | |
2,008
| |
849
| |
914
| |
944
| |
973
|
|
Acquisition expenses (3) | |
1,245
|
|
908
|
|
1
|
|
177
|
|
52
|
|
Adjusted net income (non-GAAP)
| |
29,510
|
|
28,149
|
|
28,075
|
|
26,978
|
|
25,428
|
| | | | | | | | | |
|
| Earnings per common share | | | | | | | | | | |
|
Diluted earnings per share (GAAP)
| | $0.57 | | $0.59 | | $0.61 | | $0.58 | | $0.55 |
|
Amortization of intangibles (3) | |
0.04
| |
0.02
| |
0.02
| |
0.02
| |
0.02
|
|
Acquisition expenses (3) | |
0.03
|
|
0.02
|
|
0.00
|
|
0.00
|
|
0.00
|
|
Diluted adjusted net earnings per share (non-GAAP)
| |
0.64
|
|
0.63
|
|
0.63
|
|
0.60
|
|
0.57
|
| | | | | | | | | |
|
| Noninterest operating expenses | | | | | | | | | | |
|
Noninterest expenses (GAAP)
| | $73,575 | | $66,597 | | $66,226 | | $66,356 | | $67,669 |
|
Amortization of intangibles
| |
(2,768)
| |
(1,275)
| |
(1,359)
| |
(1,403)
| |
(1,442)
|
|
Acquisition expenses
| |
(1,716)
|
|
(1,364)
|
|
(2)
|
|
(263)
|
|
(77)
|
|
Total adjusted noninterest expenses (non-GAAP)
| |
69,091
|
|
63,958
|
|
64,865
|
|
64,690
|
|
66,150
|
| | | | | | | | | |
|
| Efficiency ratio | | | | | | | | | | |
|
Adjusted noninterest expenses (non-GAAP) - numerator
| | $69,091 |
| $63,958 |
| $64,865 |
| $64,690 |
| $66,150 |
|
Tax-equivalent net interest income
| |
69,584
| |
72,628
| |
70,913
| |
70,911
| |
69,405
|
|
Noninterest revenues
| |
44,318
| |
38,620
| |
39,952
| |
38,772
| |
38,281
|
|
Insurance-related recovery
| |
0
| |
0
| |
(950)
| |
0
| |
0
|
|
Gain on sales of investments
| |
(2)
|
|
0
|
|
0
|
|
0
|
|
0
|
|
Operating revenues (non-GAAP) - denominator
| |
113,900
|
|
111,248
|
|
109,915
|
|
109,683
|
|
107,686
|
|
Efficiency ratio (non-GAAP)
| |
60.7%
|
|
57.5%
|
|
59.0%
|
|
59.0%
|
|
61.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
| |
| Summary of Financial Data | | | | | | | | | | |
| (Dollars in thousands, except per share data) | |
|
|
|
|
|
|
|
|
|
| | 2017 |
| 2016 |
|
|
| 1st Qtr |
| 4th Qtr |
| 3rd Qtr |
| 2nd Qtr |
| 1st Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
|
|
|
|
|
| Balance sheet data - At end of quarter | | | | | | | | | | |
| Total assets | | | | | | | | | | |
|
Total assets (GAAP)
| | $8,913,860 | | $8,666,437 | | $8,727,746 | | $8,742,111 | | $8,615,901 |
|
Intangible assets
| |
(618,977)
| |
(480,844)
| |
(482,119)
| |
(483,478)
| |
(484,881)
|
|
Deferred taxes on intangible assets
| |
68,236
|
|
43,504
|
|
42,523
|
|
41,528
|
|
40,483
|
|
Total tangible assets (non-GAAP)
| |
8,363,119
|
|
8,229,097
|
|
8,288,150
|
|
8,300,161
|
|
8,171,503
|
| | | | | | | | | |
|
| Total common equity | | | | | | | | | | |
|
Common stock, APIC, Retained earnings, and Treasury stock
| | $1,285,676 | | $1,190,258 | | $1,174,491 | | $1,155,894 | | $1,139,378 |
|
Accumulated other comprehensive income
| |
10,354
|
|
7,842
|
|
66,091
|
|
81,035
|
|
61,287
|
|
Shareholders' Equity (GAAP)
| |
1,296,030
| |
1,198,100
| |
1,240,582
| |
1,236,929
| |
1,200,665
|
|
Intangible assets
| |
(618,977)
| |
(480,844)
| |
(482,119)
| |
(483,478)
| |
(484,881)
|
|
Deferred taxes on intangible assets
| |
68,236
|
|
43,504
|
|
42,523
|
|
41,528
|
|
40,483
|
|
Total tangible common equity (non-GAAP)
| |
745,289
|
|
760,760
|
|
800,986
|
|
794,979
|
|
756,267
|
| | | | | | | | | |
|
| Net tangible equity-to-assets ratio at quarter end | | | | | | | | | | |
|
Total tangible common equity (non-GAAP) - numerator
| | $745,289 |
| $760,760 |
| $800,986 |
| $794,979 |
| $756,267 |
|
Total tangible assets (non-GAAP) - denominator
| |
8,363,119
|
|
8,229,097
|
|
8,288,150
|
|
8,300,161
|
|
8,171,503
|
|
Net tangible equity-to-assets ratio at quarter end (non-GAAP)
| |
8.91%
|
|
9.24%
|
|
9.66%
|
|
9.58%
|
|
9.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes gains and losses on sales of
investment securities.
(2) Includes deferred tax liabilities related to
certain intangible assets.
(3) After tax effect.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170424006552/en/
Community Bank System, Inc.
Scott A. Kingsley, 315-445-3121
EVP
& Chief Financial Officer
Source: Community Bank System, Inc.