Community Bank System, Inc. (NYSE:CBU) reported third quarter 2014 net
income of $22.4 million, an increase of 1.7% compared with $22.0 million
earned for the third quarter of 2013. Diluted earnings per share totaled
$0.54 for the third quarter of 2014, consistent with the level reported
in the third quarter of 2013. Third quarter 2014’s results included a
$2.8 million litigation settlement charge, or $0.05 per share. Excluding
the litigation settlement charge, operating earnings for the quarter
were $0.59 per share. Year-to-date net income increased by $4.9 million,
or 7.7%, and earnings per share of $1.65 were $0.09, or 5.8% higher than
the first nine months of 2013.
“Our third quarter and year-to-date operating performance continued to
be at very favorable levels and were characterized by solid revenue
growth, organic expansion of the loan portfolio, a continuation of our
stable and favorable asset quality profile and effective operating
expense management,” 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 third quarter of 2014 was $92.5 million, an
increase of $4.3 million, or 4.8%, over the third quarter of 2013.
Higher revenue was generated as a result of a 3.0% increase in average
earning assets and continued strong noninterest income generation which
more than offset a five basis point margin decline from the prior year
quarter. Continued organic growth drove a $2.2 million, or 16.3%
increase in the Company’s revenue from its wealth management and
employee benefit services businesses. Revenue from deposit and other
banking services, and mortgage banking increased $1.3 million
year-over-year, while revenues increased $0.9 million from the linked
quarter due to normal seasonal activity and the Company’s annual
dividend from its participation in pooled retail insurance programs.
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 in late 2013. The quarterly provision for loan losses
of $1.7 million was $0.3 million lower than the third quarter of 2013,
reflective of lower levels of net charge-offs and improved
non-performing and delinquent loan ratios. Total operating expenses
of $58.8 million for the quarter were $3.8 million higher than the third
quarter of 2013, and included the previously-mentioned $2.8 million
litigation settlement charge. Excluding the litigation settlement
charge, the additional $1.0 million of recurring operating expenses in
the current quarter compared to the third quarter of 2013 were driven
primarily by the additional operating costs associated with the branch
acquisition completed in December 2013.
Third quarter 2014 net interest income was $61.4 million, an increase of
$0.8 million, or 1.3%, compared to the third quarter of 2013. In
addition to the $0.6 million benefit to interest expense from an
improved funding mix, growth in net interest income was driven by a $2.1
million decrease in borrowing interest expense resulting from last
year’s balance sheet repositioning actions. These actions contributed
significantly to the lowering of the cost of borrowed funds by 115 basis
points, year-over-year. Improved funding costs were offset by a 22-basis
decline in earning asset yields, driven by lower blended interest rates
on loans and investment securities. While average loan balances grew
$194.5 million, or 4.9%, average loan yields declined 28 basis points
year-over-year, resulting in a $0.7 million reduction in loan income.
Investment income was $1.1 million lower than the third quarter of 2013
as average investment securities balance (including cash equivalents)
declined by $1.8 million, while yields fell 15 basis points.
Third quarter noninterest income increased $3.5 million to $31.1
million, representing an increase of 12.6% compared to last year’s third
quarter. Income expanded across virtually all banking and financial
services categories, with the lone exception being a $0.2 million
decline in mortgage banking-related revenues. Financial services revenue
again reached record levels as wealth management revenues increased $0.8
million or 20.7% over third quarter 2013, while employee benefit
services revenue grew 14.4% to $10.8 million. Strong customer expansion
and market momentum from 2013 continued in the first nine months of 2014
and drove the improved performance. Deposit service revenues grew $1.1
million, or 8.9%, to $13.8 million, reflecting solid core deposit
account growth as a result of the branch acquisition and organic growth
initiatives across the franchise. Income from other banking services
increased $0.4 million from the third quarter of 2013 primarily from
increased insurance programs-related gains.
Third quarter 2014 operating expenses of $56.0 million (excluding the
litigation settlement charge of $2.8 million), increased $1.0 million,
or 1.8% over the third quarter of 2013. Occupancy and equipment costs
grew $0.2 million, or 2.6%, primarily as a result of the December 2013
branch acquisition. Salaries and employee benefits grew $0.5 million, or
1.6%, and included the additional personnel from the branch acquisition
as well as planned merit increases. These increases were partially
offset by lower retirement plan expenses related to plan asset
performance and discount rate changes. Other expenses increased 2.4% and
reflected the increased costs of operating an expanded franchise and
continued investment in technology infrastructure. Total operating
expenses for the third quarter of 2014 included an accrual of $2.8
million with respect to the settlement of a pending class action lawsuit
involving the sufficiency of consumer notice requirements for certain of
the Company’s collateral recovery activities, similar to other class
actions filed against a number of other financial institutions over the
last four years. The Company contests the allegations and asserted
affirmative defenses to the claims, however, the settlement the Company
was able to achieve was, in its judgment, a superior outcome for
shareholders when measured against the risks and resources required for
litigation. The settlement is subject to final court approval.
The third quarter 2014 effective income tax rate of 29.9% increased
compared to 29.2% in last year’s third quarter, reflecting a higher
proportion of income being generated from fully taxable sources.
Financial Position
Average earning assets of $6.67 billion for the third quarter of 2014
were up $35 million from the second quarter of 2014, and were $193
million higher than the third quarter of 2013. Compared to the prior
year, overall average earning asset balances included growth of $195
million in average loan balances, while average investment securities
and cash balances declined by $2 million. Average deposit balances
declined modestly compared to the second quarter of 2014, and were $304
million higher than the third quarter of 2013, principally due to the
branch acquisition.
Ending loans at September 30, 2014 increased $191.8 million, or 4.8%,
year-over-year, reflecting strong organic growth in the Company’s
consumer lending portfolios, as well as a 3.0% year-over-year increase
in business loans, which was generally consistent with market demand
characteristics. Ending loans increased $69.4 million from June 30,
2014, driven by growth in the consumer installment loans. Ending
investment securities totaled $2.51 billion at September 30, 2014, a
level slightly lower than the end of the third quarter of 2013, and down
$28 million from the end of the second quarter of 2014. Quarter-end
borrowings of $343.8 million were down $223.3 million from the year-ago
quarter-end. Deposit balances at September 30, 2014 totaled $5.97
billion, up $280.0 million, or 4.9%, from the year earlier quarter.
Shareholders’ equity of $965.5 million at September 30, 2014 was $99.8
million, or 11.5% higher than the prior year quarter-end, primarily due
to strong earnings generation and capital retention over the last four
quarters. The Company’s net tangible equity to net tangible assets ratio
was 8.57% at September 30, 2014, up from 7.38% at September 30, 2013.
The Company’s Tier 1 leverage ratio grew to 9.79% for the current
quarter, up 40 basis points from the third quarter of 2013.
Asset Quality
The Company’s asset quality metrics continue to be favorable relative to
comparative peer and industry averages and illustrate the long-term
effectiveness of the Company’s disciplined risk management and
underwriting standards. Net charge-offs were $1.1 million for the third
quarter, compared to $1.5 million for the third quarter of 2013 and $1.5
million for second quarter of 2014. As an annualized percentage of
average loans, net charge-offs measured 0.10% in the third quarter of
2014, compared to 0.15% in the prior year third quarter and 0.14% in the
second quarter of 2014. Nonperforming loans as a percentage of total
loans at September 30, 2014 were 0.57%, consistent with 0.58% at June
30, 2014 and down from 0.61% of total loans at September 30, 2013. The
total loan delinquency ratio of 1.32% at the end of the third quarter
was down 16 basis points from the end of the third quarter of 2013. The
third quarter provision for loan losses of $1.7 million was $0.3
million, or 16.5% lower than the third quarter of 2013, and $0.2
million, or 8.0%, lower than the second quarter of 2014 due primarily to
lower net charge-off levels. The allowance for loan losses to
nonperforming loans was 189% at September 30, 2014, comparable with the
187% and 181% levels at the end of the second quarter of 2014 and the
end of the third quarter of 2013, respectively.
Increased Cash Dividend Declared
In July, the Company’s Board of Directors declared a quarterly cash
dividend of $0.30 per share on its common stock. The dividend was paid
on October 10, 2014 to shareholders of record as of September 15, 2014.
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 $34.80 a share on the
Company’s common stock as of Thursday, October 16th, the
$0.30 quarterly dividend provides a 3.45% annualized yield.
Also, as previously announced, the Company’s Board of Directors approved
a stock repurchase program authorizing the repurchase of up to 2,000,000
shares of the Company’s common stock during a twelve-month period
starting January 1, 2014. Such repurchases may be made at the discretion
of senior management depending on market conditions and other relevant
factors and will be acquired through open market or privately negotiated
transactions as permitted under Rule 10b-18 of the Securities Exchange
Act of 1934 and other applicable legal requirements. The Company did not
repurchase any stock in the first nine months of 2014.
Company to Host Investor Day on October 29th
Community Bank System, Inc. will hold an Investor Day presentation for
investors and security analysts at the New York Stock Exchange on the
morning of October 29, 2014. Investors who wish to attend the Company’s
presentation should contact Josephine Rurka (josie.rurka@communitybankna.com)
or Julie Senulis (Senulis@csirfirm.com).
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET)
today (Monday) to discuss third quarter results. The conference call can
be accessed at 888-297-0360 (1-719-325-2289 if outside United States and
Canada) using the conference ID code 6053761. Investors may also listen
live via the Internet at: http://www.videonewswire.com/event.asp?id=100595.
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.
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Summary of Financial Data
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(Dollars in thousands, expect per share data)
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Quarter Ended
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Year-to-Date
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|
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September 30,
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September 30,
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September 30,
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September 30,
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|
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Earnings
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Loan income
|
|
$46,883
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|
$47,606
|
|
$138,649
|
|
$141,136
|
|
|
Investment income
|
|
17,404
|
|
18,526
|
|
52,986
|
|
57,061
|
|
|
Total interest income
|
|
64,287
|
|
66,132
|
|
191,635
|
|
198,197
|
|
|
Interest expense
|
|
2,893
|
|
5,531
|
|
8,963
|
|
20,739
|
|
|
Net interest income
|
|
61,394
|
|
60,601
|
|
182,672
|
|
177,458
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|
|
Provision for loan losses
|
|
1,747
|
|
2,093
|
|
4,647
|
|
4,807
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|
|
Net interest income after provision for loan losses
|
|
59,647
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|
58,508
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|
178,025
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|
172,651
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|
|
Deposit service fees
|
|
13,833
|
|
12,703
|
|
39,260
|
|
36,643
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|
|
Mortgage banking revenues
|
|
364
|
|
599
|
|
993
|
|
1,111
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|
|
Other banking services
|
|
1,503
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|
1,072
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|
3,672
|
|
2,618
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|
|
Wealth management services
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|
4,617
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|
3,823
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|
13,529
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|
11,566
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|
|
Employee benefit services
|
|
10,755
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|
9,397
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|
31,638
|
|
28,564
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|
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Gain on sales of investment securities
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|
0
|
|
0
|
|
0
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|
63,799
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|
|
Loss on debt extinguishments
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|
0
|
|
0
|
|
0
|
|
(63,500)
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|
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Total noninterest income
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|
31,072
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|
27,594
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|
89,092
|
|
80,801
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|
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Salaries and employee benefits
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|
30,941
|
|
30,448
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|
92,090
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|
91,217
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|
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Occupancy and equipment
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|
6,617
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|
6,448
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|
21,224
|
|
20,263
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Amortization of intangible assets
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|
1,051
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|
1,089
|
|
3,293
|
|
3,408
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|
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Litigation settlement
|
|
2,800
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|
0
|
|
2,800
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0
|
|
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Acquisition expenses
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0
|
|
71
|
|
123
|
|
76
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|
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Other
|
|
17,402
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|
16,988
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|
50,366
|
|
49,008
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|
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Total operating expenses
|
|
58,811
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|
55,044
|
|
169,896
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|
163,972
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Income before income taxes
|
|
31,908
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|
31,058
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|
97,221
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|
89,480
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|
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Income taxes
|
|
9,537
|
|
9,069
|
|
29,001
|
|
26,128
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|
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Net income
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|
$22,371
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|
$21,989
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|
$68,220
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$63,352
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|
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Basic earnings per share
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|
$0.55
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|
$0.55
|
|
$1.67
|
|
$1.58
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|
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Diluted earnings per share
|
|
$0.54
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|
$0.54
|
|
$1.65
|
|
$1.56
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|
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|
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|
|
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Summary of Financial Data
(Dollars in thousands, except per share data)
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2014
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2013
|
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|
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|
|
3rd Qtr
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2nd Qtr
|
|
1st Qtr
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4th Qtr
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3rd Qtr
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Earnings
|
|
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|
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|
|
|
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|
|
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|
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Loan income
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|
|
$46,883
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|
$46,073
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|
$45,693
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|
|
$47,061
|
|
$47,606
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|
|
Investment income
|
|
|
17,404
|
|
18,036
|
|
17,546
|
|
|
18,901
|
|
18,526
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|
|
Total interest income
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|
|
64,287
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|
64,109
|
|
63,239
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|
|
65,962
|
|
66,132
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|
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Interest expense
|
|
|
2,893
|
|
2,939
|
|
3,131
|
|
|
5,326
|
|
5,531
|
|
|
Net interest income
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|
|
61,394
|
|
61,170
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|
60,108
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|
|
60,636
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|
60,601
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Provision for loan losses
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1,747
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|
1,900
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|
1,000
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|
|
3,185
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|
2,093
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|
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Net interest income after provision for loan losses
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|
|
59,647
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|
59,270
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59,108
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57,451
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58,508
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Deposit service fees
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|
|
13,833
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|
13,172
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|
12,255
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|
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12,714
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12,703
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Mortgage banking revenues
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364
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|
345
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|
284
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|
|
562
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|
599
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Other banking services
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1,503
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1,263
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|
906
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|
|
954
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|
1,072
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Wealth management services
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4,617
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|
4,438
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|
4,474
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|
|
3,984
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3,823
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Employee benefit services
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10,755
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|
10,448
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|
10,435
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|
|
10,032
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9,397
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|
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Gain on sales of investment securities
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|
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0
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|
0
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|
0
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|
|
16,969
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|
0
|
|
|
Loss on debt extinguishments
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|
|
0
|
|
0
|
|
0
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|
|
(23,836)
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|
0
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|
|
Total noninterest income
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|
|
31,072
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|
29,666
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|
28,354
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|
|
21,379
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|
27,594
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|
|
Salaries and employee benefits
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|
|
30,941
|
|
30,409
|
|
30,740
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|
|
30,412
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|
30,448
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|
|
Occupancy and equipment
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|
|
6,617
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|
6,916
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|
7,691
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|
|
6,782
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|
6,448
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|
|
Amortization of intangible assets
|
|
|
1,051
|
|
1,101
|
|
1,141
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|
|
1,061
|
|
1,089
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Litigation settlement
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|
|
2,800
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|
0
|
|
0
|
|
|
0
|
|
0
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|
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Acquisition expenses
|
|
|
0
|
|
0
|
|
123
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|
|
2,105
|
|
71
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|
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Other
|
|
|
17,402
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|
16,738
|
|
16,226
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|
|
16,923
|
|
16,988
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|
|
Total operating expenses
|
|
|
58,811
|
|
55,164
|
|
55,921
|
|
|
57,283
|
|
55,044
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|
|
Income before income taxes
|
|
|
31,908
|
|
33,772
|
|
31,541
|
|
|
21,547
|
|
31,058
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|
|
Income taxes
|
|
|
9,537
|
|
10,096
|
|
9,368
|
|
|
6,070
|
|
9,069
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|
|
Net income
|
|
|
22,371
|
|
23,676
|
|
22,173
|
|
|
15,477
|
|
21,989
|
|
|
Basic earnings per share
|
|
|
$0.55
|
|
$0.58
|
|
$0.55
|
|
|
$0.38
|
|
$0.55
|
|
|
Diluted earnings per share
|
|
|
$0.54
|
|
$0.57
|
|
$0.54
|
|
|
$0.38
|
|
$0.54
|
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
|
|
|
1.19%
|
|
1.28%
|
|
1.23%
|
|
|
0.84%
|
|
1.22%
|
|
|
Return on equity
|
|
|
9.25%
|
|
10.13%
|
|
9.92%
|
|
|
7.04%
|
|
10.26%
|
|
|
Return on tangible equity(3)
|
|
|
14.66%
|
|
16.34%
|
|
16.37%
|
|
|
11.78%
|
|
17.57%
|
|
|
Noninterest income/operating income (FTE) (1)
|
|
|
32.2%
|
|
31.3%
|
|
30.7%
|
|
|
30.5%
|
|
30.0%
|
|
|
Efficiency ratio (2)
|
|
|
57.0%
|
|
57.0%
|
|
59.2%
|
|
|
58.5%
|
|
58.6%
|
|
|
Components of Net Interest Margin (FTE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan yield
|
|
|
4.48%
|
|
4.51%
|
|
4.55%
|
|
|
4.61%
|
|
4.76%
|
|
|
Cash equivalents yield
|
|
|
0.17%
|
|
0.23%
|
|
0.25%
|
|
|
0.22%
|
|
0.22%
|
|
|
Investment yield
|
|
|
3.37%
|
|
3.48%
|
|
3.46%
|
|
|
3.54%
|
|
3.52%
|
|
|
Earning asset yield
|
|
|
4.06%
|
|
4.12%
|
|
4.13%
|
|
|
4.20%
|
|
4.28%
|
|
|
Interest-bearing deposit rate
|
|
|
0.17%
|
|
0.17%
|
|
0.19%
|
|
|
0.21%
|
|
0.22%
|
|
|
Borrowing rate
|
|
|
0.87%
|
|
0.91%
|
|
0.90%
|
|
|
1.86%
|
|
2.02%
|
|
|
Cost of all interest-bearing funds
|
|
|
0.23%
|
|
0.23%
|
|
0.25%
|
|
|
0.41%
|
|
0.43%
|
|
|
Cost of funds (includes DDA)
|
|
|
0.18%
|
|
0.19%
|
|
0.20%
|
|
|
0.33%
|
|
0.35%
|
|
|
Net interest margin (FTE)
|
|
|
3.89%
|
|
3.94%
|
|
3.94%
|
|
|
3.88%
|
|
3.94%
|
|
|
Fully tax-equivalent adjustment
|
|
|
$3,923
|
|
$3,972
|
|
$3,834
|
|
|
$3,666
|
|
$3,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
3rd Qtr
|
|
2nd Qtr
|
|
1st Qtr
|
|
|
4th Qtr
|
|
3rd Qtr
|
|
|
Average Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$4,180,284
|
|
$4,121,976
|
|
$4,099,827
|
|
|
$4,069,204
|
|
$3,985,755
|
|
|
Cash equivalents
|
|
|
8,225
|
|
9,535
|
|
9,782
|
|
|
11,085
|
|
8,644
|
|
|
Taxable investment securities
|
|
|
1,834,591
|
|
1,839,488
|
|
1,833,296
|
|
|
1,861,206
|
|
1,833,355
|
|
|
Nontaxable investment securities
|
|
|
642,113
|
|
659,662
|
|
638,975
|
|
|
639,199
|
|
644,728
|
|
|
Total interest-earning assets
|
|
|
6,665,213
|
|
6,630,661
|
|
6,581,880
|
|
|
6,580,694
|
|
6,472,482
|
|
|
Total assets
|
|
|
7,457,409
|
|
7,407,151
|
|
7,333,082
|
|
|
7,278,167
|
|
7,154,796
|
|
|
Interest-bearing deposits
|
|
|
4,671,216
|
|
4,754,636
|
|
4,736,746
|
|
|
4,546,591
|
|
4,511,199
|
|
|
Borrowings
|
|
|
427,051
|
|
385,150
|
|
402,549
|
|
|
634,472
|
|
589,065
|
|
|
Total interest-bearing liabilities
|
|
|
5,098,267
|
|
5,139,786
|
|
5,139,295
|
|
|
5,181,063
|
|
5,100,264
|
|
|
Noninterest-bearing deposits
|
|
|
1,281,626
|
|
1,224,515
|
|
1,197,922
|
|
|
1,149,873
|
|
1,138,039
|
|
|
Shareholders' equity
|
|
|
959,484
|
|
937,532
|
|
906,787
|
|
|
872,567
|
|
850,238
|
|
|
Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$157,500
|
|
$161,903
|
|
$153,417
|
|
|
$149,647
|
|
$174,205
|
|
|
Investment securities
|
|
|
2,506,242
|
|
2,534,419
|
|
2,506,221
|
|
|
2,218,725
|
|
2,518,574
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business lending
|
|
|
1,251,178
|
|
1,247,129
|
|
1,246,070
|
|
|
1,260,364
|
|
1,214,796
|
|
|
Consumer mortgage
|
|
|
1,598,298
|
|
1,580,584
|
|
1,579,322
|
|
|
1,582,058
|
|
1,570,607
|
|
|
Consumer indirect
|
|
|
841,975
|
|
797,297
|
|
755,849
|
|
|
740,002
|
|
713,310
|
|
|
Home equity
|
|
|
339,121
|
|
339,345
|
|
340,760
|
|
|
346,520
|
|
348,246
|
|
|
Consumer direct
|
|
|
186,672
|
|
183,448
|
|
174,357
|
|
|
180,139
|
|
178,496
|
|
|
Total loans
|
|
|
4,217,244
|
|
4,147,803
|
|
4,096,358
|
|
|
4,109,083
|
|
4,025,455
|
|
|
Allowance for loan losses
|
|
|
45,273
|
|
44,615
|
|
44,197
|
|
|
44,319
|
|
44,083
|
|
|
Intangible assets, net
|
|
|
387,966
|
|
389,018
|
|
390,119
|
|
|
390,499
|
|
383,735
|
|
|
Other assets
|
|
|
278,964
|
|
272,815
|
|
295,310
|
|
|
272,229
|
|
244,131
|
|
|
Total assets
|
|
|
7,502,643
|
|
7,461,343
|
|
7,397,228
|
|
|
7,095,864
|
|
7,302,017
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
1,279,052
|
|
1,257,223
|
|
1,225,977
|
|
|
1,203,346
|
|
1,158,013
|
|
|
Non-maturity interest-bearing
|
|
|
3,881,249
|
|
3,872,262
|
|
3,928,230
|
|
|
3,766,145
|
|
3,630,684
|
|
|
Time
|
|
|
807,030
|
|
841,810
|
|
884,681
|
|
|
926,553
|
|
898,636
|
|
|
Total deposits
|
|
|
5,967,331
|
|
5,971,295
|
|
6,038,888
|
|
|
5,896,044
|
|
5,687,333
|
|
|
Borrowings
|
|
|
343,805
|
|
319,408
|
|
217,110
|
|
|
141,913
|
|
567,116
|
|
|
Subordinated debt held by unconsolidated subsidiary trusts
|
|
|
102,115
|
|
102,109
|
|
102,103
|
|
|
102,097
|
|
102,091
|
|
|
Accrued interest and other liabilities
|
|
|
123,868
|
|
113,516
|
|
120,991
|
|
|
79,998
|
|
79,798
|
|
|
Total liabilities
|
|
|
6,537,119
|
|
6,506,328
|
|
6,479,092
|
|
|
6,220,052
|
|
6,436,338
|
|
|
Shareholders' equity
|
|
|
965,524
|
|
955,015
|
|
918,136
|
|
|
875,812
|
|
865,679
|
|
|
Total liabilities and shareholders' equity
|
|
|
7,502,643
|
|
7,461,343
|
|
7,397,228
|
|
|
7,095,864
|
|
7,302,017
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
9.79%
|
|
9.64%
|
|
9.48%
|
|
|
9.29%
|
|
9.39%
|
|
|
Tangible equity/net tangible assets (3)
|
|
|
8.57%
|
|
8.44%
|
|
7.97%
|
|
|
7.68%
|
|
7.38%
|
|
|
Diluted weighted average common shares O/S
|
|
|
41,260
|
|
41,269
|
|
41,152
|
|
|
41,061
|
|
40,850
|
|
|
Period end common shares outstanding
|
|
|
40,707
|
|
40,688
|
|
40,658
|
|
|
40,431
|
|
40,296
|
|
|
Cash dividends declared per common share
|
|
|
$0.30
|
|
$0.28
|
|
$0.28
|
|
|
$0.28
|
|
$0.28
|
|
|
Book value
|
|
|
$23.72
|
|
$23.47
|
|
$22.58
|
|
|
$21.66
|
|
$21.48
|
|
|
Tangible book value(3)
|
|
|
$15.04
|
|
$14.74
|
|
$13.79
|
|
|
$12.80
|
|
$12.73
|
|
|
Common stock price (end of period)
|
|
|
$33.59
|
|
$36.20
|
|
$39.02
|
|
|
$39.68
|
|
$34.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
3rd Qtr
|
|
2nd Qtr
|
|
1st Qtr
|
|
|
4th Qtr
|
|
3rd Qtr
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
|
$21,323
|
|
$21,991
|
|
$21,669
|
|
|
$19,473
|
|
$21,713
|
|
|
Accruing loans 90+ days delinquent
|
|
|
2,691
|
|
1,930
|
|
1,977
|
|
|
2,555
|
|
2,650
|
|
|
Total nonperforming loans
|
|
|
24,014
|
|
23,921
|
|
23,646
|
|
|
22,028
|
|
24,363
|
|
|
Other real estate owned (OREO)
|
|
|
3,619
|
|
4,281
|
|
4,914
|
|
|
5,060
|
|
5,218
|
|
|
Total nonperforming assets
|
|
|
27,633
|
|
28,202
|
|
28,560
|
|
|
27,088
|
|
29,581
|
|
|
Net charge-offs
|
|
|
1,090
|
|
1,482
|
|
1,122
|
|
|
2,949
|
|
1,483
|
|
|
Allowance for loan losses/loans outstanding
|
|
|
1.07%
|
|
1.08%
|
|
1.08%
|
|
|
1.08%
|
|
1.10%
|
|
|
Nonperforming loans/loans outstanding
|
|
|
0.57%
|
|
0.58%
|
|
0.58%
|
|
|
0.54%
|
|
0.61%
|
|
|
Allowance for loan losses/nonperforming loans
|
|
|
189%
|
|
187%
|
|
187%
|
|
|
201%
|
|
181%
|
|
|
Net charge-offs/average loans
|
|
|
0.10%
|
|
0.14%
|
|
0.11%
|
|
|
0.29%
|
|
0.15%
|
|
|
Delinquent loans/ending loans
|
|
|
1.32%
|
|
1.24%
|
|
1.25%
|
|
|
1.49%
|
|
1.48%
|
|
|
Loan loss provision/net charge-offs
|
|
|
160%
|
|
128%
|
|
89%
|
|
|
108%
|
|
147%
|
|
|
Nonperforming assets/total assets
|
|
|
0.37%
|
|
0.38%
|
|
0.39%
|
|
|
0.38%
|
|
0.41%
|
|
|
Asset Quality (excluding loans acquired since 1/1/09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
|
$17,313
|
|
$18,147
|
|
$17,755
|
|
|
$16,065
|
|
$17,365
|
|
|
Accruing loans 90+ days delinquent
|
|
|
2,545
|
|
1,813
|
|
1,826
|
|
|
2,418
|
|
2,471
|
|
|
Total nonperforming loans
|
|
|
19,858
|
|
19,960
|
|
19,581
|
|
|
18,483
|
|
19,836
|
|
|
Other real estate owned (OREO)
|
|
|
1,794
|
|
2,303
|
|
2,645
|
|
|
2,832
|
|
2,767
|
|
|
Total nonperforming assets
|
|
|
21,652
|
|
22,263
|
|
22,226
|
|
|
21,315
|
|
22,603
|
|
|
Net charge-offs
|
|
|
1,088
|
|
1,204
|
|
1,086
|
|
|
1,956
|
|
1,583
|
|
|
Allowance for loan losses/loans outstanding
|
|
|
1.14%
|
|
1.15%
|
|
1.15%
|
|
|
1.15%
|
|
1.16%
|
|
|
Nonperforming loans/loans outstanding
|
|
|
0.51%
|
|
0.52%
|
|
0.52%
|
|
|
0.49%
|
|
0.54%
|
|
|
Allowance for loan losses/nonperforming loans
|
|
|
226%
|
|
221%
|
|
222%
|
|
|
234%
|
|
215%
|
|
|
Net charge-offs/average loans
|
|
|
0.11%
|
|
0.13%
|
|
0.12%
|
|
|
0.21%
|
|
0.17%
|
|
|
Delinquent loans/ending loans
|
|
|
1.23%
|
|
1.19%
|
|
1.17%
|
|
|
1.44%
|
|
1.45%
|
|
|
Loan loss provision/net charge-offs
|
|
|
160%
|
|
155%
|
|
121%
|
|
|
130%
|
|
126%
|
|
|
Nonperforming assets/total assets
|
|
|
0.30%
|
|
0.31%
|
|
0.31%
|
|
|
0.32%
|
|
0.33%
|
|
|
(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 $34.9
million at 9/30/14) generated from tax deductible goodwill.
|
|
|
|
|
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The
following factors, among others, could cause the actual results of CBU’s
operations to differ materially from CBU’s expectations: the successful
integration of operations of its acquisitions; competition; changes in
economic conditions, interest rates and financial markets; and changes
in legislation or regulatory requirements. CBU does not assume
any duty to update forward-looking statements.
Copyright Business Wire 2014