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COMMUNITY FINANCIAL SYSTEM, INC.
0000723188
0000723188
2024-10-22
2024-10-22
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 22, 2024
(Exact name of registrant as specified in
its charter)
| Delaware |
001-13695 |
16-1213679 |
(State or other
jurisdiction of
incorporation) |
(Commission File Number) |
(IRS Employer Identification
No.) |
| 5790 Widewaters Parkway, DeWitt, New York |
13214 |
| (Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (315)
445-2282
Community Bank System, Inc.
(Former name or former
address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading
Symbol(s) |
Name
of each exchange on which registered |
| Common Stock, $1.00 par value per share |
CBU |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On October 22, 2024, Community Financial System,
Inc. announced its results of operations for the quarter ended September 30, 2024. The public announcement was made by means of a news
release, the text of which is furnished as Exhibit 99.1.
The information in this Form 8-K, including Exhibit
99.1 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under
the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibit is being furnished pursuant
to Item 2.02 above.
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
Community Financial System, Inc. |
| |
By: |
/s/ Joseph E. Sutaris |
| |
Name: |
Joseph E. Sutaris |
| |
Title: |
Executive Vice President and Chief Financial Officer |
Dated: October 22, 2024
Exhibit Index
Exhibit 99.1
|
News Release
For further information, please contact: |
| 5790
Widewaters Parkway, DeWitt, N.Y. 13214 |
Joseph
E. Sutaris, EVP & Chief Financial Officer
Office: (315)
445-7396 |
Community
Financial System, Inc. Reports Third Quarter 2024 Results
SYRACUSE,
N.Y. — October 22, 2024 — Community Financial System, Inc. (the “Company”) (NYSE: CBU) reported third quarter
2024 results that are included in the attached supplement. This earnings release, including supporting
financial tables, is also available within the press releases section of the Company's investor relations website at: https://communityfinancialsystem.com/news.
An archived webcast of the earnings call will be available on this site for one full year.
Third Quarter 2024 Performance
Summary
| · | Net
income of $43.9 million, or $0.83 per fully diluted share, increased $0.01 per fully diluted
share from the prior year’s third quarter and decreased $0.08 per fully diluted share
from the second quarter of 2024 |
| · | Operating
net income, a non-GAAP measure that excludes from net income the after-tax effects of acquisition
expenses, acquisition-related contingent consideration adjustments, litigation accrual, loss
on sales of investment securities, unrealized gain (loss) on equity securities and amortization
of intangible assets, of $46.6 million, or $0.88 per fully diluted share, increased $0.01
per fully diluted share from the prior year’s third quarter and decreased $0.07 per
fully diluted share from the second quarter of 2024 |
| · | Total
revenues of $188.9 million, a fourth consecutive new quarterly record for the Company, increased
$13.6 million, or 7.7%, from the prior year’s third quarter and increased $5.1 million,
or 2.8%, from the second quarter of 2024 |
| · | Net
interest income of $112.7 million, a new quarterly record for the Company, increased $5.0
million, or 4.6%, from the prior year’s third quarter and increased $3.4 million, or
3.0%, from the second quarter of 2024 |
| · | Total
financial services (employee benefit services, insurance services and wealth management services)
revenues of $55.8 million, a third consecutive new quarterly record for the Company, increased
$5.7 million, or 11.4%, from the prior year’s third quarter and increased $1.6 million,
or 3.0%, from the second quarter of 2024 |
| · | Operating
pre-tax, pre-provision net revenue, a non-GAAP measure that excludes from income before income
taxes the provision for credit losses, acquisition expenses, acquisition-related contingent
consideration adjustments, litigation accrual, loss on sales of investment securities, unrealized
gain (loss) on equity securities and amortization of intangible assets, of $68.3 million,
or $1.29 per fully diluted share, increased $0.13 per fully diluted share from the prior
year’s third quarter and was consistent with the second quarter of 2024 on a per fully
diluted share basis |
| · | Total
ending loans of $10.25 billion increased $227.8 million, or 2.3%, from the end of the second
quarter of 2024, marking the thirteenth consecutive quarter of loan growth, and increased
$801.6 million, or 8.5%, from the end of the prior year’s third quarter |
| · | Total
ending deposits of $13.48 billion increased $338.3 million, or 2.6%, from the end of the
second quarter of 2024 and increased $445.4 million, or 3.4%, from the end of the prior year’s
third quarter |
| · | Tier
1 leverage ratio of 9.12% at the end of the quarter continues to substantially exceed the
regulatory well-capitalized standard of 5.0% |
Company
management will conduct an investor call at 11:00 a.m. (ET) today, October 22, 2024, to discuss the third quarter 2024 results. The conference
call can be accessed at 1-833-630-0464 (1-412-317-1809 if outside the United States and Canada). Investors may also listen live via the
Internet at: https://app.webinar.net/GagdbNwDZ0m.
About Community Financial System,
Inc.
Community Financial System, Inc. is
a diversified financial services company that is focused on four main business lines – banking, employee benefit services, insurance
services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest banking
institutions with over $15 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern
Pennsylvania, Vermont, and Western Massachusetts. The Company’s Benefit Plans Administrative Services, Inc. subsidiary is a leading
provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services
to customers on a national scale. The Company’s OneGroup NY, Inc. subsidiary is a top 75 U.S. insurance agency. The Company also
offers comprehensive financial planning, trust administration and wealth management services through its Community Bank Wealth Management
operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol CBU. For more
information about the Company visit www.cbna.com or www.communityfinancialsystem.com.
|
News Release
For further information, please contact: |
| 5790 Widewaters
Parkway, DeWitt, N.Y. 13214 |
Joseph E. Sutaris,
EVP & Chief Financial Officer
Office: (315)
445-7396 |
Community
Financial System, Inc. Reports Third Quarter 2024 Results
SYRACUSE,
N.Y. — October 22, 2024
Community
Financial System, Inc. (the “Company”) (NYSE: CBU) reported third quarter 2024 net income of $43.9 million, or $0.83 per
fully diluted share and non-GAAP operating net income of $46.6 million, or $0.88 per fully diluted share.
“Our
Company had solid core operating performance for the third quarter with operating pre-tax, pre-provision net revenue per share, a
non-GAAP measure, remaining consistent with last quarter and increasing $0.13, or 11.2%, over the prior year’s third quarter.
For the fourth consecutive quarter, the Company established a new high for quarterly revenues as net interest income reached an all-time
quarterly high and we also achieved new quarterly records in our benefits and insurance businesses,” commented Dimitar A. Karaivanov,
President and CEO.
“Earnings per share decreased by $0.08, or 8.8%, from the linked second quarter and increased $0.01, or 1.2%, over the prior
year’s third quarter. Earnings results were negatively impacted by a higher provision for credit losses that reflected expected
economic landing in future periods.
Looking forward, I am very encouraged by the revenue momentum and outlook for operating leverage while maintaining strong credit
and liquidity metrics.” |
| Third Quarter 2024 Performance |
Quarter-over-
Quarter Increase
(Decrease) |
Year-over-Year
Increase (Decrease) |
| Dollars in thousands, except per share data |
3rd Qtr
2024 |
2nd Qtr
2024 |
3rd Qtr
2023 |
$ |
% |
$ |
% |
| Operating Performance |
Diluted Earnings Per Share |
$0.83 |
$0.91 |
$0.82 |
($0.08) |
(8.8%) |
$0.01 |
1.2% |
| Operating Diluted Earnings Per Share1 |
0.88 |
0.95 |
0.87 |
(0.07) |
(7.4%) |
0.01 |
1.1% |
| Operating Pre-Tax, Pre-Provision Net Revenue Per Share1 |
1.29 |
1.29 |
1.16 |
0.00 |
0.0% |
0.13 |
11.2% |
| |
|
|
|
|
|
|
|
|
| Return Metrics |
Return on Assets |
1.09% |
1.22% |
1.16% |
- |
(0.13%) |
- |
(0.07%) |
| Operating Return on Assets1 |
1.16% |
1.29% |
1.23% |
- |
(0.13%) |
- |
(0.07%) |
| Return on Equity |
10.21% |
11.79% |
10.90% |
- |
(1.58%) |
- |
(0.69%) |
| Operating Return on Equity1 |
10.85% |
12.43% |
11.62% |
- |
(1.58%) |
- |
(0.77%) |
| |
|
|
|
|
Quarter-over-
Quarter Increase
(Decrease) |
Year-over-Year
Increase (Decrease) |
| Dollars in thousands, except per share data |
3rd Qtr
2024 |
2nd Qtr
2024 |
3rd Qtr
2023 |
$ |
% |
$ |
% |
| Revenues |
Total Revenues |
$188,942 |
$183,799 |
$175,372 |
$5,143 |
2.8% |
$13,570 |
7.7% |
| Total Operating Revenues1 |
189,096 |
183,164 |
175,421 |
5,932 |
3.2% |
13,675 |
7.8% |
| Noninterest Revenues |
76,197 |
74,390 |
67,586 |
1,807 |
2.4% |
8,611 |
12.7% |
| Total Operating Noninterest Revenues1 |
76,351 |
73,755 |
67,635 |
2,596 |
3.5% |
8,716 |
12.9% |
| Noninterest Revenues/Total Revenues |
40.3% |
40.5% |
38.5% |
- |
(0.2%) |
- |
1.8% |
| Operating Noninterest Revenues/Operating Revenues (FTE)1 |
40.2% |
40.1% |
38.3% |
- |
0.1% |
- |
1.9% |
| |
|
|
|
|
|
|
|
|
| Net Interest Income and Margin |
Net Interest Income |
$112,745 |
$109,409 |
$107,786 |
$3,336 |
3.0% |
$4,959 |
4.6% |
| Net Interest Margin |
3.03% |
3.01% |
3.07% |
- |
0.02% |
- |
(0.04%) |
| Net Interest Margin (FTE)1 |
3.05% |
3.04% |
3.10% |
- |
0.01% |
- |
(0.05%) |
| |
|
|
|
|
|
|
|
|
| Balance Sheet and Funding |
Total Ending Loans |
$10,251,674 |
$10,023,857 |
$9,450,066 |
$227,817 |
2.3% |
$801,608 |
8.5% |
| Total Ending Deposits |
13,476,171 |
13,137,888 |
13,030,788 |
338,283 |
2.6% |
445,383 |
3.4% |
| Cost of Total Deposits |
1.23% |
1.23% |
0.76% |
- |
0.00% |
- |
0.47% |
| Cost of Funds |
1.44% |
1.37% |
0.88% |
- |
0.07% |
- |
0.56% |
| |
|
|
|
|
|
|
|
|
| Risk Metrics |
Annualized Loan Net Charge-Offs |
0.11% |
0.05% |
0.05% |
- |
0.06% |
- |
0.06% |
| Tier 1 Leverage Ratio |
9.12% |
9.07% |
9.44% |
- |
0.05% |
- |
(0.32%) |
| Loan-to-deposit ratio |
76.1% |
76.3% |
72.5% |
- |
(0.2%) |
- |
3.6% |
| Non-owner occupied and multifamily commercial real estate (“CRE”) / total bank-level regulatory capital |
199% |
198% |
186% |
- |
1% |
- |
13% |
1Non-GAAP Measure. For more information on Non-GAAP measures refer
to “Non-GAAP Measures” section along with the Quarterly GAAP to Non-GAAP Reconciliations included within the “Summary
of Financial Data (unaudited)” tables below.
| Third Quarter 2024 Business Segment Results2 |
Quarter-over-
Quarter Increase
(Decrease) |
Year-over-Year
Increase (Decrease) |
| Dollars in thousands |
3rd Qtr
2024 |
2nd Qtr
2024 |
3rd Qtr
2023 |
$ |
% |
$ |
% |
| Banking and Corporate |
Net interest income |
$111,846 |
$108,535 |
$107,169 |
$3,311 |
3.1% |
$4,677 |
4.4% |
| Provision for credit losses |
7,709 |
2,708 |
2,878 |
5,001 |
184.7% |
4,831 |
167.9% |
| Operating noninterest revenues |
20,478 |
19,502 |
17,580 |
976 |
5.0% |
2,898 |
16.5% |
| Operating noninterest expenses |
84,170 |
78,185 |
79,027 |
5,985 |
7.7% |
5,143 |
6.5% |
| Operating income before income taxes |
$40,445 |
$47,144 |
$42,844 |
($6,699) |
(14.2%) |
($2,399) |
(5.6%) |
| |
|
|
|
|
|
|
|
|
| Employee Benefit Services |
Net interest income |
$723 |
$702 |
$486 |
$21 |
3.0% |
$237 |
48.8% |
| Operating noninterest revenues |
34,135 |
33,051 |
30,741 |
1,084 |
3.3% |
3,394 |
11.0% |
| Operating noninterest expenses |
19,621 |
20,206 |
18,305 |
(585) |
(2.9%) |
1,316 |
7.2% |
| Operating income before income taxes |
$15,237 |
$13,547 |
$12,922 |
$1,690 |
12.5% |
$2,315 |
17.9% |
| |
|
|
|
|
|
|
|
|
| Insurance Services |
Net interest income |
$38 |
$40 |
$29 |
($2) |
(5.0%) |
$9 |
31.0% |
| Operating noninterest revenues |
13,671 |
13,324 |
12,139 |
347 |
2.6% |
1,532 |
12.6% |
| Operating noninterest expenses |
10,830 |
10,645 |
10,246 |
185 |
1.7% |
584 |
5.7% |
| Operating income before income taxes |
$2,879 |
$2,719 |
$1,922 |
$160 |
5.9% |
$957 |
49.8% |
| |
|
|
|
|
|
|
|
|
| Wealth Management Services |
Net interest income |
$138 |
$132 |
$102 |
$6 |
4.5% |
$36 |
35.3% |
| Operating noninterest revenues |
9,242 |
9,019 |
8,257 |
223 |
2.5% |
985 |
11.9% |
| Operating noninterest expenses |
7,376 |
7,123 |
6,352 |
253 |
3.6% |
1,024 |
16.1% |
| Operating income before income taxes |
$2,004 |
$2,028 |
$2,007 |
($24) |
(1.2%) |
($3) |
(0.1%) |
| |
|
|
|
|
|
|
|
|
2Business segment results
within this table are presented in accordance with Accounting Standards Codification 280: Segment Reporting as described in the
Company's Segment Information disclosure in its Quarterly Form on 10-Q. Refer to Quarterly Segment Information Reconciliations included
within the “Summary of Financial Data (unaudited)” tables below for reconciliations of total segment results to consolidated
Community Financial System, Inc. results.
Results of Operations
The Company reported third quarter 2024 net income of $43.9 million, or $0.83
per fully diluted share. This compares to net income of $44.1 million, or $0.82 per fully diluted share, for the third quarter of 2023.
The $0.01 increase in earnings per share was driven by increases in noninterest revenues and net interest income and a decrease in the
number of fully diluted shares outstanding, partially offset by increases in noninterest expenses, the provision for credit losses and
income taxes. Comparatively, the Company’s diluted earnings per share decreased $0.08 from $0.91 per share for the linked second
quarter of 2024 primarily due to increases in the provision for credit losses and noninterest expenses, partially offset by increases
in noninterest revenues and net interest income and a decrease in income taxes.
Net Interest Income and Net Interest Margin
The Company’s thirteenth consecutive quarter of loan growth supported
continued expansion in interest income that more than offset higher interest expense driven by funding cost pressures, resulting in net
interest income growth and margin expansion.
| · | Net interest income in the third quarter of 2024 was $112.7
million, up $5.0 million, or 4.6%, compared to the third quarter of 2023, and up $3.3 million, or 3.0%, from the second quarter of 2024. |
| · | Net interest margin in the third quarter of 3.03% and fully
tax-equivalent net interest margin, a non-GAAP measure, of 3.05% decreased by four basis points and five basis points, respectively, from
the third quarter of 2023. These decreases were primarily the result of an increase in the cost of interest-bearing liabilities, partially
offset by higher yields on interest-earning assets and a higher proportion of those assets being comprised of loan balances primarily
due to strong organic loan growth. |
| · | The yield on interest-earning assets increased 49 basis points
to 4.43% over the prior year’s third quarter primarily as a result of higher loan yields due to higher interest rates on new loans
and an increase in variable and adjustable-rate loan yields. |
| · | The cost of interest-bearing liabilities increased 70 basis
points from 1.23% in the third quarter of 2023 to 1.93% in the third quarter of 2024 as a result of market-driven higher deposit and borrowing
rates and change in deposit mix as the proportion of time deposit balances increased. |
| · | On a linked quarter basis, net interest margin and fully tax-equivalent
net interest margin, a non-GAAP measure, increased by two basis points and one basis point, respectively. The cost of funds increased
seven basis points, including a 10 basis point increase in the cost of interest-bearing liabilities, while the yield on interest-earning
assets increased eight basis points. The increase in the cost of interest-bearing liabilities included a one basis point increase in the
average interest-bearing deposit rate and a 37 basis point increase in the average borrowing rate impacted by a larger proportion of higher
rate average overnight borrowings to total average borrowings. |
Noninterest Revenues
The Company’s banking and financial services (including employee
benefit services, insurance services and wealth management services) noninterest revenue streams generated 40.3% of total revenues in
the third quarter, continue to reduce its dependence on net interest income and provide a solid foundation for future growth and opportunities.
| · | Banking noninterest revenues, comprised of deposit service
and other banking fees and mortgage banking revenues, were $20.6 million for the third quarter of 2024, an increase of $3.0 million, or
17.1%, from the third quarter of 2023 and $1.0 million, or 4.8%, from the second quarter of 2024. The increases between both periods were
primarily due to higher interest rate swap fee revenues associated with the Company’s recent implementation of this product offering. |
| · | Employee benefit services revenues for the third quarter of
2024 were $33.2 million, an increase of $3.2 million, or 10.7%, in comparison to the third quarter of 2023 and $1.1 million, or 3.4%,
from the second quarter of 2024, driven by new business and increases in the total participants under administration, along with growth
in asset-based fee revenues resulting from market appreciation. Additionally, the acquisition of certain assets of Creative Plan Designs
Limited on February 1, 2024 added fee revenues related to employee benefit plan design, administration and consulting that contributed
to the year-over-year increase. |
| · | Insurance services revenues for the third quarter of 2024
were $13.7 million, which represents a $1.5 million, or 12.7%, increase versus the prior year’s third quarter and $0.3 million,
or 2.6%, from the second quarter of 2024, due to organic and acquired growth in commission revenues, including the incremental revenues
resulting from the acquisition of a New York-based insurance agency for $4.6 million in total consideration on April 1, 2024. |
| · | Wealth management services revenues for the third quarter
of 2024 were $8.9 million, an increase of $1.0 million, or 12.1%, from the third quarter of 2023 and $0.2 million, or 2.3%, from the second
quarter of 2024, reflective of more favorable investment market conditions that drove increases in assets under management between the
periods. |
Noninterest Expenses and Income Taxes
The Company continues to maintain a focus on managing expenses consistent
with its organic growth strategies and scale objectives, while evaluating efficiency opportunities and the enhancement of operating leverage
in all lines of business.
| · | The Company recorded $124.2 million in total noninterest expenses
in the third quarter of 2024, compared to $116.5 million of total noninterest expenses in the prior year’s third quarter. The $7.7
million, or 6.6%, increase between the periods was mainly driven by higher salaries and employee benefits and data processing and communications
expenses. |
| · | The $7.3 million, or 10.4%, increase in salaries and employee
benefits expenses was primarily driven by merit and market-related increases in employee wages, higher incentive plan costs and acquisitions
between the periods, partially offset by the impact of the previously announced retail customer service workforce optimization plan. |
| · | The $0.4 million, or 2.7%, increase in data processing and
communications expenses is reflective of the Company’s continued investment in customer-facing and back-office technologies. |
| · | The effective tax rate for the third quarter of 2024 was 23.0%,
up from 21.2% in the third quarter of 2023. Excluding the impact of tax expense and benefits related to stock-based compensation activity
and income tax credit amortization, the effective tax rate for the third quarter of 2024 was 22.6%, up from 21.2% in the third quarter
of 2023. |
Financial Position and Liquidity
The Company’s financial position and liquidity profile remain strong,
demonstrating the effectiveness of its strategic asset and liability management and prudent financial planning.
| · | The Company’s total assets were $16.40 billion at September
30, 2024, representing a $1.02 billion, or 6.6%, increase from one year prior and a $497.9 million, or 3.1%, increase from the end of
the second quarter of 2024. The increases in the Company’s total assets during both periods were primarily driven by organic loan
growth and an increase in the carrying value of available-for-sale investment securities due to changes in market interest rates. |
| · | At September 30, 2024, the Company’s readily available
sources of liquidity totaled $4.49 billion, including cash and cash equivalents balances unpledged as collateral of $341.0 million, investment
securities unpledged as collateral totaling $1.69 billion, unused borrowing capacity at the Federal Home Loan Bank of New York of $1.27
billion and $1.19 billion of funding availability at the Federal Reserve Bank’s discount window. |
| · | The available sources of immediately available liquidity represent
approximately 200% of the Company’s estimated uninsured deposits, net of collateralized and intercompany deposits. |
| · | Estimated insured deposits, net of collateralized and intercompany
deposits, represent greater than 80% of third quarter total ending deposits. |
Deposits and Funding
The Company continues to leverage its strong core deposit base, characterized
by low funding costs, to support its financial operations.
| · | Ending deposits at September 30, 2024 of $13.48 billion were
$338.3 million, or 2.6%, higher than the end of the second quarter of 2024 due to seasonal inflows of municipal deposit balances. Ending
deposits were $445.4 million, or 3.4%, higher than one year prior primarily driven by higher municipal deposit balances reflective of
competitive offerings and expansion of its municipal deposit relationship base due in part to the Company’s business development
efforts. |
| · | Ending borrowings of $948.4 million at September 30, 2024,
which included $622.3 million of fixed rate Federal Home Loan Bank of New York term borrowings, $317.4 million of customer repurchase
agreements and $8.7 million of finance lease liabilities, increased $16.2 million, or 1.7%, from June 30, 2024 and increased $301.3 million,
or 46.6%, from one year prior and supplemented the funding of strong loan growth. |
| · | The Company’s average cost of funds increased 56 basis
points, from 0.88% in the third quarter of 2023 to 1.44% in the third quarter of 2024. |
| · | The quarterly average cost of total deposits of 1.23% remained
consistent with the prior quarter and comparatively low relative to the industry. |
| · | Since December 31, 2021 and through the end of the third quarter
of 2024, the Company’s deposit beta was 24% and the total funding beta was 28%. The target Federal Funds rate has increased 475
basis points since December 31, 2021, while the Company’s total deposit costs and total funding costs increased 115 basis points
and 135 basis points, respectively, over the same period. |
| · | The Company’s deposit base is well diversified across
customer segments, comprised of approximately 58% consumer, 27% business and 15% municipal at the end of the current quarter, and broadly
dispersed as illustrated by an average deposit balance per account of under $20,000. |
| · | 65% of the Company’s total deposits were in no and low
rate checking and savings accounts at the end of the third quarter and the Company does not currently utilize brokered or wholesale deposits.
Time deposit accounts represented 16% of the Company’s total deposits at the end of the third quarter of 2024, up five percentage
points from the end of the third quarter of 2023 and consistent with the end of the prior quarter. The increase from one year ago is reflective
of customers responding to changes in market interest rates by moving funds into higher yielding products. |
Loans and Credit Quality
The Company’s predominantly footprint-based loan portfolio
is diversified and growing, with a core focus on credit quality.
| · | Ending loans at September 30, 2024 of $10.25 billion were
$227.8 million, or 2.3%, higher than June 30, 2024 and $801.6 million, or 8.5%, higher than one year prior driven by increases in all
loan categories between both periods due to net organic growth. |
| · | At September 30, 2024, the Company’s allowance for credit
losses totaled $76.2 million, or 0.74% of total loans outstanding, compared to $71.4 million, or 0.71% of total loans outstanding, at
June 30, 2024 and $64.9 million, or 0.69% of total loans outstanding, at September 30, 2023. |
| · | Reflective of a slight decline in certain asset quality metrics,
an increase in loans outstanding and a stable economic forecast, the Company recorded a $7.7 million provision for credit losses during
the third quarter of 2024. While certain macroeconomic concerns are persisting related to non-owner occupied and multifamily CRE, the
Company’s exposure to these portfolios remains diverse both geographically and by property type, and relatively low at 15% of total
assets, 24% of total loans and 199% of total bank-level regulatory capital. Additionally, the current levels of delinquencies, charge-offs
and risk ratings within these portfolios remain below long-term historical averages, reflecting the solid asset quality of these portfolios. |
| · | The Company recorded net charge-offs of $2.8 million, or an
annualized 0.11% of average loans, in the third quarter of 2024 compared to net charge-offs of $1.2 million, or an annualized 0.05% of
average loans, in the third quarter of 2023 and net charge-offs of $1.3 million, or an annualized 0.05% of average loans, in the second
quarter of 2024. |
| · | Total delinquent loans, which includes loans 30 or more days
past due and nonaccrual loans, as a percentage of total loans outstanding was 1.07% at the end of the third quarter of 2024. This compares
to 0.90% at the end of the third quarter of 2023 and 0.95% at June 30, 2024. |
| · | At September 30, 2024, nonperforming (90 or more days delinquent
and non-accruing) loans were $62.8 million, or 0.61% of total loans outstanding compared to $50.5 million, or 0.50% of total loans outstanding
at June 30, 2024 and $36.9 million, or 0.39% of total loans outstanding one year earlier. The increase in nonperforming loans during the
third quarter of 2024 was primarily attributable to an increase in nonaccrual business lending loan balances, driven largely by the performance
of one relationship. |
| · | Loans 30 to 89 days delinquent (categorized by the Company
as delinquent but performing), which tend to exhibit seasonal characteristics, were 0.46% of total loans outstanding at September 30,
2024, up from 0.45% at the end of the second quarter of 2024 and down from 0.51% one year earlier. |
Shareholders’ Equity and Regulatory Capital
The Company’s capital planning and management activities, coupled
with its diversified streams of revenue and prudent dividend practices, have allowed it to build and maintain a strong capital position.
At September 30, 2024, all of the Company’s and the Bank’s regulatory capital ratios significantly exceeded well-capitalized
standards.
| · | Shareholders’ equity of $1.78 billion at September 30,
2024 was $230.0 million, or 14.8%, higher than one year ago, primarily due to a $191.7 million decrease in accumulated other comprehensive
loss related to the Company’s investment securities portfolio and a $70.6 million increase in retained earnings due to net income
retention, partially offset by a $49.3 million increase in treasury stock due to share repurchases. Shareholders’ equity increased
$114.8 million, or 6.9%, from June 30, 2024, primarily driven by a $91.4 million decrease in accumulated other comprehensive loss related
to the Company’s investment securities portfolio and a $19.7 million increase in retained earnings due to net income retention. |
| · | The Company’s shareholders’ equity to assets ratio
was 10.88% at September 30, 2024, up from 10.11% at September 30, 2023 and 10.50% at June 30, 2024. |
| · | The Company’s tier 1 leverage ratio of 9.12% at September
30, 2024 decreased 32 basis points from one year earlier and increased five basis points from June 30, 2024, remaining substantially above
the regulatory well-capitalized standard of 5.0%. |
| · | The Company’s tangible equity to tangible assets ratio
(non-GAAP) was 5.97% at September 30, 2024, up from 4.81% a year earlier and 5.38% at June 30, 2024. Tangible equity (non-GAAP) increased
$230.0 million, or 32.9%, from one year prior due to the aforementioned decrease in accumulated other comprehensive loss related to the
Company’s investment securities portfolio and net income retention, partially offset by the impact of share repurchases between
the periods. Tangible assets (non-GAAP) increased $1.02 billion, or 7.0%, from the prior year due primarily to organic loan growth and
an increase in the carrying value of available-for-sale investment securities due to changes in market interest rates. |
Dividend Increase and Stock Repurchase Program
The payment of a meaningful and growing dividend is an important
component of the Company’s commitment to provide consistent and favorable long-term returns to its shareholders, and it reflects
the continued strength of the Company’s long-term operating results and capital position, and management’s confidence in the
future performance of the Company. The $0.01 increase in the quarterly dividend declared in the third quarter of 2024 marked the 32nd
consecutive year of dividend increases for the Company.
| · | During the third quarter of 2024, the Company declared a quarterly
cash dividend of $0.46 per share on its common stock, up 2.2% from the $0.45 dividend declared in the third quarter of 2023, representing
an annualized yield of 3.1% based upon on the $58.85 closing price of the Company’s stock on October 21, 2024. |
| · | As previously announced, in December 2023 the Company’s
Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.70 million shares
of the Company’s common stock during a twelve-month period starting January 1, 2024. 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 regulatory
and legal requirements. There were 1,000,000 shares repurchased pursuant to the 2024 stock repurchase program in the first nine months
of 2024. No shares were repurchased pursuant to the 2024 stock repurchase program in the third quarter of 2024. |
Non-GAAP Measures
The Company also provides supplemental reporting of its results on an “operating”
and “tangible” basis. Results on an “operating” basis exclude the after-tax effects of acquisition expenses, acquisition-related
contingent consideration adjustments, restructuring expenses, litigation accrual, loss on sales of investment securities, unrealized gain
(loss) on equity securities and amortization of intangible assets. Results on a “tangible” basis exclude goodwill and intangible
asset balances, net of accumulated amortization and applicable deferred tax amounts. In addition, the Company provides supplemental reporting
for “operating pre-tax, pre-provision net revenues,” which subtracts the provision for credit losses, acquisition expenses,
acquisition-related contingent consideration adjustments, restructuring expenses, litigation accrual, loss on sales of investment securities,
unrealized gain (loss) on equity securities and amortization of intangible assets from income before income taxes. Although these items
are non-GAAP measures, the Company’s management believes this information helps investors and analysts measure underlying core performance
and provides better comparability to other organizations that have not engaged in acquisitions or restructuring activities. The Company
also provides supplemental reporting of its net interest income and net interest margin on a “fully tax-equivalent” basis,
which includes an adjustment to net interest income that represents taxes that would have been paid had nontaxable investment securities
and loans been taxable. Although fully tax-equivalent net interest income and net interest margin are non-GAAP measures, the Company’s
management believes this information helps enhance comparability of the performance of assets that have different tax liabilities. The
amounts for such items are presented in the tables that accompany this release.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET) today,
October 22, 2024, to discuss the third quarter 2024 results. The conference call can be accessed at 1-833-630-0464 (1-412-317-1809 if
outside the United States and Canada). Investors may also listen live via the Internet at: https://app.webinar.net/GagdbNwDZ0m.
This earnings release, including supporting financial tables, is also available
within the press releases section of the Company's investor relations website at: https://ir.communityfinancialsystem.com/news-presentations/press-releases/.
An archived webcast of the earnings call will be available on this site for one full year.
About Community Financial System, Inc.
Community Financial System, Inc. is a diversified financial services company
that is focused on four main business lines – banking, employee benefit services, insurance services and wealth management services.
Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest banking institutions with over $15 billion in
assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont and Western Massachusetts.
The Company’s Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration,
trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Company’s
OneGroup NY, Inc. subsidiary is a top 75 U.S. insurance agency. The Company also offers comprehensive financial planning, trust administration
and wealth management services through its Community Bank Wealth Management operating unit. The Company 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.cbna.com
or www.communityfinancialsystem.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of CBU’s
management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking
statements. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from its
expectations: the macroeconomic and other challenges and uncertainties related to or resulting from recent bank failures; current and
future economic and market conditions, including the effects on CRE and housing or vehicle prices, unemployment rates, high inflation,
U.S. fiscal debt, budget and tax matters, geopolitical matters, and global economic growth; fiscal and monetary policies of the Federal
Reserve Board; the potential adverse effects of unusual and infrequently occurring events; litigation and actions of regulatory authorities;
management’s estimates and projections of interest rates and interest rate policies; the effect of changes in the level of checking,
savings, or money market account deposit balances and other factors that affect net interest margin; future provisions for credit losses
on loans and debt securities; changes in nonperforming assets; ability to contain costs in inflationary conditions; the effect on financial
market valuations on CBU’s fee income businesses, including its employee benefit services, wealth management services, and insurance
services businesses; the successful integration of operations of its acquisitions and performance of new branches; competition; changes
in legislation or regulatory requirements, including capital requirements; and the timing for receiving regulatory approvals and completing
pending merger and acquisition transactions. For more information about factors that could cause actual results to differ materially
from CBU’s expectations, refer to its annual, periodic and other reports filed with the Securities and Exchange Commission (“SEC”),
including the discussion under the “Risk Factors” section of such reports filed with the SEC and available on CBU’s
website at www.communityfinancialsystem.com and on the SEC’s website at www.sec.gov.
Further, any forward-looking statement speaks only as of the date on which it is made, and CBU undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence
of unanticipated events.
Summary of Financial Data (unaudited) |
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
| |
Quarter Ended |
Year-to-Date |
| |
September 30,
2024 |
September 30,
2023 |
September 30,
2024 |
September 30,
2023 |
| Earnings |
|
|
|
|
| Loan income |
$140,472 |
$115,138 |
$401,129 |
$322,775 |
| Investment income |
23,428 |
22,418 |
72,468 |
72,287 |
| Total interest income |
163,900 |
137,556 |
473,597 |
395,062 |
| Interest expense |
51,155 |
29,770 |
144,453 |
66,967 |
| Net interest income |
112,745 |
107,786 |
329,144 |
328,095 |
| Provision for credit losses |
7,709 |
2,878 |
16,565 |
7,130 |
| Net interest income after provision for credit losses |
105,036 |
104,908 |
312,579 |
320,965 |
| Deposit service and other banking fees |
19,537 |
17,478 |
54,808 |
51,374 |
| Mortgage banking |
1,055 |
113 |
3,675 |
399 |
| Employee benefit services |
33,215 |
29,997 |
97,031 |
87,946 |
| Insurance services |
13,652 |
12,113 |
38,068 |
35,495 |
| Wealth management services |
8,892 |
7,934 |
26,793 |
24,037 |
| Loss on sales of investment securities |
(255) |
0 |
(487) |
(52,329) |
| Gain on debt extinguishment |
0 |
0 |
0 |
242 |
| Unrealized gain (loss) on equity securities |
101 |
(49) |
984 |
(99) |
| Total noninterest revenues |
76,197 |
67,586 |
220,872 |
147,065 |
| Salaries and employee benefits |
78,022 |
70,687 |
224,532 |
210,208 |
| Data processing and communications |
15,894 |
15,480 |
45,516 |
42,900 |
| Occupancy and equipment |
10,586 |
10,358 |
32,663 |
31,835 |
| Amortization of intangible assets |
3,369 |
3,576 |
10,822 |
10,948 |
| Legal and professional fees |
3,723 |
3,826 |
11,523 |
12,129 |
| Business development and marketing |
4,365 |
4,628 |
11,549 |
12,096 |
| Acquisition-related contingent consideration adjustments |
(156) |
80 |
(156) |
1,080 |
| Litigation accrual |
102 |
0 |
221 |
0 |
| Acquisition expenses |
66 |
0 |
205 |
56 |
| Other |
8,232 |
7,869 |
24,411 |
22,342 |
| Total noninterest expenses |
124,203 |
116,504 |
361,286 |
343,594 |
| Income before income taxes |
57,030 |
55,990 |
172,165 |
124,436 |
| Income taxes |
13,129 |
11,861 |
39,477 |
26,218 |
| Net income |
$43,901 |
$44,129 |
$132,688 |
$98,218 |
| Basic earnings per share |
$0.83 |
$0.82 |
$2.50 |
$1.82 |
| Diluted earnings per share |
$0.83 |
$0.82 |
$2.50 |
$1.82 |
Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Earnings |
|
|
|
|
|
| Loan income |
$140,472 |
$133,159 |
$127,498 |
$122,392 |
$115,138 |
| Investment income |
23,428 |
23,879 |
25,161 |
23,934 |
22,418 |
| Total interest income |
163,900 |
157,038 |
152,659 |
146,326 |
137,556 |
| Interest expense |
51,155 |
47,629 |
45,669 |
37,136 |
29,770 |
| Net interest income |
112,745 |
109,409 |
106,990 |
109,190 |
107,786 |
| Provision for credit losses |
7,709 |
2,708 |
6,148 |
4,073 |
2,878 |
| Net interest income after provision for credit losses |
105,036 |
106,701 |
100,842 |
105,117 |
104,908 |
| Deposit service and other banking fees |
19,537 |
17,364 |
17,907 |
18,003 |
17,478 |
| Mortgage banking |
1,055 |
2,275 |
345 |
196 |
113 |
| Employee benefit services |
33,215 |
32,118 |
31,698 |
30,015 |
29,997 |
| Insurance services |
13,652 |
13,307 |
11,109 |
11,599 |
12,113 |
| Wealth management services |
8,892 |
8,691 |
9,210 |
7,904 |
7,934 |
| Loss on sales of investment securities |
(255) |
(232) |
0 |
0 |
0 |
| Unrealized gain (loss) on equity securities |
101 |
867 |
16 |
52 |
(49) |
| Total noninterest revenues |
76,197 |
74,390 |
70,285 |
67,769 |
67,586 |
| Salaries and employee benefits |
78,022 |
73,447 |
73,063 |
71,595 |
70,687 |
| Data processing and communications |
15,894 |
15,274 |
14,348 |
14,685 |
15,480 |
| Occupancy and equipment |
10,586 |
10,715 |
11,362 |
10,715 |
10,358 |
| Amortization of intangible assets |
3,369 |
3,877 |
3,576 |
3,563 |
3,576 |
| Legal and professional fees |
3,723 |
3,459 |
4,341 |
3,792 |
3,826 |
| Business development and marketing |
4,365 |
4,139 |
3,045 |
3,635 |
4,628 |
| Acquisition-related contingent consideration adjustments |
(156) |
0 |
0 |
2,200 |
80 |
| Litigation accrual |
102 |
0 |
119 |
5,800 |
0 |
| Acquisition expenses |
66 |
104 |
35 |
7 |
0 |
| Restructuring expenses |
0 |
0 |
0 |
1,163 |
0 |
| Other |
8,232 |
7,984 |
8,195 |
11,936 |
7,869 |
| Total noninterest expenses |
124,203 |
118,999 |
118,084 |
129,091 |
116,504 |
| Income before income taxes |
57,030 |
62,092 |
53,043 |
43,795 |
55,990 |
| Income taxes |
13,129 |
14,177 |
12,171 |
10,089 |
11,861 |
| Net income |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Basic earnings per share |
$0.83 |
$0.91 |
$0.77 |
$0.63 |
$0.82 |
| Diluted earnings per share |
$0.83 |
$0.91 |
$0.76 |
$0.63 |
$0.82 |
| Profitability (GAAP) |
|
|
|
|
|
| Return on assets (GAAP) |
1.09% |
1.22% |
1.04% |
0.87% |
1.16% |
| Return on equity (GAAP) |
10.21% |
11.79% |
9.78% |
8.53% |
10.90% |
| Noninterest revenues/total revenues (GAAP) |
40.3% |
40.5% |
39.6% |
38.3% |
38.5% |
| Efficiency ratio (GAAP) |
65.7% |
64.7% |
66.6% |
72.9% |
66.4% |
| Profitability (non-GAAP) |
|
|
|
|
|
| Operating return on assets (non-GAAP) |
1.16% |
1.29% |
1.11% |
1.13% |
1.23% |
| Operating return on equity (non-GAAP) |
10.85% |
12.43% |
10.47% |
11.10% |
11.62% |
| Return on tangible equity (non-GAAP) |
20.53% |
24.90% |
19.94% |
18.75% |
23.34% |
| Operating return on tangible equity (non-GAAP) |
21.80% |
26.25% |
21.36% |
24.38% |
24.89% |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) |
40.2% |
40.1% |
39.4% |
38.1% |
38.3% |
| Operating efficiency ratio (non-GAAP) |
63.6% |
62.5% |
64.1% |
65.4% |
64.0% |
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Components of Net Interest Margin (FTE) |
|
|
|
|
|
| Loan yield |
5.51% |
5.38% |
5.25% |
5.08% |
4.92% |
| Cash equivalents yield |
4.90% |
5.10% |
5.39% |
5.49% |
4.97% |
| Investment yield |
2.05% |
2.11% |
2.02% |
2.03% |
1.96% |
| Earning asset yield |
4.43% |
4.35% |
4.24% |
4.11% |
3.94% |
| Interest-bearing deposit rate |
1.69% |
1.68% |
1.56% |
1.37% |
1.09% |
| Borrowing rate |
4.08% |
3.71% |
3.81% |
3.12% |
3.34% |
| Cost of all interest-bearing funds |
1.93% |
1.83% |
1.77% |
1.48% |
1.23% |
| Cost of total deposits |
1.23% |
1.23% |
1.14% |
0.98% |
0.76% |
| Cost of funds (includes noninterest-bearing deposits) |
1.44% |
1.37% |
1.31% |
1.08% |
0.88% |
| Net interest margin |
3.03% |
3.01% |
2.95% |
3.05% |
3.07% |
| Net interest margin (FTE) (non-GAAP) |
3.05% |
3.04% |
2.98% |
3.07% |
3.10% |
| Fully tax-equivalent adjustment (non-GAAP) |
$872 |
$953 |
$1,014 |
$1,037 |
$1,034 |
| Average Balances |
|
|
|
|
|
| Loans |
$10,155,343 |
$9,969,462 |
$9,788,707 |
$9,583,396 |
$9,303,479 |
| Cash equivalents |
38,481 |
48,872 |
230,299 |
113,071 |
53,279 |
| Taxable investment securities |
4,165,783 |
4,119,882 |
4,071,256 |
4,032,386 |
4,080,835 |
| Nontaxable investment securities |
436,762 |
466,757 |
488,381 |
493,434 |
508,356 |
| Total interest-earning assets |
14,796,369 |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
| Total assets |
16,058,219 |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
| Interest-bearing deposits |
9,537,203 |
9,679,296 |
9,462,083 |
9,266,908 |
8,961,895 |
| Borrowings |
1,030,199 |
785,946 |
936,588 |
665,322 |
619,510 |
| Total interest-bearing liabilities |
10,567,402 |
10,465,242 |
10,398,671 |
9,932,230 |
9,581,405 |
| Noninterest-bearing deposits |
3,611,755 |
3,534,516 |
3,570,902 |
3,706,781 |
3,810,542 |
| Shareholders' equity |
1,709,791 |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
| Balance Sheet Data |
|
|
|
|
|
| Cash and cash equivalents |
$346,110 |
$201,493 |
$338,381 |
$190,962 |
$455,807 |
| Investment securities |
4,287,551 |
4,166,562 |
4,152,114 |
4,165,312 |
3,960,001 |
| Loans: |
|
|
|
|
|
| Business lending |
4,391,629 |
4,294,173 |
4,220,199 |
4,084,396 |
3,914,935 |
| Consumer mortgage |
3,427,317 |
3,368,166 |
3,317,467 |
3,285,018 |
3,196,764 |
| Consumer indirect |
1,780,586 |
1,723,002 |
1,716,028 |
1,703,440 |
1,708,302 |
| Home equity |
460,964 |
452,013 |
446,056 |
446,515 |
444,764 |
| Consumer direct |
191,178 |
186,503 |
183,750 |
185,229 |
185,301 |
| Total loans |
10,251,674 |
10,023,857 |
9,883,500 |
9,704,598 |
9,450,066 |
| Allowance for credit losses |
76,167 |
71,442 |
70,091 |
66,669 |
64,945 |
| Goodwill and intangible assets, net |
900,623 |
905,780 |
904,439 |
897,987 |
901,334 |
| Other assets |
694,909 |
680,566 |
650,327 |
663,563 |
684,059 |
| Total assets |
16,404,700 |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
| Deposits: |
|
|
|
|
|
| Noninterest-bearing |
3,586,845 |
3,649,389 |
3,554,686 |
3,638,527 |
3,780,519 |
| Non-maturity interest-bearing |
7,704,925 |
7,446,935 |
7,835,543 |
7,569,131 |
7,755,916 |
| Time |
2,184,401 |
2,041,564 |
1,961,793 |
1,720,463 |
1,494,353 |
| Total deposits |
13,476,171 |
13,137,888 |
13,352,022 |
12,928,121 |
13,030,788 |
| Customer repurchase agreements |
317,448 |
215,453 |
287,241 |
304,595 |
330,252 |
| Other borrowings |
630,970 |
716,721 |
395,122 |
460,603 |
316,837 |
| Accrued interest and other liabilities |
195,164 |
166,574 |
167,330 |
164,497 |
153,506 |
| Total liabilities |
14,619,753 |
14,236,636 |
14,201,715 |
13,857,816 |
13,831,383 |
| Shareholders' equity |
1,784,947 |
1,670,180 |
1,656,955 |
1,697,937 |
1,554,939 |
| Total liabilities and shareholders' equity |
16,404,700 |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Capital and Other |
|
|
|
|
|
| Shareholders’ equity/total assets (GAAP) |
10.88% |
10.50% |
10.45% |
10.92% |
10.11% |
| Tangible equity/tangible assets (non-GAAP) |
5.97% |
5.38% |
5.32% |
5.75% |
4.81% |
| Tier 1 leverage ratio |
9.12% |
9.07% |
9.01% |
9.34% |
9.44% |
| Loan-to-deposit ratio |
76.1% |
76.3% |
74.0% |
75.1% |
72.5% |
| Diluted weighted average common shares outstanding |
52,911 |
52,935 |
53,467 |
53,665 |
53,798 |
| Period end common shares outstanding |
52,546 |
52,523 |
52,765 |
53,327 |
53,427 |
| Cash dividends declared per common share |
$0.46 |
$0.45 |
$0.45 |
$0.45 |
$0.45 |
| Book value (GAAP) |
$33.97 |
$31.80 |
$31.40 |
$31.84 |
$29.10 |
| Tangible book value (non-GAAP) |
$17.66 |
$15.41 |
$15.12 |
$15.85 |
$13.07 |
| Common stock price at quarter-end |
$58.07 |
$47.21 |
$48.03 |
$52.11 |
$42.21 |
| Asset Quality |
|
|
|
|
|
| Nonaccrual loans |
$59,013 |
$47,407 |
$44,904 |
$48,687 |
$33,122 |
| Accruing loans 90+ days delinquent |
3,833 |
3,106 |
4,554 |
5,886 |
3,731 |
| Total nonperforming loans |
62,846 |
50,513 |
49,458 |
54,573 |
36,853 |
| Other real estate owned (OREO) |
2,279 |
1,662 |
1,742 |
1,159 |
578 |
| Total nonperforming assets |
65,125 |
52,175 |
51,200 |
55,732 |
37,431 |
| Net charge-offs |
2,772 |
1,286 |
2,840 |
2,337 |
1,249 |
| Allowance for credit losses/loans outstanding |
0.74% |
0.71% |
0.71% |
0.69% |
0.69% |
| Nonperforming loans/loans outstanding |
0.61% |
0.50% |
0.50% |
0.56% |
0.39% |
| Allowance for credit losses/nonperforming loans |
121% |
141% |
142% |
122% |
176% |
| Net charge-offs/average loans |
0.11% |
0.05% |
0.12% |
0.10% |
0.05% |
| Delinquent loans/ending loans |
1.07% |
0.95% |
0.93% |
1.06% |
0.90% |
| Provision for credit losses/net charge-offs |
278% |
211% |
216% |
174% |
230% |
| Nonperforming assets/total assets |
0.40% |
0.33% |
0.32% |
0.36% |
0.24% |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating pre-tax, pre-provision net revenue (non-GAAP) |
|
|
|
|
|
| Net income (GAAP) |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Income taxes |
13,129 |
14,177 |
12,171 |
10,089 |
11,861 |
| Income before income taxes |
57,030 |
62,092 |
53,043 |
43,795 |
55,990 |
| Provision for credit losses |
7,709 |
2,708 |
6,148 |
4,073 |
2,878 |
| Pre-tax, pre-provision net revenue (non-GAAP) |
64,739 |
64,800 |
59,191 |
47,868 |
58,868 |
| Acquisition expenses |
66 |
104 |
35 |
7 |
0 |
| Acquisition-related contingent consideration adjustments |
(156) |
0 |
0 |
2,200 |
80 |
| Restructuring expenses |
0 |
0 |
0 |
1,163 |
0 |
| Litigation accrual |
102 |
0 |
119 |
5,800 |
0 |
| Loss on sales of investment securities |
255 |
232 |
0 |
0 |
0 |
| Unrealized (gain) loss on equity securities |
(101) |
(867) |
(16) |
(52) |
49 |
| Amortization of intangible assets |
3,369 |
3,877 |
3,576 |
3,563 |
3,576 |
| Operating pre-tax, pre-provision net revenue (non-GAAP) |
$68,274 |
$68,146 |
$62,905 |
$60,549 |
$62,573 |
| |
|
|
|
|
|
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating pre-tax, pre-provision net revenue per share (non-GAAP) |
|
|
|
|
|
| Diluted earnings per share (GAAP) |
$0.83 |
$0.91 |
$0.76 |
$0.63 |
$0.82 |
| Income taxes |
0.25 |
0.26 |
0.23 |
0.19 |
0.22 |
| Income before income taxes |
1.08 |
1.17 |
0.99 |
0.82 |
1.04 |
| Provision for credit losses |
0.15 |
0.06 |
0.12 |
0.07 |
0.05 |
| Pre-tax, pre-provision net revenue per share (non-GAAP) |
1.23 |
1.23 |
1.11 |
0.89 |
1.09 |
| Acquisition expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Acquisition-related contingent consideration adjustments |
0.00 |
0.00 |
0.00 |
0.04 |
0.00 |
| Restructuring expenses |
0.00 |
0.00 |
0.00 |
0.02 |
0.00 |
| Litigation accrual |
0.00 |
0.00 |
0.00 |
0.11 |
0.00 |
| Loss on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Unrealized (gain) loss on equity securities |
0.00 |
(0.01) |
0.00 |
0.00 |
0.00 |
| Amortization of intangible assets |
0.06 |
0.07 |
0.07 |
0.07 |
0.07 |
| Operating pre-tax, pre-provision net revenue per share (non-GAAP) |
$1.29 |
$1.29 |
$1.18 |
$1.13 |
$1.16 |
| |
|
|
|
|
|
| Operating net income (non-GAAP) |
|
|
|
|
|
| Net income (GAAP) |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Acquisition expenses |
66 |
104 |
35 |
7 |
0 |
| Tax effect of acquisition expenses |
(15) |
(23) |
(8) |
(1) |
0 |
| Subtotal (non-GAAP) |
43,952 |
47,996 |
40,899 |
33,712 |
44,129 |
| Acquisition-related contingent consideration adjustments |
(156) |
0 |
0 |
2,200 |
80 |
| Tax effect of acquisition-related contingent consideration adjustments |
35 |
0 |
0 |
(443) |
(17) |
| Subtotal (non-GAAP) |
43,831 |
47,996 |
40,899 |
35,469 |
44,192 |
| Restructuring expenses |
0 |
0 |
0 |
1,163 |
0 |
| Tax effect of restructuring expenses |
0 |
0 |
0 |
(234) |
0 |
| Subtotal (non-GAAP) |
43,831 |
47,996 |
40,899 |
36,398 |
44,192 |
| Litigation accrual |
102 |
0 |
119 |
5,800 |
0 |
| Tax effect of litigation accrual |
(23) |
0 |
(26) |
(1,168) |
0 |
| Subtotal (non-GAAP) |
43,910 |
47,996 |
40,992 |
41,030 |
44,192 |
| Loss on sales of investment securities |
255 |
232 |
0 |
0 |
0 |
| Tax effect of loss on sales of investment securities |
(58) |
(52) |
0 |
0 |
0 |
| Subtotal (non-GAAP) |
44,107 |
48,176 |
40,992 |
41,030 |
44,192 |
| Unrealized (gain) loss on equity securities |
(101) |
(867) |
(16) |
(52) |
49 |
| Tax effect of unrealized (gain) loss on equity securities |
23 |
193 |
4 |
10 |
(10) |
| Subtotal (non-GAAP) |
44,029 |
47,502 |
40,980 |
40,988 |
44,231 |
| Amortization of intangible assets |
3,369 |
3,877 |
3,576 |
3,563 |
3,576 |
| Tax effect of amortization of intangible assets |
(762) |
(864) |
(787) |
(718) |
(757) |
| Operating net income (non-GAAP) |
$46,636 |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
| |
|
|
|
|
|
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Operating diluted earnings per share (non-GAAP) |
|
|
|
|
|
| Diluted earnings per share (GAAP) |
$0.83 |
$0.91 |
$0.76 |
$0.63 |
$0.82 |
| Acquisition expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Tax effect of acquisition expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.91 |
0.76 |
0.63 |
0.82 |
| Acquisition-related contingent consideration adjustments |
0.00 |
0.00 |
0.00 |
0.04 |
0.00 |
| Tax effect of acquisition-related contingent consideration adjustments |
0.00 |
0.00 |
0.00 |
(0.01) |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.91 |
0.76 |
0.66 |
0.82 |
| Restructuring expenses |
0.00 |
0.00 |
0.00 |
0.02 |
0.00 |
| Tax effect of restructuring expenses |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.91 |
0.76 |
0.68 |
0.82 |
| Litigation accrual |
0.00 |
0.00 |
0.00 |
0.11 |
0.00 |
| Tax effect of litigation accrual |
0.00 |
0.00 |
0.00 |
(0.03) |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.91 |
0.76 |
0.76 |
0.82 |
| Loss on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Tax effect of loss on sales of investment securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.91 |
0.76 |
0.76 |
0.82 |
| Unrealized (gain) loss on equity securities |
0.00 |
(0.01) |
0.00 |
0.00 |
0.00 |
| Tax effect of unrealized (gain) loss on equity securities |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
| Subtotal (non-GAAP) |
0.83 |
0.90 |
0.76 |
0.76 |
0.82 |
| Amortization of intangible assets |
0.06 |
0.07 |
0.07 |
0.07 |
0.07 |
| Tax effect of amortization of intangible assets |
(0.01) |
(0.02) |
(0.01) |
(0.01) |
(0.02) |
| Operating diluted earnings per share (non-GAAP) |
$0.88 |
$0.95 |
$0.82 |
$0.82 |
$0.87 |
| |
|
|
|
|
|
| Return on assets |
|
|
|
|
|
| Net income (GAAP) |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Average total assets |
16,058,219 |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
| Return on assets (GAAP) |
1.09% |
1.22% |
1.04% |
0.87% |
1.16% |
| |
|
|
|
|
|
| Operating return on assets (non-GAAP) |
|
|
|
|
|
| Operating net income (non-GAAP) |
$46,636 |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
| Average total assets |
16,058,219 |
15,778,974 |
15,796,867 |
15,333,131 |
15,123,226 |
| Operating return on assets (non-GAAP) |
1.16% |
1.29% |
1.11% |
1.13% |
1.23% |
| |
|
|
|
|
|
| Return on equity |
|
|
|
|
|
| Net income (GAAP) |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Average total equity |
1,709,791 |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
| Return on equity (GAAP) |
10.21% |
11.79% |
9.78% |
8.53% |
10.90% |
| |
|
|
|
|
|
| Operating return on equity (non-GAAP) |
|
|
|
|
|
| Operating net income (non-GAAP) |
$46,636 |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
| Average total equity |
1,709,791 |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
| Operating return on equity (non-GAAP) |
10.85% |
12.43% |
10.47% |
11.10% |
11.62% |
| |
|
|
|
|
|
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Net interest margin |
|
|
|
|
|
| Net interest income |
$112,745 |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
| Total average interest-earning assets |
14,796,369 |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
| Net interest margin |
3.03% |
3.01% |
2.95% |
3.05% |
3.07% |
| |
|
|
|
|
|
| Net interest margin (FTE) (non-GAAP) |
|
|
|
|
|
| Net interest income |
$112,745 |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
| Fully tax-equivalent adjustment (non-GAAP) |
872 |
953 |
1,014 |
1,037 |
1,034 |
| Fully tax-equivalent net interest income (non-GAAP) |
113,617 |
110,362 |
108,004 |
110,227 |
108,820 |
| Total average interest-earning assets |
14,796,369 |
14,604,973 |
14,578,643 |
14,222,287 |
13,945,949 |
| Net interest margin (FTE) (non-GAAP) |
3.05% |
3.04% |
2.98% |
3.07% |
3.10% |
| |
|
|
|
|
|
| Operating noninterest revenues (non-GAAP) |
|
|
|
|
|
| Noninterest revenues (GAAP) |
$76,197 |
$74,390 |
$70,285 |
$67,769 |
$67,586 |
| Loss on sales of investment securities |
255 |
232 |
0 |
0 |
0 |
| Unrealized (gain) loss on equity securities |
(101) |
(867) |
(16) |
(52) |
49 |
| Total operating noninterest revenues (non-GAAP) |
$76,351 |
$73,755 |
$70,269 |
$67,717 |
$67,635 |
| |
|
|
|
|
|
| Operating noninterest expenses (non-GAAP) |
|
|
|
|
|
| Noninterest expenses (GAAP) |
$124,203 |
$118,999 |
$118,084 |
$129,091 |
$116,504 |
| Acquisition expenses |
(66) |
(104) |
(35) |
(7) |
0 |
| Acquisition-related contingent consideration adjustments |
156 |
0 |
0 |
(2,200) |
(80) |
| Restructuring expenses |
0 |
0 |
0 |
(1,163) |
0 |
| Litigation accrual |
(102) |
0 |
(119) |
(5,800) |
0 |
| Amortization of intangible assets |
(3,369) |
(3,877) |
(3,576) |
(3,563) |
(3,576) |
| Total operating noninterest expenses (non-GAAP) |
$120,822 |
$115,018 |
$114,354 |
$116,358 |
$112,848 |
| |
|
|
|
|
|
| Operating revenues (non-GAAP) |
|
|
|
|
|
| Net interest income (GAAP) |
$112,745 |
$109,409 |
$106,990 |
$109,190 |
$107,786 |
| Noninterest revenues (GAAP) |
76,197 |
74,390 |
70,285 |
67,769 |
67,586 |
| Total revenues (GAAP) |
188,942 |
183,799 |
177,275 |
176,959 |
175,372 |
| Loss on sales of investment securities |
255 |
232 |
0 |
0 |
0 |
| Unrealized (gain) loss on equity securities |
(101) |
(867) |
(16) |
(52) |
49 |
| Total operating revenues (non-GAAP) |
$189,096 |
$183,164 |
$177,259 |
$176,907 |
$175,421 |
| |
|
|
|
|
|
| Noninterest revenues/total revenues |
|
|
|
|
|
| Total noninterest revenues (GAAP) – numerator |
$76,197 |
$74,390 |
$70,285 |
$67,769 |
$67,586 |
| Total revenues (GAAP) – denominator |
188,942 |
183,799 |
177,275 |
176,959 |
175,372 |
| Noninterest revenues/total revenues (GAAP) |
40.3% |
40.5% |
39.6% |
38.3% |
38.5% |
| |
|
|
|
|
|
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) |
|
|
|
|
|
| Total operating noninterest revenues (non-GAAP) – numerator |
$76,351 |
$73,755 |
$70,269 |
$67,717 |
$67,635 |
| Total operating revenues (non-GAAP) |
189,096 |
183,164 |
177,259 |
176,907 |
175,421 |
| Fully tax-equivalent adjustment (non-GAAP) |
872 |
953 |
1,014 |
1,037 |
1,034 |
| Total operating revenues (FTE) (non-GAAP) – denominator |
189,968 |
184,117 |
178,273 |
177,944 |
176,455 |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) |
40.2% |
40.1% |
39.4% |
38.1% |
38.3% |
| |
|
|
|
|
|
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Efficiency ratio (GAAP) |
|
|
|
|
|
| Total noninterest expenses (GAAP) – numerator |
$124,203 |
$118,999 |
$118,084 |
$129,091 |
$116,504 |
| Total revenues (GAAP) – denominator |
188,942 |
183,799 |
177,275 |
176,959 |
175,372 |
| Efficiency ratio (GAAP) |
65.7% |
64.7% |
66.6% |
72.9% |
66.4% |
| |
|
|
|
|
|
| Operating efficiency ratio (non-GAAP) |
|
|
|
|
|
| Total operating noninterest expenses (non-GAAP) - numerator |
$120,822 |
$115,018 |
$114,354 |
$116,358 |
$112,848 |
| Total operating revenues (FTE) (non-GAAP) - denominator |
189,968 |
184,117 |
178,273 |
177,944 |
176,455 |
| Operating efficiency ratio (non-GAAP) |
63.6% |
62.5% |
64.1% |
65.4% |
64.0% |
| |
|
|
|
|
|
| Total tangible assets (non-GAAP) |
|
|
|
|
|
| Total assets (GAAP) |
$16,404,700 |
$15,906,816 |
$15,858,670 |
$15,555,753 |
$15,386,322 |
| Goodwill and intangible assets, net |
(900,623) |
(905,780) |
(904,439) |
(897,987) |
(901,334) |
| Deferred taxes on goodwill and intangible assets, net |
43,832 |
44,921 |
45,433 |
45,198 |
44,593 |
| Total tangible assets (non-GAAP) |
$15,547,909 |
$15,045,957 |
$14,999,664 |
$14,702,964 |
$14,529,581 |
| |
|
|
|
|
|
| Total tangible common equity (non-GAAP) |
|
|
|
|
|
| Shareholders' equity (GAAP) |
$1,784,947 |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
| Goodwill and intangible assets, net |
(900,623) |
(905,780) |
(904,439) |
(897,987) |
(901,334) |
| Deferred taxes on goodwill and intangible assets, net |
43,832 |
44,921 |
45,433 |
45,198 |
44,593 |
| Total tangible common equity (non-GAAP) |
$928,156 |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
| |
|
|
|
|
|
| Shareholders’ equity-to-assets ratio at quarter end |
|
|
|
|
|
| Total shareholders’ equity (GAAP) – numerator |
$1,784,947 |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
| Total assets (GAAP) – denominator |
16,404,700 |
15,906,816 |
15,858,670 |
15,555,753 |
15,386,322 |
| Shareholders’ equity-to-assets ratio at quarter end (GAAP) |
10.88% |
10.50% |
10.45% |
10.92% |
10.11% |
| |
|
|
|
|
|
| Tangible equity-to-tangible assets ratio at quarter end (non-GAAP) |
|
|
|
|
|
| Total tangible common equity (non-GAAP) - numerator |
$928,156 |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
| Total tangible assets (non-GAAP) - denominator |
15,547,909 |
15,045,957 |
14,999,664 |
14,702,964 |
14,529,581 |
| Tangible equity-to-tangible assets ratio at quarter end (non-GAAP) |
5.97% |
5.38% |
5.32% |
5.75% |
4.81% |
| |
|
|
|
|
|
| Return on tangible equity (non-GAAP) |
|
|
|
|
|
| Net income (GAAP) |
$43,901 |
$47,915 |
$40,872 |
$33,706 |
$44,129 |
| Average shareholders’ equity |
1,709,791 |
1,633,875 |
1,681,211 |
1,567,381 |
1,605,798 |
| Average goodwill and intangible assets, net |
(903,281) |
(905,134) |
(902,215) |
(899,027) |
(900,562) |
| Average deferred taxes on goodwill and intangible assets, net |
44,376 |
45,177 |
45,315 |
44,896 |
44,798 |
| Average tangible common equity (non-GAAP) |
850,886 |
773,918 |
824,311 |
713,250 |
750,034 |
| Return on tangible equity (non-GAAP) |
20.53% |
24.90% |
19.94% |
18.75% |
23.34% |
| |
|
|
|
|
|
| Operating return on tangible equity (non-GAAP) |
|
|
|
|
|
| Operating net income (non-GAAP) |
$46,636 |
$50,515 |
$43,769 |
$43,833 |
$47,050 |
| Average tangible common equity (non-GAAP) |
850,886 |
773,918 |
824,311 |
713,250 |
750,034 |
| Operating return on tangible equity (non-GAAP) |
21.80% |
26.25% |
21.36% |
24.38% |
24.89% |
| |
|
|
|
|
|
| Summary of Financial Data (unaudited) |
|
|
|
|
|
| (Dollars in thousands, except per share data) |
|
|
|
|
|
| |
2024 |
2023 |
| |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |
|
|
|
|
|
| Book value (GAAP) |
|
|
|
|
|
| Total shareholders’ equity (GAAP) – numerator |
$1,784,947 |
$1,670,180 |
$1,656,955 |
$1,697,937 |
$1,554,939 |
| Period end common shares outstanding – denominator |
52,546 |
52,523 |
52,765 |
53,327 |
53,427 |
| Book value (GAAP) |
$33.97 |
$31.80 |
$31.40 |
$31.84 |
$29.10 |
| |
|
|
|
|
|
| Tangible book value (non-GAAP) |
|
|
|
|
|
| Total tangible common equity (non-GAAP) – numerator |
$928,156 |
$809,321 |
$797,949 |
$845,148 |
$698,198 |
| Period end common shares outstanding – denominator |
52,546 |
52,523 |
52,765 |
53,327 |
53,427 |
| Tangible book value (non-GAAP) |
$17.66 |
$15.41 |
$15.12 |
$15.85 |
$13.07 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
2024 |
2023 |
|
|
| |
3rd Qtr |
2nd Qtr |
3rd Qtr |
|
|
| Quarterly Segment Information Reconciliations |
|
|
|
|
|
| Reconciliation of total segment operating income before income taxes to total consolidated income before income taxes |
|
|
|
|
|
| Total segment operating income before income taxes |
$60,565 |
$65,438 |
$59,695 |
|
|
| Loss on sales of investment securities |
(255) |
(232) |
0 |
|
|
| Unrealized gain (loss) on equity securities |
101 |
867 |
(49) |
|
|
| Amortization of intangible assets |
(3,369) |
(3,877) |
(3,576) |
|
|
| Litigation accrual |
(102) |
0 |
0 |
|
|
| Acquisition-related contingent consideration adjustments |
156 |
0 |
(80) |
|
|
| Acquisition expenses |
(66) |
(104) |
0 |
|
|
| Total consolidated income before income taxes |
$57,030 |
$62,092 |
$55,990 |
|
|
| |
|
|
|
|
|
| Reconciliation of total segment operating noninterest revenues to total consolidated noninterest revenues |
|
|
|
|
|
| Total segment operating noninterest revenues |
$77,526 |
$74,896 |
$68,717 |
|
|
| Elimination of intersegment revenues |
(1,175) |
(1,141) |
(1,082) |
|
|
| Loss on sales of investment securities |
(255) |
(232) |
0 |
|
|
| Unrealized gain (loss) on equity securities |
101 |
867 |
(49) |
|
|
| Total consolidated noninterest revenues |
$76,197 |
$74,390 |
$67,586 |
|
|
| |
|
|
|
|
|
| Reconciliation of total segment operating noninterest expenses to total consolidated noninterest expenses |
|
|
|
|
|
| Total segment operating noninterest expenses |
$121,997 |
$116,159 |
$113,930 |
|
|
| Elimination of intersegment expenses |
(1,175) |
(1,141) |
(1,082) |
|
|
| Amortization of intangible assets |
3,369 |
3,877 |
3,576 |
|
|
| Litigation accrual |
102 |
0 |
0 |
|
|
| Acquisition-related contingent consideration adjustments |
(156) |
0 |
80 |
|
|
| Acquisition expenses |
66 |
104 |
0 |
|
|
| Total consolidated noninterest expenses |
$124,203 |
$118,999 |
$116,504 |
|
|
| |
|
|
|
|
|
# # #
v3.24.3
Cover
|
Oct. 22, 2024 |
| Cover [Abstract] |
|
| Document Type |
8-K
|
| Amendment Flag |
false
|
| Document Period End Date |
Oct. 22, 2024
|
| Entity File Number |
001-13695
|
| Entity Registrant Name |
COMMUNITY FINANCIAL SYSTEM, INC.
|
| Entity Central Index Key |
0000723188
|
| Entity Tax Identification Number |
16-1213679
|
| Entity Incorporation, State or Country Code |
DE
|
| Entity Address, Address Line One |
5790 Widewaters Parkway
|
| Entity Address, City or Town |
DeWitt
|
| Entity Address, State or Province |
NY
|
| Entity Address, Postal Zip Code |
13214
|
| City Area Code |
315
|
| Local Phone Number |
445-2282
|
| Written Communications |
false
|
| Soliciting Material |
false
|
| Pre-commencement Tender Offer |
false
|
| Pre-commencement Issuer Tender Offer |
false
|
| Title of 12(b) Security |
Common Stock, $1.00 par value per share
|
| Trading Symbol |
CBU
|
| Security Exchange Name |
NYSE
|
| Entity Emerging Growth Company |
false
|
| Entity Information, Former Legal or Registered Name |
Community Bank System, Inc.
|
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