Community Bank System, Inc. (NYSE:CBU) reported second quarter 2014 net income of $23.7 million, an increase of 12.1% compared with $21.1 million earned for the second quarter of 2013. Diluted earnings per share totaled $0.57 for the second quarter of 2014, up 9.6% from the $0.52 reported in the second quarter of 2013. Second quarter 2014 net income, noninterest income, and earnings per share were the highest quarterly amounts ever recorded by the Company. Earnings per share for the six months ended June 30, 2014 of $1.11 were $0.09, or 8.8% higher than the first six months of 2013.
Total revenue for the second quarter of 2014 was $90.8 million, an increase of $5.3 million, or 6.2%, over the second quarter of 2013. Higher revenue was generated as a result of a 6.0% average increase in earning assets and continued strong noninterest income generation which more than offset a four basis point margin decline from the prior year quarter. Continued organic growth drove a $1.4 million, or 10.7% 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 $1.4 million year-over-year, while linked quarter revenues were higher, reflecting normal seasonal activity. 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 $1.9 million was $0.6 million higher than the second quarter of 2013, reflective of higher, but still historically low levels of net charge-offs and the continuation of generally stable and favorable asset quality metrics. Total operating expenses of $55.2 million for the quarter were $0.8 million, or 1.5%, higher than the second quarter of 2013, driven by the additional operating costs associated with the branch acquisition completed in December 2013.
“For the second consecutive quarter, our team’s efforts provided record net income and noninterest income exceeding the exceptional results achieved in the first half of last year,” said President and Chief Executive Officer Mark E. Tryniski. “Along with the strong performance of our financial services businesses and revenue growth in banking noninterest income sources, we continued to benefit from our successful balance sheet restructuring initiatives and branch acquisition completed in 2013. Our Board demonstrated their confidence in the Company’s ability to continue to perform at a high level by raising our quarterly cash dividend by more than seven percent. Our record of 22 consecutive yearly dividend increases illustrates the strength of our diversified franchise, along with the consistency of our results regardless of the prevailing economic environment.”
Second quarter 2014 net interest income was $61.2 million, an increase of $2.7 million, or 4.7%, compared to the second quarter of 2013. In addition to the $0.6 million benefit to interest expense from continued core deposit growth and 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 245 basis points year-over-year. Improved funding costs were partially offset by a 23-basis point decline in earning asset yields, driven by lower blended interest rates on loans and investment securities. While average loan balances grew $222.2 million, or 5.7%, average loan yields declined 28 basis points year-over-year, resulting in a $0.3 million reduction in loan income. Investment income increased $0.3 million as average investment securities balances (including cash equivalents) grew by $152.3 million compared to the prior year’s second quarter, while yields fell 13 basis points.
Second quarter noninterest income increased $2.6 million to $29.7 million, representing an increase of 9.5% compared to last year’s second quarter. Income expanded across all banking and financial services categories. Financial services revenue again reached record levels as wealth management revenues increased $0.4 million, or 9.7% over second quarter 2013, while employee benefit services revenue grew 11.2% to $10.4 million. Strong customer expansion and market momentum from 2013 continued in the first half of 2014 and drove the improved performance. Deposit service revenues grew $0.8 million, or 6.7%, to $13.2 million, reflecting meaningful core deposit account growth as a result of the branch acquisition and organic growth initiatives across the franchise. Income from other banking services increased $0.6 million from the second quarter of 2013 primarily from increased insurance-related gains. The second quarter of 2013 noninterest income included $0.3 million of net gains from securities sales and debt extinguishments, related to the previously-mentioned balance sheet restructuring activities.
Quarterly operating expenses of $55.2 million increased $0.8 million, or 1.5%, over the second quarter of 2013. Occupancy and equipment costs grew $0.2 million, or 2.5%, primarily as a result of the December 2013 branch acquisition. Salaries and employee benefits grew $0.1 million, or 0.4%, 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 3.3% and reflected the increased costs of operating an expanded franchise and continued investment in technology infrastructure.
The second quarter 2014 effective income tax rate of 29.9% increased compared to 29.2% in last year’s second quarter, reflecting a higher proportion of income being generated from fully taxable sources.
Financial Position
Average earning assets of $6.63 billion for the second quarter of 2014 were up $49 million from the first quarter of 2014, and were $375 million higher than the second quarter of 2013. Compared to the prior year, overall average earning asset balances included growth of $222 million in average loan balances, while average investment securities and cash balances increased by $152 million. Average deposits increased $44 million compared to the first quarter of 2014, and were up $302 million from the second quarter of 2013, principally due to the branch acquisition.
Ending loans at June 30, 2014 increased $211.8 million, or 5.4%, year-over-year, reflecting strong organic growth in the Company’s consumer lending portfolios. Ending loans increased $51.4 million from March 31, 2014, also driven by growth in the consumer installment products. Ending investment securities totaled $2.53 billion at June 30, 2014, or $167.9 million higher than the prior year level. Quarter-end borrowings of $319.4 million were consistent with the year-ago quarter-end. Deposit balances at June 30, 2014 totaled $5.97 billion, up $301.2 million, or 5.3%, from the year earlier quarter. Ending deposit balances declined $67.6 million from March 31, 2014, and included the expected seasonal decrease in municipal funds.
Shareholders’ equity of $955.0 million at June 30, 2014 was $105.0 million, or 12.4%, higher than the prior year quarter-end, primarily due to strong earnings generation and retention over the last four quarters. The Company’s net tangible equity to net tangible assets ratio was 8.44% at June 30, 2014, up from 7.43% at June 30, 2013. Its Tier 1 leverage ratio grew to 9.64% for the current quarter, up 21 basis points from the second 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 $1.5 million for the second quarter, compared to $0.8 million for the second quarter of 2013 and $1.1 million for first quarter of 2014. As an annualized percentage of average loans, net charge-offs measured 0.14% in the second quarter of 2014, compared to 0.08% and 0.11% in the year-ago and linked quarters, respectively. Nonperforming loans as a percentage of total loans at June 30, 2014 were 0.58%, consistent with 0.58% at March 31, 2014, and down from 0.62% of total loans at June 30, 2013. The total loan delinquency ratio of 1.24% at the end of the second quarter was down 26 basis points from the end of the second quarter of 2013. The second quarter provision for loan losses of $1.9 million was $0.6 million, or 43.8% higher than the second quarter of 2013, and $0.9 million, or 90.0%, higher than the first quarter of 2014 due to loan growth and higher net charge-off levels. The allowance for loan losses to nonperforming loans was 187% at both June 30, 2014 and March 31, 2014, compared to 178% at June 30, 2013.
Increased Cash Dividend Declared
On July 16, 2014, the Company’s Board of Directors declared a quarterly cash dividend to shareholders of $0.30 per share on its common stock. The dividend will be paid on October 10, 2014 to shareholders of record as of September 15, 2014. The $0.30 quarterly dividend is a $0.02 per share or 7.1% increase over the $0.28 per share declared in the prior four quarters. This marks the Company’s 22nd consecutive year of increased dividend payouts to shareholders. Using the closing price of $34.63 a share on the Company’s common stock as of Thursday, July 17th, the increased dividend provides a 3.47% 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 six months of 2014.
Investor Day Planned for October
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. Professional 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 second quarter results. The conference call can be accessed at 888-430-8694 (1-719-457-2628 if outside United States and Canada) using the conference ID code 5166632. Investors may also listen live via the Internet at: http://www.videonewswire.com/event.asp?id=99875.
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 100 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 needs. The Company's Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration and trust services, actuarial and consulting services to customers on a national scale. Community Bank System, Inc. is listed on the New York Stock Exchange and the Company's stock trades under the symbol CBU. For more information about Community Bank visit www.communitybankna.com or http://ir.communitybanksystem.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from CBU’s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. These statements are based on the current beliefs and expectations of CBU’s management and CBU does not assume any duty to update forward-looking statements.
| Summary of Financial Data | |||||||||||||||||||
| (Dollars in thousands, expect per share data) | |||||||||||||||||||
| Quarter Ended | Year-to-Date | ||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||||||
| Earnings | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Loan income | $ | 46,073 | $ | 46,412 | $ | 91,766 | $ | 93,530 | |||||||||||
| Investment income | 18,036 | 17,728 | 35,582 | 38,535 | |||||||||||||||
| Total interest income | 64,109 | 64,140 | 127,348 | 132,065 | |||||||||||||||
| Interest expense | 2,938 | 5,708 | 6,069 | 15,208 | |||||||||||||||
| Net interest income | 61,171 | 58,432 | 121,279 | 116,857 | |||||||||||||||
| Provision for loan losses | 1,900 | 1,321 | 2,900 | 2,714 | |||||||||||||||
| Net interest income after provision for loan losses | 59,271 | 57,111 | 118,379 | 114,143 | |||||||||||||||
| Deposit service fees | 13,172 | 12,345 | 25,427 | 23,940 | |||||||||||||||
| Mortgage banking revenues | 345 | 341 | 629 | 512 | |||||||||||||||
| Other banking services | 1,263 | 679 | 2,169 | 1,546 | |||||||||||||||
| Wealth management services | 4,438 | 4,045 | 8,912 | 7,743 | |||||||||||||||
| Employee benefit services | 10,448 | 9,397 | 20,883 | 19,167 | |||||||||||||||
| Gain on sales of investment securities | 0 | 16,008 | 0 | 63,799 | |||||||||||||||
| Loss on debt extinguishments | 0 | (15,717 | ) | 0 | (63,500 | ) | |||||||||||||
| Total noninterest income | 29,666 | 27,098 | 58,020 | 53,207 | |||||||||||||||
| Salaries and employee benefits | 30,409 | 30,286 | 61,149 | 60,769 | |||||||||||||||
| Occupancy and equipment | 6,917 | 6,750 | 14,608 | 13,815 | |||||||||||||||
| Amortization of intangible assets | 1,101 | 1,140 | 2,242 | 2,319 | |||||||||||||||
| Acquisition expenses | 0 | 0 | 123 | 5 | |||||||||||||||
| Other | 16,738 | 16,200 | 32,964 | 32,020 | |||||||||||||||
| Total operating expenses | 55,165 | 54,376 | 111,086 | 108,928 | |||||||||||||||
| Income before income taxes | 33,772 | 29,833 | 65,313 | 58,422 | |||||||||||||||
| Income taxes | 10,095 | 8,711 | 19,463 | 17,059 | |||||||||||||||
| Net income | $ | 23,677 | $ | 21,122 | $ | 45,850 | $ | 41,363 | |||||||||||
| Basic earnings per share | $ | 0.58 | $ | 0.53 | $ | 1.13 | $ | 1.03 | |||||||||||
| Diluted earnings per share | $ | 0.57 | $ | 0.52 | $ | 1.11 | $ | 1.02 | |||||||||||
Summary of Financial Data | ||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | ||||||||||||||||||||
| Earnings | ||||||||||||||||||||||||
| Loan income | $ | 46,073 | $ | 45,693 | $ | 47,061 | $ | 47,606 | $ | 46,412 | ||||||||||||||
| Investment income | 18,036 | 17,546 | 18,901 | 18,526 | 17,728 | |||||||||||||||||||
| Total interest income | 64,109 | 63,239 | 65,962 | 66,132 | 64,140 | |||||||||||||||||||
| Interest expense | 2,938 | 3,131 | 5,326 | 5,531 | 5,708 | |||||||||||||||||||
| Net interest income | 61,171 | 60,108 | 60,636 | 60,601 | 58,432 | |||||||||||||||||||
| Provision for loan losses | 1,900 | 1,000 | 3,185 | 2,093 | 1,321 | |||||||||||||||||||
| Net interest income after provision for loan losses | 59,271 | 59,108 | 57,451 | 58,508 | 57,111 | |||||||||||||||||||
| Deposit service fees | 13,172 | 12,255 | 12,714 | 12,703 | 12,345 | |||||||||||||||||||
| Mortgage banking revenues | 345 | 284 | 562 | 599 | 341 | |||||||||||||||||||
| Other banking services | 1,263 | 906 | 954 | 1,072 | 679 | |||||||||||||||||||
| Wealth management services | 4,438 | 4,474 | 3,984 | 3,823 | 4,045 | |||||||||||||||||||
| Employee benefit services | 10,448 | 10,435 | 10,032 | 9,397 | 9,397 | |||||||||||||||||||
| Gain on sales of investment securities | 0 | 0 | 16,969 | 0 | 16,008 | |||||||||||||||||||
| Loss on debt extinguishments | 0 | 0 | (23,836 | ) | 0 | (15,717 | ) | |||||||||||||||||
| Total noninterest income | 29,666 | 28,354 | 21,379 | 27,594 | 27,098 | |||||||||||||||||||
| Salaries and employee benefits | 30,409 | 30,740 | 30,412 | 30,448 | 30,286 | |||||||||||||||||||
| Occupancy and equipment | 6,917 | 7,691 | 6,782 | 6,448 | 6,750 | |||||||||||||||||||
| Amortization of intangible assets | 1,101 | 1,141 | 1,061 | 1,089 | 1,140 | |||||||||||||||||||
| Acquisition expenses | 0 | 123 | 2,105 | 71 | 0 | |||||||||||||||||||
| Other | 16,738 | 16,226 | 16,923 | 16,988 | 16,200 | |||||||||||||||||||
| Total operating expenses | 55,165 | 55,921 | 57,283 | 55,044 | 54,376 | |||||||||||||||||||
| Income before income taxes | 33,772 | 31,541 | 21,547 | 31,058 | 29,833 | |||||||||||||||||||
| Income taxes | 10,095 | 9,368 | 6,070 | 9,069 | 8,711 | |||||||||||||||||||
| Net income | 23,677 | 22,173 | 15,477 | 21,989 | 21,122 | |||||||||||||||||||
| Basic earnings per share | $ | 0.58 | $ | 0.55 | $ | 0.38 | $ | 0.55 | $ | 0.53 | ||||||||||||||
| Diluted earnings per share | $ | 0.57 | $ | 0.54 | $ | 0.38 | $ | 0.54 | $ | 0.52 | ||||||||||||||
| Profitability | ||||||||||||||||||||||||
| Return on assets | 1.28 | % | 1.23 | % | 0.84 | % | 1.22 | % | 1.21 | % | ||||||||||||||
| Return on equity | 10.13 | % | 9.92 | % | 7.04 | % | 10.26 | % | 9.70 | % | ||||||||||||||
| Return on tangible equity(3) | 16.34 | % | 16.37 | % | 11.78 | % | 17.57 | % | 16.38 | % | ||||||||||||||
| Noninterest income/operating income (FTE) (1) | 31.3 | % | 30.7 | % | 30.5 | % | 30.0 | % | 30.2 | % | ||||||||||||||
| Efficiency ratio (2) | 57.0 | % | 59.2 | % | 58.5 | % | 58.6 | % | 59.9 | % | ||||||||||||||
| Components of Net Interest Margin (FTE) | ||||||||||||||||||||||||
| Loan yield | 4.51 | % | 4.55 | % | 4.61 | % | 4.76 | % | 4.79 | % | ||||||||||||||
| Cash equivalents yield | 0.23 | % | 0.25 | % | 0.22 | % | 0.22 | % | 0.26 | % | ||||||||||||||
| Investment yield | 3.48 | % | 3.46 | % | 3.54 | % | 3.52 | % | 3.83 | % | ||||||||||||||
| Earning asset yield | 4.12 | % | 4.13 | % | 4.20 | % | 4.28 | % | 4.35 | % | ||||||||||||||
| Interest-bearing deposit rate | 0.17 | % | 0.19 | % | 0.21 | % | 0.22 | % | 0.24 | % | ||||||||||||||
| Borrowing rate | 0.91 | % | 0.90 | % | 1.86 | % | 2.02 | % | 3.36 | % | ||||||||||||||
| Cost of all interest-bearing funds | 0.23 | % | 0.25 | % | 0.41 | % | 0.43 | % | 0.46 | % | ||||||||||||||
| Cost of funds (includes DDA) | 0.19 | % | 0.20 | % | 0.33 | % | 0.35 | % | 0.38 | % | ||||||||||||||
| Net interest margin (FTE) | 3.94 | % | 3.94 | % | 3.88 | % | 3.94 | % | 3.98 | % | ||||||||||||||
| Fully tax-equivalent adjustment | $ | 3,972 | $ | 3,834 | $ | 3,666 | $ | 3,728 | $ | 3,644 | ||||||||||||||
| Summary of Financial Data | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | ||||||||||||||||
| Average Balances | ||||||||||||||||||||
| Loans | $ | 4,121,976 | $ | 4,099,827 | $ | 4,069,204 | $ | 3,985,755 | $ | 3,899,744 | ||||||||||
| Cash equivalents | 9,535 | 9,782 | 11,085 | 8,644 | 148,188 | |||||||||||||||
| Taxable investment securities | 1,839,488 | 1,833,296 | 1,861,206 | 1,833,355 | 1,565,756 | |||||||||||||||
| Nontaxable investment securities | 659,662 | 638,975 | 639,199 | 644,728 | 642,424 | |||||||||||||||
| Total interest-earning assets | 6,630,661 | 6,581,880 | 6,580,694 | 6,472,482 | 6,256,112 | |||||||||||||||
| Total assets | 7,407,151 | 7,333,082 | 7,278,167 | 7,154,796 | 7,003,823 | |||||||||||||||
| Interest-bearing deposits | 4,754,636 | 4,736,746 | 4,546,591 | 4,511,199 | 4,581,206 | |||||||||||||||
| Borrowings | 385,150 | 402,549 | 634,472 | 589,065 | 358,627 | |||||||||||||||
| Total interest-bearing liabilities | 5,139,786 | 5,139,295 | 5,181,063 | 5,100,264 | 4,939,833 | |||||||||||||||
| Noninterest-bearing deposits | 1,224,515 | 1,197,922 | 1,149,873 | 1,138,039 | 1,095,774 | |||||||||||||||
| Shareholders' equity | 937,532 | 906,787 | 872,567 | 850,238 | 873,108 | |||||||||||||||
| Balance Sheet Data | ||||||||||||||||||||
| Cash and cash equivalents | $ | 161,903 | $ | 153,417 | $ | 149,647 | $ | 174,205 | $ | 148,573 | ||||||||||
| Investment securities | 2,534,419 | 2,506,221 | 2,218,725 | 2,518,574 | 2,366,512 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Business lending | 1,247,129 | 1,246,070 | 1,260,364 | 1,214,796 | 1,225,671 | |||||||||||||||
| Consumer mortgage | 1,580,584 | 1,579,322 | 1,582,058 | 1,570,607 | 1,527,341 | |||||||||||||||
| Consumer indirect | 797,297 | 755,849 | 740,002 | 713,310 | 663,924 | |||||||||||||||
| Home equity | 339,345 | 340,760 | 346,520 | 348,246 | 347,335 | |||||||||||||||
| Consumer direct | 183,448 | 174,357 | 180,139 | 178,496 | 171,727 | |||||||||||||||
| Total loans | 4,147,803 | 4,096,358 | 4,109,083 | 4,025,455 | 3,935,998 | |||||||||||||||
| Allowance for loan losses | 44,615 | 44,197 | 44,319 | 44,083 | 43,473 | |||||||||||||||
| Intangible assets, net | 389,018 | 390,119 | 390,499 | 383,735 | 384,815 | |||||||||||||||
| Other assets | 272,815 | 295,310 | 272,229 | 244,131 | 228,291 | |||||||||||||||
| Total assets | 7,461,343 | 7,397,228 | 7,095,864 | 7,302,017 | 7,020,716 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing | 1,257,223 | 1,225,977 | 1,203,346 | 1,158,013 | 1,120,683 | |||||||||||||||
| Non-maturity interest-bearing | 3,872,262 | 3,928,230 | 3,766,145 | 3,630,684 | 3,608,829 | |||||||||||||||
| Time | 841,810 | 884,681 | 926,553 | 898,636 | 940,618 | |||||||||||||||
| Total deposits | 5,971,295 | 6,038,888 | 5,896,044 | 5,687,333 | 5,670,130 | |||||||||||||||
| Borrowings | 319,408 | 217,110 | 141,913 | 567,116 | 322,319 | |||||||||||||||
| Subordinated debt held by unconsolidated subsidiary trusts | 102,109 | 102,103 | 102,097 | 102,091 | 102,085 | |||||||||||||||
| Accrued interest and other liabilities | 113,516 | 120,991 | 79,998 | 79,798 | 76,151 | |||||||||||||||
| Total liabilities | 6,506,328 | 6,479,092 | 6,220,052 | 6,436,338 | 6,170,685 | |||||||||||||||
| Shareholders' equity | 955,015 | 918,136 | 875,812 | 865,679 | 850,031 | |||||||||||||||
| Total liabilities and shareholders' equity | 7,461,343 | 7,397,228 | 7,095,864 | 7,302,017 | 7,020,716 | |||||||||||||||
| Capital | ||||||||||||||||||||
| Tier 1 leverage ratio | 9.64 | % | 9.48 | % | 9.29 | % | 9.39 | % | 9.43 | % | ||||||||||
| Tangible equity/net tangible assets (3) | 8.44 | % | 7.97 | % | 7.68 | % | 7.38 | % | 7.43 | % | ||||||||||
| Diluted weighted average common shares O/S | 41,269 | 41,152 | 41,061 | 40,850 | 40,558 | |||||||||||||||
| Period end common shares outstanding | 40,688 | 40,658 | 40,431 | 40,296 | 40,099 | |||||||||||||||
| Cash dividends declared per common share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.27 | ||||||||||
| Book value | $ | 23.47 | $ | 22.58 | $ | 21.66 | $ | 21.48 | $ | 21.20 | ||||||||||
| Tangible book value(3) | $ | 14.74 | $ | 13.79 | $ | 12.80 | $ | 12.73 | $ | 12.35 | ||||||||||
| Common stock price (end of period) | $ | 36.20 | $ | 39.02 | $ | 39.68 | $ | 34.12 | $ | 30.85 | ||||||||||
| Summary of Financial Data | ||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | ||||||||||||||||||||
| Asset Quality | ||||||||||||||||||||||||
| Nonaccrual loans | $ | 21,991 | $ | 21,669 | $ | 19,473 | $ | 21,713 | $ | 22,997 | ||||||||||||||
| Accruing loans 90+ days delinquent | 1,929 | 1,977 | 2,555 | 2,650 | 1,439 | |||||||||||||||||||
| Total nonperforming loans | 23,920 | 23,646 | 22,028 | 24,363 | 24,436 | |||||||||||||||||||
| Other real estate owned (OREO) | 4,281 | 4,914 | 5,060 | 5,218 | 5,066 | |||||||||||||||||||
| Total nonperforming assets | 28,201 | 28,560 | 27,088 | 29,581 | 29,502 | |||||||||||||||||||
| Net charge-offs | 1,482 | 1,122 | 2,949 | 1,483 | 761 | |||||||||||||||||||
| Allowance for loan losses/loans outstanding | 1.08 | % | 1.08 | % | 1.08 | % | 1.10 | % | 1.10 | % | ||||||||||||||
| Nonperforming loans/loans outstanding | 0.58 | % | 0.58 | % | 0.54 | % | 0.61 | % | 0.62 | % | ||||||||||||||
| Allowance for loan losses/nonperforming loans | 187 | % | 187 | % | 201 | % | 181 | % | 178 | % | ||||||||||||||
| Net charge-offs/average loans | 0.14 | % | 0.11 | % | 0.29 | % | 0.14 | % | 0.08 | % | ||||||||||||||
| Delinquent loans/ending loans | 1.24 | % | 1.25 | % | 1.49 | % | 1.48 | % | 1.50 | % | ||||||||||||||
| Loan loss provision/net charge-offs | 128 | % | 89 | % | 108 | % | 147 | % | 173 | % | ||||||||||||||
| Nonperforming assets/total assets | 0.38 | % | 0.39 | % | 0.38 | % | 0.41 | % | 0.42 | % | ||||||||||||||
| Asset Quality (excluding loans acquired since 1/1/09) | ||||||||||||||||||||||||
| Nonaccrual loans | 18,147 | $ | 17,755 | $ | 16,065 | $ | 17,365 | $ | 18,272 | |||||||||||||||
| Accruing loans 90+ days delinquent | 1,813 | 1,826 | 2,418 | 2,471 | 1,349 | |||||||||||||||||||
| Total nonperforming loans | 19,960 | 19,581 | 18,483 | 19,836 | 19,621 | |||||||||||||||||||
| Other real estate owned (OREO) | 2,303 | 2,645 | 2,832 | 2,767 | 2,963 | |||||||||||||||||||
| Total nonperforming assets | 22,263 | 22,226 | 21,315 | 22,603 | 22,584 | |||||||||||||||||||
| Net charge-offs | 1,204 | 1,086 | 1,956 | 1,583 | 604 | |||||||||||||||||||
| Allowance for loan losses/loans outstanding | 1.15 | % | 1.15 | % | 1.15 | % | 1.16 | % | 1.19 | % | ||||||||||||||
| Nonperforming loans/loans outstanding | 0.52 | % | 0.52 | % | 0.49 | % | 0.54 | % | 0.55 | % | ||||||||||||||
| Allowance for loan losses/nonperforming loans | 221 | % | 222 | % | 234 | % | 215 | % | 215 | % | ||||||||||||||
| Net charge-offs/average loans | 0.13 | % | 0.12 | % | 0.21 | % | 0.17 | % | 0.07 | % | ||||||||||||||
| Delinquent loans/ending loans | 1.19 | % | 1.17 | % | 1.44 | % | 1.45 | % | 1.44 | % | ||||||||||||||
| Loan loss provision/net charge-offs | 155 | % | 121 | % | 130 | % | 126 | % | 210 | % | ||||||||||||||
| Nonperforming assets/total assets | 0.31 | % | 0.31 | % | 0.32 | % | 0.33 | % | 0.34 | % | ||||||||||||||
(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 $33.8 million at 6/30/14) 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.
Contacts:
Scott A. Kingsley, 315-445-3121
EVP
& Chief Financial Officer
