SYRACUSE, N.Y.--(BUSINESS WIRE)--Community Bank System, Inc. (NYSE:CBU) reported fourth quarter 2015 net income of $20.1 million, compared with $23.1 million earned in the fourth quarter of 2014. Diluted earnings per share totaled $0.47 for the fourth quarter of 2015, nine cents per share lower than the $0.56 per share reported in the fourth quarter of 2014, and included $5.7 million of acquisition expenses, or nine cents per share. Full year 2015 net income of $91.2 million, or $2.19 per share, was 1.4% below 2014’s earnings per share of $2.22 , and included $7.0 million of acquisition expenses, or $0.11 per share, while 2014’s full year results included $0.1 million of acquisition expenses and a $2.8 million litigation settlement charge, or $0.05 per share. Operating earnings per share, which adds back the tax-effected impact of acquisition expenses and the litigation settlement charge was $2.30 in 2015 and was 1.8%, or $0.04 per share, above 2014’s operating earnings of $2.26 per share.
“Our record annual operating results were driven by productive earning-asset growth, a continuation of excellent credit quality, and disciplined expense management,” said President and Chief Executive Officer Mark E. Tryniski. “After a very slow start to our lending activity in the first quarter of 2015, we were able to generate solid volume growth in each of the last three quarters, resulting in full-year organic loan growth of four percent. We completed the acquisition of Oneida Financial Corp. in early December 2015, which further extends and strengthens our Central New York service area by expanding our market presence in the Syracuse and Utica-Rome metropolitan areas. This transaction also adds to our product and service offerings in insurance, benefits administration, and wealth management, while combining two organizations with similar cultures and the same history of exceptional service to our customers and our communities.”
Total revenue for the fourth quarter of 2015 was $98.1 million, an increase of $6.5 million, or 7.0%, over the prior year quarter, and included the activities of Oneida Financial Corp. (“Oneida Financial” or “Oneida”) after December 4, 2015. The higher revenue was generated as a result of a 9.2% increase in average earning assets and growth in noninterest income from acquired and organic sources, which more than offset a 19 basis-point reduction in net interest margin from the prior year quarter. Fourth quarter net interest income was $65.0 million, an increase of $3.2 million, or 5.2%, compared to the fourth quarter of 2014. Modestly lower funding costs were offset by a 20-basis point decline in earning asset yields, the result of lower interest rates on investment securities. Average loan balances grew $235.9 million, or 5.6%, and average loan yields remained stable at 4.43% year-over-year, resulting in a $2.4 million increase in quarterly loan interest income. Investment income was $1.0 million higher than the fourth quarter of 2014, as average investment securities (including cash equivalents) increased by $378.0 million, more than offsetting the yield decline of 44 basis points, principally the result of the decision to pre-invest and retain the net liquidity provided by the Oneida Financial transaction earlier in 2015. Wealth management and insurance services increased $2.5 million, or 57.2%, compared to fourth quarter of 2014, principally from the Oneida Financial acquisition. Fourth quarter revenues from employee benefit services increased $0.7 million, or 6.6% year-over-year, capping off another record annual performance. Revenues from mortgage banking and other services were in-line with the fourth quarter of 2014, and were $1.0 million lower than the third quarter’s results which included the Company’s annual dividend from certain pooled retail insurance programs of $0.7 million, or just over one cent per share. Quarterly deposit service fees increased 0.8% year-over-year, principally from the Oneida acquisition, as slightly higher core card-related revenues were more than offset by the continuing trend of lower fees from account overdraft protection programs.
Fourth quarter 2015 operating expenses of $65.0 million increased $8.3 million versus the fourth quarter of 2014, and included $5.7 million of acquisition expenses, as well as the core operating expenses of the Oneida transaction since December 4, 2015.
The fourth quarter 2015 provision for loan losses of $3.3 million was $0.8 million higher than the fourth quarter of 2014, and reflected net charge-offs of $3.5 million, including one large commercial net charge-off of $1.0 million, and organic loan growth of $95.2 million during the quarter. The one large commercial net charge-off in the quarter related to a relationship that had been partially reserved for in a prior quarter.
The Company’s effective tax rate for the fourth quarter of 2015 was 32.7%, compared to the 28.8% rate in the fourth quarter of 2014, with the majority of the increase related to certain statutory changes to state tax rates and reporting structures enacted over the past two years.
Financial Position
Average earning assets of $7.30 billion for the fourth quarter of 2015 were up $614.0 million from the fourth quarter of 2014, and were $178.7 million higher than the third quarter of 2015. Compared to the prior year, quarterly average earning asset balances included growth of $235.9 million in average loan balances, including the impact of the acquired Oneida loans for the month of December, while average investment securities and interest-earning cash balances increased by $378.0 million, predominantly from incremental investment purchases related to the net liquidity provided by the Oneida Financial acquisition. Average deposit balances grew $365.1 million, or 6.1%, compared to the fourth quarter of 2014. Average borrowings in the fourth quarter of 2015 of $607.8 million were $201.2 million higher than the prior year quarter, reflective of the liquidity pre-investment decision related to the Oneida Financial transaction.
Ending loans at December 31, 2015 increased $565.2 million, or 13.3% year-over-year, reflecting productive organic growth in each of the Company’s lending portfolios, and $396.1 million of loans acquired in the Oneida transaction. Investment securities totaled $2.85 billion at December 31, 2015, up $335.0 million from the end of 2014. Total deposits of $6.87 billion at year-end were $938.2 million above the end of 2014, and included $678.8 million of deposits acquired in the Oneida transaction. Ending borrowings of $403.4 million were $256.8 million lower than the end of the third quarter, reflective of the payoff of certain short-term instruments in December after the Oneida closing, which were replaced by acquired deposit funding.
Shareholders’ equity of $1.14 billion at December 31, 2015 was $152.7 million, or 15.5%, higher than the prior year-end, due to strong earnings generation and capital retention over the last four quarters, and the issuance of 2.38 million shares of common stock, or $102.2 million, reflecting the equity portion of the consideration in the Oneida transaction. The Company’s net tangible equity to net tangible assets ratio was 8.59% at December 31, 2015, compared to 8.92% at the end of 2014, reflective of the growth of the Company’s balance sheet, including the intangible assets created, in the Oneida acquisition. The Company’s Tier 1 leverage ratio rose to 10.32% for the current quarter, up 36 basis points from the fourth quarter of 2014.
As previously announced, in December 2014 the Company’s Board of Directors approved a stock repurchase program authorizing the repurchase of up to 2.0 million shares of the Company’s common stock during a twelve-month period starting January 1, 2015. Such repurchases may be made at the discretion of the Company’s senior management depending on market conditions and other relevant factors and will be acquired through open market or privately negotiated transactions as permitted under Rule 10b-18 of the Securities Exchange Act of 1934 and other applicable legal requirements. The Company repurchased 265,230 shares of its common stock in the first quarter of 2015. No additional shares were repurchased in the last three quarters of 2015. In December 2015, the Company’s directors approved a similar program for 2016, authorizing the repurchase of up to 2.2 million shares of the Company’s common stock.
Asset Quality
The Company’s asset quality metrics continue to be favorable and stable and illustrate the long-term effectiveness of the Company’s disciplined risk management and underwriting standards. Net charge-offs were $3.5 million for the fourth quarter, compared to $2.5 million for the fourth quarter of 2014 and $1.6 million for the third quarter of 2015. The fourth quarter’s results included a net charge-off of $1.0 million related to one commercial relationship that had been partially reserved for in a prior quarter. Net charge-offs as an annualized percentage of average loans measured 0.31% in the fourth quarter of 2015, compared to 0.23% in the prior year fourth quarter and 0.15% in the third quarter of 2015. Full year 2015 net charge-offs were $6.4 million, or 0.15% of average loans, consistent with $6.2 million of net charge-offs in 2014, which was also 0.15% of average loans. Nonperforming loans as a percentage of total loans at December 31, 2015 were 0.50%, compared to 0.56% of total loans at December 31, 2014. The total loan delinquency ratio of 1.16% at the end of the fourth quarter was down 30 basis points from the end of the fourth quarter of 2014. The fourth quarter provision for loan losses of $3.3 million was $0.8 million, or 31.5%, higher than the fourth quarter of 2014. The allowance for loan losses to nonperforming loans was 190% at December 31, 2015, comparable with the 190% and 181% levels at the end of the fourth quarter of 2014 and the third quarter of 2015, respectively.
Dividend Increase
In August the Company declared a quarterly cash dividend of $0.31 per share on its common stock, marking its 23rd consecutive year of dividend increases. President and Chief Executive Officer, Mark E. Tryniski, commented, “The payment of a meaningful and growing dividend is an important component of our commitment to provide consistent and favorable long-term returns to our shareholders. The increase reflected the continued strength of both our current operating performance and capital position.” The one cent increase in the Company’s quarterly cash dividend over the same quarter of the prior year, or 3.3% higher, represents an annualized yield of 3.4% based on its’ closing price of $36.13 on January 19, 2016.
Oneida Financial Corp
In the first quarter of 2015, the Company announced the signing of a definitive agreement to acquire Oneida Financial Corp., the parent company of Oneida Savings Bank. Under the terms of the agreement, shareholders of Oneida Financial Corp. received merger consideration equivalent to 0.5635 shares of Community Bank System, Inc. common stock or $20.00 in cash for each share of Oneida Financial Corp. common stock they held, subject to the election and proration provisions of the agreement providing for an overall 60% stock and 40% cash apportionment. The transaction was completed on December 4, 2015. The total consideration for the acquisition was approximately $158.5 million, comprised of the issuance of 2.38 million shares of Community Bank System, Inc. common stock and $56.3 million in cash. The Company acquired approximately $399 million of loans, $308 million of cash equivalents and investment securities, and $699 million of deposits, as well as the business assets and activities associated with Oneida’s insurance, wealth management and employee benefit services businesses.
CBU Highly Ranked in Forbes Analysis
Forbes.com published its seventh annual ranking of the country’s 100 largest banks in early January 2015. The analysis considers 10 metrics related to our industry which includes asset quality, capital adequacy, growth and profitability, and includes financial institutions which range in size from $7 billion to $2.4 trillion in assets. Once again, Community Bank System, Inc. appeared near the top of the list as the 8th highest rated financial institution based the Forbes analysis. In the seven years that Forbes has produced this comparison, the Company has never been ranked lower than 12th, and has been in the top 10 for five of the years. The Company believes that this reflects its consistently strong operating performance during this period.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET) tomorrow (Thursday, January 21st) to discuss fourth quarter and full year results. The conference call can be accessed at 888-337-8169 (719-325-2454 if outside United States and Canada) using the conference ID code 2415903. Investors may also listen live via the Internet at: http://www.webcaster4.com/Webcast/Page/995/12715.
This earnings release, including supporting financial tables, is available within the press releases section of the Company's investor relations website at: http://ir.communitybanksystem.com. An archived webcast of the earnings call will be available on this site for one full year.
Community Bank System, Inc. operates more than 200 customer facilities across Upstate New York and Northeastern Pennsylvania through its banking subsidiary, Community Bank, N.A. With assets of approximately $8.6 billion, the DeWitt, N.Y. headquartered company is among the country's 150 largest financial institutions. In addition to a full range of retail and business banking services, the Company offers comprehensive financial planning, insurance and wealth management services. The Company's Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration and trust services, actuarial and consulting services to customers on a national scale. Community Bank System, Inc. is listed on the New York Stock Exchange and the Company's stock trades under the symbol CBU. For more information about Community Bank visit www.communitybankna.com or http://ir.communitybanksystem.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from CBU’s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. These statements are based on the current beliefs and expectations of CBU’s management and CBU does not assume any duty to update forward-looking statements.
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Summary of Financial Data |
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| (Dollars in thousands, except per share data) | ||||
| Quarter Ended | Year-to-Date | |||
|
December 31, |
December 31, |
December 31, |
December 31, |
|
| Earnings | ||||
| Loan income | $49,321 | $46,878 | $187,743 | $185,527 |
| Investment income | 18,683 | 17,707 | 71,879 | 70,693 |
| Total interest income | 68,004 | 64,585 | 259,622 | 256,220 |
| Interest expense | 3,015 | 2,829 | 11,202 | 11,792 |
| Net interest income | 64,989 | 61,756 | 248,420 | 244,428 |
| Provision for loan losses | 3,327 | 2,531 | 6,447 | 7,178 |
| Net interest income after provision for loan losses | 61,662 | 59,225 | 241,973 | 237,250 |
| Deposit service fees | 13,605 | 13,496 | 52,747 | 52,756 |
| Revenues from mortgage banking and other banking services | 1,061 | 1,149 | 4,960 | 5,814 |
| Wealth management and insurance services | 6,825 | 4,341 | 20,208 | 17,870 |
| Employee benefit services | 11,661 | 10,942 | 45,388 | 42,580 |
| Gain(loss) on sale of investments | (4) | 0 | (4) | 0 |
| Total noninterest income | 33,148 | 29,928 | 123,299 | 119,020 |
| Salaries and employee benefits | 33,138 | 30,987 | 126,356 | 123,077 |
| Occupancy and equipment | 6,702 | 6,724 | 27,593 | 27,948 |
| Amortization of intangible assets | 1,021 | 994 | 3,663 | 4,287 |
| Litigation settlement | 0 | 0 | 0 | 2,800 |
| Acquisition expenses | 5,720 | 0 | 7,038 | 123 |
| Other | 18,408 | 17,979 | 68,414 | 68,345 |
| Total operating expenses | 64,989 | 56,684 | 233,064 | 226,580 |
| Income before income taxes | 29,821 | 32,469 | 132,208 | 129,690 |
| Income taxes | 9,759 | 9,336 | 40,987 | 38,337 |
| Net income | 20,062 | 23,133 | 91,221 | 91,353 |
| Basic earnings per share | $0.48 | $0.57 | $2.21 | $2.24 |
| Diluted earnings per share | $0.47 | $0.56 | $2.19 | $2.22 |
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Summary of Financial Data |
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| (Dollars in thousands, except per share data) | |||||||||||||
| 2015 | 2014 | ||||||||||||
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||
| Earnings | |||||||||||||
| Loan income | $49,321 | $47,040 | $45,791 | $45,591 | $46,878 | ||||||||
| Investment income | 18,683 | 18,244 | 18,089 | 16,863 | 17,707 | ||||||||
| Total interest income | 68,004 | 65,284 | 63,880 | 62,454 | 64,585 | ||||||||
| Interest expense | 3,015 | 2,921 | 2,652 | 2,614 | 2,829 | ||||||||
| Net interest income | 64,989 | 62,363 | 61,228 | 59,840 | 61,756 | ||||||||
| Provision for loan losses | 3,327 | 1,906 | 591 | 623 | 2,531 | ||||||||
| Net interest income after provision for loan losses | 61,662 | 60,457 | 60,637 | 59,217 | 59,225 | ||||||||
| Deposit service fees | 13,605 | 13,459 | 13,213 | 12,470 | 13,496 | ||||||||
| Revenues from mortgage banking and other banking services | 1,061 | 2,045 | 799 | 1,055 | 1,149 | ||||||||
| Wealth management and insurance services | 6,825 | 4,552 | 4,385 | 4,446 | 4,341 | ||||||||
| Employee benefit services | 11,661 | 11,330 | 11,322 | 11,075 | 10,942 | ||||||||
| Gain(loss) on sale of investments | (4) | 0 | 0 | 0 | 0 | ||||||||
| Total noninterest income | 33,148 | 31,386 | 29,719 | 29,046 | 29,928 | ||||||||
| Salaries and employee benefits | 33,138 | 31,179 | 31,010 | 31,029 | 30,987 | ||||||||
| Occupancy and equipment | 6,702 | 6,652 | 6,844 | 7,395 | 6,724 | ||||||||
| Amortization of intangible assets | 1,021 | 843 | 880 | 919 | 994 | ||||||||
| Acquisition expenses | 5,720 | 562 | 361 | 395 | 0 | ||||||||
| Other | 18,408 | 16,843 | 16,953 | 16,210 | 17,979 | ||||||||
| Total operating expenses | 64,989 | 56,079 | 56,048 | 55,948 | 56,684 | ||||||||
| Income before income taxes | 29,821 | 35,764 | 34,308 | 32,315 | 32,469 | ||||||||
| Income taxes | 9,759 | 10,742 | 10,468 | 10,018 | 9,336 | ||||||||
| Net income | 20,062 | 25,022 | 23,840 | 22,297 | 23,133 | ||||||||
| Basic earnings per share | $0.48 | $0.61 | $0.58 | $0.55 | $0.57 | ||||||||
| Diluted earnings per share | $0.47 | $0.60 | $0.58 | $0.54 | $0.56 | ||||||||
| Profitability | |||||||||||||
| Return on assets | 0.98% | 1.25% | 1.25% | 1.21% | 1.22% | ||||||||
| Return on equity | 7.41% | 9.77% | 9.44% | 8.97% | 9.35% | ||||||||
| Return on tangible equity(3) | 10.98% | 14.82% | 14.40% | 13.74% | 14.57% | ||||||||
| Noninterest income/operating income (FTE) (1) | 32.8% | 32.4% | 31.6% | 31.6% | 31.3% | ||||||||
| Efficiency ratio (2) | 57.6% | 56.4% | 58.3% | 59.4% | 58.3% | ||||||||
| Components of Net Interest Margin (FTE) | |||||||||||||
| Loan yield | 4.43% | 4.40% | 4.40% | 4.45% | 4.43% | ||||||||
| Cash equivalents yield | 0.25% | 0.22% | 0.28% | 0.20% | 0.19% | ||||||||
| Investment yield | 2.98% | 2.94% | 3.15% | 3.22% | 3.43% | ||||||||
| Earning asset yield | 3.86% | 3.81% | 3.92% | 3.99% | 4.06% | ||||||||
| Interest-bearing deposit rate | 0.14% | 0.14% | 0.15% | 0.16% | 0.16% | ||||||||
| Borrowing rate | 0.83% | 0.72% | 0.84% | 1.01% | 0.88% | ||||||||
| Cost of all interest-bearing funds | 0.22% | 0.21% | 0.20% | 0.21% | 0.22% | ||||||||
| Cost of funds (includes DDA) | 0.17% | 0.17% | 0.16% | 0.17% | 0.18% | ||||||||
| Net interest margin (FTE) | 3.70% | 3.65% | 3.76% | 3.83% | 3.89% | ||||||||
| Fully tax-equivalent adjustment | $3,041 | $3,162 | $3,115 | $3,085 | $3,804 | ||||||||
| Summary of Financial Data | |||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||
| 2015 | 2014 | ||||||||||||
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||
| Average Balances | |||||||||||||
| Loans | $4,459,575 | $4,287,062 | $4,211,962 | $4,190,823 | $4,223,653 | ||||||||
| Cash equivalents | 12,448 | 12,395 | 11,325 | 18,080 | 11,260 | ||||||||
| Taxable investment securities | 2,214,690 | 2,187,818 | 2,031,234 | 1,845,295 | 1,830,375 | ||||||||
| Nontaxable investment securities | 614,891 | 635,627 | 607,585 | 611,330 | 622,365 | ||||||||
| Total interest-earning assets | 7,301,604 | 7,122,902 | 6,862,106 | 6,665,528 | 6,687,653 | ||||||||
| Total assets | 8,161,843 | 7,919,966 | 7,678,719 | 7,489,179 | 7,495,814 | ||||||||
| Interest-bearing deposits | 4,943,210 | 4,739,513 | 4,777,195 | 4,704,003 | 4,689,788 | ||||||||
| Borrowings | 607,771 | 675,958 | 438,931 | 327,791 | 406,610 | ||||||||
| Total interest-bearing liabilities | 5,550,981 | 5,415,471 | 5,216,126 | 5,031,794 | 5,096,398 | ||||||||
| Noninterest-bearing deposits | 1,405,416 | 1,363,022 | 1,321,738 | 1,319,499 | 1,293,760 | ||||||||
| Shareholders' equity | 1,074,243 | 1,016,448 | 1,012,470 | 1,008,394 | 981,737 | ||||||||
| Balance Sheet Data | |||||||||||||
| Cash and cash equivalents | $153,210 | $156,836 | $143,047 | $150,533 | $138,396 | ||||||||
| Investment securities | 2,847,939 | 2,917,263 | 2,868,050 | 2,656,424 | 2,512,974 | ||||||||
| Loans: | |||||||||||||
| Consumer mortgage | 1,769,754 | 1,621,862 | 1,608,064 | 1,605,019 | 1,613,384 | ||||||||
| Business lending | 1,497,271 | 1,288,772 | 1,295,889 | 1,239,529 | 1,262,484 | ||||||||
| Consumer indirect | 935,760 | 872,988 | 837,449 | 804,300 | 833,968 | ||||||||
| Home equity | 403,514 | 345,446 | 340,578 | 338,979 | 342,342 | ||||||||
| Consumer direct | 195,076 | 184,479 | 181,623 | 176,084 | 184,028 | ||||||||
| Total loans | 4,801,375 | 4,313,547 | 4,263,603 | 4,163,911 | 4,236,206 | ||||||||
| Allowance for loan losses | 45,401 | 45,588 | 45,282 | 45,005 | 45,341 | ||||||||
| Intangible assets, net | 484,146 | 384,525 | 385,515 | 386,054 | 386,973 | ||||||||
| Other assets | 311,400 | 270,583 | 293,838 | 264,122 | 260,232 | ||||||||
| Total assets | 8,552,669 | 7,997,166 | 7,908,771 | 7,576,039 | 7,489,440 | ||||||||
| Deposits: | |||||||||||||
| Noninterest-bearing | 1,499,616 | 1,357,554 | 1,337,101 | 1,316,621 | 1,324,661 | ||||||||
| Non-maturity interest-bearing | 4,569,310 | 4,081,796 | 4,020,192 | 4,055,976 | 3,837,603 | ||||||||
| Time | 804,548 | 708,760 | 729,527 | 753,950 | 773,000 | ||||||||
| Total deposits | 6,873,474 | 6,148,110 | 6,086,820 | 6,126,547 | 5,935,264 | ||||||||
| Borrowings | 301,300 | 558,100 | 566,200 | 195,700 | 338,000 | ||||||||
| Subordinated debt held by unconsolidated subsidiary trusts | 102,146 | 102,140 | 102,134 | 102,128 | 102,122 | ||||||||
| Accrued interest and other liabilities | 135,102 | 143,790 | 153,278 | 138,262 | 126,150 | ||||||||
| Total liabilities | 7,412,022 | 6,952,140 | 6,908,432 | 6,562,637 | 6,501,536 | ||||||||
| Shareholders' equity | 1,140,647 | 1,045,026 | 1,000,339 | 1,013,402 | 987,904 | ||||||||
| Total liabilities and shareholders' equity | 8,552,669 | 7,997,166 | 7,908,771 | 7,576,039 | 7,489,440 | ||||||||
| Capital | |||||||||||||
| Tier 1 leverage ratio | 10.32% | 10.09% | 10.20% | 10.23% | 9.96% | ||||||||
| Tangible equity/net tangible assets (3) | 8.59% | 9.14% | 8.63% | 9.19% | 8.92% | ||||||||
| Diluted weighted average common shares O/S | 42,373 | 41,470 | 41,265 | 41,247 | 41,248 | ||||||||
| Period end common shares outstanding | 43,775 | 41,019 | 40,877 | 40,724 | 40,748 | ||||||||
| Cash dividends declared per common share | $0.31 | $0.31 | $0.30 | $0.30 | $0.30 | ||||||||
| Book value | $26.06 | $25.48 | $24.47 | $24.88 | $24.24 | ||||||||
| Tangible book value(3) | $15.90 | $17.05 | $15.96 | $16.31 | $15.63 | ||||||||
| Common stock price (end of period) | $39.94 | $37.17 | $37.77 | $35.39 | $38.13 | ||||||||
| Summary of Financial Data | |||||
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(Dollars in thousands, except per share data) |
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| 2015 | 2014 | ||||
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |
| Asset Quality | |||||
| Nonaccrual loans | $21,727 | $23,133 | $21,440 | $20,984 | $20,731 |
| Accruing loans 90+ days delinquent | 2,196 | 2,075 | 1,558 | 1,699 | 3,106 |
| Total nonperforming loans | 23,923 | 25,208 | 22,998 | 22,683 | 23,837 |
| Other real estate owned (OREO) | 2,088 | 2,531 | 2,324 | 1,767 | 1,855 |
| Total nonperforming assets | 26,011 | 27,739 | 25,322 | 24,450 | 25,692 |
| Net charge-offs | 3,515 | 1,600 | 314 | 959 | 2,462 |
| Allowance for loan losses/loans outstanding | 0.95% | 1.06% | 1.06% | 1.08% | 1.07% |
| Nonperforming loans/loans outstanding | 0.50% | 0.58% | 0.54% | 0.54% | 0.56% |
| Allowance for loan losses/nonperforming loans | 190% | 181% | 197% | 198% | 190% |
| Net charge-offs/average loans | 0.31% | 0.15% | 0.03% | 0.09% | 0.23% |
| Delinquent loans/ending loans | 1.16% | 1.19% | 1.09% | 1.19% | 1.46% |
| Loan loss provision/net charge-offs | 95% | 119% | 188% | 65% | 103% |
| Nonperforming assets/total assets | 0.30% | 0.35% | 0.32% | 0.32% | 0.34% |
| Asset Quality (excluding loans acquired since 1/1/09) | |||||
| Nonaccrual loans | $18,804 | $20,504 | $18,558 | $18,278 | $17,676 |
| Accruing loans 90+ days delinquent | 1,802 | 1,876 | 1,463 | 1,325 | 2,828 |
| Total nonperforming loans | 20,606 | 22,380 | 20,021 | 19,603 | 20,504 |
| Other real estate owned (OREO) | 1,546 | 1,720 | 1,518 | 1,357 | 1,469 |
| Total nonperforming assets | 22,152 | 24,100 | 21,539 | 20,960 | 21,973 |
| Net charge-offs | 3,420 | 1,473 | 425 | 877 | 2,098 |
| Allowance for loan losses/loans outstanding | 1.05% | 1.10% | 1.11% | 1.14% | 1.14% |
| Nonperforming loans/loans outstanding | 0.49% | 0.55% | 0.50% | 0.50% | 0.52% |
| Allowance for loan losses/nonperforming loans | 212% | 201% | 223% | 226% | 221% |
| Net charge-offs/average loans | 0.34% | 0.14% | 0.04% | 0.09% | 0.21% |
| Delinquent loans/ending loans | 1.19% | 1.14% | 1.04% | 1.11% | 1.39% |
| Loan loss provision/net charge-offs | 62% | 127% | 191% | 61% | 125% |
| Nonperforming assets/total assets | 0.28% | 0.31% | 0.28% | 0.29% | 0.30% |
| (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 $39.7 million at 12/31/15) 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.
