Attached files
| file | filename |
|---|---|
| 8-K - 2014 8K 4TH QTR - COMMUNITY BANK SYSTEM, INC. | cbna8k2014q4.htm |
|
Exhibit 99
|
|
 |
News Release
|
| 5790 Widewaters Parkway, DeWitt, N.Y. 13214 | For further information, please contact: |
Scott A. Kingsley,
EVP & Chief Financial Officer
Office: (315) 445-3121
Community Bank System Reports Strong Fourth Quarter
and Record Full Year 2014 Operating Results
| - Record full year GAAP earnings of $2.22 per share | ||
| - Achieved 9% year-over-year growth in noninterest income | ||
| - Quarterly cash dividend increased for the 22nd consecutive year |
SYRACUSE, N.Y. — January 21, 2015 — Community Bank System, Inc. (NYSE: CBU) reported fourth quarter 2014 net income of $23.1 million, an increase of 49.5% compared with $15.5 million earned for the fourth quarter of 2013. Diluted earnings per share totaled $0.56 for the fourth quarter of 2014, compared with $0.38 per share reported in the fourth quarter of 2013, which included $0.15 per share of acquisition expenses and net losses on sales of investment securities and debt extinguishments. Full year net income increased by $12.5 million, or 15.9%, and earnings per share of $2.22 were $0.28 or 14.4% higher than 2013.
“Our fourth quarter results mirrored a strong 2014 operating performance characterized by solid revenue growth, organic expansion of the loan portfolio, a continuation of our stable and favorable asset quality profile and improved operating leverage,” said President and Chief Executive Officer Mark E. Tryniski. “We continue to focus on building additional value into our enterprise through selective acquisitions, disciplined lending and a consistent approach to business regardless of economic conditions. In July we increased our quarterly dividend by 7.1% to $0.30 per share, marking the twenty-second consecutive year of dividend increases for the Company. We believe that this demonstrates the Company’s commitment to the payment of a meaningful and growing dividend as an important component of providing consistent and favorable long-term returns to our shareholders.”
Total revenue for the fourth quarter of 2014 was $91.7 million, an increase of $2.8 million, or 3.2%, over the prior year quarter (excluding the $6.9 million of net losses on sales of investment securities and debt extinguishments recorded in the fourth quarter of 2013). Higher revenue was generated as a result of a 1.6% increase in average earning assets along with continued strong noninterest income generation, as well as a one basis point improvement in the net interest margin from the prior year quarter. Continued organic growth drove a $1.3 million, or 9.0% 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 year-over-year by $0.4 million, or 2.9%. The year-over-year revenue growth was supported by an increased core deposit account base resulting from solid organic growth in addition to the successful integration of eight branch locations acquired in Pennsylvania from Bank of America in late 2013. The quarterly provision for loan losses of $2.5 million was $0.7 million lower than the fourth quarter of 2013, reflective of lower levels of net charge-offs and improved non-performing asset and delinquent loan ratios. Total operating expenses of $56.7 million for the quarter were $1.5 million higher, or 2.7%, than the fourth quarter of 2013, excluding $2.1 million of acquisition expenses incurred in the fourth quarter of 2013. The additional $1.5 million of recurring operating expenses in the current quarter compared to the fourth quarter of 2013 were driven primarily by the additional operating costs associated with the branch acquisition completed in December 2013.
Fourth quarter 2014 net interest income was $61.8 million, an increase of $1.1 million, or 1.8%, compared to the fourth quarter of 2013. In addition to the $0.4 million benefit to interest expense from an improved deposit funding mix, growth in net interest income was driven by a $2.1 million decrease in borrowing interest expense resulting from the balance sheet repositioning actions completed in 2013. These actions contributed significantly to the lowering of the cost of borrowed funds by 98 basis points, year-over-year. Improved funding costs were offset by a 14-basis point decline in earning asset yields, driven by lower blended interest rates on loans and investment securities. While average loan balances grew $154.4 million, or 3.8%, average loan yields declined 18 basis points year-over-year, resulting in a $0.2 million reduction in quarterly loan income. Investment income was $1.2 million lower than the fourth quarter of 2013 as average investment securities balance (including cash equivalents) declined by $47.5 million, and the yield fell 12 basis points.
Fourth quarter noninterest income increased $1.7 million to $29.9 million, representing an increase of 6.0% compared to last year’s fourth quarter, excluding the $6.9 million of net losses incurred on sales of investment securities and debt extinguishments in the fourth quarter of 2013. Income expanded across virtually all banking and financial services categories, with the lone exceptions being a $0.4 million decline in other banking services and mortgage banking-related revenues. Financial services revenue continued to grow as wealth management revenues increased $0.4 million or 9.0% over fourth quarter 2013, while employee benefit services revenue grew 9.1% to $10.9 million. Strong customer expansion and market momentum from 2013 continued in 2014 and drove the improved performance. Deposit service revenues grew $0.8 million, or 6.2%, to $13.5 million, reflecting solid core deposit account growth as a result of the branch acquisition and organic growth initiatives across the franchise.
Fourth quarter 2014 operating expenses of $56.7 million increased $1.5 million, or 2.7% over the fourth quarter of 2013, excluding $2.1 million of acquisition expenses incurred in the prior year quarter. Salaries and employee benefits increased $0.6 million, or 1.9%, 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 favorable plan asset performance and discount rate changes. All other expenses, excluding acquisition expenses, increased 3.8% and reflected the increased costs of operating an expanded franchise as well as continued investment in the Company’s technology infrastructure.
The fourth quarter 2014 effective income tax rate of 28.8% was higher than the 28.2% in last year’s fourth quarter, reflecting a higher proportion of income being generated from fully taxable sources.
Financial Position
Average earning assets of $6.69 billion for the fourth quarter of 2014 were up $22.4 million from the third quarter of 2014, and were $107.0 million higher than the fourth quarter of 2013. Compared to the prior year, overall average earning asset balances included growth of $154.4 million in average loan balances, while average investment securities and interest-earning cash balances declined by $47.5 million. Average deposit balances grew $30.7 million compared to the third quarter of 2014, and were $287.1 million higher than the fourth quarter of 2013, principally due to the branch acquisition. Average borrowings in the fourth quarter of 2014 of $406.6 million were $227.9 million, or 35.9% lower than the prior year quarter.
Ending loans at December 31, 2014 increased $127.1 million, or 3.1%, year-over-year, reflecting solid organic growth in the Company’s consumer lending portfolios, which was generally consistent with market demand characteristics. Ending loans increased $19.0 million from September 30, 2014, driven by growth in business lending and consumer mortgages. Investment securities totaled $2.51 billion at December 31, 2014, a level consistent with the end of the third quarter of 2014, and up $294.2 million from the end of 2013.
Shareholders’ equity of $987.9 million at December 31, 2014 was $112.1 million, or 12.8% higher than the prior year quarter-end, primarily due to strong earnings generation and capital retention over the last four quarters, as well as the impact in AOCI of a higher level of unrealized gains from investment securities at the end of 2014. The Company’s net tangible equity to net tangible assets ratio was 8.92% at December 31, 2014, up from 7.68% at December 31, 2013. The Company’s Tier 1 leverage ratio grew to 9.96% for the current quarter, up 67 basis points from the fourth 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 $2.5 million for the fourth quarter, compared to $2.9 million for the fourth quarter of 2013 and $1.1 million for the third quarter of 2014. Net charge-offs as an annualized percentage of average loans measured 0.23% in the fourth quarter of 2014, compared to 0.29% in the prior year fourth quarter and 0.10% in the third quarter of 2014. Full year net charge-offs were 0.15% of average loans compared to 0.17% in 2013. Nonperforming loans as a percentage of total loans at December 31, 2014 were 0.56%, consistent with 0.57% at September 30, 2014 and 0.54% of total loans at December 31, 2013. The total loan delinquency ratio of 1.46% at the end of the fourth quarter was down three basis points from the end of the fourth quarter of 2013. The fourth quarter provision for loan losses of $2.5 million was $0.8 million, or 44.9% higher than the third quarter of 2014, and $0.7 million, or 20.5%, lower than the fourth quarter of 2013 due primarily to lower net charge-off levels than the previous year’s fourth quarter. The allowance for loan losses to nonperforming loans was 190% at December 31, 2014, comparable with the 189% and 201% levels at the end of the third quarter of 2014 and the end of the fourth quarter of 2013, respectively.
Increased Cash Dividend Declared
In July and November of 2014, the Company’s Board of Directors declared quarterly cash dividends of $0.30 per share on its’ common stock. The $0.30 quarterly dividend was a $0.02 per share or 7.1% increase over the $0.28 per share paid in the prior four quarters. This marked the Company’s 22nd consecutive year of increased dividend payouts to shareholders. Using the closing price of $34.85 a share on the Company’s common stock as of Tuesday, January 20th, the $0.30 quarterly dividend provides an annualized yield of 3.44%.
Also, as previously announced, in December 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, 2015. 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 repurchased 123,000 shares of its common stock in 2014.
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET) tomorrow (Thursday, January 22nd) to discuss fourth quarter and full year results. The conference call can be accessed at 888-430-8691 (1-719-325-2177 if outside United States and Canada) using the conference ID code 9818037. Investors may also listen live via the Internet at: http://www.videonewswire.com/event.asp?id=101346.
This earnings release, including supporting financial tables, is available within the press releases section of the Company's investor relations website at: http://ir.communitybanksystem.com. An archived webcast of the earnings call will be available on this site for one full year.
Community Bank System, Inc. operates more than 190 customer facilities across Upstate New York and Northeastern Pennsylvania through its banking subsidiary, Community Bank, N.A. With assets of approximately $7.5 billion, the DeWitt, N.Y. headquartered company is among the country's 150 largest financial institutions. In addition to a full range of retail and business banking services, the Company offers comprehensive financial planning and wealth management services and operates a full service insurance agency providing personal and business insurance products. The Company's Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration and trust services, actuarial and consulting services to customers on a national scale. Community Bank System, Inc. is listed on the New York Stock Exchange and the Company's stock trades under the symbol CBU. For more information about Community Bank visit www.communitybankna.com or http://ir.communitybanksystem.com.
# # #
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from CBU’s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. These statements are based on the current beliefs and expectations of CBU’s management and CBU does not assume any duty to update forward-looking statements.
|
Summary of Financial Data
|
||||
|
(Dollars in thousands, expect per share data)
|
||||
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Quarter Ended
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Year Ended
|
|||
|
December 31,
|
December 31,
|
December 31,
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December 31,
|
|
|
Earnings
|
2014
|
2013
|
2014
|
2013
|
|
Loan income
|
$46,878
|
$47,061
|
$185,527
|
$188,197
|
|
Investment income
|
17,707
|
18,901
|
70,693
|
75,962
|
|
Total interest income
|
64,585
|
65,962
|
256,220
|
264,159
|
|
Interest expense
|
2,829
|
5,326
|
11,792
|
26,065
|
|
Net interest income
|
61,756
|
60,636
|
244,428
|
238,094
|
|
Provision for loan losses
|
2,531
|
3,185
|
7,178
|
7,992
|
|
Net interest income after provision for loan losses
|
59,225
|
57,451
|
237,250
|
230,102
|
|
Deposit service fees
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13,496
|
12,714
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52,756
|
49,357
|
|
Revenues from mortgage banking and other banking services
|
1,149
|
1,516
|
5,814
|
5,245
|
|
Wealth management services
|
4,341
|
3,984
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17,870
|
15,550
|
|
Employee benefit services
|
10,942
|
10,032
|
42,580
|
38,596
|
|
Gain on sales of investment securities
|
0
|
16,969
|
0
|
80,768
|
|
Loss on debt extinguishments
|
0
|
(23,836)
|
0
|
(87,336)
|
|
Total noninterest income
|
29,928
|
21,379
|
119,020
|
102,180
|
|
Salaries and employee benefits
|
30,987
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30,412
|
123,077
|
121,629
|
|
Occupancy and equipment
|
6,724
|
6,782
|
27,948
|
27,045
|
|
Amortization of intangible assets
|
994
|
1,061
|
4,287
|
4,469
|
|
Litigation settlement
|
0
|
0
|
2,800
|
0
|
|
Acquisition expenses
|
0
|
2,105
|
123
|
2,181
|
|
Other
|
17,979
|
16,923
|
68,345
|
65,931
|
|
Total operating expenses
|
56,684
|
57,283
|
226,580
|
221,255
|
|
Income before income taxes
|
32,469
|
21,547
|
129,690
|
111,027
|
|
Income taxes
|
9,336
|
6,070
|
38,337
|
32,198
|
|
Net income
|
$23,133
|
$15,477
|
$91,353
|
$78,829
|
|
Basic earnings per share
|
$0.57
|
$0.38
|
$2.24
|
$1.96
|
|
Diluted earnings per share
|
$0.56
|
$0.38
|
$2.22
|
$1.94
|
|
Summary of Financial Data
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|||||
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(Dollars in thousands, except per share data)
|
|||||
|
2014
|
2013
|
||||
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
1st Qtr
|
4th Qtr
|
|
|
Earnings
|
|||||
|
Loan income
|
$46,878
|
$46,883
|
$46,073
|
$45,693
|
$47,061
|
|
Investment income
|
17,707
|
17,404
|
18,036
|
17,546
|
18,901
|
|
Total interest income
|
64,585
|
64,287
|
64,109
|
63,239
|
65,962
|
|
Interest expense
|
2,829
|
2,893
|
2,939
|
3,131
|
5,326
|
|
Net interest income
|
61,756
|
61,394
|
61,170
|
60,108
|
60,636
|
|
Provision for loan losses
|
2,531
|
1,747
|
1,900
|
1,000
|
3,185
|
|
Net interest income after provision for loan losses
|
59,225
|
59,647
|
59,270
|
59,108
|
57,451
|
|
Deposit service fees
|
13,496
|
13,833
|
13,172
|
12,255
|
12,714
|
|
Revenues from mortgage banking and other banking services
|
1,149
|
1,867
|
1,608
|
1,190
|
1,516
|
|
Wealth management services
|
4,341
|
4,617
|
4,438
|
4,474
|
3,984
|
|
Employee benefit services
|
10,942
|
10,755
|
10,448
|
10,435
|
10,032
|
|
Gain on sales of investment securities
|
0
|
0
|
0
|
0
|
16,969
|
|
Loss on debt extinguishments
|
0
|
0
|
0
|
0
|
(23,836)
|
|
Total noninterest income
|
29,928
|
31,072
|
29,666
|
28,354
|
21,379
|
|
Salaries and employee benefits
|
30,987
|
30,941
|
30,409
|
30,740
|
30,412
|
|
Occupancy and equipment
|
6,724
|
6,617
|
6,916
|
7,691
|
6,782
|
|
Amortization of intangible assets
|
994
|
1,051
|
1,101
|
1,141
|
1,061
|
|
Litigation settlement
|
0
|
2,800
|
0
|
0
|
0
|
|
Acquisition expenses
|
0
|
0
|
0
|
123
|
2,105
|
|
Other
|
17,979
|
17,402
|
16,738
|
16,226
|
16,923
|
|
Total operating expenses
|
56,684
|
58,811
|
55,164
|
55,921
|
57,283
|
|
Income before income taxes
|
32,469
|
31,908
|
33,772
|
31,541
|
21,547
|
|
Income taxes
|
9,336
|
9,537
|
10,096
|
9,368
|
6,070
|
|
Net income
|
23,133
|
22,371
|
23,676
|
22,173
|
15,477
|
|
Basic earnings per share
|
$0.57
|
$0.55
|
$0.58
|
$0.55
|
$0.38
|
|
Diluted earnings per share
|
$0.56
|
$0.54
|
$0.57
|
$0.54
|
$0.38
|
|
Profitability
|
|||||
|
Return on assets
|
1.22%
|
1.19%
|
1.28%
|
1.23%
|
0.84%
|
|
Return on equity
|
9.35%
|
9.25%
|
10.13%
|
9.92%
|
7.04%
|
|
Return on tangible equity(3)
|
14.57%
|
14.66%
|
16.34%
|
16.37%
|
11.78%
|
|
Noninterest income/operating income (FTE) (1)
|
31.3%
|
32.2%
|
31.3%
|
30.7%
|
30.5%
|
|
Efficiency ratio (2)
|
58.3%
|
57.0%
|
57.0%
|
59.2%
|
58.5%
|
|
Components of Net Interest Margin (FTE)
|
|||||
|
Loan yield
|
4.43%
|
4.48%
|
4.51%
|
4.55%
|
4.61%
|
|
Cash equivalents yield
|
0.19%
|
0.17%
|
0.23%
|
0.25%
|
0.22%
|
|
Investment yield
|
3.43%
|
3.37%
|
3.48%
|
3.46%
|
3.54%
|
|
Earning asset yield
|
4.06%
|
4.06%
|
4.12%
|
4.13%
|
4.20%
|
|
Interest-bearing deposit rate
|
0.16%
|
0.17%
|
0.17%
|
0.19%
|
0.21%
|
|
Borrowing rate
|
0.88%
|
0.87%
|
0.91%
|
0.90%
|
1.86%
|
|
Cost of all interest-bearing funds
|
0.22%
|
0.23%
|
0.23%
|
0.25%
|
0.41%
|
|
Cost of funds (includes DDA)
|
0.18%
|
0.18%
|
0.19%
|
0.20%
|
0.33%
|
|
Net interest margin (FTE)
|
3.89%
|
3.89%
|
3.94%
|
3.94%
|
3.88%
|
|
Fully tax-equivalent adjustment
|
$3,804
|
$3,923
|
$3,972
|
$3,834
|
$3,666
|
|
Summary of Financial Data
|
|||||
|
(Dollars in thousands, except per share data)
|
|||||
|
2014
|
2013
|
||||
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
1st Qtr
|
4th Qtr
|
|
|
Average Balances
|
|||||
|
Loans
|
$4,223,653
|
$4,180,283
|
$4,121,976
|
$4,099,827
|
$4,069,204
|
|
Cash equivalents
|
11,260
|
8,225
|
9,535
|
9,782
|
11,085
|
|
Taxable investment securities
|
1,830,375
|
1,834,590
|
1,839,488
|
1,833,296
|
1,861,206
|
|
Nontaxable investment securities
|
622,365
|
642,114
|
659,662
|
638,975
|
639,199
|
|
Total interest-earning assets
|
6,687,653
|
6,665,212
|
6,630,661
|
6,581,880
|
6,580,694
|
|
Total assets
|
7,495,814
|
7,457,409
|
7,407,151
|
7,333,082
|
7,278,167
|
|
Interest-bearing deposits
|
4,689,788
|
4,671,216
|
4,754,636
|
4,736,746
|
4,546,591
|
|
Borrowings
|
406,610
|
427,051
|
385,150
|
402,549
|
634,472
|
|
Total interest-bearing liabilities
|
5,096,398
|
5,098,267
|
5,139,786
|
5,139,295
|
5,181,063
|
|
Noninterest-bearing deposits
|
1,293,760
|
1,281,626
|
1,224,515
|
1,197,922
|
1,149,873
|
|
Shareholders' equity
|
981,737
|
959,484
|
937,532
|
906,787
|
872,567
|
|
Balance Sheet Data
|
|||||
|
Cash and cash equivalents
|
$138,396
|
$157,500
|
$161,903
|
$153,417
|
$149,647
|
|
Investment securities
|
2,512,974
|
2,506,242
|
2,534,419
|
2,506,221
|
2,218,725
|
|
Loans:
|
|||||
|
Business lending
|
1,262,484
|
1,251,178
|
1,247,129
|
1,246,070
|
1,260,364
|
|
Consumer mortgage
|
1,613,384
|
1,598,298
|
1,580,584
|
1,579,322
|
1,582,058
|
|
Consumer indirect
|
833,968
|
841,975
|
797,297
|
755,849
|
740,002
|
|
Home equity
|
342,342
|
339,121
|
339,345
|
340,760
|
346,520
|
|
Consumer direct
|
184,028
|
186,672
|
183,448
|
174,357
|
180,139
|
|
Total loans
|
4,236,206
|
4,217,244
|
4,147,803
|
4,096,358
|
4,109,083
|
|
Allowance for loan losses
|
45,341
|
45,273
|
44,615
|
44,197
|
44,319
|
|
Intangible assets, net
|
386,973
|
387,966
|
389,018
|
390,119
|
390,499
|
|
Other assets
|
260,232
|
278,964
|
272,815
|
295,310
|
272,229
|
|
Total assets
|
7,489,440
|
7,502,643
|
7,461,343
|
7,397,228
|
7,095,864
|
|
Deposits:
|
|||||
|
Noninterest-bearing
|
1,324,661
|
1,279,052
|
1,257,223
|
1,225,977
|
1,203,346
|
|
Non-maturity interest-bearing
|
3,837,603
|
3,881,249
|
3,872,262
|
3,928,230
|
3,766,145
|
|
Time
|
773,000
|
807,030
|
841,810
|
884,681
|
926,553
|
|
Total deposits
|
5,935,264
|
5,967,331
|
5,971,295
|
6,038,888
|
5,896,044
|
|
Borrowings
|
338,000
|
343,805
|
319,408
|
217,110
|
141,913
|
|
Subordinated debt held by unconsolidated subsidiary trusts
|
102,122
|
102,115
|
102,109
|
102,103
|
102,097
|
|
Accrued interest and other liabilities
|
126,150
|
123,868
|
113,516
|
120,991
|
79,998
|
|
Total liabilities
|
6,501,536
|
6,537,119
|
6,506,328
|
6,479,092
|
6,220,052
|
|
Shareholders' equity
|
987,904
|
965,524
|
955,015
|
918,136
|
875,812
|
|
Total liabilities and shareholders' equity
|
7,489,440
|
7,502,643
|
7,461,343
|
7,397,228
|
7,095,864
|
|
Capital
|
|||||
|
Tier 1 leverage ratio
|
9.96%
|
9.79%
|
9.64%
|
9.48%
|
9.29%
|
|
Tangible equity/net tangible assets (3)
|
8.92%
|
8.57%
|
8.44%
|
7.97%
|
7.68%
|
|
Diluted weighted average common shares O/S
|
41,248
|
41,260
|
41,269
|
41,152
|
41,061
|
|
Period end common shares outstanding
|
40,748
|
40,707
|
40,688
|
40,658
|
40,431
|
|
Cash dividends declared per common share
|
$0.30
|
$0.30
|
$0.28
|
$0.28
|
$0.28
|
|
Book value
|
$24.24
|
$23.72
|
$23.47
|
$22.58
|
$21.66
|
|
Tangible book value(3)
|
$15.63
|
$15.04
|
$14.74
|
$13.79
|
$12.80
|
|
Common stock price (end of period)
|
$38.13
|
$33.59
|
$36.20
|
$39.02
|
$39.68
|
|
Summary of Financial Data
|
|||||
|
(Dollars in thousands, except per share data)
|
|||||
|
2014
|
2013
|
||||
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
1st Qtr
|
4th Qtr
|
|
|
Asset Quality
|
|||||
|
Nonaccrual loans
|
$20,731
|
$21,323
|
$21,991
|
$21,669
|
$19,473
|
|
Accruing loans 90+ days delinquent
|
3,105
|
2,690
|
1,930
|
1,977
|
2,555
|
|
Total nonperforming loans
|
23,836
|
24,013
|
23,921
|
23,646
|
22,028
|
|
Other real estate owned (OREO)
|
1,855
|
3,619
|
4,281
|
4,914
|
5,060
|
|
Total nonperforming assets
|
25,691
|
27,632
|
28,202
|
28,560
|
27,088
|
|
Net charge-offs
|
2,461
|
1,090
|
1,482
|
1,122
|
2,949
|
|
Allowance for loan losses/loans outstanding
|
1.07%
|
1.07%
|
1.08%
|
1.08%
|
1.08%
|
|
Nonperforming loans/loans outstanding
|
0.56%
|
0.57%
|
0.58%
|
0.58%
|
0.54%
|
|
Allowance for loan losses/nonperforming loans
|
190%
|
189%
|
187%
|
187%
|
201%
|
|
Net charge-offs/average loans
|
0.23%
|
0.10%
|
0.14%
|
0.11%
|
0.29%
|
|
Delinquent loans/ending loans
|
1.46%
|
1.32%
|
1.24%
|
1.25%
|
1.49%
|
|
Loan loss provision/net charge-offs
|
103%
|
160%
|
128%
|
89%
|
108%
|
|
Nonperforming assets/total assets
|
0.34%
|
0.37%
|
0.38%
|
0.39%
|
0.38%
|
|
Asset Quality (excluding loans acquired since 1/1/09)
|
|||||
|
Nonaccrual loans
|
$17,676
|
$17,313
|
$18,147
|
$17,755
|
$16,065
|
|
Accruing loans 90+ days delinquent
|
2,827
|
2,545
|
1,813
|
1,826
|
2,418
|
|
Total nonperforming loans
|
20,503
|
19,858
|
19,960
|
19,581
|
18,483
|
|
Other real estate owned (OREO)
|
1,469
|
1,794
|
2,303
|
2,645
|
2,832
|
|
Total nonperforming assets
|
21,972
|
21,652
|
22,263
|
22,226
|
21,315
|
|
Net charge-offs
|
2,098
|
1,088
|
1,204
|
1,086
|
1,956
|
|
Allowance for loan losses/loans outstanding
|
1.14%
|
1.14%
|
1.15%
|
1.15%
|
1.15%
|
|
Nonperforming loans/loans outstanding
|
0.52%
|
0.51%
|
0.52%
|
0.52%
|
0.49%
|
|
Allowance for loan losses/nonperforming loans
|
221%
|
226%
|
221%
|
222%
|
234%
|
|
Net charge-offs/average loans
|
0.21%
|
0.11%
|
0.13%
|
0.12%
|
0.21%
|
|
Delinquent loans/ending loans
|
1.39%
|
1.23%
|
1.19%
|
1.17%
|
1.44%
|
|
Loan loss provision/net charge-offs
|
122%
|
160%
|
155%
|
121%
|
130%
|
|
Nonperforming assets/total assets
|
0.30%
|
0.30%
|
0.31%
|
0.31%
|
0.32%
|
|
(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 $35.8 million at 12/31/14) 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.