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COMMUNITY BANK SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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001-13695
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16-1213679
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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5790 Widewaters Parkway, DeWitt, New York
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13214-1883
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(Address of principal executive offices)
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(Zip Code)
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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:
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Date: April 24, 2012
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/s/ Mark Tryniski
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Mark E. Tryniski, President, Chief Executive Officer and Director
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Date: April 24, 2012
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/s/ Scott Kingsley
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Scott Kingsley, Executive Vice President and Chief Financial Officer
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Exhibit 99
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News Release
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5790 Widewaters Parkway, DeWitt, N.Y. 13214 | For further information, please contact: |
Summary of Financial Data
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(Dollars in thousands, except per share data)
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2012
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2011
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1st Qtr
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4th Qtr
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3rd Qtr
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2nd Qtr
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1st Qtr
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Earnings
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Loan income
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$47,638
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$50,511
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$50,702
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$49,471
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$42,297
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Investment income
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19,873
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19,903
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19,716
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20,379
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17,990
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Total interest income
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67,511
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70,414
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70,418
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69,850
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60,287
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Interest expense
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13,602
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15,279
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15,850
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15,663
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14,764
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Net interest income
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53,909
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55,135
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54,568
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54,187
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45,523
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Provision for loan losses
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1,644
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1,593
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1,043
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1,050
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1,050
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Net interest income after provision for loan losses
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52,265
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53,542
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53,525
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53,137
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44,473
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Deposit service fees
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10,369
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11,027
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11,134
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10,488
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9,685
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Mortgage banking revenues
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320
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37
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320
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982
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396
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Other banking services
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674
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694
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1,179
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645
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398
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Trust, investment and asset management fees
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3,132
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2,831
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2,904
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2,782
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2,180
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Benefit plan administration, consulting and actuarial fees
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8,973
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7,879
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7,685
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7,854
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8,183
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Investment securities and debt extinguishment gains/(losses), net
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0
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(69)
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(6)
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14
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0
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Total noninterest income
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23,468
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22,399
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23,216
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22,765
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20,842
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Salaries and employee benefits
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27,425
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27,093
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26,543
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25,531
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23,111
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Occupancy and equipment and furniture
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6,463
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6,089
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6,103
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6,253
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6,057
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Amortization of intangible assets
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1,086
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1,130
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1,161
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1,189
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901
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Acquisition expenses
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260
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142
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381
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3,617
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691
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Other
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14,169
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13,383
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13,905
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14,536
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12,556
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Total operating expenses
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49,403
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47,837
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48,093
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51,126
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43,316
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Income before income taxes
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26,330
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28,104
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28,648
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24,776
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21,999
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Income taxes
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7,504
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9,116
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8,640
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6,790
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5,839
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Net income
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18,826
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18,988
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20,008
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17,986
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16,160
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Basic earnings per share
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$0.49
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$0.51
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$0.54
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$0.49
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$0.48
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Diluted earnings per share
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$0.48
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$0.51
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$0.54
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$0.49
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$0.48
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Profitability
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Return on assets
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1.14%
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1.16%
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1.23%
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1.14%
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1.19%
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Return on equity
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9.22%
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9.96%
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10.67%
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10.15%
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10.70%
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Return on tangible equity(3)
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15.59%
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17.91%
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19.63%
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17.11%
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20.33%
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Noninterest income/operating income (FTE) (1)
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28.8%
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27.6%
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28.5%
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28.1%
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29.6%
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Efficiency ratio (2)
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59.0%
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57.2%
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57.0%
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57.2%
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59.3%
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Components of Net Interest Margin (FTE)
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Loan yield
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5.58%
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5.80%
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5.81%
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5.77%
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5.73%
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Cash equivalents yield
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0.26%
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0.25%
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0.25%
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0.24%
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0.25%
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Investment yield
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4.33%
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4.49%
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4.55%
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4.75%
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5.01%
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Earning asset yield
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4.89%
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5.11%
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5.13%
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5.24%
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5.30%
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Interest-bearing deposit rate
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0.56%
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0.65%
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0.70%
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0.70%
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0.75%
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Borrowing rate
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3.79%
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4.21%
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4.27%
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4.24%
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4.28%
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Cost of all interest-bearing funds
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1.13%
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1.27%
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1.32%
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1.34%
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1.47%
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Cost of funds (includes DDA)
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0.96%
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1.08%
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1.12%
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1.14%
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1.25%
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Net interest margin (FTE)
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3.96%
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4.06%
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4.04%
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4.13%
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4.08%
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Fully tax-equivalent adjustment
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$4,031
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$3,851
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$3,836
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$4,018
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$3,969
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Summary of Financial Data | |||||
(Dollars in thousands, except per share data) | |||||
2012
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2011
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1st Qtr
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4th Qtr
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3rd Qtr
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2nd Qtr
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1st Qtr
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Average Balances
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Loans
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$3,454,240
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$3,473,366
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$3,481,087
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$3,454,246
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$3,005,926
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Cash equivalents
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251,828
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233,984
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240,127
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177,154
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159,044
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Taxable investment securities
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1,565,215
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1,495,590
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1,458,127
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1,447,815
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1,188,182
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Nontaxable investment securities
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613,947
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567,835
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560,051
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579,795
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565,564
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Total interest-earning assets
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5,885,230
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5,770,775
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5,739,392
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5,659,010
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4,918,716
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Total assets
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6,618,812
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6,474,722
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6,447,210
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6,313,391
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5,487,618
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Interest-bearing deposits
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3,964,062
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3,929,231
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3,926,457
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3,864,671
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3,234,986
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Borrowings
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859,774
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830,344
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832,505
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839,003
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830,454
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Total interest-bearing liabilities
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4,823,836
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4,759,575
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4,758,962
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4,703,674
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4,065,440
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Noninterest-bearing deposits
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884,451
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878,443
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867,373
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813,789
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739,515
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Shareholders' equity
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821,043
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756,334
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743,730
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710,765
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612,559
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Balance Sheet Data
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Cash and cash equivalents
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$132,055
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$324,878
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$425,877
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$273,693
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$296,938
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Investment securities
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2,765,145
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2,151,370
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2,075,283
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2,088,105
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1,792,246
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Loans:
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Business lending
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1,210,773
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1,226,439
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1,261,125
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1,290,893
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1,006,114
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Consumer mortgage
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1,245,217
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1,214,621
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1,167,781
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1,149,219
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1,055,164
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Consumer installment - indirect
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542,605
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556,955
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564,423
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549,449
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500,058
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Home equity
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317,716
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323,840
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328,468
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330,213
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299,925
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Consumer installment - direct
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144,428
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149,170
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154,672
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158,376
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139,183
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Total loans
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3,460,739
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3,471,025
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3,476,469
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3,478,150
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3,000,444
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Allowance for loan losses
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41,809
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42,213
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42,463
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42,531
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42,147
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Intangible assets
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359,480
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360,564
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360,228
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363,015
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311,076
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Other assets
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236,848
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222,651
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208,460
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230,053
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190,815
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Total assets
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6,912,458
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6,488,275
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6,503,854
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6,390,485
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5,549,372
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Deposits:
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Noninterest-bearing
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911,131
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894,464
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887,009
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849,071
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754,892
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Non-maturity interest-bearing
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2,974,191
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2,776,532
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2,782,241
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2,721,589
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2,361,312
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Time
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1,066,685
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1,124,249
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1,169,503
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1,186,442
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904,827
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Total deposits
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4,952,007
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4,795,245
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4,838,753
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4,757,102
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4,021,031
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Borrowings
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910,427
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728,281
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728,335
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728,441
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728,385
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Subordinated debt held by unconsolidated subsidiary trusts
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102,054
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102,048
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102,042
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102,036
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102,030
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Other liabilities
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107,297
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88,118
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79,091
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72,835
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73,826
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Total liabilities
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6,071,785
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5,713,692
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5,748,221
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5,660,414
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4,925,272
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Shareholders' equity
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840,673
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774,583
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755,633
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730,071
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624,100
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Total liabilities and shareholders' equity
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6,912,458
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6,488,275
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6,503,854
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6,390,485
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5,549,372
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Capital
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Tier 1 leverage ratio
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9.37%
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8.38%
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8.17%
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8.07%
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8.42%
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Tangible equity/net tangible assets (3)
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7.70%
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7.12%
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6.79%
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6.44%
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6.36%
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Diluted weighted average common shares O/S
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39,323
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37,491
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37,312
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37,061
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33,989
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Period end common shares outstanding
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39,439
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36,986
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36,829
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36,807
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33,429
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Cash dividends declared per common share
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$0.26
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$0.26
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$0.26
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$0.24
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$0.24
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Book value
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$21.32
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$20.94
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$20.52
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$19.84
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$18.67
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Tangible book value(3)
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$12.84
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$11.85
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$11.37
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$10.59
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$10.01
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Common stock price (end of period)
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$28.78
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$27.80
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$22.69
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$24.79
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$24.27
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Summary of Financial Data | |||||
(Dollars in thousands, except per share data) | |||||
2012
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2011
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1st Qtr
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4th Qtr
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3rd Qtr
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2nd Qtr
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1st Qtr
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Asset Quality
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Nonaccrual loans
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$27,787
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$26,262
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$16,502
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$17,833
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$14,953
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Accruing loans 90+ days delinquent
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3,889
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3,089
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2,319
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2,499
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2,774
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Total nonperforming loans
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31,676
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29,351
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18,821
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20,332
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17,727
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Other real estate owned (OREO)
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2,690
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2,682
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2,776
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3,269
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1,945
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Total nonperforming assets
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34,366
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32,033
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21,597
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23,601
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19,672
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Net charge-offs
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2,048
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1,844
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1,111
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666
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1,413
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Allowance for loan losses/loans outstanding
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1.21%
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1.22%
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1.22%
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1.22%
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1.40%
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Nonperforming loans/loans outstanding
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0.92%
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0.85%
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0.54%
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0.58%
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0.59%
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Allowance for loan losses/nonperforming loans
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132%
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144%
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226%
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209%
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238%
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Net charge-offs/average loans
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0.24%
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0.21%
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0.13%
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0.08%
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0.19%
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Delinquent loans/ending loans
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1.78%
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1.99%
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1.56%
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1.50%
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1.46%
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Loan loss provision/net charge-offs
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80%
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94%
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94%
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158%
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74%
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Nonperforming assets/total assets
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0.50%
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0.49%
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0.33%
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0.37%
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0.35%
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Asset Quality (excluding loans acquired since 1/1/09)
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Nonaccrual loans
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$20,178
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$17,585
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$13,540
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$13,208
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$14,953
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Accruing loans 90+ days delinquent
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2,700
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2,878
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2,233
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2,466
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2,774
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Total nonperforming loans
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22,878
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20,463
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15,773
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15,674
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17,727
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Other real estate owned (OREO)
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1,778
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1,734
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1,810
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1,889
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1,945
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Total nonperforming assets
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24,656
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22,196
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17,583
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17,563
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19,672
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Net charge-offs
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752
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1,844
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1,111
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666
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1,413
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Allowance for loan losses/loans outstanding
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1.30%
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1.36%
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1.38%
|
1.40%
|
1.40%
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Nonperforming loans/loans outstanding
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0.74%
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0.69%
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0.52%
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0.52%
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0.59%
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Allowance for loan losses/nonperforming loans
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175%
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197%
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268%
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271%
|
238%
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Net charge-offs/average loans
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0.10%
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0.24%
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0.14%
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0.09%
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0.19%
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Delinquent loans/ending loans
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1.61%
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1.77%
|
1.57%
|
1.45%
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1.46%
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Loan loss provision/net charge-offs
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37%
|
79%
|
72%
|
158%
|
74%
|
Nonperforming assets/total assets
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0.38%
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0.36%
|
0.29%
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0.30%
|
0.35%
|
(1) Excludes gain (loss) on investment securities.
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(2) Excludes intangible amortization, goodwill impairment, acquisition expenses, and gain (loss) on investment securities.
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(3) Includes deferred tax liabilities (of approximately $25.2 million at 3/31/12) generated from tax deductible goodwill.
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