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(Exact name of registrant as specified in its charter)
|
Delaware | 001-13695 | 16-1213679 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
5790 Widewaters Parkway, DeWitt, New York | 13214-1883 | |
(Address of principal executive offices) | (Zip Code) | |
(315) 445-2282
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(Registrant's telephone number, including area code)
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_________________________________ | ||
(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions: | |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Date: July 24, 2012 | /s/ Mark E. Tryniski |
Mark E. Tryniski, President, Chief Executive Officer | |
and Director | |
Date: July 24, 2012 | /s/ Scott Kingsley |
Scott Kingsley, Executive Vice President and | |
Chief Financial Officer |
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News Release |
COMMUNITY BANK SYSTEM, INC.
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5790 Widewaters Parkway, DeWitt, N.Y. 13214 | For further information, please contact: |
Scott A. Kingsley,
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EVP & Chief Financial Officer | |
Office: (315) 445-3121
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- Quarterly earnings per share of $0.53 |
- Loan growth of $101 million in the quarter (12% annualized) |
- Acquisition of 16 former HSBC branches completed in July |
Summary of Financial Data
|
||||
(Dollars in thousands, expect per share data)
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||||
Quarter Ended
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Year-to-Date
|
|||
June 30,
|
June 30,
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June 30,
|
June 30,
|
|
Earnings
|
2012
|
2011
|
2012
|
2011
|
Loan income
|
$47,077
|
$49,471
|
$94,715
|
$91,768
|
Investment income
|
23,468
|
20,379
|
43,341
|
38,369
|
Total interest income
|
70,545
|
69,850
|
138,056
|
130,137
|
Interest expense
|
12,774
|
15,663
|
26,376
|
30,427
|
Net interest income
|
57,771
|
54,187
|
111,680
|
99,710
|
Provision for loan losses
|
2,155
|
1,050
|
3,799
|
2,100
|
Net interest income after provision for loan losses
|
55,616
|
53,137
|
107,881
|
97,610
|
Deposit service fees
|
11,035
|
10,488
|
21,404
|
20,173
|
Mortgage banking revenues
|
234
|
982
|
554
|
1,378
|
Other banking services
|
662
|
645
|
1,336
|
1,043
|
Wealth management services
|
3,101
|
2,782
|
6,233
|
4,962
|
Benefit trust, administration, consulting and actuarial fees
|
8,664
|
7,854
|
17,637
|
16,037
|
Investment securities and debt extinguishment gains/(losses), net
|
0
|
14
|
0
|
14
|
Total noninterest income
|
23,696
|
22,765
|
47,164
|
43,607
|
Salaries and employee benefits
|
26,844
|
25,531
|
54,269
|
48,642
|
Occupancy and equipment and furniture
|
6,130
|
6,253
|
12,593
|
12,310
|
Amortization of intangible assets
|
1,045
|
1,189
|
2,131
|
2,090
|
Acquisition expenses
|
164
|
3,617
|
424
|
4,308
|
Other
|
15,187
|
14,536
|
29,356
|
27,092
|
Total operating expenses
|
49,370
|
51,126
|
98,773
|
94,442
|
Income before income taxes
|
29,942
|
24,776
|
56,272
|
46,775
|
Income taxes
|
8,871
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6,790
|
16,375
|
12,629
|
Net income
|
$21,071
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$17,986
|
$39,897
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$34,146
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Basic earnings per share
|
$0.53
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$0.49
|
$1.02
|
$0.97
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Diluted earnings per share
|
$0.53
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$0.49
|
$1.01
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$0.96
|
Summary of Financial Data
|
|||||
(Dollars in thousands, except per share data)
|
|||||
2012
|
2011
|
||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
|
Earnings
|
|||||
Loan income
|
$47,077
|
$47,638
|
$50,511
|
$50,702
|
$49,471
|
Investment income
|
23,468
|
19,873
|
19,903
|
19,716
|
20,379
|
Total interest income
|
70,545
|
67,511
|
70,414
|
70,418
|
69,850
|
Interest expense
|
12,774
|
13,602
|
15,279
|
15,850
|
15,663
|
Net interest income
|
57,771
|
53,909
|
55,135
|
54,568
|
54,187
|
Provision for loan losses
|
2,155
|
1,644
|
1,593
|
1,043
|
1,050
|
Net interest income after provision for loan losses
|
55,616
|
52,265
|
53,542
|
53,525
|
53,137
|
Deposit service fees
|
11,035
|
10,369
|
11,027
|
11,134
|
10,488
|
Mortgage banking revenues
|
234
|
320
|
37
|
320
|
982
|
Other banking services
|
662
|
674
|
694
|
1,179
|
645
|
Wealth management services
|
3,101
|
3,132
|
2,831
|
2,904
|
2,782
|
Benefit trust, administration, consulting and actuarial fees
|
8,664
|
8,973
|
7,879
|
7,685
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7,854
|
Investment securities and debt extinguishment gains/(losses), net
|
0
|
0
|
(69)
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(6)
|
14
|
Total noninterest income
|
23,696
|
23,468
|
22,399
|
23,216
|
22,765
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Salaries and employee benefits
|
26,844
|
27,425
|
27,093
|
26,543
|
25,531
|
Occupancy and equipment and furniture
|
6,130
|
6,463
|
6,089
|
6,103
|
6,253
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Amortization of intangible assets
|
1,045
|
1,086
|
1,130
|
1,161
|
1,189
|
Acquisition expenses
|
164
|
260
|
142
|
381
|
3,617
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Other
|
15,187
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14,169
|
13,383
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13,905
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14,536
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Total operating expenses
|
49,370
|
49,403
|
47,837
|
48,093
|
51,126
|
Income before income taxes
|
29,942
|
26,330
|
28,104
|
28,648
|
24,776
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Income taxes
|
8,871
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7,504
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9,116
|
8,640
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6,790
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Net income
|
$21,071
|
$18,826
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$18,988
|
$20,008
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$17,986
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Basic earnings per share
|
$0.53
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$0.49
|
$0.51
|
$0.54
|
$0.49
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Diluted earnings per share
|
$0.53
|
$0.48
|
$0.51
|
$0.54
|
$0.49
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Profitability
|
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Return on assets
|
1.20%
|
1.14%
|
1.16%
|
1.23%
|
1.14%
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Return on equity
|
9.82%
|
9.22%
|
9.96%
|
10.67%
|
10.15%
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Return on tangible equity(3)
|
16.01%
|
15.59%
|
17.91%
|
19.63%
|
17.11%
|
Noninterest income/operating income (FTE) (1)
|
27.6%
|
28.8%
|
27.6%
|
28.5%
|
28.1%
|
Efficiency ratio (2)
|
56.1%
|
59.0%
|
57.2%
|
57.0%
|
57.2%
|
Components of Net Interest Margin (FTE)
|
|||||
Loan yield
|
5.42%
|
5.58%
|
5.80%
|
5.81%
|
5.77%
|
Cash equivalents yield
|
0.34%
|
0.26%
|
0.25%
|
0.25%
|
0.24%
|
Investment yield
|
3.97%
|
4.33%
|
4.49%
|
4.55%
|
4.75%
|
Earning asset yield
|
4.78%
|
4.89%
|
5.11%
|
5.13%
|
5.24%
|
Interest-bearing deposit rate
|
0.44%
|
0.56%
|
0.65%
|
0.70%
|
0.70%
|
Borrowing rate
|
2.85%
|
3.79%
|
4.21%
|
4.27%
|
4.24%
|
Cost of all interest-bearing funds
|
0.99%
|
1.13%
|
1.27%
|
1.32%
|
1.34%
|
Cost of funds (includes DDA)
|
0.84%
|
0.96%
|
1.08%
|
1.12%
|
1.14%
|
Net interest margin (FTE)
|
3.96%
|
3.96%
|
4.06%
|
4.04%
|
4.13%
|
Fully tax-equivalent adjustment
|
$4,335
|
$4,031
|
$3,851
|
$3,836
|
$4,018
|
Summary of Financial Data
|
|||||
(Dollars in thousands, except per share data)
|
|||||
2012
|
2011
|
||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
|
Average Balances
|
|||||
Loans
|
$3,512,427
|
$3,454,240
|
$3,473,366
|
$3,481,087
|
$3,454,246
|
Cash equivalents
|
10,017
|
251,828
|
233,984
|
240,127
|
177,154
|
Taxable investment securities
|
2,091,576
|
1,565,215
|
1,495,590
|
1,458,127
|
1,447,815
|
Nontaxable investment securities
|
692,839
|
613,947
|
567,835
|
560,051
|
579,795
|
Total interest-earning assets
|
6,306,859
|
5,885,230
|
5,770,775
|
5,739,392
|
5,659,010
|
Total assets
|
7,058,473
|
6,618,812
|
6,474,722
|
6,447,210
|
6,313,391
|
Interest-bearing deposits
|
4,003,213
|
3,964,062
|
3,929,231
|
3,926,457
|
3,864,671
|
Borrowings
|
1,182,707
|
859,774
|
830,344
|
832,505
|
839,003
|
Total interest-bearing liabilities
|
5,185,920
|
4,823,836
|
4,759,575
|
4,758,962
|
4,703,674
|
Noninterest-bearing deposits
|
907,153
|
884,451
|
878,443
|
867,373
|
813,789
|
Shareholders' equity
|
862,747
|
821,043
|
756,334
|
743,730
|
710,765
|
Balance Sheet Data
|
|||||
Cash and cash equivalents
|
$130,902
|
$132,055
|
$324,878
|
$425,877
|
$273,693
|
Investment securities
|
2,931,918
|
2,765,145
|
2,151,370
|
2,075,283
|
2,088,105
|
Loans:
|
|||||
Business lending
|
1,216,309
|
1,210,773
|
1,226,439
|
1,261,125
|
1,290,893
|
Consumer mortgage
|
1,289,155
|
1,245,217
|
1,214,621
|
1,167,781
|
1,149,219
|
Consumer installment - indirect
|
591,249
|
542,605
|
556,955
|
564,423
|
549,449
|
Home equity
|
310,555
|
317,716
|
323,840
|
328,468
|
330,213
|
Consumer installment - direct
|
154,403
|
144,428
|
149,170
|
154,672
|
158,376
|
Total loans
|
3,561,671
|
3,460,739
|
3,471,025
|
3,476,469
|
3,478,150
|
Allowance for loan losses
|
41,828
|
41,809
|
42,213
|
42,463
|
42,531
|
Intangible assets
|
358,435
|
359,480
|
360,564
|
360,228
|
363,015
|
Other assets
|
225,233
|
236,848
|
222,651
|
208,460
|
230,053
|
Total assets
|
7,166,331
|
6,912,458
|
6,488,275
|
6,503,854
|
6,390,485
|
Deposits:
|
|||||
Noninterest-bearing
|
944,695
|
911,131
|
894,464
|
887,009
|
849,071
|
Non-maturity interest-bearing
|
2,942,333
|
2,974,191
|
2,776,532
|
2,782,241
|
2,721,589
|
Time
|
1,023,324
|
1,066,685
|
1,124,249
|
1,169,503
|
1,186,442
|
Total deposits
|
4,910,352
|
4,952,007
|
4,795,245
|
4,838,753
|
4,757,102
|
Borrowings
|
1,157,872
|
910,427
|
728,281
|
728,335
|
728,441
|
Subordinated debt held by unconsolidated subsidiary trusts
|
102,060
|
102,054
|
102,048
|
102,042
|
102,036
|
Other liabilities
|
110,988
|
107,297
|
88,118
|
79,091
|
72,835
|
Total liabilities
|
6,281,272
|
6,071,785
|
5,713,692
|
5,748,221
|
5,660,414
|
Shareholders' equity
|
885,059
|
840,673
|
774,583
|
755,633
|
730,071
|
Total liabilities and shareholders' equity
|
7,166,331
|
6,912,458
|
6,488,275
|
6,503,854
|
6,390,485
|
Capital
|
|||||
Tier 1 leverage ratio
|
8.98%
|
9.37%
|
8.38%
|
8.17%
|
8.07%
|
Tangible equity/net tangible assets (3)
|
8.09%
|
7.70%
|
7.12%
|
6.79%
|
6.44%
|
Diluted weighted average common shares O/S
|
40,057
|
39,323
|
37,491
|
37,312
|
37,061
|
Period end common shares outstanding
|
39,472
|
39,439
|
36,986
|
36,829
|
36,807
|
Cash dividends declared per common share
|
$0.26
|
$0.26
|
$0.26
|
$0.26
|
$0.24
|
Book value
|
$22.42
|
$21.32
|
$20.94
|
$20.52
|
$19.84
|
Tangible book value(3)
|
$14.00
|
$12.84
|
$11.85
|
$11.37
|
$10.59
|
Common stock price (end of period)
|
$27.12
|
$28.78
|
$27.80
|
$22.69
|
$24.79
|
Summary of Financial Data
|
|||||
(Dollars in thousands, except per share data)
|
|||||
2012
|
2011
|
||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
|
Asset Quality
|
|||||
Nonaccrual loans
|
$28,570
|
$30,147
|
$26,262
|
$16,502
|
$17,833
|
Accruing loans 90+ days delinquent
|
3,437
|
3,889
|
3,089
|
2,319
|
2,499
|
Total nonperforming loans
|
32,007
|
34,036
|
29,351
|
18,821
|
20,332
|
Other real estate owned (OREO)
|
2,899
|
2,690
|
2,682
|
2,776
|
3,269
|
Total nonperforming assets
|
34,906
|
36,726
|
32,033
|
21,597
|
23,601
|
Net charge-offs
|
2,135
|
2,048
|
1,844
|
1,111
|
666
|
Allowance for loan losses/loans outstanding
|
1.17%
|
1.21%
|
1.22%
|
1.22%
|
1.22%
|
Nonperforming loans/loans outstanding
|
0.90%
|
0.92%
|
0.85%
|
0.54%
|
0.58%
|
Allowance for loan losses/nonperforming loans
|
131%
|
132%
|
144%
|
226%
|
209%
|
Net charge-offs/average loans
|
0.24%
|
0.24%
|
0.21%
|
0.13%
|
0.08%
|
Delinquent loans/ending loans
|
1.71%
|
1.78%
|
1.99%
|
1.56%
|
1.50%
|
Loan loss provision/net charge-offs
|
101%
|
80%
|
94%
|
94%
|
158%
|
Nonperforming assets/total assets
|
0.49%
|
0.50%
|
0.49%
|
0.33%
|
0.37%
|
Asset Quality (excluding loans acquired since 1/1/09)
|
|||||
Nonaccrual loans
|
$22,395
|
$20,178
|
$17,585
|
$13,540
|
$13,208
|
Accruing loans 90+ days delinquent
|
3,070
|
2,700
|
2,878
|
2,233
|
2,466
|
Total nonperforming loans
|
25,465
|
22,878
|
20,463
|
15,773
|
15,674
|
Other real estate owned (OREO)
|
1,577
|
1,778
|
1,734
|
1,810
|
1,889
|
Total nonperforming assets
|
27,042
|
24,656
|
22,196
|
17,583
|
17,563
|
Net charge-offs
|
1,217
|
752
|
1,844
|
1,111
|
666
|
Allowance for loan losses/loans outstanding
|
1.28%
|
1.30%
|
1.36%
|
1.38%
|
1.40%
|
Nonperforming loans/loans outstanding
|
0.79%
|
0.74%
|
0.69%
|
0.52%
|
0.52%
|
Allowance for loan losses/nonperforming loans
|
161%
|
175%
|
197%
|
268%
|
271%
|
Net charge-offs/average loans
|
0.16%
|
0.10%
|
0.24%
|
0.14%
|
0.09%
|
Delinquent loans/ending loans
|
1.62%
|
1.61%
|
1.77%
|
1.57%
|
1.45%
|
Loan loss provision/net charge-offs
|
180%
|
37%
|
79%
|
72%
|
158%
|
Nonperforming assets/total assets
|
0.40%
|
0.38%
|
0.36%
|
0.29%
|
0.30%
|
(1) Excludes gain (loss) on investment securities.
|
|||||
(2) Excludes intangible amortization, goodwill impairment, acquisition expenses, and gain (loss) on investment securities.
|
|||||
(3) Includes deferred tax liabilities (of approximately $26.0 million at 6/30/12) generated from tax deductible goodwill.
|
|||||