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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, 2013
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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, 2013
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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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2013
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2012
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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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$47,118
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$49,405
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$48,590
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$47,077
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$47,638
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Investment income
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20,807
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22,545
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22,804
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23,468
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19,873
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Total interest income
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67,925
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71,950
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71,394
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70,545
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67,511
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Interest expense
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9,500
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11,981
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12,619
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12,774
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13,602
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Net interest income
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58,425
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59,969
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58,775
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57,771
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53,909
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Provision for loan losses
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1,393
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2,666
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2,643
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2,155
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1,644
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Net interest income after provision for loan losses
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57,032
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57,303
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56,132
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55,616
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52,265
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Deposit service fees
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11,595
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12,603
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12,057
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11,035
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10,369
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Mortgage banking revenues
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171
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161
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128
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234
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320
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Other banking services
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867
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613
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1,277
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662
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674
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Wealth management services
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3,698
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3,449
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3,194
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3,101
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3,132
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Benefit trust, administration, consulting and actuarial fees
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9,770
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9,397
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8,912
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8,664
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8,973
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Gain on sales of investment securities
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47,791
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0
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291
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0
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0
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Loss on debt extinguishments
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(47,783)
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0
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0
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0
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0
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Total noninterest income
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26,109
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26,223
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25,859
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23,696
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23,468
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Salaries and employee benefits
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30,483
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29,639
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28,126
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26,844
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27,425
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Occupancy and equipment
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7,065
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6,665
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6,541
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6,130
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6,463
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Amortization of intangible assets
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1,179
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1,264
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1,212
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1,045
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1,086
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Acquisition expenses & litigation settlement
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0
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3,027
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4,796
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164
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260
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Other
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15,825
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16,304
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15,410
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15,187
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14,169
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Total operating expenses
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54,552
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56,899
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56,085
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49,370
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49,403
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Income before income taxes
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28,589
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26,627
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25,906
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29,942
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26,330
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Income taxes
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8,348
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7,823
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7,539
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8,871
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7,504
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Net income
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20,241
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18,804
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18,367
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21,071
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18,826
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Basic earnings per share
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$0.51
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$0.47
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$0.46
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$0.53
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$0.49
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Diluted earnings per share
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$0.50
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$0.47
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$0.46
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$0.53
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$0.48
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Profitability
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Return on assets
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1.11%
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1.00%
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0.98%
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1.20%
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1.14%
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Return on equity
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9.18%
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8.20%
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8.12%
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9.82%
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9.22%
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Return on tangible equity(3)
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15.32%
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13.55%
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13.27%
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16.01%
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15.59%
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Noninterest income/operating income (FTE) (1)
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29.5%
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29.0%
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28.8%
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27.6%
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28.8%
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Efficiency ratio (2)
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60.3%
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58.2%
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56.5%
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56.1%
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59.0%
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Components of Net Interest Margin (FTE)
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Loan yield
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4.98%
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5.16%
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5.25%
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5.42%
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5.58%
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Cash equivalents yield
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0.26%
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0.26%
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0.26%
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0.34%
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0.26%
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Investment yield
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3.79%
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3.85%
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3.82%
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3.97%
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4.33%
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Earning asset yield
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4.44%
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4.54%
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4.54%
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4.78%
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4.89%
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Interest-bearing deposit rate
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0.28%
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0.34%
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0.40%
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0.44%
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0.56%
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Borrowing rate
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3.76%
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3.89%
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3.56%
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2.85%
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3.79%
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Cost of all interest-bearing funds
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0.73%
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0.89%
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0.94%
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0.99%
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1.13%
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Cost of funds (includes DDA)
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0.61%
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0.74%
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0.78%
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0.84%
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0.96%
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Net interest margin (FTE)
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3.86%
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3.83%
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3.79%
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3.96%
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3.96%
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Fully tax-equivalent adjustment
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$4,022
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$4,209
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$4,332
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$4,335
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$4,031
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Summary of Financial Data
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(Dollars in thousands, except per share data)
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2013
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2012
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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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$3,860,722
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$3,834,068
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$3,708,143
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$3,512,427
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$3,454,240
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Cash equivalents
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83,812
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106,851
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138,251
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10,017
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251,828
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Taxable investment securities
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1,965,073
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2,035,651
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2,065,121
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2,091,575
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1,565,215
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Nontaxable investment securities
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655,694
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691,525
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717,608
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692,839
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613,947
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Total interest-earning assets
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6,565,301
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6,668,095
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6,629,123
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6,306,858
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5,885,230
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Total assets
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7,368,906
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7,506,371
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7,426,818
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7,058,473
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6,618,812
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Interest-bearing deposits
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4,581,130
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4,545,347
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4,409,813
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4,003,213
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3,964,062
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Borrowings
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686,483
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830,149
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918,789
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1,182,707
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859,774
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Total interest-bearing liabilities
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5,267,613
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5,375,496
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5,328,602
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5,185,920
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4,823,836
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Noninterest-bearing deposits
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1,095,256
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1,098,193
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1,066,689
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907,153
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884,451
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Shareholders' equity
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893,746
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912,321
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900,147
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862,747
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821,043
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Balance Sheet Data
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Cash and cash equivalents
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$330,298
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$228,558
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$287,753
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$130,902
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$132,055
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Investment securities
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2,448,120
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2,818,527
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2,895,285
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2,931,918
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2,765,145
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Loans:
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Business lending
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1,222,835
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1,233,944
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1,233,928
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1,216,309
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1,210,773
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Consumer mortgage
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1,480,192
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1,448,415
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1,390,130
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1,289,155
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1,245,217
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Consumer indirect
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639,560
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647,518
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642,196
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591,249
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542,605
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Home equity
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353,365
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364,225
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372,493
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310,555
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317,716
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Consumer direct
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165,649
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171,474
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173,710
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154,402
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144,428
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Total loans
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3,861,601
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3,865,576
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3,812,457
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3,561,670
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3,460,739
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Allowance for loan losses
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42,913
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42,888
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42,817
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41,828
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41,809
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Intangible assets, net
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385,954
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387,134
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388,398
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358,435
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359,480
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Other assets
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238,013
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239,893
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229,297
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225,234
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236,848
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Total assets
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7,221,073
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7,496,800
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7,570,373
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7,166,331
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6,912,458
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Deposits:
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Noninterest-bearing
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1,115,417
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1,110,994
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1,098,135
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944,695
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911,131
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Non-maturity interest-bearing
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3,678,905
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3,501,630
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3,533,837
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2,942,333
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2,974,191
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Time
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980,502
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1,015,415
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1,076,657
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1,023,324
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1,066,685
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Total deposits
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5,774,824
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5,628,039
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5,708,629
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4,910,352
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4,952,007
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Borrowings
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361,422
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728,061
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728,116
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1,157,872
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910,427
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Subordinated debt held by unconsolidated subsidiary trusts
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102,079
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102,073
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102,067
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102,060
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102,054
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Accrued interest and other liabilities
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105,454
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135,849
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126,962
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110,988
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107,297
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Total liabilities
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6,343,779
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6,594,022
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6,665,774
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6,281,272
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6,071,785
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Shareholders' equity
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877,294
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902,778
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904,599
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885,059
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840,673
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Total liabilities and shareholders' equity
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7,221,073
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7,496,800
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7,570,373
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7,166,331
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6,912,458
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Capital
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Tier 1 leverage ratio
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8.78%
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8.40%
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8.32%
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8.98%
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9.37%
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Tangible equity/net tangible assets (3)
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7.58%
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7.62%
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7.54%
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8.09%
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7.70%
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Diluted weighted average common shares O/S
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40,321
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40,179
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40,139
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40,057
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39,323
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Period end common shares outstanding
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39,989
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39,626
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39,571
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39,472
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39,439
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Cash dividends declared per common share
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$0.27
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$0.27
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$0.27
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$0.26
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$0.26
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Book value
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$21.94
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$22.78
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$22.86
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$22.42
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$21.32
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Tangible book value(3)
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$13.01
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$13.72
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$13.73
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$14.00
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$12.84
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Common stock price (end of period)
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$29.63
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$27.36
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$28.19
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$27.12
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$28.78
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Summary of Financial Data
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(Dollars in thousands, except per share data)
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2013
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2012
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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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$24,754
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$26,360
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$27,370
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$28,571
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$27,757
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Accruing loans 90+ days delinquent
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2,560
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2,748
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3,349
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3,437
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3,889
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Total nonperforming loans
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27,314
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29,108
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30,719
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32,008
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31,646
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Other real estate owned (OREO)
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6,838
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4,788
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3,384
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2,899
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2,690
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Total nonperforming assets
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34,152
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33,896
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34,103
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34,907
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34,336
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Net charge-offs
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1,367
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2,596
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1,654
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2,136
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2,048
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Allowance for loan losses/loans outstanding
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1.11%
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1.11%
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1.12%
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1.17%
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1.21%
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Nonperforming loans/loans outstanding
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0.71%
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0.75%
|
0.81%
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0.90%
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0.91%
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Allowance for loan losses/nonperforming loans
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157%
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147%
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139%
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131%
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132%
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Net charge-offs/average loans
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0.14%
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0.27%
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0.18%
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0.24%
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0.24%
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Delinquent loans/ending loans
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1.55%
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1.92%
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1.79%
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1.71%
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1.78%
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Loan loss provision/net charge-offs
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102%
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103%
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160%
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101%
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80%
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Nonperforming assets/total assets
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0.47%
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0.45%
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0.45%
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0.49%
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0.50%
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Asset Quality (excluding loans acquired since 1/1/09)
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Nonaccrual loans
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$19,757
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$21,928
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$21,733
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$22,395
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$20,178
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Accruing loans 90+ days delinquent
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2,165
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2,355
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3,038
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3,070
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2,700
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Total nonperforming loans
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21,922
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24,297
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24,771
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25,465
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22,878
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Other real estate owned (OREO)
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3,844
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1,397
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1,671
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1,577
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1,778
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Total nonperforming assets
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25,766
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25,694
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26,442
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27,042
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24,656
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Net charge-offs
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1,102
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1,863
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1,754
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1,217
|
752
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Allowance for loan losses/loans outstanding
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1.21%
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1.21%
|
1.24%
|
1.28%
|
1.30%
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Nonperforming loans/loans outstanding
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0.64%
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0.71%
|
0.74%
|
0.79%
|
0.74%
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Allowance for loan losses/nonperforming loans
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190%
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171%
|
167%
|
161%
|
175%
|
Net charge-offs/average loans
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0.13%
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0.19%
|
0.21%
|
0.16%
|
0.10%
|
Delinquent loans/ending loans
|
1.48%
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1.82%
|
1.65%
|
1.62%
|
1.61%
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Loan loss provision/net charge-offs
|
113%
|
102%
|
119%
|
180%
|
37%
|
Nonperforming assets/total assets
|
0.38%
|
0.36%
|
0.37%
|
0.40%
|
0.38%
|
(1) Excludes gains and losses on sales of investment securities and debt prepayments.
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(2) Excludes intangible amortization, acquisition expenses, litigation settlement, and gains and losses on sales of investment securities and debt prepayments.
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(3) Includes deferred tax liabilities (of approximately $29.0 million at 3/31/13) generated from tax deductible goodwill.
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