-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NLa5afu1eL+Zd4BKj/YPy3zOnk9RdRucY22oWxf/hmnpQWfeEb8F/jb3gRPXNNt1 vkuPg4QdZo4fXycfT6pmRw== 0001169232-06-000211.txt : 20060124 0001169232-06-000211.hdr.sgml : 20060124 20060124091006 ACCESSION NUMBER: 0001169232-06-000211 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060123 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060124 DATE AS OF CHANGE: 20060124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY BANK SYSTEM INC CENTRAL INDEX KEY: 0000723188 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 161213679 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13695 FILM NUMBER: 06545088 BUSINESS ADDRESS: STREET 1: 5790 WIDEWATERS PKWY CITY: DEWITT STATE: NY ZIP: 13214 BUSINESS PHONE: 8007242262 MAIL ADDRESS: STREET 1: 5790 WIDEWATERS PARKWAY CITY: DEWITT STATE: NY ZIP: 13214 8-K 1 d66543_8-k.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 23, 2006 COMMUNITY BANK SYSTEM, INC. (Exact name of registrant as specified in its charter) Delaware 001-13695 16-1213679 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 5790 Widewaters Parkway, DeWitt, New York 13214-1883 (Address of principal executive offices) (Zip Code) (315) 445-2282 (Registrant's telephone number, including area code) --------------------------------- (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: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On January 23, 2006, Community Bank System, Inc. announced its results of operations for the quarter ending December 31, 2005. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99 hereto. The information in this Form 8-K, including Exhibit 99 attached hereto, is being furnished under Item 12 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 9.01 Financial Statements and Exhibits. The following exhibit is filed as a part of this report: Exhibit No. Description ----------- ----------- 99 Press Release, dated January 23, 2006 SIGNATURES Pursuant to the requirements of The Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Community Bank System, Inc. Date: January 23, 2006 /s/ Sanford A. Belden ------------------------------------------- Sanford A. Belden, President, Chief Executive Officer and Director Date: January 23, 2006 /s/ Scott A. Kingsley ------------------------------------------- Scott A. Kingsley, Executive Vice President and Chief Financial Officer EX-99 2 d66543_ex99-1.txt PRESS REPORT Exhibit 99 [LOGO] News Release ------------ COMMUNITY BANK SYSTEM, INC. 5790 Widewaters Parkway, DeWitt, N.Y. 13214 For further information, please contact: Scott A. Kingsley, EVP & Chief Financial Officer Office: (315) 445-3121 Fax: (315) 445-7347 COMMUNITY BANK SYSTEM ANNOUNCES FOURTH QUARTER AND 2005 RESULTS Syracuse, N.Y. - January 23, 2006 - Community Bank System, Inc. (NYSE: CBU) reported quarterly net income of $8.3 million, or $0.27 per share, in the fourth quarter of 2005, a 34% decrease from the $12.7 million, or $0.40 per share, reported in the fourth quarter of 2004. The results of the quarter included a one-time, $2.9 million ($0.07 per share) charge related to certain early retirement actions. Full-year 2005 earnings of $50.8 million, or $1.65 per share, were 1.2% above 2004's earnings of $50.2 million, or $1.64 per share, and represented a new high for the company. For the year, higher non-interest income including securities gains, improved asset quality, and organic loan and deposit growth offset higher operating expenses, including special charges, an increased cost of funds, lower investment income, and a higher effective tax rate. Cash earnings per share (which excludes the after-tax effect of the amortization of intangible assets) were $1.82 in both 2005 and 2004. Sanford A. Belden, President and Chief Executive Officer, stated, "Our fourth quarter and full-year results reflect a more challenging interest rate environment, as well as our commitment to managing for profitable, long-term growth and stability. We are pleased with the continuation of highly favorable asset quality metrics, as well as the strong growth in our non-interest income. Also, consistent with the direction we communicated in early 2005, we successfully repositioned our balance sheet to achieve a more favorable interest rate sensitivity profile, through gain-generating securities sales. We improved key capital ratios over 2004, despite repurchasing 1.1 million of our own shares, at a cost of $25.9 million. Lastly, we increased our quarterly dividend to shareholders by 5.6% in August." Net interest income was $34.9 million for the fourth quarter, consistent with the third quarter's results, and down 9.5% from $38.6 million in the prior year's fourth quarter. This was principally due to a $193.2 million decrease in average earning assets, made up of a $45.7 million increase in loans, and a $238.9 million decrease in investment securities. The fourth quarter net interest margin of 4.12% compares to 4.32% for the fourth quarter of 2004, and 4.06% for the third quarter of 2005. The full-year net interest margin for 2005 was 4.17%, compared to 4.45% in 2004. Earning asset yields in 2005 were six basis points above 2004, while the cost of funds increased 35 basis points, year-over-year, resulting in net margin compression. Total loans outstanding at the end of the fourth quarter were consistent with the end of the third quarter, at $2.4 billion. Small increases in the business lending and consumer mortgage portfolios were offset by declines in consumer installment loans. For the year, loans grew $53.3 million, or 2.3%. The company added $50.6 million of consumer installment loans in 2005, including significant growth in its indirect auto lending operation. Consumer mortgages increased $14.4 million, and the company began selling certain new mortgage originations into the secondary market in the fourth quarter. Business lending was down $11.6 million for the year primarily from significant declines in automotive dealer floor plans, a result of the robust manufacturer incentive programs in effect during the year, and lower sales expectations for early 2006. The loan loss provision for the quarter of $2.3 million was slightly higher than the $2.1 million reported in the fourth quarter of 2004, and consistent with the third quarter of 2005. Net charge-offs of $2.1 million, or 0.35% of average loans, were down nearly $0.8 million from the fourth quarter of 2004, and $0.3 million higher than the $1.8 million reported in the third quarter of 2005. Delinquency and non-performing loan ratios remained stable, and favorable to historical levels. The provision for loan losses for the year of $8.5 million was 2.5% below the $8.8 million recorded in 2004, reflecting these favorable asset quality trends, and was $0.8 million above full-year net charge-offs of $7.7 million. Non-interest income (excluding securities gains) increased $1.8 million, or 16.8%, over the fourth quarter of 2004. Our employee benefits administration and consulting business posted a 30% increase in revenues over the prior year's fourth quarter on the strength of new product offerings to both new and existing clients, resulting in a full-year revenue improvement of $2.0 million, or 22%. Deposit service fees increased 13.1% over the prior year's fourth quarter, driven by several revenue-enhancement initiatives put into place in the current year, and were up 8.6% on a year-over-year basis. In addition, in 2005 the company made significant progress on its objective of shortening the average life of its investment portfolio, generating a $0.29 per share after-tax gain through the sale of securities that had optimized their total return and interest-rate sensitivity characteristics. The proceeds of these securities sales were used to reduce variable-rate, short-term borrowings throughout 2005. As a result, the expected life-to-maturity of the portfolio has been reduced significantly, and stands at 5.0 years at the end of 2005. Operating expenses (excluding special charges and acquisition expenses) increased 4.5% from $30.2 million in the fourth quarter of 2004 to $31.5 million in the fourth quarter of 2005. This was due to increases in salary and benefit costs, utility costs, business development expenses, and write-downs of certain facilities, partially offset by lower amortization of intangibles. Excluding special charges, fourth quarter operating expenses, were $0.8 million above the third quarter, also due to the above-mentioned factors as well as higher OREO-related costs. The company's effective income tax rate of 24.2% in the fourth quarter 2005 was down from 27.4% in the third quarter, and 24.9% in the fourth quarter of 2004, due principally to fluctuations in the proportion of tax-exempt income. Financial Position Average earning assets of $3.7 billion at the end of the fourth quarter were down $59.9 million from the third quarter of 2005, reflecting $8.7 million of organic loan growth, offset by $68.6 million of net investment sales and maturities. Compared to the fourth quarter of 2004, average earning assets were down $193.2 million, comprised of a $45.7 million organic increase in loans, offset by a $238.9 million decrease in investments. Despite the recognition of $12.2 million of full-year realized securities gains, the investment portfolio contained $13.7 million of net unrealized gains at year-end. Deposits remained stable in the fourth quarter, compared to the third quarter, and were up $55.8 million from the end of 2004, a 1.9% increase. Total borrowings, principally short-term and variable rate advances, were reduced by $267.4 million, or 29.1% from December 31, 2004. These actions greatly contributed to the company's ability to improve its overall interest-rate sensitivity profile in the current rate environment. Asset Quality As of December 31, 2005, the Company's non-performing loan ratio was 0.55%, compared to 0.56% at the end of the third quarter, and 0.55% a year ago. The delinquency ratio was 1.46% at December 31, 2005, in line with 1.45% a year ago. The charge-off ratio was 0.35% (of total loans) for the fourth quarter, compared to 0.30% in the third quarter, and 0.49% for last year's fourth quarter. The full-year charge-off ratio in 2005 was 0.33%, an improvement from 0.37% for 2004. The ratio of allowance for loan losses to total loans at the end of the fourth quarter was 1.35%, consistent with the level reported at the end of the third quarter and the end of 2004. The improved and stable asset quality profile is primarily the result of the company's enhanced credit risk management programs and continued emphasis on disciplined underwriting standards. Stock Repurchase During the fourth quarter of 2005 the company purchased 72,100 common shares, at an aggregate cost of $1.7 million, and an average price per share of $22.98, under the previously announced 1.5 million-share repurchase program. Share repurchases in 2005 totaled 1.1 million shares at a cost of $25.9 million. At December 31, 2005, there were 0.9 million shares available for repurchase under the previously announced authorization. Outlook The Company also announced in early December that Mr. Belden has elected to retire from his management positions with the company as of July 31, 2006. Following his retirement, he will continue to serve as a director and Vice Chairman of the Company's Board of Directors. Mr. Belden will also chair a newly-created Board committee focused on growth and acquisition initiatives, and related integration activities. As part of its long-standing succession plan, which included several other senior-level staffing decisions made over the last three years, the Company announced that Mark E. Tryniski, its Executive Vice President and Chief Operating Officer, will become President and CEO upon Mr. Belden's retirement. Also consistent with that plan, James A. Wears, President, New York Banking, and Michael A. Patton, President, Financial Services, retired as of December 31, 2005. Mr. Tryniski commented, "This Company's track record in identifying and executing accretive, high-value acquisitions continues to be an important component of our strategic growth plan. Sandy's appointment as chair of the Acquisition and Integration Committee ensures the retention of his considerable expertise, and speaks clearly to its importance and our intentions for continued growth." Mr. Tryniski added, "Our 2006 forecast reflects an assumption that the yield curve will remain flat for the year. We expect our net interest margin for the full year to be near 4.0%, compared to 4.17% for 2005, with continued organic loan and deposit growth. We continue to expect strong growth from our employee benefits administration and consulting business, as well as improvements from our banking non-interest income sources. Operating expenses are expected to be held relatively flat through reductions in personnel costs and branch consolidation, offset by increases in strategic business development initiatives. We will also begin recognizing compensation expense for stock options in 2006, with an estimated $0.04 - 0.05 per share impact. Excluding the effect of income and gains generated from last year's securities sales and the fourth quarter early retirement charge, we expect earnings per share in 2006 to approximate that reported in 2005. This expectation presumes a continued flat yield-curve environment and reductions in the securities portfolio from contractual cash flows. Any improvements in the interest-rate or capital market environment in 2006 could present opportunities for securities or other actions that might impact operating results." Conference Call Scheduled A conference call will be held with company management at 11:00 a.m. (ET) on Tuesday, January 24, 2006, to discuss the above results at 1-877-641-0087. An audio recording will be available one hour after the call until March 31, 2006, and may be accessed at 1-866-453-6660 (access code 210746). Investors may also listen live via the Internet at: http://phx.corporate-ir.net/phoenix.zhtml? p=irol-eventDetails&c=95653&eventID=1191889. This webcast will be archived on this site for one full year and may be accessed at any point during this time at no cost. This earnings release, including supporting financial tables, is available within the Investor Relations / News & Media section of the company's website at: www.communitybankna.com. Community Bank System, Inc. (NYSE: CBU) is a registered bank holding company based in DeWitt, N.Y. CBU's wholly-owned banking subsidiary has $4.2 billion in assets and 130 customer facilities across Upstate New York, where it operates as Community Bank, N.A., and Northeastern Pennsylvania, where it operates as First Liberty Bank & Trust. For further information please visit our websites at: www.communitybankna.com or www.firstlibertybank.com. Summary of Financial Data (Dollars in thousands, except per share data)
- ------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Year to Date -------------------------------------------------------------- - ----------------------------------------------------------- December 31, December 31, December 31, December 31, Earnings 2005 2004 2005 2004 - ------------------------------------------------------------------------------------------------------------------------------- Loan income $38,816 $ 36,034 $147,608 $137,077 Investment income 16,302 19,481 71,586 75,718 Total interest income 55,118 55,515 219,194 212,795 Interest expense 20,198 16,940 75,572 61,752 Net interest income 34,920 38,575 143,622 151,043 Provision for loan losses 2,250 2,100 8,534 8,750 Net interest income after provision for loan losses 32,670 36,475 135,088 142,293 Deposit service fees 7,341 6,488 27,358 25,201 Other banking services 616 372 2,793 2,431 Trust, investment and asset management fees 1,844 1,789 7,307 7,537 Benefit plan administration, consulting and actuarial fees 2,937 2,256 11,193 9,204 Investment securities (losses) gains, net 0 (73) 12,195 72 Total non-interest income 12,738 10,832 60,846 44,445 Salaries, employee benefits and professional fees 17,624 16,557 69,766 65,724 Occupancy and equipment and furniture 5,030 4,668 20,094 18,813 Amortization of intangible assets 1,604 2,013 7,125 7,414 Other 7,278 6,934 27,461 26,244 Special charges/acquisition expenses 2,895 270 2,943 1,704 Total operating expenses 34,431 30,442 127,389 119,899 Income before income taxes 10,977 16,865 68,545 66,839 Income taxes 2,651 4,199 17,740 16,643 Net income $ 8,326 $ 12,666 $ 50,805 $ 50,196 Basic earnings per share $ 0.28 $ 0.41 $ 1.68 $ 1.68 Diluted earnings per share $ 0.27 $ 0.40 $ 1.65 $ 1.64 Diluted earnings per share-cash (1) $ 0.31 $ 0.45 $ 1.82 $ 1.82 - -------------------------------------------------------------------------------------------------------------------------------
Summary of Financial Data (Dollars in thousands, except per share data)
-------------------------------------------------------------------- 2005 2004 -------------------------------------------------------------------- 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr - -------------------------------------------------------------------------------------------------------------------------------- Earnings - -------------------------------------------------------------------------------------------------------------------------------- Loan income $38,816 $37,134 $36,156 $35,502 $ 36,034 Investment income 16,302 16,936 18,627 19,721 19,481 Total interest income 55,118 54,070 54,783 55,223 55,515 Interest expense 20,198 19,126 18,727 17,521 16,940 Net interest income 34,920 34,944 36,056 37,702 38,575 Provision for loan losses 2,250 2,275 2,134 1,875 2,100 Net interest income after provision for loan losses 32,670 32,669 33,922 35,827 36,475 Deposit service fees 7,341 7,237 6,703 6,077 6,488 Other banking services 616 1,411 241 525 372 Trust, investment and asset management fees 1,844 1,823 1,859 1,781 1,789 Benefit plan administration, consulting and actuarial fees 2,937 2,767 2,639 2,850 2,256 Investment securities gains (losses), net 0 5,305 5,164 1,726 (73) Total non-interest income 12,738 18,543 16,606 12,959 10,832 Salaries, employee benefits and professional fees 17,624 17,451 17,324 17,367 16,557 Occupancy and equipment and furniture 5,030 5,043 4,855 5,166 4,668 Amortization of intangible assets 1,604 1,553 1,984 1,984 2,013 Other 7,278 6,679 7,031 6,473 6,934 Special charges/acquisition expenses 2,895 1 6 41 270 Total operating expenses 34,431 30,727 31,200 31,031 30,442 Income before income taxes 10,977 20,485 19,328 17,755 16,865 Income taxes 2,651 5,621 5,047 4,421 4,199 Net income $ 8,326 $14,864 $14,281 $13,334 $ 12,666 Basic earnings per share $ 0.28 $ 0.49 $ 0.47 $ 0.44 $ 0.41 Diluted earnings per share $ 0.27 $ 0.48 $ 0.46 $ 0.43 $ 0.40 Diluted earnings per share-cash (1) $ 0.31 $ 0.52 $ 0.51 $ 0.48 $ 0.45 - -------------------------------------------------------------------------------------------------------------------------------- Profitability - -------------------------------------------------------------------------------------------------------------------------------- Return on assets 0.79% 1.39% 1.33% 1.23% 1.15% Return on equity 7.21% 12.59% 12.23% 11.47% 10.75% Non-interest income/operating income (FTE) 24.9% 32.5% 29.6% 23.8% 20.4% Efficiency ratio (2) 58.5% 56.4% 57.2% 55.0% 52.9% - -------------------------------------------------------------------------------------------------------------------------------- Components of Net Interest Margin (FTE) - -------------------------------------------------------------------------------------------------------------------------------- Loan yield 6.42% 6.17% 6.18% 6.16% 6.09% Investment yield 6.02% 5.91% 6.04% 6.20% 6.00% Earning asset yield 6.28% 6.07% 6.13% 6.18% 6.05% Interest bearing deposit rate 2.03% 1.86% 1.73% 1.56% 1.49% Short-term borrowing rate 3.33% 2.96% 3.34% 2.72% 2.22% Long-term borrowing rate 5.67% 5.83% 5.43% 5.00% 4.92% Cost of all interest-bearing funds 2.64% 2.45% 2.36% 2.18% 2.06% Cost of funds (includes DDA) 2.20% 2.05% 1.99% 1.85% 1.75% Net interest margin (FTE) 4.12% 4.06% 4.16% 4.34% 4.32% Fully tax-equivalent adjustment $ 3,512 $ 3,533 $ 3,533 $ 3,777 $ 3,754 - --------------------------------------------------------------------------------------------------------------------------------
Summary of Financial Data (Dollars in thousands, except per share data)
------------------------------------------------------------------ 2005 2004 ------------------------------------------------------------------ 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr - ----------------------------------------------------------------------------------------------------------------------------------- Average Balances - ----------------------------------------------------------------------------------------------------------------------------------- Loans $2,406,153 $2,397,472 $2,352,533 $2,342,467 $2,360,493 Taxable investment securities 774,420 841,823 944,015 972,962 991,687 Non-taxable investment securities 522,089 523,301 519,843 557,796 543,672 Total interest-earning assets 3,702,662 3,762,596 3,816,391 3,873,225 3,895,852 Total assets 4,155,228 4,230,791 4,306,863 4,380,012 4,397,549 Interest-bearing deposits 2,378,784 2,381,919 2,381,864 2,381,332 2,354,817 Short-term borrowings 232,157 338,405 462,913 436,180 482,930 Long-term borrowings 427,082 371,877 338,957 439,244 439,345 Total interest-bearing liabilities 3,038,022 3,092,201 3,183,734 3,256,756 3,277,092 Shareholders' equity $ 457,947 $ 468,559 $ 468,352 $ 471,576 $ 468,799 - ----------------------------------------------------------------------------------------------------------------------------------- Balance Sheet Data - ----------------------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ 114,606 $ 154,672 $ 105,391 $ 135,040 $ 118,345 Investment securities 1,303,090 1,318,436 1,506,273 1,554,829 1,584,339 Loans: Consumer mortgage 815,795 813,611 803,127 801,923 801,412 Business lending 819,605 816,145 824,007 816,616 831,244 Consumer installment 776,417 782,137 751,766 715,856 725,837 Total loans 2,411,817 2,411,893 2,378,900 2,334,395 2,358,493 Allowance for loan losses 32,581 32,460 32,011 31,898 31,778 Intangible assets 224,878 226,481 228,539 230,521 232,500 Other assets 130,924 133,641 126,937 131,765 131,932 Total assets 4,152,734 4,212,663 4,314,029 4,354,652 4,393,831 Deposits 2,984,768 2,985,919 2,977,517 2,976,953 2,928,978 Borrowings 572,588 626,151 717,930 774,476 840,065 Subordinated debt held by unconsolidated subsidiary trusts 80,502 80,488 80,474 80,460 80,446 Other liabilities 57,281 59,656 65,020 62,337 69,714 Total liabilities 3,695,139 3,752,214 3,840,941 3,894,226 3,919,203 Shareholders' equity 457,595 460,449 473,088 460,426 474,628 Total liabilities and shareholders' equity 4,152,734 4,212,663 4,314,029 4,354,652 4,393,831 Assets under management or administration $2,505,966 $2,394,012 $2,283,638 $2,203,181 $2,176,655 - ----------------------------------------------------------------------------------------------------------------------------------- Capital - ----------------------------------------------------------------------------------------------------------------------------------- Tier 1 leverage ratio 7.57% 7.34% 7.14% 6.83% 6.94% Tangible equity / tangible assets 5.92% 5.86% 5.99% 5.57% 5.82% Accumulated other comprehensive income $ 8,420 $ 14,487 $ 28,089 $ 21,709 $ 34,200 Diluted weighted average common shares O/S 30,516 30,712 30,940 31,192 31,500 Period end common shares outstanding 29,957 29,903 30,238 30,322 30,642 Cash dividends declared per common share $ 0.19 $ 0.19 $ 0.18 $ 0.18 $ 0.18 Book value 15.28 15.40 15.65 15.18 15.49 Tangible book value 7.77 7.81 8.09 7.58 7.90 Common stock price (end of period) 22.55 22.60 24.39 22.91 28.25 Total shareholders return - trailing 12 months -17.6% -7.3% 10.1% 1.9% 18.5% - -----------------------------------------------------------------------------------------------------------------------------------
Summary of Financial Data (Dollars in thousands, except per share data)
--------------------------------------------------------------- 2005 2004 --------------------------------------------------------------- 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr - ---------------------------------------------------------------------------------------------------------------------- Asset Quality - ---------------------------------------------------------------------------------------------------------------------- Non-accrual loans $12,232 $12,896 $12,455 $13,432 $11,798 Accruing loans 90+ days delinquent 1,075 672 898 1,254 1,158 Total non-performing loans 13,307 13,568 13,353 14,686 12,956 Other real estate owned (OREO) 1,048 882 684 1,444 1,645 Total non-performing assets 14,355 14,450 14,037 16,130 14,601 Net charge-offs $ 2,129 $ 1,826 $ 2,021 $ 1,755 $ 2,931 Loan loss allowance/loans outstanding 1.35% 1.35% 1.35% 1.37% 1.35% Non-performing loans/loans outstanding 0.55% 0.56% 0.56% 0.63% 0.55% Loan loss allowance/non-performing loans 245% 239% 240% 217% 245% Net charge-offs/average loans 0.35% 0.30% 0.34% 0.30% 0.49% Loan loss provision/net charge-offs 106% 125% 106% 107% 72% Non-performing assets/loans outstanding plus OREO 0.59% 0.60% 0.59% 0.69% 0.62% - ----------------------------------------------------------------------------------------------------------------------
(1) Cash earnings exclude the after-tax effect of amortization of intangible assets. (2) Excludes intangible amortization, acquisition expenses/special charges, results of securities transactions and debt restructuring activities. # # # This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU's operations to differ materially from CBU's expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements. -----END PRIVACY-ENHANCED MESSAGE-----