PARENT COMPANY STATEMENTS

12 Months Ended

Dec. 31, 2022

PARENT COMPANY STATEMENTS

PARENT COMPANY STATEMENTS

NOTE Q: PARENT COMPANY STATEMENTS

The condensed statements of condition of the parent company, Community Bank System, Inc., at December 31 are as follows:

(000's omitted)	2022		2021
Assets:
Cash and cash equivalents	$	160,045	$	154,374
Investment securities		7,881		8,679
Investment in and advances to:
Bank subsidiary		1,194,314		1,721,520
Non-bank subsidiaries		207,172		232,096
Other assets		17,106		18,462
Total assets	$	1,586,518	$	2,135,131
Liabilities and shareholders' equity:
Accrued interest and other liabilities	$	31,564	$	31,047
Borrowings		3,249		3,277
Shareholders' equity		1,551,705		2,100,807
Total liabilities and shareholders' equity	$	1,586,518	$	2,135,131

The condensed statements of income of the parent company for the years ended December 31 is as follows:

(000's omitted)	2022		2021		2020
Revenues:
Dividends from subsidiaries:
Bank subsidiary	$	53,000	$	125,000	$	105,000
Non-bank subsidiaries		55,000		14,000		13,500
Interest and dividends on investments		342		245		168
Total revenues		108,342		139,245		118,668
Expenses:
Interest on borrowings		153		446		2,546
Acquisition expenses		0		0		450
Gain on debt extinguishment		0		0		(421)
Other expenses		6,091		5,717		4,945
Total expenses		6,244		6,163		7,520
Income before tax benefit and equity in undistributed net income of subsidiaries		102,098		133,082		111,148
Income tax benefit		2,942		3,964		3,739
Income before equity in undistributed net income of subsidiaries		105,040		137,046		114,887
Equity in undistributed net income of subsidiaries		83,041		52,648		49,789
Net income	$	188,081	$	189,694	$	164,676
Other comprehensive (loss) income, net of tax:
Changes in other comprehensive (loss) income related to pension and other post retirement obligations		(15,831)		13,403		6,009
Changes in other comprehensive (loss) income related to unrealized (losses) gains on investment securities		(619,981)		(126,107)		66,294
Other comprehensive (loss) income		(635,812)		(112,704)		72,303
Comprehensive (loss) income	$	(447,731)	$	76,990	$	236,979

The statements of cash flows of the parent company for the years ended December 31 is as follows:

(000's omitted)	2022		2021		2020
Operating activities:
Net income	$	188,081	$	189,694	$	164,676
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net income of subsidiaries		(83,041)		(52,648)		(49,789)
Net change in other assets and other liabilities		2,155		(3,050)		1,740
Net cash provided by operating activities		107,195		133,996		116,627
Investing activities:
Purchases of investment securities		(175)		(5,173)		(3,000)
Cash paid for acquisitions, net of cash acquired of $0, $0, and $448, respectively		0		0		(20,892)
(Capital contributions to)/Return of capital from		0		(12,918)		2
Net cash used in investing activities		(175)		(18,091)		(23,890)
Financing activities:
Repayment of advances from subsidiaries		(506)		(482)		(482)
Repayment of borrowings		0		(77,320)		(12,062)
Issuance of common stock		8,922		16,155		22,211
Purchase of treasury stock		(16,614)		(5,106)		(271)
Sale of treasury stock		0		0		85
Increase in deferred compensation arrangements		236		252		271
Cash dividends paid		(93,387)		(91,051)		(87,131)
Net cash used in financing activities		(101,349)		(157,552)		(77,379)
Change in cash and cash equivalents		5,671		(41,647)		15,358
Cash and cash equivalents at beginning of year		154,374		196,021		180,663
Cash and cash equivalents at end of year	$	160,045	$	154,374	$	196,021
Supplemental disclosures of cash flow information:
Cash paid for interest	$	180	$	560	$	2,555
Supplemental disclosures of noncash financing activities:
Dividends declared and unpaid	$	23,763	$	23,235	$	22,695
Advances from subsidiaries		506		482		932
Common stock issued for acquisition		0		0		76,942