DeWITT, N.Y. — Community Bank System Inc. (NYSE: CBU) reported Tuesday that its net income rose almost 10 percent to $22.2 million in the first quarter from $20.2 million in the year-ago quarter, driven by strength in its wealth management and employee benefits businesses.
Earnings per share (EPS) increased 8 percent to 54 cents in the first quarter of 2014, from 50 cents in the first quarter of 2013.
Community Bank’s EPS topped the average analyst estimate of 52 cents, according to Yahoo Finance data.
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Revenue for the first quarter of 2014 totaled $88.5 million, up 4.7percent, from a year ago. Higher revenue resulted from an eight-basis point increase in the banking company’s net interest margin to 3.94 percent, as it cut borrowing costs with balance-sheet repositioning moves in 2013.
Continued organic growth drove a nearly 11 percent increase in Community Bank’s revenue from its wealth management and employee-benefit services units. Banking-fee income from deposit services and mortgage banking, increased about $800,000 year-over-year. Revenue growth was supported by an increased core deposit account base resulting from solid organic growth in addition to the successful integration of eight Bank of America branches Community Bank acquired in Pennsylvania in late 2013.
The quarterly provision for loan losses of $1 million was about $400,000 lower than the first quarter of 2013, reflective of lower net charge-offs and the continuation of generally stable and favorable asset quality measures.
Total operating expenses rose 2.5 percent to $55.9 million in the first quarter from a year ago, driven by higher operating costs from the completed Bank of America branch acquisitions and atypically higher seasonal maintenance and utility costs, the banking company said in its earnings report.
“Community Bank’s trend of solid execution continued again in 2014’s first quarter, with strong operating results demonstrating the strength of our diversified franchise,” President and CEO Mark E. Tryniski said. “The momentum from our successful balance sheet initiatives and branch acquisitions in 2013 were catalysts for improved results as we began 2014. Our employee benefit services and wealth management groups delivered record earnings on robust growth in existing and new customer relationships. Loans and deposits grew from year-ago levels, while strong asset quality continued to reflect the strength of our underwriting and stable economic trends in our markets.”
DeWitt–based Community Bank System has more than 190 branch offices across upstate New York and northeastern Pennsylvania through its banking subsidiary, Community Bank, N.A. With assets of about $7.4 billion, Community Bank is among the nation’s 100 largest financial institutions.
Contact Rombel at arombel@cnybj.com
