DeWITT — Community Bank System, Inc. (NYSE: CBU) reported third quarter net income of $43.1 million, or 83 cents a share, up 22 percent from $35.2 million, or 68 cents, in the year-earlier period. Higher net interest income, increased noninterest revenue, and a lower effective tax rate led the growth, offset partly by higher operating […]
DeWITT — Community Bank System, Inc. (NYSE: CBU) reported third quarter net income of $43.1 million, or 83 cents a share, up 22 percent from
$35.2 million, or 68 cents, in the year-earlier period.
Higher net interest income, increased noninterest revenue, and a lower effective tax rate led the growth, offset partly by higher operating expenses, the DeWitt–based banking company said in its earnings report issued on Oct. 22.
Community Bank’s earnings per share of 83 cents in the quarter topped the consensus analyst estimate of 79 cents, according to Zacks Equity Research. The research firm says Community has topped analyst estimates in each of the last four quarters.
The banking company’s revenue in the third quarter totaled $142 million, up 3.4 percent over the year-earlier period. Community recorded a 2.1 percent increase in net interest income and 5.4 percent rise in noninterest revenue.
Community Bank generated $14.4 million of wealth management and insurance services revenue in the third quarter, a nearly 20 percent increase over the third quarter of 2017. In the last year, the banking company acquired four small insurance and wealth management practices, contributing to revenue growth.
Community’s employee-benefit services revenue of $23.3 million in the latest quarter was up 12 percent from a year prior, led by organic increases in plan asset and participant levels, the earnings report stated.
“Looking forward, we have significant revenue and earnings momentum, reasonable credit demand, a solid funding base, and we continue to accrete capital at a substantial pace,” Mark Tryniski, CEO and president of Community Bank System, said on the company’s earnings conference call with analysts and investors. “The strategic focus for 2019, will be on capital allocation to ensure the continuation of above-average shareholder returns with below-average balance sheet and operating risk.”
Community Bank operates more than 230 branches across upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts.