DeWITT — Community Financial System, Inc. (NYSE: CBU), the parent company of Community Bank N.A., reported third quarter net income of $43.9 million, down slightly from $44.1 million a year ago.

Earnings per share rose to 83 cents in the third quarter from 82 cents in the same quarter last year, according to the banking company’s Oct. 22 earnings report.

“Our banking business had a strong quarter,” Community Financial System President/CEO Dimitar Karaivanov said during an Oct. 22 conference call with investors, analysts, and the media. “Net interest income surpassed the prior peak from the fourth quarter of 2022, and we’re not up on a year-to-date basis compared to 2023.”

Community Financial System’s net interest income totaled $112.7 million in the third quarter, up 4.6 percent in the same quarter in 2023.

“This positions us well for the fourth quarter, and I expect that we will continue our annual net interest income growth streak, which dates back to 2006,” Karaivanov said. “Balance sheet growth was excellent on both sides and pipelines remain in good shape. I will note that loan growth this quarter was a bit higher than trend, driven by a couple of larger closings which are relationships we’ve been working on for multiple quarters.”

Community Financial System increased its total revenue by 7.7 percent to $188.9 million in the third quarter, a fourth straight new quarterly record for the banking company.

Along with Community Bank, Community Financial also operates Benefit Plans Administrative Services Inc., which provides employee-benefits administration, trust services, collective investment fund administration, and actuarial consulting services; OneGroup NY, Inc., an insurance agency; and Community Bank Wealth Management, a financial planning, trust administration, and wealth-management operating unit.

Employee-benefit services revenue grew $3.2 million to $33.2 million during the third quarter, driven by new business and increase in the total participants under administration. Insurance revenue increased $1.5 million to $13.7 million for the quarter, up from a year ago due to organic and acquired growth in commission revenues. Wealth-management revenue was $8.9 million in the third quarter, up $1 million from a year ago, reflecting a more favorable investment market that drove increases in assets under management.

Non-interest expenses also increased during the third quarter, increasing from $116.5 million a year ago to $124.2 million this year. About $7.7 million of the increase was due to higher salaries and benefit costs as well as data processing and communications expenses.

Community Financial also opened the its first new branch as part of its strategic branch expansion plan announced last year.

“Our Hanover Square branch in Syracuse is now open and off to a great start, and we’re progressing well on the other 17 locations,” Karaivanov said. “In aggregate, I would say that I’m particularly encouraged by two things. Number one, our ability to continue to attract both leadership and execution talent with a few key hires this quarter across all businesses. And number two, the momentum with new client acquisition across all businesses. We continue to operate from a position of strength and actively gain market share.”

Community Bank had total deposits of $13.48 billion on Sept. 30, up from $13.03 billion on Dec. 31, 2023.

Community Bank operates about 200 branches across New York, Pennsylvania, Vermont, and Massachusetts.