Branch Operations and Acquisitions - As of December 31, 2024, the Company operates 185 full-service branches and 11 drive-thru only locations across 42 counties in Upstate New York, six counties in Northeastern Pennsylvania, 12 counties in Vermont, and one county in Western Massachusetts[17]. - In 2024, the Company completed acquisitions of three insurance agencies in New York and two in Florida for a total consideration of $10.3 million, including $9.6 million in cash[19]. - The Company acquired certain assets of Creative Plan Designs Limited for $5.9 million in cash plus contingent consideration valued at $3.0 million, with net assets acquired totaling $4.5 million[20]. - The merger with Elmira Savings Bank in 2022 was completed for $82.2 million in cash, enhancing the Company's presence in five counties and adding eight full-service offices[23]. - The Company recorded goodwill of $42.1 million as a result of the Elmira merger, with identifiable assets acquired amounting to approximately $583.6 million[23]. - The Company recorded goodwill of $3.9 million from the 2024 insurance agency acquisitions, with net assets acquired totaling $6.4 million[19]. - The Company is expanding its branch presence in densely populated markets including Albany, Buffalo, Rochester, and Syracuse in New York, as well as the Lehigh Valley in Pennsylvania and Springfield, Massachusetts[25]. Employee and Recruitment - The Company employs a total of 2,918 employees, with 2,079 in the Banking and Corporate segment, 459 in Employee Benefit Services, 267 in Insurance Services, and 113 in Wealth Management Services[34]. - The Company continues to engage in partnerships to enhance recruitment efforts, particularly focusing on military and veteran families[40]. Regulatory Compliance and Risks - The Company is classified as a financial holding company and must maintain a "well capitalized" and "well managed" status to engage in certain financial activities[47]. - The Bank's most recent Community Reinvestment Act rating was "Satisfactory," which allows the Company to engage in new activities and acquisitions[49]. - The Company is subject to extensive regulation by the Federal Reserve, OCC, and other federal and state regulators, impacting its operational practices[44]. - The Company expects regulatory reforms under the Trump administration to differ significantly from those under the Biden administration, affecting federal banking agency priorities[44]. - The Bank is required to comply with capital requirements set by the OCC, which may include higher individual minimum capital ratios[53]. - The Company and the Bank are subject to enforcement actions for violations of laws, which can result in civil money penalties exceeding $2 million per day[59]. - The Company is subject to the CFPB's supervision due to total consolidated assets exceeding $10 billion, which may lead to increased compliance costs[64]. - The Capital Rules require the Company to maintain a Common Equity Tier 1 (CET1) ratio of at least 7% and a capital conservation buffer of 2.5%[72]. - The minimum capital ratios under the Capital Rules include 4.5% CET1 to total risk-weighted assets and 8.0% total capital to total risk-weighted assets[74]. - The Company may face increased operating and compliance costs due to ongoing regulatory changes stemming from the Dodd-Frank Act[69]. - The Company is required to comply with the new anti-money laundering obligations starting January 1, 2026, as mandated by FinCEN[86]. - The Company has approved policies to comply with the USA Patriot Act, which imposes obligations on financial institutions to detect and report money laundering and terrorism financing[87]. - The Company has established policies to comply with OFAC regulations, which impose economic sanctions affecting transactions with designated foreign entities[88]. - The Sarbanes-Oxley Act requires the Company to maintain strict corporate governance and reporting reforms, including increased disclosure obligations[89]. - New CRA regulations effective January 1, 2026, aim to expand access to credit and adapt to changes in the banking industry[91]. - The Company must notify regulators of significant cybersecurity incidents within 36 hours, as per new federal rules[92]. Financial Performance - The Company reported net income of $182.5 million for the year ended December 31, 2024, an increase of $50.6 million, or 38.3%, compared to the prior year, with earnings per share of $3.44, up $0.99, or 40.4%[204]. - Net interest income increased to $449.1 million in 2024, marking an $11.8 million, or 2.7%, increase from the prior year, representing the eighteenth consecutive year of growth[206]. - Noninterest revenues reached record results across all four operating segments: banking, employee benefit services, insurance services, and wealth management services[206]. - The provision for credit losses increased from 2023 due to some degradation in asset quality metrics and an increase in loans outstanding, reflecting continued macroeconomic uncertainty[205]. - The Company's net interest margin for the full year 2024 was 3.04%, a decrease of seven basis points from the prior year, while the fully tax-equivalent net interest margin was 3.07[207]. - The yield on average interest-earning assets increased by 51 basis points compared to the prior year, driven by improved yields on loans, investments, and interest-earning cash equivalents[207]. - Average and ending interest-earning assets increased year-over-year due to strong organic loan growth, while average and ending deposits also rose, primarily from higher governmental deposit balances[208]. - The Company updated its allowance for credit losses (ACL) model in 2024 to incorporate 2023 results and specific forecasts for office property prices and vacancy rates[195]. - A hypothetical downside economic forecast indicated a peak unemployment rate of 8.3% and a cumulative decline in real GDP of 2.6%, which could increase the ACL by approximately $4.7 million[195]. - The Company performed qualitative goodwill analyses for all operating segments, determining that fair values exceeded carrying values, thus no impairment was recognized[199]. - Operating net income for 2024 was $193.9 million, an increase of $1.2 million, or 0.6%, compared to the prior year[210]. - Operating pre-tax, pre-provision net revenue (PPNR) for 2024 was $273.6 million, an increase of $17.2 million, or 6.7%, compared to 2023[210]. - Nonperforming and delinquency ratios increased from 2023 levels but remained below the Company's 10-year historical averages[209]. - Other noninterest revenues for 2024 were $296.4 million, an increase from $267.0 million in 2023[213]. Cybersecurity and Operational Risks - The Company has developed a comprehensive cybersecurity framework to mitigate risks associated with data breaches and cyberattacks, which could lead to financial losses and reputational damage[155]. - The Chief Information Security Officer (CISO) leads the cybersecurity efforts, supported by a team with relevant certifications and experience[158]. - The Company’s cybersecurity strategy includes collaboration with external technology partners to enhance defenses against evolving threats[160]. - The Company’s internal audit department conducts regular assessments of the cybersecurity program to ensure effectiveness and compliance with regulatory standards[161]. - The Company has conducted annual mandatory cybersecurity training for all employees to enhance awareness of risks[166]. - The Company has a third-party service provider management program to assess risks associated with third-party services[164]. - The Company faces significant operational risks due to rapid technological changes in the financial services industry, which could adversely impact its financial condition and results of operations[121]. - The Company is exposed to fraud risks as the sophistication of fraudulent activities increases, potentially leading to operational losses[122]. - The Company relies heavily on automated systems for transaction processing, which increases the risk of errors and operational disruptions[125]. - Cybersecurity threats are on the rise, and any breaches could result in significant regulatory consequences and reputational damage[126]. - The Company must comply with evolving data security and privacy regulations, which may increase operational costs and legal risks[129]. - The Company depends on third-party service providers for key business functions, exposing it to additional cybersecurity risks and potential service interruptions[130]. Economic and Market Conditions - The Company's performance is significantly influenced by regional economic conditions, particularly in New York, Pennsylvania, Vermont, Massachusetts, and New Hampshire[133]. - The financial services industry is highly competitive, with pressures that could negatively affect the Company's revenue and profitability[134]. - Changes in equity markets can materially impact the level of assets under management, affecting the demand for fee-based services and overall earnings[137]. - The Company may need to record impairment charges related to goodwill and other intangible assets due to various adverse factors[139]. - The Company’s loan portfolio includes 9% of loans acquired through whole-bank acquisitions that were not underwritten at origination, posing a risk of larger-than-anticipated credit losses[153]. - Recent developments in the banking industry have eroded customer confidence, potentially impacting the Company’s liquidity and loan funding capacity[149]. - The Company anticipates increased regulatory scrutiny and potential new regulations following recent bank failures, which may raise operational costs and reduce profitability[150]. - Economic conditions such as high inflation, supply chain disruptions, and changes in consumer spending could adversely affect the Company’s financial performance[141]. - The Company’s consumer businesses are particularly sensitive to changes in personal incomes, unemployment rates, and inflation, which could negatively impact credit performance[146]. Real Estate and Property Management - The Company has 257 properties, with 152 owned and 105 leased, and operates 185 full-service bank branches[174]. - The net book value of real property and related banking facilities owned by the Company was $106.1 million as of December 31, 2024[175]. - The Company paid $11.2 million in rental fees for leased facilities during the year ended December 31, 2024[175]. - The Company has 1,898,557 securities available for issuance under its equity compensation plans as of December 31, 2024[184]. Shareholder Returns - The Company declared a cash dividend of $0.46 per share for the first quarter of 2025, continuing its history of regular quarterly cash dividends[180]. - The Board approved a new stock repurchase program for up to 2,628,000 shares, representing 5.0% of the Company's common stock outstanding[187].

Core Insights - The individual has a strong interest in financial markets, particularly in fundamental analysis, which evaluates a company's actual results rather than price movements [1] - The focus is primarily on long-term investments in stocks and ETFs, with a preference for US companies, while also analyzing European and Chinese firms [1] - The banking sector is highlighted as a key area of interest, as it is essential for understanding the overall health of an economy [1] Investment Approach - The investment strategy is characterized by a contrarian view, indicating a willingness to go against prevailing market trends [1] - The individual emphasizes the importance of macroeconomics in investment decisions, suggesting a holistic approach to market analysis [1]

Core Insights - Community Financial System, Inc. reported a solid performance in Q4 2024 with operating PPNR of $1.40 per share, reflecting an 8.5% increase from the prior quarter and a 23.9% increase year-over-year [3] - The company achieved an overall growth in operating PPNR per share by 8.2% and operating earnings per share by 2.2% in 2024, contrasting with a projected 5% decline in the overall KRX index [4] Financial Performance - The operating PPNR of $1.40 per share indicates strong financial health and effective management strategies [3] - The increase in ACL (Allowance for Credit Losses) from 69 basis points of loans at the end of 2023 contributed to the difference between operating PPNR and operating earnings per share [4] Management Commentary - The CEO highlighted margin expansion, excellent liquidity, strong fee performance, and well-managed expenses as key factors contributing to the company's success in 2024 [3]

Financial Data and Key Metrics Changes - The company reported operating PPNR of $1.40 per share, which grew 8.5% compared to the prior quarter and 23.9% compared to last year's fourth quarter [3] - For the full year 2024, operating PPNR per share increased by 8.2% and operating earnings per share grew by 2.2%, despite the overall KRX index projected to have lower earnings by approximately 5% [4] Business Line Data and Key Metrics Changes - The company highlighted strong fee performance and well-managed expenses, contributing to overall financial health [3] Market Data and Key Metrics Changes - The company noted an increase in the allowance for credit losses (ACL) from 69 basis points of loans at the end of 2023, which impacted the delta between operating PPNR and operating earnings per share [4] Company Strategy and Development Direction - The management expressed satisfaction with the company's performance in 2024 and indicated a focus on maintaining strong liquidity and margin expansion moving into 2025 [3] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment reflected in the KRX index but emphasized the company's ability to grow despite these challenges, indicating a positive outlook for 2025 [4] Other Important Information - The company emphasized its strong credit performance, which is a critical factor in its overall financial stability [3] Q&A Session Summary Question: What are the expectations for growth in 2025? - Management indicated a positive outlook for growth in 2025, building on the solid performance of 2024 [4]

Core Insights - Community Financial System (CBU) reported revenue of $197.17 million for Q4 2024, marking a year-over-year increase of 10.8% and exceeding the Zacks Consensus Estimate of $193.45 million by 1.92% [1] - The earnings per share (EPS) for the quarter was $0.94, up from $0.76 a year ago, and also surpassed the consensus EPS estimate of $0.90 by 4.44% [1] Financial Performance Metrics - The efficiency ratio (GAAP) was reported at 64%, slightly better than the three-analyst average estimate of 64.5% [4] - The net interest margin stood at 3.2%, exceeding the average estimate of 3.1% from three analysts [4] - Total interest-earning assets averaged $15.04 billion, compared to the $14.94 billion average estimate based on two analysts [4] - Total non-interest income was $76.31 million, slightly above the estimated $76.20 million from three analysts [4] - Deposit service and other banking fees were reported at $19.32 million, below the two-analyst average estimate of $19.47 million [4] - Mortgage banking income was $0.75 million, compared to the average estimate of $0.79 million from two analysts [4] - Fully tax-equivalent net interest income was $120.86 million, exceeding the two-analyst average estimate of $118.16 million [4] - Employee benefit services income was reported at $33.95 million, above the two-analyst average estimate of $33.59 million [4] Stock Performance - Community Financial's shares returned +1.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Fourth quarter net income was $49.8 million, or $0.94 per share, an increase of $0.31 per share from the prior year's fourth quarter [4]. - Full year net income reached $182.5 million, or $3.44 per share, up $0.99 per share from the previous year [8]. - Fourth quarter total revenues were $196.3 million, a record high, increasing by $19.3 million, or 10.9%, year-over-year [4]. - Full year total revenues amounted to $746.3 million, an increase of $94.2 million, or 14.4%, from the prior year [4]. - Operating pre-tax, pre-provision net revenue (PPNR) for the fourth quarter was $74.3 million, or $1.40 per share, an increase of $0.27 per share from the prior year's fourth quarter [4]. - Full year operating PPNR was $273.6 million, or $5.15 per share, up $0.39 per share from the previous year [4]. - The Company reported a net income of $49.8 million, or $0.94 per share, for Q4 2024, compared to $33.7 million, or $0.63 per share, in Q4 2023, reflecting a $0.31 increase in earnings per share [15]. - Net income for Q4 2024 was $49,793, representing a 47.8% increase from $33,706 in Q4 2023 [34]. - Basic earnings per share for Q4 2024 increased to $0.94, up from $0.63 in Q4 2023, a growth of 49.2% [34]. - Total noninterest revenues for Q4 2024 were $76,314, a 12.6% increase from $67,769 in Q4 2023 [34]. Revenue and Income Sources - Fourth quarter net interest income was $120.0 million, up $10.8 million, or 9.9%, from the same quarter last year [4]. - Net interest income for Q4 2024 was $120.0 million, up $10.8 million, or 9.9%, from Q4 2023, and up $7.2 million, or 6.4%, from Q3 2024 [17]. - The net interest margin for Q4 2024 was 3.17%, an increase of 12 basis points from Q4 2023, driven by higher yields on interest-earning assets [17]. - Noninterest revenues from banking and financial services accounted for 38.8% of total revenues in Q4 2024 [18]. - Loan income for Q4 2024 reached $144,638, an increase of 18.1% compared to $122,392 in Q4 2023 [33]. - Total interest income for the year-to-date 2024 was $643,528, up 18.9% from $541,388 in 2023 [33]. Expenses and Efficiency - Total noninterest expenses decreased by $3.6 million, or 2.8%, to $125.5 million in Q4 2024 compared to Q4 2023, primarily due to non-operating expenses in the prior year [21]. - Total noninterest expenses decreased to $125,539 in Q4 2024 from $129,091 in Q4 2023, a reduction of 2.0% [34]. - The efficiency ratio (GAAP) improved to 64.0% in Q4 2024 from 72.9% in Q4 2023 [34]. - The efficiency ratio (GAAP) improved to 64.0% in Q4 2024 from 72.9% in Q4 2023, reflecting better cost management [42]. Assets and Liabilities - The Company's total assets were $16.39 billion at December 31, 2024, representing a $830.3 million, or 5.3%, increase from the previous year [21]. - Total ending loans reached $10.43 billion, increasing by $727.8 million, or 7.5%, from the end of the prior year [4]. - Total ending deposits were $13.44 billion, a decrease of $34.5 million, or 0.3%, from the previous quarter but an increase of $513.6 million, or 4.0%, year-over-year [4]. - Ending loans at December 31, 2024 were $10.43 billion, an increase of $180.7 million, or 1.8%, from the previous quarter and $727.8 million, or 7.5%, year-over-year [5]. - The allowance for credit losses totaled $79.1 million, or 0.76% of total loans, up from $66.7 million, or 0.69%, one year prior [5]. - Shareholders' equity was $1.76 billion, up $64.9 million, or 3.8%, year-over-year, but down $22.1 million, or 1.2%, from the previous quarter [26]. Capital and Ratios - The Tier 1 leverage ratio stood at 9.19%, significantly exceeding the regulatory well-capitalized standard of 5.0% [4]. - The Company's tier 1 leverage ratio was 9.19% at December 31, 2024, remaining above the regulatory well-capitalized standard of 5.0% [25]. - Return on assets (GAAP) for Q4 2024 was 1.21%, up from 0.87% in Q4 2023 [34]. - Return on equity (GAAP) increased to 11.27% in Q4 2024, up from 8.53% in Q4 2023, showing a significant improvement [39]. - Return on tangible equity (non-GAAP) for Q4 2024 was 21.97%, up from 18.75% in Q4 2023, showcasing enhanced profitability [42]. - Operating return on equity (non-GAAP) for Q4 2024 was 11.99%, compared to 11.10% in Q4 2023, indicating improved operational efficiency [39]. Dividends and Shareholder Returns - The quarterly cash dividend was increased to $0.46 per share, representing an annualized yield of 2.9% based on the stock price of $63.26 [26]. - The Company approved a stock repurchase program for up to 2.63 million shares, or 5.0% of outstanding common stock, starting January 1, 2025 [26]. - Cash dividends declared per common share remained stable at $0.46 in Q4 2024, consistent with Q4 2023 [37]. - The common stock price at quarter-end rose to $61.68 in Q4 2024, up from $52.11 in Q4 2023, reflecting a growth of 18.3% [37]. Credit Quality - Total delinquent loans as a percentage of total loans outstanding was 1.24% at the end of 2024, compared to 1.06% at the end of 2023 [5]. - Nonperforming loans increased to $73,387 thousand in Q4 2024 from $54,573 thousand in Q4 2023, indicating a rise of 34.3% [37]. - Provision for credit losses in Q4 2024 was $6,208, compared to $4,073 in Q4 2023, reflecting a 52.5% increase [33]. - The allowance for credit losses as a percentage of loans outstanding was 0.76% in Q4 2024, up from 0.69% in Q4 2023 [37].

分组1 - Community Financial System (CBU) reported quarterly earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and up from $0.76 per share a year ago, representing an earnings surprise of 4.44% [1] - The company posted revenues of $197.17 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.92%, compared to year-ago revenues of $178 million [2] - Community Financial has outperformed the market with a 2.6% increase in shares since the beginning of the year, compared to the S&P 500's gain of 2% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.92 on revenues of $195.89 million, and for the current fiscal year, it is $4 on revenues of $824.49 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The estimate revisions trend for Community Financial is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Core Insights - Analysts project Community Financial System (CBU) to announce quarterly earnings of $0.90 per share, an increase of 18.4% year over year, with revenues expected to reach $193.45 million, up 8.7% from the same quarter last year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating analysts' stable outlook [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Financial Metrics - Analysts expect the Efficiency ratio (GAAP) to be 64.5%, down from 69.7% in the same quarter last year [5] - The estimated Net Interest Margin is projected at 3.1%, unchanged from the year-ago figure [5] - Average Balances - Total interest-earning assets are expected to reach $14.94 billion, up from $14.22 billion in the same quarter last year [6] - Total Non-Interest Income is projected to be $76.20 million, compared to $67.77 million in the same quarter last year [6] - Deposit service and other banking fees are expected to reach $19.47 million, up from $18 million a year ago [7] - Fully tax-equivalent net interest income is forecasted at $118.16 million, compared to $110.23 million in the previous year [7] - Employee benefit services are projected to reach $33.59 million, up from $30.02 million last year [7] Stock Performance - Over the past month, Community Financial shares have recorded a return of -5.6%, compared to the Zacks S&P 500 composite's -3.3% change, indicating a performance that aligns with the overall market [8]

Community Financial System (CBU) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.I ...

SYRACUSE, N.Y., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Community Financial System, Inc. (NYSE: CBU) invites you to participate in a conference call to discuss the Company’s financial and operating performance during its fourth quarter and full year ended December 31, 2024. Event:Earnings Conference Call – Fourth Quarter 2024When:Tuesday, January 21, 2025 at 11:00 a.m. Eastern TimeHow:By conference call or from a simultaneous web castAccess:Conference Call Dial-In:1-833-630-0464 1-412-317-1809 – Outside the U.S. ...