munity Bank System(CBU) - 2024 Q4 - Annual Results

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].