Community Bank System (CBU) Tops Q1 EPS by 3c

Community Bank System (NYSE: CBU) reported Q1 EPS of $0.77, $0.03 better than the analyst estimate of $0.74.

“The Company produced solid earnings results in the first quarter in spite of the unprecedented challenges posed by the COVID-19 crisis and related market conditions” said Mark Tryniski, President & CEO. “The Company’s operating earnings per share were down $0.04, as compared to the first quarter of last year due largely to the COVID-19 crisis and its related impacts on the Company’s operations. In particular, the Company recorded $5.6 million in the provision for credit losses in the first quarter of 2020 reflective of expected credit losses related to COVID-19 and the associated rapid decline in economic conditions. The Company recorded net charge-offs in the first quarter of $1.6 million, or 0.09% annualized. In addition, the Company’s net interest income was negatively impacted during the quarter due to the significant and rapid decrease in short term interest rates and tighter margins. Despite these events and challenges, the Company generated $0.77 in operating earnings per share and a 1.41% return on average assets for the quarter. Noninterest revenues in the Company’s financial services businesses were up 6.0%, over the first quarter of last year. Ending total loans were down $24.5 million, or 0.4%, from the end of 2019. Outstanding balances in the business lending segment were up slightly in the quarter, but were offset by a net decrease in outstanding balances in the consumer loan portfolios, as typically experienced in the first quarter. Ending total deposits were up $309.0 million, or 3.4%, as seasonally expected.”

Mr. Tryniski added, “As we navigate the COVID-19 crisis, we believe our Company is well-prepared to endure its impacts. The Company has very high levels of capital and liquidity, diversified revenue streams, a strong credit record and an experienced management team. I am very proud of the diligent efforts and steadfast commitment our management team and employees have put forth to maintain operational continuity and high levels of customer service during this crisis. We are concerned about the health and welfare of our employees, customers, shareholders and communities, and are supporting all of our stakeholders throughout this crisis in a thoughtful, disciplined and compassionate manner. We especially appreciate our employees’ efforts in this trying time and we will continue to persevere. In addition, I would like to recognize the contributions of Scott Kingsley, Executive V.P. and Chief Operating Officer, who has decided to retire at the end of the second quarter. Over the last fifteen years, Scott has been an exceptional leader and we are grateful for his service to the Company and its shareholders and wish him well in his retirement.”

For earnings history and earnings-related data on Community Bank System (CBU) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c