Community Bank System (CBU) Tops Q2 EPS by 13c

Community Bank System (NYSE: CBU) reported Q2 EPS of $0.73, $0.13 better than the analyst estimate of $0.60.

During the first quarter of 2017, the Company adopted new accounting guidance for share-based transactions. That guidance requires that all excess tax benefits and tax deficiencies associated with share-based compensation be recognized as income tax expense or benefit in the income statement. Previously, tax effects resulting from changes in the Company’s share price subsequent to the grant date of equity instruments were recorded through shareholders’ equity at the time of vesting or exercise. The adoption of the amended accounting guidance resulted in a $2.2 million reduction of income tax expense in the first quarter of 2017, or $0.04 of diluted earnings per common share, and a $0.3 million reduction of income tax expense in the second quarter, or less than $0.01 per share. The second quarter 2017 effective income tax was 31.0%, and reflected $0.3 million reduction in income tax expense related to this change in accounting for share-based transactions. Excluding that change, the core effective income tax rate would have been approximately 32.3%, compared to 32.7% in the second quarter of 2016, and included the impact of the non-recurring acquisition expenses incurred in the first six months of 2017.

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

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