Community Bank System Inc. Announces Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Records Net Charge-Offs for the Third Quarter of 2016; Provides Tax Rate Guidance for 2016
October 24, 2016 at 06:45 am EDT
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Community Bank System Inc. announced unaudited earnings results for the third quarter and nine months ended September 30, 2016. Total revenue for the third quarter of 2016 was $108.4 million, an increase of $14.7 million, or 15.6%, over the prior year quarter, and included the impact of the Oneida Financial transaction completed in December of last year. The higher revenue was generated as a result of a 7.9% increase in average earning assets and continued acquired and organic growth in noninterest income, combined with a two basis-point increase in net interest margin from the prior year quarter. For the quarter, the company reported total interest income of $71,322,000 compared with $65,284,000 for the same period a year ago. Net interest income was $68,463,000 compared with $62,363,000 for the same period a year ago. Income before income taxes was $40,399,000 compared with $35,764,000 for the same period a year ago. Net income was $27,160,000 compared with $25,022,000 for the same period a year ago. Diluted earnings per share were $0.61 compared with $0.60 for the same period a year ago. Book value per share was $27.97 compared with $25.48 for the same period a year ago. Tangible book value per share was $18.06 compared with $17.05 for the same period a year ago. Return on assets was 1.24% compared with 1.25% for the same period a year ago. Return on equity was 8.71% compared with 9.77% for the same period a year ago. Return on tangible equity was 13.52% compared with 14.82% for the same period a year ago.
For the nine months, the company reported total interest income of $212,188,000 compared with $191,618,000 for the same period a year ago. Net interest income was $203,650,000 compared with $183,431,000 for the same period a year ago. Income before income taxes was $114,968,000 compared with $102,387,000 for the same period a year ago. Net income was $77,420,000 compared with $71,159,000 for the same period a year ago. Diluted earnings per share were $1.74 compared with $1.72 for the same period a year ago.
For the quarter, the company reported net charge-offs of $1,432,000 compared with $1,473,000 for the same period a year ago.
The company announced 22 percentage-points increase in full year expected tax rate in 2016. Net interest margin has remained in a fairly narrow band from 3.65% to 3.73% over the past 5 quarters, a range The company expects to operate in for at least the next couple of quarters.
Community Financial System, Inc., formerly Community Bank System, Inc., is a diversified financial services company. The Company is focused on four main business lines, such as banking, employee benefit services, insurance services and wealth management. The Companyâs banking subsidiary, Community Bank, N.A., operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. The Companyâs Benefit Plans Administrative Services, Inc. subsidiary is a provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Companyâs OneGroup NY, Inc. subsidiary is a United States insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Wealth Management operating unit.
Community Bank System Inc. Announces Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Records Net Charge-Offs for the Third Quarter of 2016; Provides Tax Rate Guidance for 2016