NYSE$CBU
Community Bank System Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Community Bank System reported solid earnings despite COVID-19 challenges, with net income at $40.1 million and EPS at $0.76.
Community Bank System reported a net income of $40.1 million, or $0.76 per fully-diluted share, for the first quarter of 2020. The company's performance was impacted by the COVID-19 crisis, leading to an increase in the provision for credit losses. Despite these challenges, the company generated $0.77 in operating earnings per share and a 1.41% return on average assets.
- Net income for Q1 2020 was $40.1 million, or $0.76 per share, compared to $41.9 million, or $0.80 per share, in Q1 2019.
- Operating earnings per share were $0.77 for Q1 2020, down from $0.81 in Q1 2019, impacted by COVID-19 and related impacts.
- Total revenues increased by 4.3% to $148.7 million, driven by increases in both net interest income and noninterest revenues.
- 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.
Headline financials
Revenue & EPS history
Community Bank · Revenue · Quarterly
$149M
Revenue by segment
Community Bank · $33.5M total across 2 segments · Q1 2020
- Employee Benefit$25.4M+5.4%75.8%
- Insurance Services$8.1M+2.5%24.2%
Forward guidance
The COVID-19 crisis is expected to continue impacting the Company’s financial results, as well as demand for its services and products during the second quarter of 2020 and potentially beyond. The short and long-term implications of the COVID-19 crisis, and related monetary and fiscal stimulus measures, on the Company’s future revenues, earnings results, allowance for credit losses, capital reserves, and liquidity are unknown at this time.
Tailwinds
- Believes its financial position, including high levels of capital and liquidity, will allow it to successfully endure the negative economic impacts of the crisis.
- Capital planning and capital management activities, coupled with its historically strong earnings performance and prudent dividend practices, have allowed it to build and maintain strong capital reserves.
- All of the Company’s regulatory capital ratios significantly exceeded all well-capitalized standards.
- The Company’s primary Bank subsidiary maintains a funding base largely comprised of core noninterest bearing demand deposit accounts and low cost interest-bearing savings, interest checking and money market deposit accounts with customers that operate, reside or work within its branch footprint.
- The Company has approved 1,395 PPP loans totaling $351.9 million.
Headwinds
- COVID-19 crisis is expected to continue to impact the Company’s financial results, as well as demand for its services and products during the second quarter of 2020 and potentially beyond.
- The short and long-term implications of the COVID-19 crisis, and related monetary and fiscal stimulus measures, on the Company’s future revenues, earnings results, allowance for credit losses, capital reserves, and liquidity are unknown at this time.
- The Company anticipates that the number and amount of COVID-19 financial hardship payment deferral requests will increase significantly during the second quarter of 2020.
- Due to the COVID-19 crisis and pending regulatory approval, it is uncertain as to whether or not the effective date of the merger with Steuben Trust Corporation will be postponed.
- 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.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+0.2%
Avg return
Earnings day
-0.0%
Avg return
5 days after
+2.7%
Avg return
30 days after
57%
37 / 65 earnings
Positive
+5.8%
Q3 2015
Best reaction
-9.5%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.0% | -4.1% | -1.1% | |
| Q4 2025 | -0.6% | +1.2% | +2.0% | |
| Q3 2025 | -0.1% | +2.4% | -2.1% | |
| Q1 2025 | -2.1% | +2.2% | +1.9% | |
| Q4 2024 | +2.5% | +3.8% | +1.1% | |
| Q3 2024 | -1.2% | -4.0% | +17.1% | |
| Q2 2024 | +1.3% | +5.8% | -0.8% | |
| Q1 2024 | +2.0% | +0.4% | +4.4% | |
| Q4 2023 | -4.5% | +1.1% | +7.2% | |
| Q3 2023 | -4.8% | -2.7% | +13.0% | |
| Q2 2023 | +4.9% | +2.4% | -11.4% | |
| Q1 2023 | -1.5% | +5.8% | +3.1% | |
| Q4 2022 | -9.5% | -8.2% | -1.1% | |
| Q3 2022 | -1.4% | +1.7% | +6.2% | |
| Q2 2022 | +1.0% | +2.9% | +3.0% | |
| Q1 2022 | -1.2% | -5.1% | -4.7% | |
| Q4 2021 | +4.2% | +0.4% | +1.1% | |
| Q3 2021 | -1.7% | -2.6% | +1.7% | |
| Q2 2021 | +0.2% | -0.2% | +2.9% | |
| Q1 2021 | -0.5% | -1.2% | +1.7% | |
| Q4 2020 | -4.5% | -8.1% | +4.4% | |
| Q3 2020 | -1.4% | -1.6% | +11.6% | |
| Q2 2020 | -3.0% | -5.0% | +1.4% | |
| Q1 2020 | -3.3% | -2.8% | -8.6% | |
| Q4 2019 | -0.1% | -2.7% | -2.5% | |
| Q3 2019 | +4.3% | +5.7% | +5.0% | |
| Q2 2019 | +0.6% | +1.9% | -4.5% | |
| Q1 2019 | +4.0% | +5.0% | +3.6% | |
| Q4 2018 | -5.0% | -3.8% | +2.1% | |
| Q3 2018 | -1.9% | -2.9% | +8.4% | |
| Q2 2018 | +2.9% | +2.3% | +5.9% | |
| Q1 2018 | +5.1% | +4.9% | +10.4% | |
| Q4 2017 | +0.7% | -2.9% | -1.3% | |
| Q3 2017 | -3.6% | -2.1% | -4.2% | |
| Q2 2017 | +2.4% | +2.6% | -4.6% | |
| Q1 2017 | +5.8% | +2.8% | +0.9% | |
| Q4 2016 | +3.6% | +4.4% | +5.3% | |
| Q3 2016 | -1.1% | -2.5% | +19.0% | |
| Q2 2016 | +2.0% | +1.9% | +7.0% | |
| Q1 2016 | +0.3% | — | — | |
| Q4 2015 | -3.0% | — | — | |
| Q3 2015 | +5.8% | — | — | |
| Q2 2015 | +1.3% | — | — | |
| Q1 2015 | +1.5% | — | — | |
| Q4 2014 | +2.5% | — | — | |
| Q3 2014 | +3.1% | — | — | |
| Q2 2014 | +1.6% | — | — | |
| Q1 2014 | +1.0% | — | — | |
| Q4 2013 | +0.2% | — | — | |
| Q3 2013 | +0.6% | — | — | |
| Q2 2013 | +0.1% | — | — | |
| Q1 2013 | +1.3% | — | — | |
| Q4 2012 | -0.9% | — | — | |
| Q3 2012 | +0.3% | — | — | |
| Q2 2012 | -0.7% | — | — | |
| Q1 2012 | +2.1% | — | — | |
| Q4 2009 | +1.4% | — | — | |
| Q4 2011 | +1.4% | — | — | |
| Q4 2010 | +1.4% | — | — | |
| Q3 2011 | -4.0% | — | — | |
| Q3 2010 | -4.0% | — | — | |
| Q2 2010 | -4.0% | — | — | |
| Q2 2011 | +1.4% | — | — | |
| Q1 2011 | +1.4% | — | — | |
| Q1 2010 | +5.0% | — | — |
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