Community Bank System Inc · Q1 2021 earnings

Briefing

Community Bank System reported solid first quarter earnings results driven by improving economic conditions, lower credit-related costs, higher revenues, and lower operating expenses.

Community Bank System reported a strong first quarter in 2021, with net income increasing to $52.9 million, or $0.97 per share, compared to $40.1 million, or $0.76 per share, for the same period in 2020. The increase in earnings was primarily driven by higher net interest income, a significant decrease in the provision for credit losses, and lower operating expenses.

• Earnings per share increased by 27.6% compared to Q1 2020, driven by improving economic conditions and lower credit-related costs.
• Net interest income rose by 4.3% year-over-year due to growth in earning assets and lower funding costs, despite a decrease in net interest margin.
• Financial services businesses, including employee benefit services, insurance services, and wealth management, showed revenue increases compared to the previous year.
• Total assets increased to $14.62 billion, reflecting a 23.8% increase from the previous year, primarily due to government stimulus-related deposit funding and the Steuben acquisition.

Headline financials

Revenue & EPS history

Based on current economic forecasts, the Company does not currently anticipate recording similarly large net benefits in the provision for credit losses in the remainder of 2021.