NYSE$CBU

Community Bank System Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Community Bank System reported first quarter results with net income of $47.1 million.

Community Bank System reported a net income of $47.1 million, or $0.86 per fully-diluted share, for the first quarter of 2022. While earnings per share were down compared to the prior year, the company saw continued noninterest revenue expansion and deployed excess liquidity into loans and investment securities.

  • Net income for Q1 2022 was $47.1 million, or $0.86 per fully-diluted share, compared to $52.9 million, or $0.97 per fully-diluted share for Q1 2021.
  • Non-GAAP operating earnings per share was $0.87 for Q1 2022, compared to $0.97 in Q1 2021.
  • Total revenues increased by $8.1 million, or 5.3%, over the prior year’s first quarter, driven by increases in net interest income and noninterest revenues.
  • Asset quality remained strong with annualized net charge-offs of just three basis points and nonperforming loans as a percent of total loans improving to 0.49%.

Headline financials

Total Revenue

$300K

Previous: $152M-99.8%
EPS (adj)

$0.87

Previous: $0.97-10.3%
Capital Expenditures

-$2.21M

Previous: -$876K-152.7%
Free Cash Flow

$44.8M

Previous: $52M-13.7%
Net Income

$47.1M

Previous: $52.9M-11.0%
Operating Income

-$815K

Previous: $24.5M-103.3%
Gross Profit

-$715K

Previous: $147M-100.5%
Cash & Equivalents

$1.02B

Previous: $2.15B-52.5%
Total Assets

$15.6B

Previous: $14.6B+6.9%
Stock-Based Comp

$1.89M

Previous: $1.67M+12.7%

Revenue & EPS history

Community Bank · Revenue · Quarterly

$300K

Q1 2022-99.8%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Community Bank · $40M total across 2 segments · Q1 2022

  • Employee Benefit
    $29.6M+11.7%
  • Insurance Services
    $10.4M+26.8%

Forward guidance

The Company is well-positioned heading into the second quarter with loan growth momentum, continued runway to grow financial services businesses, and good progress on the pending acquisition of Elmira Savings Bank.

Tailwinds

  • Loan growth momentum and healthy pipelines.
  • Continued runway to grow financial services businesses.
  • Good progress on the pending acquisition of Elmira Savings Bank.
  • Expecting to recognize the majority of its remaining net deferred PPP fees totaling $1.6 million through interest income during the second quarter of 2022.
  • Strong liquidity position with readily available sources of liquidity totaling $6.41 billion.

Headwinds

  • Increase in operating expenses due to increases in salaries and employee benefits, other expenses, data processing and communications expenses, and amortization of intangible assets.
  • Effective tax rate increased from 18.6% to 21.4% due to a lower level of benefit related to stock-based compensation activity.
  • Decrease in shareholders’ equity due to a decline in the after-tax market value adjustment on the Company’s available-for-sale investment securities portfolio.
  • Decrease in net tangible equity to net tangible assets ratio due to a decrease in tangible equity and an increase in tangible assets.
  • Uncertainty around the duration of the economic impact of the COVID-19 pandemic.

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 2022

Historical avgQ1 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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