NYSE$CBU

Community Bank System Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Community Bank System, Inc. reported strong second quarter earnings, driven by growth in net interest income and noninterest revenues.

Community Bank System, Inc. reported a strong second quarter with earnings per share of $0.89, up from $0.73 in the same quarter last year. Operating revenues remained strong across all lines of business, with noninterest revenues contributing significantly. The company's asset quality remained strong, and loan growth continued for the eighth consecutive quarter.

  • GAAP EPS was $0.89 per share, an increase from $0.73 per share in Q2 2022.
  • Operating EPS (non-GAAP) was $0.91 per share, up $0.06 per share from Q2 2022.
  • Total revenues reached $175.3 million, up $8.0 million, or 4.8%, from Q2 2022.
  • Noninterest revenues accounted for 37.6% of operating revenues.

Headline financials

Total Revenue

$175M

Previous: $300K+58321.0%
EPS (adj)

$0.91

Previous: $0.85+7.1%
Capital Expenditures

-$6.94M

Previous: -$4.98M-39.4%
Free Cash Flow

$41.4M

Previous: $34.8M+18.7%
Net Income

$48.3M

Previous: $39.8M+21.3%
Operating Income

$10.7M

Previous: -$6.14M+273.7%
Gross Profit

$174M

Previous: -$6.04M+2983.2%
Cash & Equivalents

$223M

Previous: $198M+12.7%
Total Assets

$15.1B

Previous: $15.5B-2.5%
Stock-Based Comp

$1.92M

Previous: $2.3M-16.6%

Revenue & EPS history

Community Bank · Revenue · Quarterly

$175M

Q2 2023+58,321%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Community Bank · $49.1M total across 3 segments · Q1 2023

  • Employee Benefit
    $29.4M-0.7%
  • Insurance Services
    $11.5M+10.6%
  • Wealth Management
    $8.2M

Forward guidance

Although higher interest rates, decreasing money supply and more acute competition from banks and non-depository institutions are expected to continue to be a challenge over the next few quarters, we believe the Company is well positioned to continue to outperform the banking industry as a whole.

Tailwinds

  • Company is well positioned to continue to outperform the banking industry as a whole.
  • Deposits are well diversified across customer segments.
  • Approximately 72% of total deposits were in checking and savings accounts.
  • Strong core deposit base.
  • Strong liquidity profile, capital, asset quality and diversified revenue profile provide a solid foundation for future opportunities and growth.

Headwinds

  • Higher interest rates.
  • Decreasing money supply.
  • More acute competition from banks.
  • More acute competition from non-depository institutions.
  • Total operating expenses, excluding any future acquisition activities, will remain generally in line with first and second quarter levels.

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 Q2 2023

Historical avgQ2 2023

+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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