NYSE$CBU

Community Bank System Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong results driven by an increase in net interest income and a decrease in fully-diluted average shares outstanding, offset by higher operating expenses, lower noninterest revenues, and increases in the provision for credit losses and income taxes.

Community Bank System, Inc. reported a strong fourth quarter in 2022, with GAAP earnings per share up by 21.3% over the prior year's quarter. The company's performance was driven by improvements in net interest income, supported by strong loan growth. Total revenues increased by 10.2% compared to the previous year's fourth quarter.

  • GAAP earnings per share increased by 21.3% compared to the prior year's fourth quarter.
  • Operating earnings per share (non-GAAP) increased by 18.5% over the prior year's fourth quarter.
  • Adjusted pre-tax, pre-provision net revenue per share (non-GAAP) increased by 18.3% over the prior year.
  • Total revenues were meaningfully higher due to continued improvements in net interest income driven by strong loan growth.

Headline financials

Total Revenue

$176M

Previous: $160M+10.2%
EPS (adj)

$0.96

Previous: $0.81+18.5%
Capital Expenditures

$2.91M

Previous: $2.98M-2.4%
Free Cash Flow

$68.7M

Previous: $46.5M+47.5%
Net Income

$52.5M

Previous: $43.6M+20.4%
Operating Income

$70.3M

Previous: $58.1M+21.0%
Cash & Equivalents

$210M

Previous: $1.83B-88.5%
Total Assets

$15.8B

Previous: $15.6B+1.8%
Stock-Based Comp

$1.69M

Previous: $1.5M+12.9%

Revenue & EPS history

Community Bank · Revenue · Quarterly

$176M

Q4 2022+10.2%vs Q4 2021
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

The Company anticipates receiving approximately $600 million in investment securities principal cash flows during 2023, which are expected to be used to pay down overnight borrowings or redeployed into new loans.

Tailwinds

  • Regulatory capital levels remain strong.
  • The commercial loan pipeline remains healthy.
  • There continues to be an ample amount of new business opportunities for our financial services businesses.
  • Strong earnings performance
  • Diversified streams of revenue

Headwinds

  • Continued weakening of the economic forecast.
  • Average total deposits decreased $154.4 million, or 1.2%, consistent with industry expectations.
  • Shareholders’ equity of $1.55 billion at December 31, 2022 was $549.1 million, or 26.1%, lower than one year ago.
  • The Company recorded a provision for credit losses of $2.8 million in the fourth quarter due to strong loan growth and continued weakening of the economic forecast.
  • Higher funding costs impacted net interest margin.

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 Q4 2022

Historical avgQ4 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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