Community Bank System Inc. (CBU, Financial) filed Quarterly Report for the period ended 2010-03-31.
Community Bank System Inc. has a market cap of $759.9 million; its shares were traded at around $23 with a P/E ratio of 15.7 and P/S ratio of 2.4. The dividend yield of Community Bank System Inc. stocks is 3.8%.
As shown in Table 1, net income for the quarter of $14.0 million increased $3.5 million or 34% versus the first quarter of 2009. Earnings per share for the first quarter of $0.42 were $0.10 higher than the EPS generated in the same period of last year. First quarter net interest income of $43.3 million was up $3.1 million or 7.7% from the comparable prior year period. The current quarter s provision for loan losses decreased $1.0 million as compared to the first quarter of 2009 and decreased $0.8 million from the fourth quarter of 2009, reflective of lower levels of net charge-offs, stable asset quality, and a decline in the loan portfolio. First quarter noninterest income was $21.7 million, up $1.4 million or 6.7% from the first quarter of 2009. Operating expenses of $44.2 million for the quarter declined $0.2 million or 0.5% from the comparable prior year period.
As shown in Table 2, net interest income (with nontaxable income converted to a fully tax-equivalent basis) for the first quarter of 2010 was $47.0 million, a $2.8 million increase from the same period last year. A $157 million increase in first quarter interest-earning assets combined with an 11-basis point increase in net interest margin versus the prior year had a greater impact than the $93 million increase in average interest-bearing liabilities. As reflected in Table 3, the volume increase from interest-bearing assets and the rate decrease on interest-bearing liabilities had a $7.9 million favorable impact on net interest income, while the volume increase from interest bearing liabilities and rate decrease on interest bearing assets had a $5.1 million unfavorable impact on net interest income. The lower cost of funding had a greater favorable impact on net interest margin than the lower yields on interest-bearing assets.
Average investments and cash equivalents for the first quarter were $221 million higher than the respective period of 2009, reflective of the net liquidity generated from deposit growth. First quarter average loan balances declined $64.3 million as compared to the first quarter of 2009, primarily from continued principal amortization in the Company s consumer mortgage and home equity portfolios, combined with its decision to sell the majority of its longer-term, lower rate mortgage originations over the last year, as well as declines in the consumer installment portfolio as a result of lower consumer spending in response to weaker economic conditions. In comparison to the prior year, total average interest-bearing deposits were up $99 million or 3.2% for the quarter reflective of organic growth in core deposits offset by a reduction in time deposits. Quarterly average borrowings declined slightly as compared to the first quarter of 2009.
As displayed in Table 4, noninterest income was $21.7 million in the first quarter, an increase of $1.4 million or 6.7% from the prior year level. General recurring banking fees of $11.0 million for the first quarter were up $1.7 million or 18% as compared to the prior year period, driven by organic core deposit account growth and higher electronic banking and debit-card related revenues. Benefit trust, administration, consulting and actuarial fees increased $0.9 million as compared to the prior year period driven by a combination of new client and service generation and increased asset-based revenue. Wealth management services revenue increased $0.3 million or 17%, reflective of favorable market comparisons and generally improving demand for their products.
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Community Bank System Inc. has a market cap of $759.9 million; its shares were traded at around $23 with a P/E ratio of 15.7 and P/S ratio of 2.4. The dividend yield of Community Bank System Inc. stocks is 3.8%.
Highlight of Business Operations:
First quarter net income of $14.0 million, or $0.42 per share, was 34% higher than the first quarter of 2009 s reported earnings of $10.5 million, or $0.32 per share. The increase was due to higher revenue from both increased net interest income, as a result of increased earning assets and higher net interest margin, and non-interest income. Also contributing to higher net income was a lower provision for loan losses and lower expenses as a result of cost management initiatives taken in 2009. These were partially offset by a higher effective income tax rate due to a higher proportional level of fully taxable income.As shown in Table 1, net income for the quarter of $14.0 million increased $3.5 million or 34% versus the first quarter of 2009. Earnings per share for the first quarter of $0.42 were $0.10 higher than the EPS generated in the same period of last year. First quarter net interest income of $43.3 million was up $3.1 million or 7.7% from the comparable prior year period. The current quarter s provision for loan losses decreased $1.0 million as compared to the first quarter of 2009 and decreased $0.8 million from the fourth quarter of 2009, reflective of lower levels of net charge-offs, stable asset quality, and a decline in the loan portfolio. First quarter noninterest income was $21.7 million, up $1.4 million or 6.7% from the first quarter of 2009. Operating expenses of $44.2 million for the quarter declined $0.2 million or 0.5% from the comparable prior year period.
As shown in Table 2, net interest income (with nontaxable income converted to a fully tax-equivalent basis) for the first quarter of 2010 was $47.0 million, a $2.8 million increase from the same period last year. A $157 million increase in first quarter interest-earning assets combined with an 11-basis point increase in net interest margin versus the prior year had a greater impact than the $93 million increase in average interest-bearing liabilities. As reflected in Table 3, the volume increase from interest-bearing assets and the rate decrease on interest-bearing liabilities had a $7.9 million favorable impact on net interest income, while the volume increase from interest bearing liabilities and rate decrease on interest bearing assets had a $5.1 million unfavorable impact on net interest income. The lower cost of funding had a greater favorable impact on net interest margin than the lower yields on interest-bearing assets.
Average investments and cash equivalents for the first quarter were $221 million higher than the respective period of 2009, reflective of the net liquidity generated from deposit growth. First quarter average loan balances declined $64.3 million as compared to the first quarter of 2009, primarily from continued principal amortization in the Company s consumer mortgage and home equity portfolios, combined with its decision to sell the majority of its longer-term, lower rate mortgage originations over the last year, as well as declines in the consumer installment portfolio as a result of lower consumer spending in response to weaker economic conditions. In comparison to the prior year, total average interest-bearing deposits were up $99 million or 3.2% for the quarter reflective of organic growth in core deposits offset by a reduction in time deposits. Quarterly average borrowings declined slightly as compared to the first quarter of 2009.
As displayed in Table 4, noninterest income was $21.7 million in the first quarter, an increase of $1.4 million or 6.7% from the prior year level. General recurring banking fees of $11.0 million for the first quarter were up $1.7 million or 18% as compared to the prior year period, driven by organic core deposit account growth and higher electronic banking and debit-card related revenues. Benefit trust, administration, consulting and actuarial fees increased $0.9 million as compared to the prior year period driven by a combination of new client and service generation and increased asset-based revenue. Wealth management services revenue increased $0.3 million or 17%, reflective of favorable market comparisons and generally improving demand for their products.
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