$CBU

COMMUNITY BANK SYSTEM, INC.

CIK:0000723188|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Interest and fees on loans	$ 157,530	$ 146,534	$ 311,908	$ 289,438
Interest and dividends on taxable investments	23,932	23,581	46,819	45,550
Interest and dividends on nontaxable investments	2,890	2,763	5,612	5,537
Total interest income	184,352	172,878	364,339	340,525
Interest expense:
Interest on deposits	39,382	40,637	78,755	79,924
Interest on borrowings	5,826	7,493	11,728	15,641
Total interest expense	45,208	48,130	90,483	95,565
Net interest income	139,144	124,748	273,856	244,960
Provision for credit losses	4,607	4,117	10,243	10,807
Net interest income after provision for credit losses	134,537	120,631	263,613	234,153
Noninterest revenues:
Deposit service fees	15,493	14,519	31,410	28,826
Mortgage banking	1,191	972	2,291	1,970
Other banking services	4,605	4,567	9,399	8,368
Employee benefit services	34,877	32,380	69,449	65,002
Insurance services	13,195	13,388	25,781	27,589
Wealth management services	10,403	8,683	20,735	18,545
Net (loss) gain recognized on equity securities	4,710	(1)	4,309	244
Loss from equity method investments	(463)	0	(789)	0
Total noninterest revenues	84,011	74,508	162,585	150,544
Noninterest expenses:
Salaries and employee benefits	82,431	79,021	162,753	155,463
Data processing and communications	19,686	16,699	37,557	32,821
Occupancy and equipment	13,885	11,486	28,767	24,184
Business development and marketing	2,556	4,001	5,091	7,131
Legal and professional fees	4,314	4,368	9,384	9,217
Amortization of intangible assets	4,408	3,369	8,654	6,851
Other expenses	10,453	10,158	18,563	18,725
Total noninterest expenses	137,733	129,102	270,769	254,392
Income before income taxes	80,815	66,037	155,429	130,305
Income taxes	19,481	14,706	36,877	29,360
Net income	$ 61,334	$ 51,331	$ 118,552	$ 100,945
Basic earnings per share (in dollars per shares)	$ 1.16	$ 0.97	$ 2.25	$ 1.91
Diluted earnings per share (in dollars per shares)	$ 1.16	$ 0.97	$ 2.24	$ 1.9

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 118,552	$ 100,945
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	11,341	7,301
Amortization of intangible assets	8,654	6,851
Net amortization on securities, loans, finance leases and borrowings	6,932	6,394
Stock-based compensation	5,727	5,563
Provision for credit losses	10,243	10,807
Amortization of mortgage servicing rights	415	386
Gain on equity securities	(4,309)	(244)
Income from bank-owned life insurance policies	(2,023)	(1,376)
Net gain on sale of assets	(1,051)	(989)
Loss from equity method investments	789	0
Change in other assets and liabilities	(32,661)	(19,441)
Net cash provided by operating activities	122,609	116,197
Investing activities:
Proceeds from maturities, calls, and paydowns of available-for-sale investment securities	33,741	27,399
Proceeds from maturities, calls, and paydowns of held-to-maturity investment securities	21,113	11,750
Proceeds from maturities and redemptions of equity and other investment securities, net	707	1,332
Purchases of held-to-maturity investment securities	(30,914)	(83,110)
Proceeds from sales of equity and other investment securities	5,819	0
Purchases of equity and other securities, net	(12,687)	(280)
Net (increase) decrease in loans	(354,195)	(114,426)
Cash paid for acquisitions, net of cash acquired	(26,592)	(302)
Proceeds from sales of premises, equipment and other assets	1,505	1,522
Purchases of premises and equipment	(20,934)	(27,858)
Net cash used in investing activities	(382,437)	(183,973)
Financing activities:
Net increase in deposits	203,249	260,061
Net decrease in overnight borrowings	172,800	12,400
Net (decrease) increase in securities sold under agreement to repurchase, short-term	(73,586)	(80,932)
Payments on and maturities of other Federal Home Loan Bank borrowings	(24,879)	(35,733)
Payments of contingent consideration for acquisitions	(2,338)	(378)
Proceeds from the issuance of common stock for employee stock plans	10,099	3,667
Purchases of treasury stock	(16,075)	(90)
Cash dividends paid	(49,533)	(48,512)
Withholding taxes paid on share-based compensation	(3,490)	(2,463)
Net cash provided by financing activities	216,247	108,020
Change in cash, cash equivalents and restricted cash	(43,581)	40,244
Cash, cash equivalents and restricted cash at beginning of period	301,755	197,004
Cash, cash equivalents and restricted cash at end of period	258,174	237,248
Supplemental disclosures of cash flow information:
Cash paid for interest	91,509	96,258
Cash paid for income taxes	28,990	23,353
Supplemental disclosures of noncash financing and investing activities:
Dividends declared and unpaid	24,912	24,514
Transfers from loans to other real estate	427	6,542
Transfers from premises and equipment, net to other assets	4,811	0
Acquisitions:
Fair value of assets acquired, excluding acquired cash and intangibles	121,329	94
Fair value of liabilities assumed	121,503	131
Contingent consideration in exchange for acquired assets	$ 1,565	$ 3,499