Company Quick10K Filing
Community Bank System
Price62.06 EPS2
Shares52 P/E26
MCap3,242 P/FCF25
Net Debt-1,014 EBIT177
TEV2,228 TEV/EBIT13
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-09
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-09
10-K 2010-12-31 Filed 2011-03-15
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-11
8-K 2020-06-12
8-K 2020-05-20
8-K 2020-05-19
8-K 2020-05-13
8-K 2020-04-20
8-K 2020-03-13
8-K 2020-03-03
8-K 2020-01-22
8-K 2019-12-31
8-K 2019-11-20
8-K 2019-10-21
8-K 2019-10-21
8-K 2019-10-18
8-K 2019-07-22
8-K 2019-07-12
8-K 2019-05-15
8-K 2019-04-22
8-K 2019-01-23
8-K 2019-01-22
8-K 2019-01-21
8-K 2019-01-04
8-K 2018-10-22
8-K 2018-07-23
8-K 2018-05-21
8-K 2018-05-16
8-K 2018-04-24
8-K 2018-03-19
8-K 2018-01-22
8-K 2017-12-31

CBU 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex31_1.htm
EX-31.2 ex31_2.htm
EX-32.1 ex32_1.htm
EX-32.2 ex32_2.htm

Community Bank System Earnings 2020-03-31

Balance SheetIncome StatementCash Flow



graphic
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from___________________to___________________

Commission File Number: 001-13695

graphic

(Exact name of registrant as specified in its charter)

Delaware
 
16-1213679
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

5790 Widewaters Parkway, DeWitt, New York
 
13214-1883
(Address of principal executive offices)
 
(Zip Code)

(315) 445-2282
(Registrant's telephone number, including area code)

NONE
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $1.00 par value per share
CBU
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
   
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes    No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 52,094,944 shares of Common Stock, $1.00 par value per share, were outstanding on April 30, 2020.




TABLE OF CONTENTS

Part I.
Page
     
Item 1.
 
     
 
3
     
 
4
     
 
5
     
 
6
     
 
7
     
 
8
     
Item 2.
32
     
Item 3.
51
     
Item 4.
53
     
Part II.
 
     
Item 1.
53
     
Item 1A.
53
     
Item 2.
55
     
Item 3.
55
     
Item 4.
55
     
Item 5.
55
     
Item 6.
56

2


Part I.
Financial Information
Item 1.
Financial Statements

COMMUNITY BANK SYSTEM, INC.
CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
(In Thousands, Except Share Data)

 
March 31, 2020
   
December 31, 2019
 
Assets:
           
Cash and cash equivalents
 
$
529,336
   
$
205,030
 
Available-for-sale investment securities (cost of $2,986,577 and $3,011,551, respectively)
   
3,141,882
     
3,044,428
 
Equity and other securities (cost of $42,579 and $42,965, respectively)
   
43,499
     
43,915
 
Loans held for sale, at fair value
   
3,272
     
0
 
                 
Loans
   
6,866,092
     
6,890,543
 
Allowance for credit losses
   
(55,652
)
   
(49,911
)
Net loans
   
6,810,440
     
6,840,632
 
                 
Goodwill, net
   
773,473
     
773,810
 
Core deposit intangibles, net
   
15,001
     
16,418
 
Other intangibles, net
   
44,445
     
46,695
 
Intangible assets, net
   
832,919
     
836,923
 
                 
Premises and equipment, net
   
162,602
     
164,638
 
Accrued interest and fees receivable
   
36,724
     
31,647
 
Other assets
   
248,309
     
243,082
 
                 
Total assets
 
$
11,808,983
   
$
11,410,295
 
                 
Liabilities:
               
Noninterest-bearing deposits
 
$
2,491,720
   
$
2,465,902
 
Interest-bearing deposits
   
6,812,262
     
6,529,065
 
Total deposits
   
9,303,982
     
8,994,967
 
                 
Overnight Federal Home Loan Bank borrowings
   
0
     
8,300
 
Securities sold under agreement to repurchase, short-term
   
204,991
     
241,708
 
Other Federal Home Loan Bank borrowings
   
3,727
     
3,750
 
Subordinated notes payable
   
13,775
     
13,795
 
Subordinated debt held by unconsolidated subsidiary trusts
   
77,320
     
77,320
 
Accrued interest and other liabilities
   
228,557
     
215,221
 
Total liabilities
   
9,832,352
     
9,555,061
 
                 
Commitments and contingencies (See Note J)
   
     
 
                 
Shareholders' equity:
               
Preferred stock, $1.00 par value, 500,000 shares authorized, 0 shares issued
   
0
     
0
 
Common stock, $1.00 par value, 75,000,000 shares authorized; 52,189,314 and 51,974,726 shares issued, respectively
   
52,190
     
51,975
 
Additional paid-in capital
   
935,924
     
927,337
 
Retained earnings
   
902,148
     
882,851
 
Accumulated other comprehensive income (loss)
   
83,444
     
(10,226
)
Treasury stock, at cost (158,222 shares, including 158,092 shares held by deferred compensation arrangements at March 31, 2020 and 180,803 shares including 179,548 shares held by deferred compensation arrangements at December 31, 2019, respectively)
   
(6,005
)
   
(6,823
)
Deferred compensation arrangements (158,092 and 179,548 shares, respectively)
   
8,930
     
10,120
 
Total shareholders' equity
   
1,976,631
     
1,855,234
 
                 
Total liabilities and shareholders' equity
 
$
11,808,983
   
$
11,410,295
 

The accompanying notes are an integral part of the consolidated financial statements.

3


COMMUNITY BANK SYSTEM, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In Thousands, Except Per-Share Data)

 
Three Months Ended
March 31,
 
   
2020
   
2019
 
Interest income:
           
Interest and fees on loans
 
$
78,565
   
$
73,703
 
Interest and dividends on taxable investments
   
15,329
     
16,087
 
Interest and dividends on nontaxable investments
   
3,101
     
2,891
 
Total interest income
   
96,995
     
92,681
 
                 
Interest expense:
               
Interest on deposits
   
5,545
     
4,107
 
Interest on borrowings
   
558
     
621
 
Interest on subordinated notes payable
   
185
     
0
 
Interest on subordinated debt held by unconsolidated subsidiary trusts
   
653
     
1,094
 
Total interest expense
   
6,941
     
5,822
 
                 
Net interest income
   
90,054
     
86,859
 
Provision for credit losses
   
5,594
     
2,422
 
Net interest income after provision for credit losses
   
84,460
     
84,437
 
                 
Noninterest revenues:
               
Deposit service fees
   
16,283
     
15,864
 
Mortgage banking
   
916
     
201
 
Other banking services
   
895
     
1,335
 
Employee benefit services
   
25,366
     
24,054
 
Insurance services
   
8,058
     
7,862
 
Wealth management services
   
7,134
     
6,349
 
Unrealized (loss) gain on equity securities
   
(30
)
   
31
 
Total noninterest revenues
   
58,622
     
55,696
 
                 
Noninterest expenses:
               
Salaries and employee benefits
   
58,251
     
53,379
 
Occupancy and equipment
   
10,739
     
10,288
 
Data processing and communications
   
10,413
     
9,399
 
Amortization of intangible assets
   
3,667
     
4,130
 
Legal and professional fees
   
3,151
     
2,720
 
Business development and marketing
   
2,513
     
2,788
 
Acquisition expenses
   
369
     
534
 
Other expenses
   
4,560
     
5,414
 
Total noninterest expenses
   
93,663
     
88,652
 
                 
Income before income taxes
   
49,419
     
51,481
 
Income taxes
   
9,285
     
9,535
 
Net income
 
$
40,134
   
$
41,946
 
                 
Basic earnings per share
 
$
0.77
   
$
0.81
 
Diluted earnings per share
 
$
0.76
   
$
0.80
 

The accompanying notes are an integral part of the consolidated financial statements.

4


COMMUNITY BANK SYSTEM, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In Thousands)

 
Three Months Ended
March 31,
 
   
2020
   
2019
 
             
Pension and other post retirement obligations:
           
Amortization of actuarial losses included in net periodic pension cost, gross
 
$
820
   
$
651
 
Tax effect
   
(197
)
   
(159
)
Amortization of actuarial losses included in net periodic pension cost, net
   
623
     
492
 
                 
Amortization of prior service cost included in net periodic pension cost, gross
   
15
     
(29
)
Tax effect
   
(3
)
   
7
 
Amortization of prior service cost included in net periodic pension cost, net
   
12
     
(22
)
                 
Other comprehensive income related to pension and other post retirement obligations, net of taxes
   
635
     
470
 
                 
Unrealized gains on available-for-sale securities:
               
Net unrealized holding gains arising during period, gross
   
122,428
     
23,905
 
Tax effect
   
(29,393
)
   
(5,832
)
Net unrealized holding gains arising during period, net
   
93,035
     
18,073
 
                 
Other comprehensive income related to unrealized gains on available-for-sale securities, net of taxes
   
93,035
     
18,073
 
                 
Other comprehensive income, net of tax
   
93,670
     
18,543
 
Net income
   
40,134
     
41,946
 
Comprehensive income
 
$
133,804
   
$
60,489
 

 
As of
 
   
March 31,
2020
   
December 31,
2019
 
Accumulated Other Comprehensive Income (Loss) By Component:
           
             
Unrealized (loss) for pension and other post-retirement obligations
 
$
(45,340
)
 
$
(46,175
)
Tax effect
   
11,093
     
11,293
 
Net unrealized (loss) for pension and other post-retirement obligations
   
(34,247
)
   
(34,882
)
                 
Unrealized gain on available-for-sale securities
   
155,305
     
32,877
 
Tax effect
   
(37,614
)
   
(8,221
)
Net unrealized gain on available-for-sale securities
   
117,691
     
24,656
 
                 
Accumulated other comprehensive income (loss)
 
$
83,444
   
$
(10,226
)

The accompanying notes are an integral part of the consolidated financial statements.

5


COMMUNITY BANK SYSTEM, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
Three months ended March 31, 2020 and 2019
(In Thousands, Except Share Data)

 
Common
Stock
   
Additional
         
Accumulated
Other
         
Deferred
       
   
Shares
Outstanding
   
Amount
Issued
   
Paid-In
Capital
   
Retained
Earnings
   
Comprehensive
(Loss) Income
   
Treasury
Stock
   
Compensation
Arrangements
   
Total
 
                                                 
Balance at December 31, 2019
   
51,793,923
   
$
51,975
   
$
927,337
   
$
882,851
   
$
(10,226
)
 
$
(6,823
)
 
$
10,120
   
$
1,855,234
 
                                                                 
Net income
                           
40,134
                             
40,134
 
                                                                 
Other comprehensive income, net of tax
                                   
93,670
                     
93,670
 
                                                                 
Cumulative effect of change in accounting principle – Current Expected Credit Losses
                           
530
                             
530
 
                                                                 
Dividends declared:
                                                               
Common, $0.41 per share
                           
(21,367
)
                           
(21,367
)
                                                                 
Common stock activity under employee stock plans
   
214,588
     
215
     
6,184
                                     
6,399
 
                                                                 
Stock-based compensation
                   
1,952
                                     
1,952
 
                                                                 
Distribution of stock under deferred compensation arrangements
   
22,497
             
415
                     
849
     
(1,264
)
   
0
 
                                                                 
Treasury stock issued to benefit plans, net
   
84
             
36
                     
(31
)
   
74
     
79
 
                                                                 
Balance at March 31, 2020
   
52,031,092
   
$
52,190
   
$
935,924
   
$
902,148
   
$
83,444
   
$
(6,005
)
 
$
8,930
   
$
1,976,631
 
                                                                 
Balance at December 31, 2018
   
51,257,824
   
$
51,577
   
$
911,748
   
$
795,563
   
$
(45,305
)
 
$
(11,528
)
 
$
11,728
   
$
1,713,783
 
                                                                 
Net income
                           
41,946
                             
41,946
 
                                                                 
Other comprehensive income, net of tax
                                   
18,543
                     
18,543
 
                                                                 
Dividends declared:
                                                               
Common, $0.38 per share
                           
(19,576
)
                           
(19,576
)
                                                                 
Common stock activity under employee stock plans
   
150,919
     
151
     
(995
)
                                   
(844
)
                                                                 
Stock-based compensation
                   
1,391
                                     
1,391
 
                                                                 
Distribution of stock under deferred compensation arrangements
   
32,431
             
1,064
                     
830
     
(1,894
)
   
0
 
                                                                 
Treasury stock issued to benefit plans, net
   
30,197
             
709
                     
1,097
     
79
     
1,885
 
                                                                 
Balance at March 31, 2019
   
51,471,371
   
$
51,728
   
$
913,917
   
$
817,933
   
$
(26,762
)
 
$
(9,601
)
 
$
9,913
   
$
1,757,128
 

The accompanying notes are an integral part of the consolidated financial statements.

6

COMMUNITY BANK SYSTEM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)

 
Three Months Ended
March 31,
 
   
2020
   
2019
 
Operating activities:
           
Net income
 
$
40,134
   
$
41,946
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation
   
4,079
     
3,830
 
Amortization of intangible assets
   
3,667
     
4,130
 
Net accretion on securities, loans and borrowings
   
(2,113
)
   
(1,944
)
Stock-based compensation
   
1,952
     
1,391
 
Provision for credit losses
   
5,594
     
2,422
 
Amortization of mortgage servicing rights
   
82
     
98
 
Unrealized loss (gain) on equity securities
   
30
     
(31
)
Income from bank-owned life insurance policies
   
(408
)
   
(391