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EARNINGS AND PROFITABILITY AT CBSI ACHIEVE RECORDS

 EARNINGS AND PROFITABILITY AT CBSI ACHIEVE RECORDS
 SYRACUSE, N.Y., July 17 /PRNewswire/ -- Community Bank System, Inc.


(CBSI), a DeWitt-based bank holding company with nearly $650 million in assets, has announced that net income for second quarter 1992 reached an all-time high of $1.826 million or $.67 per share, up 76 percent from the comparable 1991 period. For the first six months, earnings rose 63 percent over last year to $3.334 million or $1.23 per share.
 Edwin J. Lyons, president and chief executive officer, stated that the benefits of the company's recent major restructuring of its five formerly independent commercial banks into a single state-wide bank were reflected in continued improvement in profitability. Return on assets and return on shareholder equity rose to 1.04 percent and 13.74 percent, respectively, for the first half of the year, matching or exceeding the company's previous records set in the mid-1980s.
 The primary reasons for the better second quarter performance compared to last year were a sharply higher net interest margin, largely because of the continued decline in rates paid on deposits due to the still hesitant economy; 5.8 percent more in average earning assets fueled by an expanded savings deposit base; and a significant reduction in the loan loss provision made possible by stronger asset quality. Non-performing loans were reduced from a year ago to a very low .59 percent of loans outstanding, being ?covered by loan loss reserves by nearly 2.3 times.
 CBSI is a registered bank holding company based in DeWitt, N.Y. Through its wholly owned national banking subsidiary, Community Bank, N.A., CBSI operates a full service banking network that includes 32 branch offices located throughout Northern New York, the Finger Lakes Region, the Southern Tier, and Southwestern New York, as well as a representative office in Ottawa, Ontario, Canada.
 COMMUNITY BANK SYSTEM, INC.
 Summary of Operations
 Six months ended June 30, 1992 and 1991
 (Thousands omitted)
 Period ended Three months Change
 June 30 1992 1991 Amount Percent
 Net interest income $8,765 $7,433 $1,332 17.9
 Loan loss provision 595 1,046 (451) (43.1)
 Net interest income
 after provision for
 loan losses 8,170 6,387 1,783 27.9
 Other income 1,109 1,069 40 3.7
 Other expense 6,781 6,073 708 11.7
 Restructuring expense 0 0 0 --
 Income before
 income tax 2,498 1,383 1,115 80.6
 Income tax 672 352 320 90.9
 Net income 1,826 1,031 795 77.1
 Return on assets (pct.) 1.13 0.67 0.46 pts. --
 Return on equity (pct.) 14.79 8.83 5.96 pts. --
 Net interest margin (pct.) 5.86 5.25 0.61 pts. --
 Weighted average common
 shares 2,719 2,696 23 0.9
 Earnings per share $0.67 $0.38 $0.29 76.3
 Cash dividends declared
 per common share $0.20 $0.19 -- --
 Tier I capital/total
 assets (percent) 7.70 7.49 0.21 pts. --
 Book value: Total 18.77 17.60 1.17 6.6
 Tangible 18.49 17.17 1.32 7.7
 Period ended Six months Change
 June 30 1992 1991 Amount Percent
 Net interest income $17,159 $14,719 $2,440 16.6
 Loan loss provision 1,100 1,470 (370) (25.2)
 Net interest income
 after provision for
 loan losses 16,059 13,249 2,810 21.2
 Other income 2,094 1,940 154 7.9
 Other expense 13,589 12,133 1,456 12.0
 Restructuring expense 0 300 (300) (100.0)
 Income before income tax 4,564 2,756 1,808 65.6
 Income tax 1,230 710 520 73.2
 Net income 3,334 2,046 1,288 63.0
 Return on assets (pct.) 1.04 0.67 0.37 pts. --
 Return on equity (pct.) 13.74 8.84 4.90 pts. --
 Net interest margin (pct.) 5.84 5.23 0.61 pts. --
 Weighted average
 common shares 2,709 2,698 11 0.4
 Earnings per share 1.23 0.76 0.47 61.8
 Cash dividends declared
 per common share 0.40 0.38 0.02 5.3
 Tier I capital/total
 assets (percent) 7.70 7.49 0.21 pts. --
 Book value: Total 18.77 17.60 1.17 6.6
 Tangible 18.49 17.17 1.32 7.7
 Six months ended June 30
 Change
 1992 1991 Amount Percent
 Total assets at June 30, 1992 $647,300 -- -- --
 Total assets at Dec. 31, 1991 634,492 -- $12,808 2.02
 Total assets at June 30, 1991 619,594 -- 14,898 2.40
 -0- 7/17/92
 /CONTACT: David G. Wallace, senior vice president and chief financial officer of Community Bank System, 315-445-2282/
 (CBSI) CO: Community Bank System, Inc. ST: New York IN: FIN SU: ERN


PS-OS -- NY038 -- 0271 07/17/92 13:12 EDT
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