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EARNINGS AND PROFITABILITY AT CBSI ACHIEVE RECORDS

 SYRACUSE, N.Y., July 23 /PRNewswire/ -- Community Bank System, Inc. (CBSI), a DeWitt-based bank holding company with $690 million in assets, has announced that net income for second quarter 1993 reached an all- time high of $2.429 million or $.87 per share, a 30 percent increase over comparable 1992 period. For the first six months, earnings rose 44 percent over last year to $1.73 per share.
 Sanford A. Belden, president and chief executive officer, stated that these results reflect the sixth consecutive quarter of rising earnings since the company's major restructuring of its five formerly independent commercial banks into a single statewide bank. Return on assets and return on shareholder equity rose to 1.43 percent and 17.62 percent, respectively, for the first half of the year, reflecting continued progress from 1992's results, which exceeded the company's previous records set in the mid-1980s.
 The primary reasons for better second quarter performance compared to last year were: a higher net interest margin, largely because of the continued decline in rates paid on deposits due to the still lackluster economy; greater earning assets, including a strong 8.4 percent climb in loans, fueled by an expanded savings and demand deposit base and higher short-term borrowings; and concerted control over overhead expense, which was more than 12 percent lower than 1992's level, made possible by successful implementation of the company's restructuring plan. In addition, loan loss provision expense was able to be reduced by 37 percent: net charge-offs were very low at .10 percent of average loans, and non-performing loans were satisfactory at .60 percent of loans outstanding, being amply covered by 2.3 times in loan loss reserves.
 CBSI is a registered bank holding company based in DeWitt, N.Y. Its wholly-owned banking subsidiary, Community Bank, N.A., has 32 branches located throughout Northern New York, the Finger Lakes Region, the Southern Tier, and Southwestern New York.
 COMMUNITY BANK SYSTEM, INC.
 SUMMARY OF OPERATIONS
 Six Months ended June 30, 1993 and 1992
 (000's omitted)
 THREE MONTHS ENDED JUNE 30,
 Change
 1993 1992 Amount Percent
 Net interest income $9,319 $8,831 $ 488 5.5
 Loan loss provision 375 595 (220) (37.0)
 Net interest income after
 provision for loan losses 8,944 8,236 708 8.6
 Other income 867 1,043 (176) (16.9)
 Other expense 5,949 6,781 (832) (12.3)
 Income before income tax 3,862 2,498 1,364 54.6
 Income tax 1,433 672 761 113.2
 Net income $2,429 $1,826 $ 603 33.0
 Return on assets (pct) 1.42 1.13 0.29pts ---
 Return on equity (pct) 17.43 14.79 2.64pts ---
 Net interest margin (pct) 5.98 5.86 0.12pts ---
 Weighted average common shares 2,783 2,717 66 2.4
 Earnings per share $ 0.87 $ 0.67 $ 0.20 29.9
 Nonperforming loans/loans (net
 of unearned discount) (pct) 0.60 0.59 0.01pts ---
 Cash dividends declared per
 common share $ 0.25 $ 0.20 $ 0.05 25.0
 Common Stock Price $27.00 $16.50 $10.50 63.6
 Tier I leverage ratio (pct) 8.19 7.70 0.49pts ---
 Book Value: Total $20.96 $18.77 $ 2.19 11.7
 Tangible $20.76 $18.49 $ 2.27 12.3
 SIX MONTHS ENDED JUNE 30,
 Change
 1993 1992 Amount Percent
 Net interest income $18,787 $17,225 $ 1,562 9.1
 Loan loss provision 782 1,100 (318) (28.9)
 Net interest income after
 provision for loan losses 18,005 16,125 1,880 11.7
 Other income 1,750 2,028 (278) (13.7)
 Other expense 12,095 13,589 (1,494) (11.0)
 Income before income tax 7,660 4,564 3,096 67.8
 Income tax 2,852 1,230 1,622 131.9
 Net income $ 4,808 $ 3,334 $ 1,474 44.2
 Return on assets (pct) 1.43 1.04 0.39pts ---
 Return on equity (pct) 17.62 13.74 3.88pts ---
 Net interest margin (pct) 6.12 5.84 0.28pts ---
 Weighted average common shares 2,776 2,708 67 2.5
 Earnings per share $ 1.73 $ 1.23 $ 0.50 40.7
 Nonperforming loans/loans (net
 of unearned discount) (pct) 0.60 0.59 0.01pts ---
 Cash dividends declared per
 common share $ 0.50 $ 0.40 $ 0.10 25.0
 Common Stock Price $ 27.00 $ 16.50 $ 10.50 63.6
 Tier I leverage ratio (pct) 8.19 7.70 0.49pts ---
 Book Value: Total $ 20.96 $ 18.77 $ 2.19 11.7
 Tangible $ 20.76 $ 18.49 $ 2.27 12.3
 June 30, 1993 versus
 Amount Percent
 Total Assets at June 30, 1993 690,321 --- ---
 Total Assets at Dec. 31, 1992 669,274 21,047 3.1
 Total Assets at June 30, 1992 647,414 42,907 6.6
 -0- 7/23/93
 /CONTACT: David G. Wallace, s.v.p. and chief financial officer, Community Bank System, Inc., 315-445-2282/


CO: Community Bank System, Inc. ST: New York IN: FIN SU: ERN

BM -- CL012 -- 5272 07/23/93 16:01 EDT
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Date:Jul 23, 1993
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