Printer Friendly

EARNINGS AND PROFITABILITY AT COMMUNITY BANK SYSTEM, INC. ACHIEVE RECORDS

 SYRACUSE, N.Y., Oct. 15 /PRNewswire/ -- Community Bank System, Inc. (CBSI), a DeWitt, N.Y.-based bank holding company with over $690 million in assets, has announced that net income for third quarter 1993 reached an all-time high of $2.466 million or $.88 per share, a 16 percent increase over the comparable 1992 period. For the first nine months, earnings rose 35 percent over last year to $2.61 per share.
 Sanford A. Belden, president and chief executive officer, stated that these results reflect the seventh 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 17.36 percent, respectively, for the first nine months 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 third 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 10.8 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 2 percent lower than 1992's level, made possible by successful implementation of the company's restructuring plan.
 In addition, the third quarter loan loss provision was able to be reduced by 11 percent from the same quarter last year. Net charge-offs were very low at .11 percent of average loans, and non-performing loans were satisfactory at .66 percent of loans outstanding, being amply covered by 2.2 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 31 branches located throughout Northern New York, the Finger Lakes Region, the Southern Tier and Southwestern New York.
 COMMUNITY BANK SYSTEM, INC.
 SUMMARY OF OPERATIONS
 (000's omitted)
 THREE MONTHS ENDED SEPT. 30,
 Change
 1993 1992 Amount Percent
 Net interest income $9,547 $8,741 $806 9.2
 Loan loss provision 464 524 (60) (11.5)
 Net interest income after
 provision for loan losses 9,083 8,217 866 10.5
 Other income 1,175 1,212 (37) (3.1)
 Other expense 6,308 6,437 (129) (2.0)
 Income before income tax 3,950 2,992 958 32.0
 Income tax 1,484 920 564 61.3
 Net income $2,466 $2,072 $394 19.0
 Return on assets (pct) 1.43 1.27 0.16pts --
 Return on equity (pct) 16.87 15.79 1.08pts --
 Net interest margin (pct) 6.04 5.80 0.24pts --
 Weighted average common shares 2,793 2,724 69 2.5
 Earnings per share $ 0.88 $ 0.76 $ 0.12 16.1
 Loan loss reserve/loans
 outstanding (pct) 1.44 1.38 0.06pts --
 Non-performing loans/loans (net
 of unearned discount) (pct) 0.66 0.80 (0.14)pts --
 Loan loss reserve/nonperforming
 loans (pct) 216 174 42pts --
 Cash dividends declared per
 common share $ 0.27 $ 0.20 $ 0.07 35.0
 Common stock price $30.00 $19.75 $10.25 51.9
 Tier I leverage ratio (pct) 8.46 7.61 0.85pts --
 Book Value: Total $21.54 $19.29 $ 2.25 11.6
 Tangible $21.36 $19.04 $ 2.32 12.2
 COMMUNITY BANK SYSTEM, INC.
 SUMMARY OF OPERATIONS
 (000's omitted)
 NINE MONTHS ENDED SEPT. 30,
 Change
 1993 1992 Amount Percent
 Net interest income $28,333 $25,965 $2,368 9.1
 Loan loss provision 1,246 1,624 (378) (23.3)
 Net interest income after
 provision for loan losses 27,087 24,341 2,746 11.3
 Other income 2,925 3,240 (315) (9.7)
 Other expense 18,403 20,026 (1,623) (8.1)
 Income before income tax 11,609 7,555 4,054 53.7
 Income tax 4,336 2,150 2,186 101.7
 Net income $7,273 $5,405 $1,868 34.6
 Return on assets (pct) 1.43 1.11 0.32pts --
 Return on equity (pct) 17.36 14.74 2.62pts --
 Net interest margin (pct) 6.09 5.82 0.27pts --
 Weighted average common shares 2,782 2,714 68 2.5
 Earnings per share $ 2.61 $ 1.99 $ 0.62 31.2
 Loan loss reserve/loans
 outstanding (pct) 1.44 1.38 0.06pts --
 Non-performing loans/loans (net
 of unearned discount) (pct) 0.66 0.80 (0.14)pts --
 Loan loss reserve/nonperforming
 loans (pct) 216 174 42pts --
 Cash dividends declared per
 common share $ 0.77 $ 0.40 $ 0.37 92.5
 Common stock price $30.00 $19.75 $10.25 51.9
 Tier I leverage ratio (pct) 8.46 7.61 0.85pts --
 Book Value: Total $21.54 $19.29 $ 2.25 11.6
 Tangible $21.36 $19.04 $ 2.32 12.2
 Sept. 30, 1993 versus
 Amount Percent
 Total Assets at Sept. 30, 1993 693,836 --- ---
 Total Assets at Dec. 31, 1992 669,274 24,562 3.7
 Total Assets at Sept. 30, 1992 668,424 25,412 3.8
 -0- 10/15/93
 /CONTACT: David G. Wallace, S.V.P. and chief financial officer, of Community Bank System, Inc., 315-445-2282, or, by fax, 315-445-2997/


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

AR-KL -- CL012 -- 2727 10/15/93 12:02 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 15, 1993
Words:908
Previous Article:IROQUOIS BANCORP REPORTS THIRD QUARTER EARNINGS
Next Article:JAMES RIVER ANNOUNCES DIVIDEND DISTRIBUTION
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters