Community Bank System Inc (CBU) Reports Q3 2023 Earnings
Community Bank System Inc (NYSE:CBU) reported Q3 2023 net income of $44.1 million, or $0.82 per fully diluted share.
Noninterest revenues contributed 38.5% of total revenues, up $3.3 million, or 7.1%.
Total loans outstanding increased by $279.3 million, or 3.0%, marking the ninth consecutive quarter of loan growth.
The company's total assets stand at $15.4 billion, focusing on four main business lines banking, benefits administration, insurance services, and wealth management.
Community Bank System Inc (NYSE:CBU) announced its third-quarter 2023 results on October 24, 2023. The company reported a net income of $44.1 million, or $0.82 per fully diluted share. This marks a decrease from the $0.90 per share reported for the third quarter of 2022. The company's earnings were pressured by certain elevated expenses in the quarter, despite strong revenue performance and stability.
Financial Performance
Operating revenues across all lines of business remained strong in the quarter, with noninterest revenues contributing 38.5% of total revenues. Financial services business revenues were up $3.3 million, or 7.1%, while banking segment revenues were down $3.6 million, or 2.8%, from the prior year's third quarter. This was due to a $1.0 million, or 5.3%, decrease in banking noninterest revenues and a $2.6 million, or 2.4%, decrease in net interest income driven by higher funding costs.
Loan and Deposit Growth
Total loans outstanding were up $279.3 million, or 3.0%, during the quarter, marking the ninth consecutive quarter of loan growth. Total deposits were also up $159.0 million, or 1.2%, in the quarter and up $18.5 million, or 0.1%, on a year-to-date basis. The company's cycle-to-date deposit beta stayed low at just 13% and approximately 70% of the company's total deposits remained in checking and savings accounts at the end of the quarter.
Business Segment Revenues
The banking segment reported total revenues of $125.3 million, a decrease of $3.6 million, or 2.8%, from the third quarter of 2022. Employee Benefit Services reported total revenues of $30.0 million, an increase of $2.1 million, or 7.6%, from the third quarter of 2022. Insurance Services reported total revenues of $12.1 million, an increase of $0.8 million, or 6.9%, from the third quarter of 2022. Wealth Management Services reported total revenues of $7.9 million, an increase of $0.4 million, or 5.8%, from the third quarter of 2022.
Future Outlook
Community Bank System Inc (NYSE:CBU) believes its strong core deposit base, in combination with its strong liquidity profile, capital, asset quality, and diversified revenue profile provide a solid foundation for future opportunities and growth. The company plans to optimize its retail customer service workforce and expects to reinvest in its retail network through de novo branch expansion in new, more densely populated markets throughout its geographic footprint in the second half of 2024.
Explore the complete 8-K earnings release (here) from Community Bank System Inc for further details.
This article first appeared on GuruFocus.
