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Community Bank System, Inc. Reports First Quarter 2024 Results

Community Bank System, Inc. (the “Company”) (NYSE: CBU) reported first

quarter 2024 results that are included in the attached supplement. This

earnings release, including supporting financial tables, is also available

within the press releases section of the Company's investor relations website

at: https://ir.communitybanksystem.com/news-presentations/press-releases/

(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.communitybanksystem.com%2Fnews-presentations%2Fpress-releases%2F&esheet=53946047&newsitemid=20240423122686&lan=en-US&anchor=https%3A%2F%2Fir.communitybanksystem.com%2Fnews-presentations%2Fpress-releases%2F&index=1&md5=ae79c6ca650dbf5e1170d9fac7d68496)

. An archived webcast of the earnings call will be available on this site for

one full year.

This press release features multimedia. View the full release here:

https://www.businesswire.com/news/home/20240423122686/en/

(https://www.businesswire.com/news/home/20240423122686/en/)

First Quarter 2024 Performance Summary

* Net income of $40.9 million, or $0.76 per fully diluted share, increased $35.1

million, or $0.65 per fully diluted share, from the prior year’s first

quarter and increased $7.2 million, or $0.13 per fully diluted share, from the

fourth quarter of 2023

* Operating net income, a non-GAAP measure that excludes the after-tax effects

of acquisition expenses, acquisition-related contingent consideration

adjustments, restructuring expenses, litigation accrual, gain on debt

extinguishment, loss on sales of investment securities, unrealized gain (loss)

on equity securities and amortization of intangible assets from net income, of

$43.8 million, or $0.82 per fully diluted share, decreased $5.9 million, or

$0.10 per fully diluted share, from the prior year’s first quarter and was

consistent with the fourth quarter of 2023

* Total revenues of $177.3 million, a new quarterly record for the Company,

increased $52.8 million, or 42.4%, from the prior year’s first quarter that

included a $52.3 million pre-tax realized loss on sales of investment

securities, and increased $0.3 million, or 0.2%, from the fourth quarter of

2023

* Total financial services (employee benefit services, insurance services and

wealth management services) revenues of $52.0 million, also a new quarterly

record for the Company, increased $2.9 million, or 5.8%, from the prior

year’s first quarter and increased $2.5 million, or 5.0%, from the fourth

quarter of 2023

* Operating pre-tax, pre-provision net revenue, a non-GAAP measure that excludes

the provision for credit losses, acquisition expenses, acquisition-related

contingent consideration adjustments, restructuring expenses, litigation

accrual, gain on debt extinguishment, loss on sales of investment securities,

unrealized gain (loss) on equity securities and amortization of intangible

assets from income before income taxes, of $62.9 million, or $1.18 per fully

diluted share, decreased $3.4 million, or $0.04 per fully diluted share, from

the prior year’s first quarter and increased $2.4 million, or $0.05 per

fully diluted share, from the fourth quarter of 2023

* Total ending loans of $9.88 billion increased $178.9 million, or 1.8%, from

the end of 2023, marking the eleventh consecutive quarter of loan growth, and

increased $901.2 million, or 10.0%, from the end of the prior year’s first

quarter

* Total ending deposits of $13.35 billion increased $423.9 million, or 3.3%,

from the end of 2023 and increased $241.4 million, or 1.8%, from the end of

the prior year’s first quarter

* Annualized loan net charge-offs were 0.12% for the quarter

* Tier 1 leverage ratio of 9.01% at the end of the quarter continues to

substantially exceed the regulatory well-capitalized standard of 5.0%

Company management will conduct an investor call at 11:00 a.m. (ET) today,

April 23, 2024, to discuss the first quarter 2024 results. The conference call

can be accessed at 1-833-630-0464 (1-412-317-1809 if outside the United States

and Canada). Investors may also listen live via the Internet at:

https://app.webinar.net/OXrxVp7w7PM

(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fapp.webinar.net%2FOXrxVp7w7PM&esheet=53946047&newsitemid=20240423122686&lan=en-US&anchor=https%3A%2F%2Fapp.webinar.net%2FOXrxVp7w7PM&index=2&md5=46f2400312f86c0a0b215464d2c65843)

.

About Community Bank System, Inc.

Community Bank System, Inc. is a diversified financial services company that

is focused on four main business lines – banking, employee benefit services,

insurance services and wealth management. Its banking subsidiary, Community

Bank, N.A., is among the country’s 100 largest banking institutions with

over $15 billion in assets and operates approximately 200 customer facilities

across Upstate New York, Northeastern Pennsylvania, Vermont, and Western

Massachusetts. The Company’s Benefit Plans Administrative Services, Inc.

subsidiary is a leading provider of employee benefits administration, trust

services, collective investment fund administration, and actuarial consulting

services to customers on a national scale. The Company’s OneGroup NY, Inc.

subsidiary is a top 75 U.S. insurance agency. The Company also offers

comprehensive financial planning, trust administration and wealth management

services through its Community Bank Wealth Management operating unit.

Community Bank System, Inc. is listed on the New York Stock Exchange and the

Company’s stock trades under the symbol CBU. For more information about

Community Bank visit www.cbna.com

(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.cbna.com&esheet=53946047&newsitemid=20240423122686&lan=en-US&anchor=www.cbna.com&index=3&md5=4787a085107c833e001476a62d3c8e2a)

or https://ir.communitybanksystem.com

(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.communitybanksystem.com&esheet=53946047&newsitemid=20240423122686&lan=en-US&anchor=https%3A%2F%2Fir.communitybanksystem.com&index=4&md5=5ba3eb897fd88e049579783b30395fc0)

.

View source version on businesswire.com:

https://www.businesswire.com/news/home/20240423122686/en/

(https://www.businesswire.com/news/home/20240423122686/en/)

For further information:

Joseph E. Sutaris, EVP & Chief Financial Officer

Office: (315) 445-7396

Copyright Business Wire 2024