Financial Data and Key Metrics Changes - The company recorded fully diluted GAAP earnings per share of $0.79 for Q3 2020, with operating earnings per share of $0.85, which is $0.01 higher than Q3 2019 and $0.09 higher than Q2 2020 [6][7] - Total assets increased to $13.85 billion, up $401.1 million or 3% from Q2 2020 and up $2.25 billion or 19.4% year-over-year [8] - Average interest-earning assets rose to $11.96 billion, an increase of $852.5 million or 7.7% from Q2 2020 and up $2.15 billion or 21.9% year-over-year [8] - The net interest margin decreased to 3.12% from 3.73% in Q3 2019, impacted by lower market interest rates [12] Business Line Data and Key Metrics Changes - Noninterest banking revenues increased by $1.2 million or 6.9% year-over-year, driven by a $4 million increase in mortgage banking revenue [13] - Mortgage banking was strong, with over $100 million sold into the secondary market [5] - Total revenues for Q3 2020 were $152.6 million, an increase of $4.3 million or 2.9% from the prior year [12] Market Data and Key Metrics Changes - Ending loans were $7.46 billion, up $605.5 million or 8.8% year-over-year, but down $69.4 million or 0.9% from Q2 2020 [9] - Average total deposits increased by $823 million or 8.1% from Q2 2020 and up $2 billion or 22.6% year-over-year [9] Company Strategy and Development Direction - The company plans to focus on capitalizing on future opportunities despite potential headwinds from credit demand and economic conditions [5] - Management is actively developing earnings improvement initiatives, including revenue enhancements and cost reduction measures [24] - The company aims to continue its disciplined growth strategy in the employee benefits business through organic growth and M&A opportunities [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting the potential for increased delinquency and nonperforming loans in future quarters [23] - The company is closely monitoring COVID-19 impacted borrowers and developing loss mitigation strategies [20] - Management anticipates that the high levels of deposit liabilities may fluctuate based on economic conditions and potential additional stimulus [23] Other Important Information - The company accrued $3 million in litigation reserves related to a class action suit, expecting to execute a settlement agreement in Q4 2020 [19] - The allowance for credit losses increased to $65 million or 0.87% of total loans outstanding, representing over 10 times the trailing 12 months of net charge-offs [21] Q&A Session Summary Question: Can you discuss the levers to keep net interest income moving in the right direction? - Management acknowledged the challenges posed by the flat yield curve but indicated plans to deploy excess cash into longer-term securities to stabilize net interest income [27][28] Question: What is the expected trend for deposit service and banking fees? - Management does not anticipate a full rebound in deposit service fees in Q4, expecting a gradual recovery by mid-next year [33] Question: How is the company approaching M&A opportunities? - Management prefers to use capital for accretive M&A transactions rather than stock buybacks, indicating a cautious approach to larger deals in the current environment [50][66] Question: What is the current status of loan deferrals and potential losses? - Management reported significant progress in reducing loan deferrals, with ongoing evaluations for potential losses on remaining deferrals [59]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________________to___________________ Commission File Number: 001-13695 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------|------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------|--------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | / Community | | | | | | | | | | | | | | | | | | | | | | | | | | | BANK SYSTEM, INC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

Community Bank System, Inc. (NYSE:CBU) Q2 2020 Earnings Conference Call July 27, 2020 11:00 AM ET Company Participants Mark Tryniski - President and Chief Executive Officer Joseph Sutaris - Executive Vice President and Chief Financial Officer Joseph Serbun - Executive Vice President and Chief Banking Officer Conference Call Participants Alex Twerdahl - Piper Sandler Erik Zwick - Boenning & Scattergood Russell Gunther - D.A. Davidson Matthew Breese - Stephens, Inc. Operator Welcome to Community Bank System Q ...

Company Profile & Strengths - Community Bank System (CBU) is one of the largest community banks in Upstate New York, with approximately $11.8 billion in total assets[4] - CBU's 12-year cumulative total return to shareholders is 268%, or 11.5% annualized, compared to 41%, or 2.9% annualized, for the KBW Regional Banking Index[6] - Noninterest revenues accounted for 39% of operating revenues in Q1 2020[21] Recent Accomplishments & Strategy - CBU reported a Return on Assets of 1.41%, Return on Tangible Equity of 14.52%, and Net Interest Margin of 3.65% in Q1 2020[8] - The company aims for a 10% annual total shareholder return over time through organic growth and acquisitions[9] - Banking Services noninterest revenue increased by 4% to $18.1 million in Q1 2020[19] - Employee Benefit Plan Administration and Trust Services revenue increased by 5.5% to $25.4 million in Q1 2020[19] - Wealth Management & Insurance revenue increased by 6.9% to $15.2 million in Q1 2020[19] Growth & Acquisitions - CBU's noninterest revenue has a 12-year Compound Annual Growth Rate (CAGR) of 14.2% from 2007-2019[22] - The pending acquisition of Steuben Trust Corporation involves an aggregate merger consideration of approximately $106.7 million[28] COVID-19 Response & Financials - As of April 30, 2020, CBU granted loan payment deferrals on 5,694 loans, representing $735 million in loan balances, or 10.2% of portfolio outstandings[63, 64] - Paycheck Protection Program (PPP) loan applications representing $497 million have received SBA authorization through April 30, 2020[63]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________________to___________________ Commission File Number: 001-13695 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Community Bank System, Inc. (NYSE:CBU) Q1 2020 Earnings Conference Call April 20, 2020 11:00 AM ET Company Participants Mark Tryniski - President and Chief Executive Officer Joseph Sutaris - Executive Vice President and Chief Financial Officer Scott Kingsley - Executive Vice President and Chief Operating Officer Joe Serbun - Senior Vice President and Chief Credit Officer Conference Call Participants Joe Fenech - Hovde Group Alex Twerdahl - Piper Sandler Erik Zwick - Boenning and Scattergood Russell Gunther ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-13695 Delaware 16-1213679 | --- | --- | --- | |-------------------------------------------------------------------------------------------------- ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------|-------|-------------------|-------|-------|-------|-------|-------|-------|-------|--------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | % Community | | | | | | | | | | | | | | | | | | | | | | | | | | | | BANK SYSTEM, INC. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

Financial Data and Key Metrics Changes - Fourth quarter earnings were up nicely over 2018 but down from Q3, which is seasonally typical [4] - Full-year 2019 EPS excluding acquisition expenses and securities gains was up marginally over 2018 despite a $7 million-plus Durbin impact [6] - GAAP net income for full-year 2019 was $169.1 million, with fully diluted earnings per share of $3.23, compared to $168.6 million and $3.24 in 2018 [19] - For Q4 2019, GAAP net income was $42.9 million, representing a 5% increase over Q4 2018 and a 9.3% increase over Q3 2019 [21] Business Line Data and Key Metrics Changes - Organic consumer loan growth and non-municipal deposit growth were highlighted as strong points in Q4 [5] - Average loans in Q4 2019 were up 1.8% from Q3 and 9.3% from Q4 2018 [11] - The insurance business saw a 40% earnings improvement [7] - Non-interest revenues contributed 38.7% of total operating revenues during 2019 [29] Market Data and Key Metrics Changes - Average total deposits were up 8.9% year-over-year and 2% on a linked quarter basis [16] - The company’s Tier 1 leverage ratio was 10.80%, significantly above the well-capitalized regulatory standard [18] - Non-performing loans totaled $24.3 million or 0.35% of total loans, showing improvement from previous quarters [36] Company Strategy and Development Direction - The company plans to manage margin pressures while expecting the Steuben acquisition to be solidly additive [9] - The focus remains on organic growth and improving execution capabilities across all business lines [57] - The company aims to deploy considerable capital in a disciplined manner for ongoing shareholder benefit [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong operating momentum across all businesses heading into 2020 [9] - The effective tax rate for Q4 2019 was 17.1%, down from 20.7% in Q4 2018, attributed to increased tax benefits [35] - The company remains well-positioned for future growth, supported by strong asset quality and capital reserves [42] Other Important Information - The company successfully integrated the Kinderhook transaction and announced the Steuben transaction, expected to close in May [8][39] - Total operating expenses increased by 7.8% over Q4 2018, driven by higher salaries and employee benefits [29][30] - The company recorded a $2.9 million provision for loan losses in Q4 2019, up from previous quarters [34] Q&A Session Summary Question: Expectations for margin stability - Management anticipates the margin to be stable in the mid- to high 3.60% range if there are no further Fed rate cuts [48] Question: Loan growth expectations for 2020 - The company expects loan growth to be similar to 2019, with a strong pipeline indicating potential for improvement [56] Question: Operating expenses outlook - The core run rate for operating expenses is expected to be around $93 million to $94 million, with some volatility anticipated [59] Question: Provision for loan losses in 2020 - Management does not expect significant changes in provisioning, maintaining a similar approach to pre-CECL levels [62] Question: CECL impact disclosure - The company is in the process of evaluating the CECL impact, with preliminary estimates indicating a slight decrease in the previously disclosed range [72]