Core Insights - Community Financial System (CBU) reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $0.83 per share a year ago, resulting in an earnings surprise of +0.97% [1] - The company posted revenues of $207.93 million for the quarter ended September 2025, which was 0.48% below the Zacks Consensus Estimate, but an increase from $189.81 million year-over-year [2] - The stock has underperformed the market, losing approximately 9.1% since the beginning of the year, while the S&P 500 has gained 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $212.67 million, and for the current fiscal year, it is $4.06 on revenues of $818.75 million [7] - The estimate revisions trend for Community Financial was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which Community Financial belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Burford Capital Limited (BUR), is expected to report a significant decline in earnings, with a projected EPS of $0.30, down 50.8% year-over-year, and revenues expected to decrease by 48.2% [9]

Core Insights - Community Financial System, Inc. reported its third quarter 2025 results, which are available on the company's investor relations website [1] - A conference call to discuss the third quarter results is scheduled for October 21, 2025, at 11:00 a.m. (ET) [2] Company Overview - Community Financial System, Inc. is a diversified financial services company with four main business lines: banking services, employee benefit services, insurance services, and wealth management services [3] - The company's banking subsidiary, Community Bank, N.A., has over $16 billion in assets and operates approximately 200 customer facilities across several states [3] - The company also includes subsidiaries that provide employee benefits administration, insurance services, and comprehensive financial planning [3]

Core Insights - Community Financial System, Inc. (NYSE:CBU) is recognized as one of the 12 Reliable Dividend Stocks for Maximum Income, highlighting its strong dividend performance [1] Company Overview - Community Financial System, Inc. operates as a regional financial holding company with services in banking, employee benefits, insurance, and wealth management across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts [2] Business Strategy - The company's strategy emphasizes a balanced mix of revenue streams, market expansion, and acquisitions to enhance market position and product offerings. Key success factors include stable deposit growth, prudent lending, strong asset quality, effective cost control, and disciplined capital allocation to support consistent dividend growth [3] Dividend Performance - Community Financial System has increased its dividend for 33 consecutive years, demonstrating a commitment to shareholder returns. Over the last decade, the company has distributed over $750 million in dividends, with a current quarterly dividend of $0.47 per share and a dividend yield of 3.35% as of October 13 [4]

Core Viewpoint - Community Financial System has announced its earnings conference call for the third quarter of 2025, indicating a focus on financial performance and strategic insights for stakeholders [1] Summary by Relevant Categories Earnings Performance - The announcement pertains to the third quarter earnings, which will provide insights into the company's financial health and operational efficiency [1] Strategic Insights - The earnings conference call is expected to discuss key strategies and future outlook, which may influence investor sentiment and market positioning [1]

Core Insights - BPAS has been recognized for the fourth consecutive year in the NAPA Advisors' Choice Awards, highlighting its strong performance in the retirement plan services sector [1][8] - The company ranked among the Top 5 Recordkeepers in six categories for mid- and large-market segments, specifically for plans ranging from $10 million to $250 million [2][3] Company Performance - BPAS received six awards in 2025, reflecting its commitment to providing value in managing large and complex retirement plans [3] - The company supports over 6,100 plans with $110 billion in trust assets and $1.3 trillion in fund administration, serving approximately 910,000 participants [4] Service Model - BPAS offers a fully bundled solution that includes recordkeeping, administration, custodial, and clearing services, which streamlines client administration and reduces complexity [3][4] - Client satisfaction is high, with a reported 97% satisfaction rating and a 45% time savings compared to previous administrators [3] Strategic Focus - The company emphasizes strong relationships built on expertise, reliability, and flexibility, aiming to deliver long-term partnerships and industry-leading service [4] - BPAS continues to enhance its technology and service offerings to simplify processes for clients and HR teams [3]

Core Viewpoint - The article discusses upcoming ex-dividend dates and dividend payments for Slr Investment Corp, Hanover Insurance Group Inc, and Community Financial System Inc, highlighting the expected price adjustments in their stock prices due to these dividends [1]. Dividend Payments - Slr Investment Corp (SLRC) will pay a quarterly dividend of $0.41 on 9/26/25, with an expected yield of approximately 2.46% based on its recent stock price of $16.69 [1]. - Hanover Insurance Group Inc (THG) will pay a quarterly dividend of $0.90 on 9/26/25, with an expected price drop of 0.50% [1]. - Community Financial System Inc (CBU) will pay a quarterly dividend of $0.47 on 10/10/25, with an expected price drop of 0.79% [1]. Historical Dividend Analysis - Historical dividend data is provided for SLRC, THG, and CBU, which can help assess the stability of their dividends over time [2]. - The estimated annualized yields based on recent dividends are 9.83% for Slr Investment Corp, 2.01% for Hanover Insurance Group Inc, and 3.18% for Community Financial System Inc [8]. Stock Performance - In recent trading, Slr Investment Corp shares are down about 0.7%, Hanover Insurance Group Inc shares are up about 0.9%, and Community Financial System Inc shares are down about 1.8% [9].

Core Viewpoint - Community Financial System, Inc. has announced an investment in Leap Holdings, Inc., indicating a strategic move to enhance its portfolio and expand its market presence [1] Company Summary - Community Financial System, Inc. is actively seeking growth opportunities through investments, as evidenced by its recent decision to invest in Leap Holdings, Inc. [1] - Leap Holdings, Inc. is positioned to benefit from this investment, potentially enhancing its operational capabilities and market reach [1] Industry Summary - The investment landscape is showing increased activity, with companies like Community Financial System, Inc. making strategic investments to strengthen their positions in the market [1] - This trend reflects a broader industry movement towards consolidation and partnership as firms look to leverage synergies and enhance competitive advantages [1]

Table of Contents 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, 2025 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) | Delaware | 16-1213679 | | --- | --- | | (State or other ju ...

Core Insights - Community Financial System reported a non-GAAP EPS of $1.04 for Q2 2025, exceeding the consensus estimate of $1.01, representing a 3.0% upside surprise [1] - Total GAAP revenue was $199.3 million, slightly below the consensus estimate of $201.3 million, but up 8.4% year-over-year [1][2] - The quarter showcased record net interest income of $124.7 million, a 14.0% increase from the previous year, and a net interest margin of 3.27%, up 0.26 percentage points year-over-year [5][6] Financial Performance - Non-GAAP EPS for Q2 2025 was $1.04, a 9.5% increase from $0.95 in Q2 2024 [2] - GAAP revenue was $199.3 million, compared to $183.8 million in Q2 2024, reflecting an 8.4% year-over-year growth [2] - Net interest income reached $124.7 million, up from $109.4 million in the prior year [2] - Operating expenses rose to $129.1 million, an increase of 8.5% from the prior-year quarter [8] Business Segments and Strategy - Community Financial System operates through four main segments: banking, employee benefits services, insurance services, and wealth management [3][12] - The company aims to maintain a diversified revenue mix and expand its geographic presence through acquisitions [4][13] - Fee-based businesses contributed 37.4% to total revenue, down from 40.5% a year ago, with mixed results across segments [7] Asset Quality and Capital - Loan balances increased to $10.52 billion, a 4.9% rise year-over-year, driven by consumer indirect lending [6] - The ratio of nonperforming loans to total loans was 0.51% as of June 30, 2025, indicating resilient asset quality [10] - Shareholder equity increased by 12.7% to $1.88 billion, with strong regulatory capital ratios supporting growth [11] Future Outlook - The company anticipates slower growth in fee-based businesses due to market pressures, with a focus on loan growth and deposit trends [14][15] - The quarterly dividend was raised by 2.2% to $0.47 per share, marking the 33rd consecutive year of dividend growth [11][15]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.97, an increase of $0.06 or 6.6% year-over-year and up $0.04 or 4.3% from the previous quarter [10] - Operating earnings per share were $1.04, compared to $0.95 a year prior and $0.98 in the linked first quarter [10] - Total operating revenues reached $199.3 million, up $16.1 million or 8.8% year-over-year and up $3.3 million or 1.7% from the previous quarter [10][11] - Net interest income was $124.7 million, representing a $4.5 million or 3.8% increase from the previous quarter and a $15.3 million or 14% improvement year-over-year [11] - The company's operating margin increased to 23%, driving operating pretax earnings expansion of 70% year-to-date [6] Business Line Data and Key Metrics Changes - The Employee Benefits Services business remained flat year-over-year and quarter-over-quarter, with recordkeeping growing at high single digits while Fiduciary Trust faced headwinds [5] - Wealth Management Services experienced muted revenue growth year-over-year but saw a 16% increase in pretax operating earnings [6] - Banking fee income remained strong, with credit results impacted by the resolution of two large nonperforming assets [4] Market Data and Key Metrics Changes - Ending loans increased by $98 million or 0.9% during the second quarter, primarily driven by growth in the consumer indirect lending portfolio [13] - Total deposits increased by $563.9 million or 4.3% year-over-year but decreased by $190.3 million or 1.4% from the previous quarter due to seasonal outflows [14] - The company's liquidity position remains strong, with readily available sources of liquidity totaling $5.9 billion, representing 246% of estimated uninsured deposits [16] Company Strategy and Development Direction - The company announced a branch acquisition that will enhance its presence in a strategically important market, with no share issuance involved [8][19] - The acquisition aligns with the company's retail growth strategy and is expected to close in the fourth quarter of this year [7][19] - The company aims to continue deploying capital productively in the second half of the year [9] Management's Comments on Operating Environment and Future Outlook - Management noted that competition in lending has intensified, with competitors trying to regain market share [21] - The company expects to outperform peers and is optimistic about market share gains in the upcoming quarters [22] - Management expressed confidence in achieving growth targets, with a focus on maintaining a diversified revenue profile and strong liquidity [19] Other Important Information - The company recorded a provision for credit losses of $4.1 million during the second quarter, compared to $2.7 million in the prior year's second quarter [12] - Nonperforming loans totaled $53.3 million or 51 basis points of total loans outstanding, a decrease from the previous quarter [17] Q&A Session Summary Question: Can you speak to the competitive landscape you're seeing in terms of lending? - Management acknowledged increased competition in the lending market, with competitors trying to make up for previous inactivity [21][22] Question: How are you feeling about the quarterly NIM expansion from here? - Management indicated expectations of a range closer to three to five basis points for NIM expansion [25] Question: Will the acquired deposits boost liquidity and be invested over time? - Management views the acquired deposits as a source for future loan growth, with initial proceeds likely to remain in short-term instruments [26] Question: Can you talk about OpEx trends from here? - Management expects OpEx to remain flat moving forward, with a focus on ensuring investments push the business forward [32][34] Question: How is the branch acquisition progressing? - Management confirmed that the acquisition is on track and complements the organic strategy in the market [35][36] Question: Can you provide an update on the pipeline and financial targets? - Management reiterated a target of mid-single-digit growth across lending portfolios, with expectations of returning to historical growth rates [42][45]