munity Bank System(US:CBU)2026-01-27 14:17Financial Performance - Community Financial System, Inc. reported net income of $54.4 million, or $1.03 per share, for Q4 2025, and $210.5 million, or $3.97 per share, for the full year 2025[4]. - The company achieved operating net income of $59.5 million, or $1.12 per share, for Q4 2025, and $225.1 million, or $4.24 per share, for the full year 2025[5]. - The operating return on assets for the full year 2025 was 1.34%, with a 16% growth in operating diluted earnings per share[7]. - Net income for the year ended December 31, 2025, was $210.455 million, an increase of 15.3% from $182.481 million in 2024[33]. - Net income for Q4 2025 was $54,422,000, compared to $49,793,000 in Q4 2024, representing a year-over-year increase of 9.3%[34]. - Basic earnings per share for Q4 2025 were $1.03, up from $0.94 in Q4 2024, showing a growth of 9.6%[34]. - The return on assets (GAAP) for Q4 2025 was 1.26%, slightly up from 1.21% in Q4 2024[34]. - Return on equity (GAAP) for Q4 2025 was 11.04%, slightly down from 11.27% in Q4 2024[39]. Revenue and Income Sources - Total revenues for Q4 2025 were $215.5 million, representing a 4.1% quarter-over-quarter increase and a 9.8% year-over-year increase[8]. - Noninterest revenues accounted for 38% of total revenues in Q4 2025, setting a new quarterly record[15]. - Total interest income for the year ended December 31, 2025, was $699.275 million, compared to $643.528 million for the previous year, reflecting an increase of 8.7%[33]. - Total noninterest revenues for the year increased to $311.457 million from $297.186 million, a growth of 4.4%[33]. - Total noninterest revenues for Q4 2025 amounted to $82,026,000, an increase from $76,314,000 in Q4 2024, indicating a growth of 7.5%[34]. Assets and Deposits - Total assets increased by $917.3 million, or 5.6%, year-over-year to $17.30 billion as of December 31, 2025, primarily due to organic loan growth and the Santander branch acquisition[19]. - The company reported a total ending loan balance of $10.95 billion, a 1.9% increase quarter-over-quarter and a 5.0% increase year-over-year[8]. - The total ending deposits reached $14.39 billion, reflecting a 2.3% increase from Q3 2025 and a 7.0% increase from Q4 2024[8]. - Ending deposits at December 31, 2025 were $14.39 billion, up $945.4 million, or 7.0%, year-over-year, driven by deposits from the Santander acquisition[22]. Expenses and Provisions - The Company’s total noninterest expenses in Q4 2025 were $138.5 million, a 10.4% increase from the prior year, driven by higher salaries and acquisition-related expenses[19]. - The Company recorded a $5.0 million provision for credit losses in Q4 2025, reflecting organic loan growth and stable credit quality metrics[22]. - Provision for credit losses was $4,979,000 in Q4 2025, down from $6,208,000 in Q4 2024, indicating a decrease of 19.8%[38]. Acquisitions and Branch Expansion - The company opened 15 new branches and completed two strategic transactions, including the acquisition of 7 branch locations from Santander Bank, N.A.[7]. - An agreement was announced to acquire ClearPoint Federal Bank & Trust, which will significantly expand the revenue and offerings of the wealth management services business[7]. - Community Bank, N.A. acquired seven branch locations from Santander Bank, adding $543.7 million in customer deposits[25]. - The Company announced an agreement to acquire ClearPoint Federal Bank & Trust for approximately $40 million, expected to close in Q2 2026, enhancing its wealth management services[26]. Shareholder Information - Shareholders' equity increased to $2.01 billion at December 31, 2025, up $243.2 million, or 13.8%, from the previous year[27]. - A quarterly cash dividend of $0.47 per share was declared, representing a 2.2% increase from the $0.46 dividend in Q4 2024[27]. - The company approved a stock repurchase program for up to 2.63 million shares, or 5.0% of outstanding common stock, starting January 1, 2026[27]. Ratios and Metrics - The adjusted return on equity for the banking segment was 14.35%, an increase of 0.21% year-over-year[9]. - The company's tangible equity to tangible assets ratio improved to 6.75% at December 31, 2025, up from 5.83% a year earlier[27]. - The company's tier 1 leverage ratio was 9.21% at December 31, 2025, remaining above the regulatory standard of 5.0%[27]. - The efficiency ratio (GAAP) improved to 64.3% in Q4 2025, compared to 62.0% in Q3 2025[41].