munity Bank System(US:CBU)2020-05-29 16:36Company 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]