Community Bank System Inc. Releases Quarterly Income Report
April 26, 2009
Community Bank System Inc. generated quarterly net income of $10.5 million, or $0.32 per share, in the first quarter of 2009, a decrease of 4 percent from the $10.9 million, and $0.36 per share, reported for the first quarter of 2008. For the quarter, cash earnings per share, which excludes the after-tax effect of the amortization of intangible assets, acquisition-related market value adjustments, were $0.37, which is $0.05 per share, or 15.6 percent more than GAAP-reported results. “Our company produced another solid quarter by remaining focused on our disciplined business model through very challenging market conditions,” said Mark E. Tryniski, bank president and chief executive officer. “Our first quarter performance included expansion of net interest income through organic and acquired growth of both loans and core deposits, a stable net interest margin, growth in non-interest income sources, and sound asset quality. However, additional operating costs, principally acquisition-related, and significantly higher FDIC insurance assessments, combined with our decision to remain in a very liquid position throughout the quarter, resulted in a net reduction in earnings. We are also pleased with the integration progress of the 18 branch-banking centers in northern New York state, acquired in November, which added over $560 million of deposits and $110 million of loans to our market-leading, northern New York footprint.” First quarter net interest income grew to $40.2 million, an increase of 12.9 percent above the first quarter 2008, and reflected an 11.3 percent increase in average loans, as well as a 1-basis point improvement in net interest margin to 3.82 percent. The company’s stable margin results were realized as a result of a 70-basis point reduction in the total cost of funds, which was reflective of continued disciplined deposit pricing, offset by a 67-basis point decline in earning asset yields, including cash equivalents. For more information, visit www.snl.com/irweblinkx/file.aspx?IID=100185&FID=7692500.
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