Community Bank System net worth is on the rise, driven by loan growth, deposits, and diversified revenue streams. As one of the industry’s steady performers, it’s worth comparing to the largest banks globally.
In this post, Ando Money will break down the bank’s financial performance, revealing how it maintains stability and growth.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Community Bank System |
| Full Name | Community Bank System Inc. |
| Traded as | NYSE: CBU |
| ISIN | N/A |
| Founded | 1866 |
| Founders | St. Lawrence National Bank |
| Country/Territory | United States |
| Headquarters | DeWitt, New York |
| Chief Executive Officer | Dimitar A. Karaivanov |
| Number of Employees | N/A |
| Market Cap | $3.21 Billion [estimated] |
| Total Assets | $15.86 billion |
| Total Equity | $1.66 billion |
| Revenue | $177.3 million |
| Net Income | $40.9 million |
What is the Net Worth/ Market Cap Of Community Bank System in 2024?
As of 2024, Community Bank System has an estimated net worth of approximately $1.66 billion in total equity.
With a market capitalization of $3.21 Billion, Community Bank is a notable player in the U.S. financial sector. This compares favorably to other regional banks of its size, reflecting its steady performance.
Other banks related to Community Bank System:
- JP Morgan Chase
- Bank of America
- Wells Fargo
- Citigroup
- PNC Financial Services
- KeyCorp
- M&T Bank
- First Republic Bank
- Truist Financial
- Citizens Financial Group
Community Bank System Financial Performance Overview
Key Revenue Drivers
The primary revenue driver for Community Bank System is its loan portfolio, which saw significant growth in 2024. Loans reached a total of $9.88 billion, reflecting a 10% increase year-over-year.
This is a crucial part of the bank’s financial health, as loan growth directly contributes to its ability to generate interest income. Moreover, the bank’s deposit inflows, which grew by 3.3%, strengthen its ability to provide funding for loans.
In addition, noninterest revenue streams play a key role in enhancing the bank’s profitability. These revenues, such as employee benefit services, wealth management, and insurance services, collectively contributed to $70.3 million in revenue.
This represents a 7.1% increase from 2023. By leveraging these diversified services, the bank has been able to reduce its reliance on interest income, providing a more balanced and robust revenue structure.
Loan and Deposit Growth
One of the standout aspects of Community Bank System’s financial performance is its loan growth. The bank saw a 1.8% increase in total loans from December 2023 to March 2024.
This brought the total loan balance to $9.88 billion, a significant contributor to the company’s bottom line. The loan-to-deposit ratio stands at 74%, demonstrating strong liquidity management.
On the deposit side, total deposits reached $13.35 billion, a result of increased public fund deposits due to seasonal tax collection.
The consistent growth in both loans and deposits illustrates the bank’s ability to expand its core financial activities, even in a competitive banking environment.
Noninterest Revenue and Its Role
The bank has made impressive strides in expanding its noninterest revenue streams. As of Q1 2024, noninterest revenues accounted for 39.6% of total revenues, up from 38.3% in the previous quarter.
This rise can be attributed to employee benefit services, which generated $31.7 million, and wealth management services, which saw a 16.5% increase over the fourth quarter of 2023.
Such growth in noninterest income allows Community Bank System to diversify its earnings, reducing its reliance on the more volatile interest income from loans.
This diversification helps the bank maintain steady revenue streams, even during periods of economic downturn or interest rate fluctuations.
Capital and Financial Stability
The bank’s capital management reflects its strong financial footing. With a tier 1 leverage ratio of 9.01%, the bank is well above regulatory standards, ensuring that it maintains enough capital to absorb potential losses.
Furthermore, its shareholder equity is robust, totaling $1.66 billion, which provides a solid base for future growth and stability.
This strong equity position also allows the bank to continue paying dividends and engaging in share repurchase programs, thus delivering value back to its shareholders.
In the first quarter of 2024, the bank declared a dividend of $0.45 per share, up from $0.44 in the same quarter the previous year.
Additionally, it repurchased 750,000 shares, part of its ongoing strategy to return excess capital to shareholders, signaling confidence in its financial outlook.
Net Interest Income and Margins
Net interest income, a critical component of the bank’s earnings, stood at $107 million for Q1 2024, representing a slight decline from 2023.
This decrease in net interest margin (now at 2.95%) reflects pressures from higher funding costs, a challenge faced by many banks in the current economic climate.
Despite these challenges, Community Bank System has managed to maintain a fully tax-equivalent net interest margin of 2.98%, showcasing its ability to adapt to changing market conditions.
Risk and Asset Quality Management
In terms of risk management, nonperforming loans accounted for 0.50% of total loans, a slight improvement from the 0.56% reported at the end of 2023.
The bank’s provision for credit losses increased to $6.1 million, reflecting a cautious approach in the face of potential economic uncertainties.
This focus on credit quality ensures that the bank remains well-positioned to manage risks while continuing its growth trajectory.
FAQs about Community Bank System
What services does Community Bank System offer?
It offers personal and business banking, loans, credit lines, wealth management, and insurance services. It also provides pension plan administration and employee benefit services, catering to both individuals and businesses.
How do I open an account?
Visit any branch or apply online. You’ll need an ID, proof of address, and your Social Security Number. The process is quick and straightforward.
What is the minimum balance for a checking account?
Minimum balances depend on the account type. Basic accounts may have no minimum, while premium accounts might have specific requirements.
How does the bank ensure online banking security?
Community Bank System uses encryption, multi-factor authentication, and secure logins. It monitors transactions and sends alerts for unusual activity.
How can I access mobile banking?
Download the bank’s app from the app store. Register, then access features like checking balances, transferring funds, and depositing checks.
How does the bank generate revenue?
Revenue comes mainly from loan interest and noninterest services like wealth management and insurance. This balanced approach ensures financial stability.
What is the loan-to-deposit ratio?
The current ratio is 74%. This shows the bank’s strong liquidity and financial health.
Does the bank offer mortgages?
Yes, it offers mortgages, home equity loans, and refinancing. Competitive rates and personalized services are provided.
How does the bank manage nonperforming loans?
Nonperforming loans make up 0.50% of total loans. The bank actively manages credit risks to maintain low levels of these loans.
What is the dividend policy?
The bank consistently pays dividends. In 2024, it declared a $0.45 per share dividend, rewarding shareholders while maintaining a strong financial position.
Conclusion
Community Bank System continues to perform well financially, thanks to smart capital management and consistent revenue growth.
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