Community Bank System, Inc. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reports Net Charge Off for the Second Quarter Ended June 30, 2018; Provides Tax Rate Guidance for the Second Half of 2018
July 23, 2018 at 06:45 am EDT
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Community Bank System, Inc. reported earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported, total interest income of $91,005,000, net interest income of $86,846,000, net interest income after provision for loan losses of $84,398,000, income before income taxes of $54,845,000, net income of $44,606,000, compared to total interest income of $81,422,000, net interest income of $78,029,000, net interest income after provision for loan losses of $76,568,000, income before income taxes of $24,915,000, net income of $17,191,000, for the same period a year ago. Adjusted net income (non-GAAP) was $46,710,000 against $34,797,000 a year ago. Adjusted net income (non-GAAP) was $46,710,000 against $34,797,000 a year ago. Adjusted return on average assets was 1.74% against 1.40% a year ago. Adjusted net income (non-GAAP) was $46,710,000 against $34,797,000 a year ago. Adjusted return on average equity 11.42% against 9.59% a year ago. Diluted adjusted net earnings per share (non-GAAP) were $0.90 against $0.71 a year ago. Diluted earnings per share were $0.86 against $0.35 a year ago. Return on equity was 10.91% against 4.74% a year ago. Return on tangible equity was 20.58% against 7.72% a year ago. The improvement in operating results over 2017, 21% is due primarily to last year's acquisitions of NRS and Merchants Bancshares.
For the year to date, the company reported, total interest income of $179,409,000, net interest income of $171,470,000, net interest income after provision for loan losses of $165,343,000, income before income taxes of $106,950,000, net income of $84,712,000, compared to total interest income of $151,380,000, net interest income of $145,303,000, net interest income after provision for loan losses of $142,014,000, income before income taxes of $61,104,000, net income of $43,448,000, for the same period a year ago. Diluted earnings per share were $1.63 against $0.91 a year ago.
For the quarter, net charge-offs amounted to $933,000 against $1,106,000 a year ago.
Excluding equity fine activities, the company expects effective rate to be in the range of 21.5% to 22% during the second half of the year.
Community Bank System, Inc. is a financial holding company. The Company operates as a diversified financial services enterprise providing an array of banking and other financial services to retail, commercial, institutional and municipal customers. It owns two subsidiaries: Community Bank, N.A. and Benefit Plans Administrative Services, Inc. (BPAS). Its segments include Banking, Employee Benefit Services and All Other. The Banking segment provides an array of lending and depository-related products and services to individuals, businesses and governmental units. The Banking segment provides treasury management solutions and payment processing services. Its Employee Benefit Services segment comprises BPAS and its subsidiaries, provides collective investment fund, retirement plan and health savings account administration, fund administration, transfer agency, actuarial, and health and welfare consulting services. The All Other segment comprises wealth management and insurance services.
Community Bank System, Inc. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reports Net Charge Off for the Second Quarter Ended June 30, 2018; Provides Tax Rate Guidance for the Second Half of 2018