Community Bank System (CBU) in Syracuse, N.Y., reported higher profits on payback from a branch acquisition and stronger credit quality.
The $7.4 billion-asset company reported earnings of $22.2 million, an increase of 9.5% from a year earlier. Revenue rose 4.7%, to $88.5 million.
Revenue was helped by higher core deposits from organic growth and the integration of eight Bank of America (BAC) branches acquired in Pennsylvania late last year. Average deposits increased 8%, to $258.3 million, in the first quarter, principally from the acquisition.
Noninterest income increased 8.6%, to $28.4 million, because of the acquisition and other expansion efforts. Meanwhile, net interest income increased 2.9%, to $60.1 million, thanks to lower borrowing costs.
"Successful balance sheet initiatives and branch acquisitions in 2013 were catalysts for improved results as we began 2014," Chief Executive Mark Tryniski said in a press release Tuesday.
The quarterly provision for loan losses shrank 28%, to $1 million, reflecting lower net chargeoffs and favorable asset quality. Nonperforming loans represented 0.58% of total loans, down from 0.71% in the first quarter of 2013.