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Community Bank System will close five branches in September. Three of the targeted branches are ones that First Niagara acquired from HSBC and then sold to Community Bank in July.
August 2 -
Community Bank System Inc. in Syracuse, N.Y., is planning to raise $50 million in a stock sale primarily to fund its acquisition of 19 upstate New York branches from rival First Niagara Financial Group Inc.
January 23 -
The agreements with rivals Community Bank System and Financial Institutions Inc. would complete First Niagara's planned divestitures in connection with its blockbuster deal for much of HSBC Bank's retail franchise.
January 20
The cost of adding to its branch network weighed on Community Bank System (CBU) in the third quarter.
Earnings at the $7.5 billion-asset company in DeWitt, N.Y., fell 8.5%, to $18.3 million, from a year earlier, it reported Tuesday.
Operating expenses rose 13.6%, to $56 million, primarily reflecting costs associated with Community's
Community recorded net interest income of $58.7 million, up 7.7% from a year earlier. Noninterest income rose 11.2%, to $25.8 million. Net interest margin fell 25 basis points, to 3.79%, primarily as a result of the branch acquisitions. The company's efficiency ratio fell half a percent, to 56.5%.
Residential mortgage loans rose 19.8%, to $1.4 billion, although business lending fell 2.4%, to $1.2 billion. Net chargeoffs rose 45.5%, to roughly $1.6 billion from a year earlier. The company's Tier 1 leverage ratio rose to 8.32%, from 8.17% in the third quarter of 2011.
Community increased its cash dividend by one cent, to $0.27 cents a share.
"Our third quarter operating performance was at record levels and was characterized by solid revenue growth, strong organic loan generation, a continuation of our stable and favorable asset quality profile, and the successful completion of the branch acquisitions announced earlier in the year," Mark Tryniski, Community's chief executive, said in a news release.
