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EX - 99.1 2 tm2113938d1_ex99-1.htm EXHIBIT 99.1 Community BANK SYSTEM , INC . 5790 Widewaters Parkway , DeWitt , N.Y. 13214 News Release Exhibit 99.1 For further information , please contact : Joseph E. Sutaris , EVP & Chief Financial Officer Office : ( 315 ) 445-7396 COMMUNITY BANK SYSTEM REPORTS FIRST QUARTER 2021 RESULTS SYRACUSE , N.Y. - April 26 , 2021 — - Community Bank System , Inc. ( NYSE : CBU ) reported first quarter 2021 net income of $ 52.9 million , or $ 0.97 per fully - diluted share . This compares to $ 40.1 million of net income , or $ 0.76 per share for the first quarter of 2020. The $ 0.21 , or 27.6 % , increase in earnings per share was primarily attributable to an increase in net interest income , a significant decrease in the provision for credit losses and lower operating expenses , offset in part by a decrease in noninterest revenues , and increases in income taxes and fully - diluted shares outstanding . Comparatively , the Company recorded $ 0.86 in fully - diluted earnings per share for the linked fourth quarter of 2020. Operating earnings per share , which excludes acquisition expenses and gain on debt extinguishment , were $ 0.97 for the first quarter of 2021 , as compared to $ 0.77 in the first quarter of 2020 and $ 0.85 in the fourth quarter of 2020 . First Quarter 2021 Performance Highlights : V V V V GAAP EPS $ 0.97 per share , up $ 0.21 per share from the first quarter of 2020 Operating EPS ( non - GAAP ) $ 0.97 per share , up $ 0.20 per share from the first quarter of 2020 Adjusted Pre - Tax , Pre - Provision Net Revenue Per Share ( non - GAAP ) $ 1.09 per share , up $ 0.04 per share from first quarter of 2020 Return on Assets 1.51 % V Return on Equity 10.4 % V Total Deposit Funding Costs 0.11 % V Annualized Loan Net Charge - Offs 0.02 % " The Company generated solid quarterly earnings results in the first quarter of 2021 driven by improving economic conditions , lower credit - related costs , higher revenues and lower operating expenses , " said Mark E. Tryniski , President & CEO . “ Our 2020 results were challenged by net interest margin headwinds and higher credit - related costs . As we move into 2021 , we are encouraged by an improving interest rate environment and better economic conditions . The Company's financial services businesses continued to perform well during the quarter as the Company recorded higher revenues in all three lines of business - employee benefit services , insurance services and wealth management versus one year earlier . Furthermore , the Company's cost containment initiatives and other factors , resulted in a decrease in operating expenses as compared to the same quarter in 2020 despite acquiring Steuben Trust Corporation ( " Steuben ” ) in the second quarter of 2020. The Company's earnings per share of $ 0.97 were up $ 0.21 , or 27.6 % , over the first quarter of 2020. Net interest income increased $ 3.9 million , or 4.3 % , over the first quarter of 2020 despite a 62 basis point decrease in net interest margin , driven by continued growth in earning assets , lower funding costs and recognition of Paycheck Protection Program ( “ PPP ” ) deferred loan fees . In addition , the Company booked a $ 5.7 million net benefit in the provision for credit losses during the first quarter of 2021 , as compared to a $ 5.6 million provision for credit losses in the first quarter of 2020 , primarily reflective of improvements in the economic outlook . Financial services business revenues were also $ 2.3 million , or 5.7 % , higher than the first quarter of 2020 , while total operating expenses decreased $ 0.4 million , or 0.4 % . These improvements were offset , in part , by a $ 2.5 million , or 13.7 % , decrease in banking - related noninterest revenues , a $ 2.8 million , or 30.4 % , increase in income taxes and a 3.4 % increase in fully - diluted average shares outstanding . On the credit front , the Company continued to experience low - levels of net charge - offs . More specifically , the Company recorded net charge - offs of $ 0.4 million , or 0.02 % annualized during the first quarter of 2021 , which compares favorably to the first quarter 2020 net charge - offs of $ 1.6 million , or 0.09 % annualized . "