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Community BANK SYSTEM , INC . 5790 Widewaters Parkway , DeWitt , N.Y. 13214 V V SYRACUSE , N.Y. - July 26 , 2021 - Community Bank System , Inc. ( NYSE : CBU ) reported second quarter 2021 net income of $ 47.9 million , or $ 0.88 per fully - diluted share . This compares to $ 35.2 million of net income , or $ 0.66 per share for the second quarter of 2020. The $ 0.22 , or 33.3 % , increase in earnings per share was primarily attributable to a significant decrease in the provision for credit losses and a significant increase in noninterest income , offset , in part , by increases in operating expenses , income taxes , and fully - diluted shares outstanding . Comparatively , the Company recorded $ 0.97 in fully - diluted earnings per share for the linked first quarter of 2021. Operating earnings per share , which excludes acquisition expenses and acquisition - related provision for credit losses , were also $ 0.88 for the second quarter of 2021 , compared to $ 0.76 in the second quarter of 2020 and $ 0.97 in the first quarter of 2021 . Second Quarter 2021 Performance Highlights : V V V GAAP EPS $ 0.88 per share , up $ 0.22 per Operating EPS ( non - GAAP ) COMMUNITY BANK SYSTEM REPORTS SECOND QUARTER 2021 RESULTS Return on Assets 1.31 % News Release For further information , please contact : Joseph E. Sutaris , EVP & Chief Financial Officer Office : ( 315 ) 445-7396 Return on Equity 9.61 % Total Deposit Funding Costs 0.10 % Annualized Loan Net Recoveries 0.03 % $ 0.88 per share , up $ 0.12 per share from the second quarter of 2020 Exhibit 99.1 share from the second quarter of 2020 " Community Bank System generated solid earnings results in the second quarter of 2021 despite a challenging interest rate environment , with operating earnings per share increasing 15.8 % year - over - year , " said Mark E. Tryniski , President & CEO . " Our $ 0.12 growth in operating earnings per share over the second quarter of 2020 was due largely to lower credit - related costs and a robust noninterest revenue expansion . For the third consecutive quarter , we booked a net benefit in the provision for credit losses due to an improving economic outlook , as the majority of consumer and businesses in the Company's market have resumed their pre - pandemic activities , as well as strong credit performance of the Company's loan portfolio , including $ 0.6 million of net loan recoveries in the quarter . In addition , noninterest revenues grew by $ 6.5 million , or 12.3 % , as compared to the second quarter of 2020 , due to significant increases in both banking - related and financial services businesses revenues . Banking - related noninterest revenues increased $ 1.2 million , or 8.6 % , over the prior year's second quarter , while the Company's financial services businesses revenues were up $ 5.3 million , or 13.7 % , as the Company generated higher revenues in all three lines of business - employee benefit , insurance and wealth management services . Net interest income increased slightly over the second quarter of 2020 despite a 58 basis point decrease in net interest margin , as this more than offset continued growth in earning assets , lower funding costs and recognition of Paycheck Protection Program ( “ PPP ” ) deferred loan fees . Total operating expenses , excluding acquisition related expenses , increased $ 6.0 million , or 6.9 % , over the second quarter of 2020 , due primarily to the resumption of pre - pandemic business activities and the acquisition of Steuben Trust Corporation ( " Steuben " ) in June 2020. "