Community Financial System (NYSE:CBU) Announces Earnings Results

Community Financial System (NYSE:CBU) posted its earnings results on Tuesday. The bank reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.13 by ($0.06), Zacks reports. The company had revenue of $215.56 million for the quarter, compared to the consensus estimate of $212.85 million. Community Financial System had a net margin of 20.82% and a return on equity of 11.09%. Community Financial System’s revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.94 EPS.

Here are the key takeaways from Community Financial System’s conference call:

• Record operating performance — operating earnings grew ~16% for 2025 with record operating EPS and operating PPNR per share; net interest income was a quarterly high (+11.2% YoY) and banking operating income rose ~22% for the year.
• Balance-sheet growth and liquidity — ending loans were up ~5% YoY and deposits up ~7% YoY (including $543.7M from the Santander branch deal); management expects 3.5%–6% loan growth and 8%–12% NII growth in 2026.
• Expense pressures and one-time items — Q4 non‑interest expenses rose due to acquisition costs, incentive true-ups, branch consolidations and charitable acceleration, and 2026 non‑interest expense guidance is $535M–$550M (4%–7% higher), with Q1 seasonally higher.
• Asset quality and reserve posture — Q4 provision was $5M, allowance for credit losses was $87.9M (≈80 bps of loans) — over 6x 2025 net charge‑offs — and management guides a 2026 provision range of $20M–$25M.
• Fee‑revenue strategy and M&A — non‑interest revenues were ~38% of operating revenues, management is pursuing fee‑adjacent acquisitions (notably ClearPoint, expected to close Q2 2026) to expand trust/wealth capabilities and cross‑sell banking products.

Community Financial System Stock Performance

Shares of CBU opened at $61.03 on Thursday. Community Financial System has a 52 week low of $49.44 and a 52 week high of $68.11. The company has a quick ratio of 0.76, a current ratio of 0.75 and a debt-to-equity ratio of 0.23. The stock has a market cap of $3.21 billion, a price-to-earnings ratio of 15.73 and a beta of 0.79. The business has a 50-day simple moving average of $59.66 and a two-hundred day simple moving average of $58.12.

Community Financial System Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Shareholders of record on Monday, March 16th will be issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Monday, March 16th. Community Financial System’s payout ratio is currently 48.45%.

Community Financial System News Summary

Here are the key news stories impacting Community Financial System this week:

• Positive Sentiment: Revenue beat and solid top-line growth: Q4 revenue came in at $215.6M versus consensus ~$212.9M, up ~9.8% year‑over‑year, showing continued loan and fee income growth. Business Wire: Q4 and FY2025 Results
• Positive Sentiment: Margin expansion and favorable balance‑sheet repricing noted on the call — analysts and transcripts highlight improving net interest margin as rates and loan yields reprice upward, supporting earnings growth. Seeking Alpha: Still Offering Growth
• Positive Sentiment: Credit metrics remain strong: very low net charge-offs (~0.09%) and low non‑performing loans (~0.52%), limiting downside risk from asset quality. Seeking Alpha: Credit Quality
• Neutral Sentiment: Conference-call highlights point to broad-based growth across fee and lending channels, but management did not materially change forward guidance; execution will be watched. Yahoo Finance: Q4 Call Highlights
• Neutral Sentiment: Street expectations remain modestly positive: consensus estimates imply ~4.18 EPS for the fiscal year, so future beats/misses will drive moves. MarketBeat: Analyst Estimates
• Negative Sentiment: EPS missed consensus by ~$0.06: reported $1.07 vs. $1.13 expected, which is the primary near-term reason for weakness despite the revenue beat. Zacks: Misses Q4 Estimates
• Negative Sentiment: Market reaction: shares dipped on the mixed print and slightly heavier trading volume, as investors digest the EPS miss and lock in gains after a run toward the 52‑week high. MarketBeat: Q4 Report and Call

Analyst Ratings Changes

CBU has been the topic of a number of research analyst reports. Janney Montgomery Scott downgraded shares of Community Financial System from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 13th. Piper Sandler initiated coverage on Community Financial System in a report on Wednesday, December 3rd. They set a “neutral” rating and a $62.00 price target on the stock. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $66.00 price objective (down previously from $67.00) on shares of Community Financial System in a report on Thursday, October 23rd. Wall Street Zen downgraded Community Financial System from a “hold” rating to a “sell” rating in a report on Saturday, January 17th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Community Financial System in a research report on Monday, December 29th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $64.00.

Hedge Funds Weigh In On Community Financial System

A number of hedge funds have recently modified their holdings of the company. California State Teachers Retirement System raised its position in shares of Community Financial System by 0.4% during the 2nd quarter. California State Teachers Retirement System now owns 48,580 shares of the bank’s stock valued at $2,763,000 after purchasing an additional 191 shares during the period. Lazard Asset Management LLC increased its stake in Community Financial System by 1.0% in the 2nd quarter. Lazard Asset Management LLC now owns 20,468 shares of the bank’s stock worth $1,164,000 after buying an additional 201 shares in the last quarter. California Public Employees Retirement System raised its holdings in Community Financial System by 0.3% during the second quarter. California Public Employees Retirement System now owns 92,254 shares of the bank’s stock valued at $5,246,000 after acquiring an additional 243 shares during the period. Franklin Resources Inc. raised its holdings in Community Financial System by 3.1% during the third quarter. Franklin Resources Inc. now owns 12,656 shares of the bank’s stock valued at $742,000 after acquiring an additional 383 shares during the period. Finally, Alliancebernstein L.P. lifted its position in shares of Community Financial System by 0.6% in the third quarter. Alliancebernstein L.P. now owns 65,674 shares of the bank’s stock valued at $3,851,000 after acquiring an additional 400 shares in the last quarter. 73.79% of the stock is currently owned by institutional investors.

Community Financial System Company Profile

Community Financial System (NYSE: CBU) is the bank holding company for Community Bank, National Association, a full-service commercial bank headquartered in DeWitt, New York. Through its principal subsidiary, the company offers a range of banking and financial services designed to meet the needs of both consumer and business clients. Its organizational structure centers on community-based banking operations supported by centralized technology, risk management and administrative functions.

The company’s product offerings include deposit accounts, residential and commercial mortgage loans, commercial and consumer lending, treasury and cash management services, and electronic banking.