CBU · Community Bank System, Inc.

Community Financial System, Inc. delivered strong first quarter 2026 results, reporting GAAP net income of $57.2 million ($1.08 diluted EPS), up 15.3% year-over-year, and operating net income of $61.1 million ($1.15 operating diluted EPS), up 17.3% YoY — marking its fourth consecutive quarter of record operating performance. The earnings growth was primarily driven by a $14.5 million (12.1%) YoY increase in net interest income, fueled by a 22 basis point expansion in net interest margin to 3.43%, which reflected both a 9 bps rise in yield on interest-earning assets (to 4.60%) and a 16 bps decline in the cost of interest-bearing liabilities (to 1.59%). Loan growth contributed meaningfully: total ending loans increased $710 million (6.8%) YoY to $11.13 billion, while total deposits rose $978 million (7.0%) YoY to $14.87 billion, supporting stable liquidity and a modestly improved loan-to-deposit ratio of 74.9%. Noninterest revenues were flat YoY at $78.6 million but declined 4.2% sequentially, largely due to the absence of a $1.6 million one-time limited partnership distribution in Q4 2025 and timing-related reductions in insurance contingent commissions. Segment performance diverged: Banking segment adjusted pre-tax income surged 28.8% YoY to $59.6 million, while Insurance Services income fell sharply (55.0% YoY) to $1.8 million due to revenue timing. Management emphasized continued organic momentum, margin tailwinds, and disciplined capital deployment, reiterating expectations for strong earnings growth through the remainder of 2026 — though no explicit forward guidance was quantified in the release. The Company’s diversified business model, high-quality balance sheet, and consistent execution underpin its resilience across economic cycles.