Community Bank reports net income is unchanged from a year ago - The Buffalo News
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Community Bank reports net income is unchanged from a year ago

Community Bank System, which has 34 branches in Western New York, reported second-quarter net income of $21.1 million, unchanged from a year ago.

Diluted earnings per share were 52 cents, topping analysts’ estimates of 50 cents and down slightly from 53 cents a year ago.

Community Bank System is the DeWitt-based parent company of Community Bank. Its president and chief executive officer, Mark E. Tryniski, said the second-quarter results, coupled with those of the first quarter of this year, “reflect our balanced approach to growth, both acquired and organic.”

Community Bank System’s total revenue for the quarter increased 5 percent to $85.5 million. The bank attributed the gain to higher non-interest income from an increased deposit account base, as well as “solid organic growth in wealth management and benefits administration services.”

Net interest income from taking deposits and making loans was up 1.1 percent from a year ago, to $58.4 million. Non-interest income, including from sources such as fees, increased 14.4 percent to $27.1 million.

Operating expenses were up 10.1 percent, or $5 million, to $54.4 million. The bank attributed that increase to branch acquisitions that were completed in the third quarter of 2012. Community Bank picked up a number of HSBC Bank USA and First Niagara Financial Group branches.

Community Bank recorded increases in deposit service fees and mortgage banking revenues. Meanwhile, loan income and investment income both declined from a year ago.

Its provision for loan losses dropped 39 percent, to $1.3 million.


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