Community Financial System (NYSE:CBU) Releases Earnings Results, Misses Estimates By $0.06 EPS

Community Financial System (NYSE:CBU) announced its quarterly earnings results on Tuesday. The bank reported $1.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.06), Zacks reports. Community Financial System had a net margin of 20.72% and a return on equity of 11.09%. The company had revenue of $215.56 million during the quarter, compared to the consensus estimate of $212.85 million. During the same quarter in the prior year, the firm posted $0.94 earnings per share. The business’s revenue was up 9.8% on a year-over-year basis.

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 Up 0.4%

Shares of NYSE CBU traded up $0.27 on Wednesday, hitting $61.73. The company had a trading volume of 29,301 shares, compared to its average volume of 224,408. The firm has a market capitalization of $3.25 billion, a P/E ratio of 15.91 and a beta of 0.79. The business has a 50 day moving average of $59.53 and a two-hundred day moving average of $58.10. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.28. Community Financial System has a 12-month low of $49.44 and a 12-month high of $68.11.

Community Financial System Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Monday, March 16th will be issued a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Monday, March 16th. Community Financial System’s dividend payout ratio is presently 48.45%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Wall Street Zen lowered Community Financial System from a “hold” rating to a “sell” rating in a research report on Saturday, January 17th. Piper Sandler began 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 restated a “market perform” rating and set a $66.00 price objective (down from $67.00) on shares of Community Financial System in a research report on Thursday, October 23rd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Community Financial System in a report on Monday, December 29th. Finally, Janney Montgomery Scott lowered shares of Community Financial System from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 13th. Four analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $64.00.

Community Financial System News Summary

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

• Positive Sentiment: Q4 revenue beat and solid top-line growth: total revenue came in at $215.6M versus consensus ~$212.9M, a 9.8% year-over-year increase, showing continued business growth. Business Wire: Company Results
• Positive Sentiment: Margin expansion, diversified revenue and clean credit metrics highlighted on the call and in analysis — management cited favorable balance-sheet repricing boosting net interest margin, non-interest income is ~40% of revenue, net charge-offs were very low (0.09%) and non-performing loans ~0.52%, supporting earnings quality. Seeking Alpha: Growth at a Reasonable Price
• Neutral Sentiment: Analysts and reports are parsing key metrics (ROE ~11.1%, net margin ~20.7%) to assess sustainability; valuation and forward EPS estimates (street ~4.18 FY) will drive next moves as investors weigh recurring margin gains vs. rate sensitivity. Zacks: Key Metrics
• Negative Sentiment: EPS missed consensus: GAAP EPS $1.07 vs. Street $1.13 (miss by $0.06), which tempered the reaction despite revenue beat and margin commentary. Zacks: Misses Q4 Estimates
• Negative Sentiment: Mixed media takeaways produced uneven investor sentiment—some headlines framed the quarter as exceeding expectations while others highlighted the EPS shortfall, contributing to share weakness after the release. MSN: Exceeds Expectations

Institutional Trading of Community Financial System

Institutional investors have recently modified their holdings of the company. Bank of America Corp DE increased its stake in Community Financial System by 132.9% in the 3rd quarter. Bank of America Corp DE now owns 636,257 shares of the bank’s stock valued at $37,310,000 after buying an additional 363,012 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Community Financial System by 7.9% during the first quarter. Goldman Sachs Group Inc. now owns 550,613 shares of the bank’s stock worth $31,308,000 after acquiring an additional 40,384 shares in the last quarter. Balyasny Asset Management L.P. boosted its position in Community Financial System by 25.3% during the second quarter. Balyasny Asset Management L.P. now owns 354,906 shares of the bank’s stock valued at $20,184,000 after purchasing an additional 71,631 shares during the last quarter. UBS Group AG boosted its position in Community Financial System by 129.6% during the third quarter. UBS Group AG now owns 276,438 shares of the bank’s stock valued at $16,210,000 after purchasing an additional 156,049 shares during the last quarter. Finally, Basswood Capital Management L.L.C. acquired a new stake in Community Financial System during the second quarter valued at $15,185,000. Institutional investors and hedge funds own 73.79% of the company’s stock.

About Community Financial System

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.