Community Financial System (NYSE:CBU) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Community Financial System (NYSE:CBU) released its quarterly earnings results on Tuesday. The bank reported $1.07 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.06), Zacks reports. The business had revenue of $215.56 million for the quarter, compared to analysts’ expectations of $212.85 million. Community Financial System had a net margin of 20.72% and a return on equity of 11.09%. Community Financial System’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the previous year, the company earned $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 Price Performance

NYSE:CBU opened at $61.64 on Wednesday. The business’s 50-day moving average is $59.53 and its 200 day moving average is $58.10. Community Financial System has a 12 month low of $49.44 and a 12 month high of $68.11. The company has a market capitalization of $3.25 billion, a P/E ratio of 15.94 and a beta of 0.79. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 0.28.

Community Financial System Announces Dividend

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

Institutional Trading of Community Financial System

Several hedge funds have recently modified their holdings of the company. Holocene Advisors LP bought a new stake in shares of Community Financial System in the 3rd quarter worth about $494,000. Amundi lifted its holdings in shares of Community Financial System by 5.5% in the 3rd quarter. Amundi now owns 9,171 shares of the bank’s stock valued at $541,000 after acquiring an additional 480 shares during the last quarter. Franklin Resources Inc. grew its position in Community Financial System by 3.1% in the third quarter. Franklin Resources Inc. now owns 12,656 shares of the bank’s stock worth $742,000 after acquiring an additional 383 shares in the last quarter. Osaic Holdings Inc. increased its stake in Community Financial System by 11.2% during the second quarter. Osaic Holdings Inc. now owns 9,358 shares of the bank’s stock worth $532,000 after acquiring an additional 940 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in Community Financial System by 206.2% during the second quarter. Tower Research Capital LLC TRC now owns 6,474 shares of the bank’s stock valued at $368,000 after purchasing an additional 4,360 shares during the period. 73.79% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Community Financial System

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

Analysts Set New Price Targets

Several research firms have recently commented on CBU. Piper Sandler started coverage on Community Financial System in a research note on Wednesday, December 3rd. They issued a “neutral” rating and a $62.00 price objective for the company. Wall Street Zen cut Community Financial System from a “hold” rating to a “sell” rating in a research report on Saturday, January 17th. Weiss Ratings reissued a “hold (c+)” rating on shares of Community Financial System in a report on Monday, December 29th. Janney Montgomery Scott downgraded shares of Community Financial System from a “buy” rating to a “neutral” rating in a report on Tuesday, January 13th. Finally, 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. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $64.00.

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.