Community Bank System Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Announces Net Charge-Offs for the Fourth Quarter Ended December 31, 2013
January 22, 2014 at 02:45 am IST
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Community Bank System reported earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, net interest income was $60,636,000, against $59,969,000 for the same period last year. Income before income taxes was $21,547,000, against $26,627,000 for the same period last year. Net income was $15,477,000 or $0.38 per basic and diluted share, against $18,804,000 or $0.47 per basic and diluted share for the same period last year. The effective income tax rates for the fourth quarter 2013 was 28.2%, compared to 29.2% for the fourth quarter 2012. Return on assets was 0.84% against 1.00% for the same period last year. Return on equity was 7.04% against 8.20% for the same period last year. The net impact of sale of its entire portfolio of bank and insurance trust preferred collateralized debt obligation (CDO) securities was a pre-tax loss of approximately $6.9 million, or $0.12 per share after-tax, which is reflected in the Company's fourth quarter 2013 results. Interest income was down compared to the prior year quarter, a result of an $87.4 million net decrease in interest-earning assets as well as a 34-basis point decline in the earning asset yield, driven by lower yields on both loans (down 55 basis points) and investment securities (down 31 basis points). Total revenue for the fourth quarter of 2013 (excluding the $6.9 million net loss) was $88.9 million compared to $86.2 million for the fourth quarter 2012, or a 3.1% improvement. Book value per share was $21.66 against $22.78 for the same period last year.
For the year, net interest income was $238,094,000, against $230,424,000 for the same period last year. Income before income taxes was $111,027,000, against $108,805,000 for the same period last year. Net income was $78,829,000 or $1.96 per basic share or $1.94 per diluted share, against $77,068,000 or $1.95 per basic share or $1.93 per diluted share for the same period last year. The effective income tax rates for the full year 2013 was 29.0%, compared to 29.2% for the full year 2012.
Net charge-offs were $2.9 million for the fourth quarter, compared to $2.6 million for the fourth quarter of 2012 and $1.5 million for the third quarter of 2013.
Community Financial System, Inc., formerly Community Bank System, Inc., is a diversified financial services company. The Company is focused on four main business lines, such as banking, employee benefit services, insurance services and wealth management. The Companyâs banking subsidiary, Community Bank, N.A., operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. The Companyâs Benefit Plans Administrative Services, Inc. subsidiary is a provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Companyâs OneGroup NY, Inc. subsidiary is a United States insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Wealth Management operating unit.
Community Bank System Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Announces Net Charge-Offs for the Fourth Quarter Ended December 31, 2013