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.