Community Financial System (CBU) investor relations material

Executive summary

• Sixth consecutive quarter of record results; operating diluted EPS was $1.27, up 16.5% YoY and 9.5% QoQ.

• GAAP net income rose 11.3% YoY to $61.3M and diluted EPS was $1.16; YTD net income increased 15.3% to $179.9M.

• Banking, Insurance Services, and Wealth Management delivered record revenue and profitability; Employee Benefit Services revenue grew despite startup legal costs.

• Organic loan and deposit growth continued; growth was led by higher net interest income and noninterest revenue, partly offset by higher costs and taxes.

Financial highlights

• Q3 revenue was $227.3M, up 9.8% YoY; FTE operating revenue was $231.2M, up 11.3%. Net interest income rose 12.0% to $143.5M.

• Operating noninterest revenue rose 10.2% YoY and 9.3% QoQ; reported noninterest revenue was $83.7M, up 6.2% YoY.

• Operating net income was $67.0M, up 15.4% YoY; operating diluted EPS was $1.27 versus $1.09, and operating PPNR per share reached a record $1.77.

• Total noninterest expenses rose 9.9% YoY to $141.0M; operating noninterest expenses increased 9.8% to $136.5M.

• Provision for credit losses was $5.6M, essentially unchanged YoY; income before taxes was $80.7M.

Outlook and guidance

• FY26 guidance: deposits +3%-4%, noninterest revenue +6%-7%, tax rate 23%-24%, loan growth 5%-5.5%, and provision for credit losses of $22M-$25M.

• FY26 net interest income growth is expected at 11%-11.5%; NIM is expected to exit the year in the mid-to-high 3.5% range.

• FY26 core noninterest expense is expected at $553M-$557M, up 7%-8% YoY; includes $8M-$9M for Santander branches and $4M-$5M for ClearPoint.

• Q4 NIM expansion expected at 1-3 bps; loan growth may moderate due to seasonal consumer softness and larger commercial payoffs.

• 2027 outlook includes robust double-digit Wealth Management growth, ~7% Employee Benefit Services growth, and 4%-5% organic expense growth excluding acquisitions; management expects strong performance across businesses.