Community Financial System (CBU) Q4 2025 earnings summary

Executive summary

• Achieved record operating revenues of $817.6M in 2025, up 9.7% year-over-year, with GAAP EPS of $3.97, a 15.4% increase from 2024, and operating net income of $225.1M.

• Record operating earnings per share of $1.12 in Q4, up from $1.00 a year prior, and $1.09 in Q3, with Q4 net income of $54.4M.

• Integrated 7 Santander branches and opened 15 new branches, accelerating retail strategy and expanding market presence.

• Announced acquisition of ClearPoint Federal Bank & Trust, expanding wealth management offerings and entering a niche trust administration market.

• 33 consecutive years of dividend growth, with a 2.2% increase in the quarterly dividend in 2025.

Financial highlights

• Q4 operating revenues reached a record $215.6M, up 10% year-over-year; full-year net interest income grew 12.8% to $506.6M.

• Operating noninterest revenues rose 8% year-over-year in Q4 and 4.9% for the year, representing 38% of total operating revenues.

• GAAP EPS for Q4 was $1.03, up 9.6% year-over-year; operating EPS was $1.12.

• Ending loans grew 5% year-over-year; deposits increased 7% year-over-year, with organic deposit growth of 3.1% excluding acquisitions.

• Operating pre-tax, pre-provision net revenue increased 15.3% to $315.3M.

Outlook and guidance

• 2026 guidance: loan growth of 3.5%–6%, deposit growth of 2%–3%, net interest income growth of 8%–12%, non-interest revenue growth of 4%–8%.

• Provision for credit losses expected at $20–$25M; non-interest expenses projected at $535–$550M, up 4%–7% from 2025.

• Effective tax rate anticipated between 23% and 24%; Q1 2026 non-interest expenses expected to be higher due to seasonal factors.

• Positioned for continued growth through de novo branch expansion, strategic acquisitions, and expansion into new markets with favorable trends.

• Significant loan repricing and securities redeployment opportunities expected to support future earnings.