SYRACUSE, N.Y.--(BUSINESS WIRE)--Community Bank System, Inc. (NYSE: CBU) reported third quarter 2011 net income of $20.0 million ($0.54 per share), an increase of 15.9% over the $17.3 million reported for the third quarter of 2010. The third quarter’s record results included $0.4 million ($0.01 per share) of acquisition expenses related to the Company’s purchase of The Wilber Corporation, completed in early April. 2011 year-to-date earnings of $54.2 million, or $1.50 per share, include $4.7 million ($0.09 per share, after-tax) of acquisition expenses, and were up 14.2% over the first nine months of 2010.
Total revenue for the third quarter of 2011 was $77.8 million, an increase of $8.6 million, or 12.4%, over the third quarter of last year. The higher revenue was a result of a 17.8% increase in average earning assets, principally from the Wilber acquisition, offset slightly by a four-basis point decline in the Company’s net interest margin to 4.04%. The quarterly provision for loan losses of $1.0 million was $0.4 million lower than the third quarter of 2010, reflective of lower net charge-offs and the continuation of generally stable and favorable asset quality metrics. Total operating expenses were $48.1 million for the quarter, including $0.4 million of acquisition expenses related to the Wilber transaction. Recurring operating expenses of $47.7 million (excluding acquisition expenses and special charges) for the quarter were $3.4 million, or 7.7%, higher than the third quarter of 2010, primarily reflective of the additional operating costs associated with the Wilber acquisition.
“Our strong earnings momentum continued through the third quarter as we achieved another quarter of record earnings,” said President and Chief Executive Officer Mark E. Tryniski. “Despite the challenging operating environment, we remain positioned for a strong finish to 2011 and an equally strong start to the new year. We remain very pleased with the performance of our new Central New York region (the former Wilber National Bank branches) and the response of our customers to the availability of enhanced product offerings. The combination of organic consumer loan and core deposit growth, focused expense management and excellent asset quality metrics, continue to provide favorable bottom-line results. With third quarter net charge-offs of $1.1 million, or 0.13% of average loans, and nonperforming loans to total loans of 0.54%, we continue to believe that the quality of our loan portfolios will remain a significant operating strength.”
Third quarter net interest income grew to $54.6 million, an increase of 17.8% above the third quarter of 2010, resulting from an $867 million increase in average interest-earning assets, offset by a slightly lower net interest margin. Although the Company has productively reinvested most of its cash flow generation during the last year, it still retains a significant net liquidity position, with average balances rising above $240 million for the third quarter. Low market interest rates and continued disciplined deposit pricing resulted in a 23-basis point reduction in the total cost of funds, in comparison to the third quarter of 2010. However, this was more than offset by a 28-basis point decline in earning-asset yields, reflective of lower yields on investment securities, and a $190 million increase in low-rate, invested cash equivalents versus last year’s third quarter. On a linked quarter basis the Company’s net interest margin declined nine basis points, with a significant portion of the decline related to higher invested cash balances.
Third quarter non-interest income of $23.2 million was 1.3% higher than the third quarter of last year. The Company’s employee benefits administration and consulting businesses grew revenues by 5.9 % over last year’s third quarter, and its wealth management group generated a 21.0% revenue improvement, principally from activities related to the Wilber acquisition. Mortgage banking revenues were down $0.9 million from last year’s third quarter, reflective of the very robust demand conditions in the second half of 2010. Deposit service fees of $11.1 million were essentially the same as the third quarter of 2010, despite the addition of Wilber, reflective of lower overall customer utilization and other changes in certain fee-based deposit services, including overdraft programs. Other banking services of $1.2 million for the quarter included $0.6 million of revenues derived from the Company’s retail life and disability insurance programs, consistently recognized in the third fiscal quarter annually.
Quarterly operating expenses of $47.7 million (excluding acquisition expenses and special charges) were $3.4 million, or 7.7% above the third quarter of 2010, reflective of additional operating costs associated with the Wilber acquisition completed in early April, partially offset by a decline in FDIC insurance and core system processing costs.
Financial Position
Average earning assets for the third quarter of $5.74 billion were $867.4 million above the third quarter of 2010, and $80.4 million higher than the second quarter of 2011. Ending loans increased $396.1 million from September 2010, reflective of the Wilber acquisition. Total net loans were down $1.6 million from the end of June, comprised of $21.7 million of net organic loan growth offset by $23.3 million of contractual and other principal reductions in the acquired Wilber portfolio, including the disposition of certain impaired loans in the quarter. Solid results in consumer mortgage and installment products more than offset continued soft demand in business lending. In addition, a portion of the Company’s low-rate, longer-term mortgage originations continued to be sold into the secondary market during the quarter. Average investment securities were down $9.4 million from the third quarter of 2011, while cash equivalents of $240.1 million increased $63.0 million, creating downward pressure on the Company’s net interest margin during the quarter. Quarterly average deposits were $839.8 million higher than the third quarter of 2010 and 2.5% higher than the second quarter of 2011, including relationships acquired from Wilber, where customer retention efforts have been very successful. Average borrowings for the quarter of $832.5 million were consistent with both the second quarter of 2011 and the third quarter of last year. Quarter-end shareholders’ equity of $755.6 million was $139.8 million higher than September 30, 2010, and included the issuance of 3.4 million additional shares in conjunction with the Wilber acquisition. The Company’s net tangible equity to net tangible assets ratio improved to 6.79% at quarter-end, up 58 basis points from the end of last year’s third quarter.
Asset Quality
Third quarter net charge-offs were $1.1 million, compared to $0.7 million in the second quarter of 2011, and $1.4 million in the third quarter of 2010, as the Company’s asset quality profile remained exceptionally strong. Nonperforming loans as a percentage of total loans at September 30, 2011 were 0.54%, down slightly from 0.58% at the end of both June 2011, and September 30, 2010. The total delinquency ratio of 1.56% was up six basis points from June 30, 2011, and down eight basis points from the 1.64% level reported at September 30, 2010. Quarter-end nonperforming assets to total assets of 0.33% was four basis points lower than both the end of last year’s third quarter and June 30, 2011. These favorable asset quality metrics continue to be noticeably better than comparative peer and industry averages and illustrate the long-term effectiveness of the Company’s disciplined risk management and underwriting standards. The third quarter provision for loan losses of $1.0 million was $0.4 million lower than the third quarter of 2010 and even with the second quarter of 2011. The third quarter’s provision was $0.07 million lower than quarterly net charge-offs, indicative of generally stable delinquency ratios and non-performing asset levels and total loan balances. The ratio of allowance for loan losses to total loans outstanding was 1.22% as of September 30, 2011 (1.38%, excluding acquired Wilber loans, which are accounted for at fair value), consistent with the 1.38% level at the end of the third quarter of 2010.
Benefit Plan Administration and Consulting Services Expansion
The Company, through its Benefit Plans Administrative Services, Inc. subsidiary, recently announced that it has entered into a definitive agreement to acquire CAI Benefits, Inc. (CAI), a provider of actuarial consulting and retirement plan administration services with offices in New York City and Northern New Jersey. The transaction, which is expected to close in 2011 subject to customary closing conditions, will add presence in a strategic market, as well as valuable capacity and prospects for enhanced distribution in support of the Company’s broader-based business. With the addition of CAI, annual revenues from the company’s employee benefits consulting and trust administration service offerings are expected to be above $36 million.
Acquisition of The Wilber Corporation
Early in the second quarter of 2011 the Company completed the acquisition of The Wilber Corporation (NYSE Amex: GIW), parent company of the Wilber National Bank based in Oneonta, NY, for approximately $103 million in stock and cash. The acquisition extended the Bank’s New York service area to the contiguous Central, Greater Capital, and Catskills regions of Upstate New York. Upon the completion of the merger, Community Bank added 22 branch locations in eight counties, net loans of approximately $464 million, and customer deposits of nearly $772 million.
Dividend Declared
The Company’s Board of Directors approved a quarterly dividend on its common stock of $0.26 per share, payable on January 10, 2012, to shareholders of record as of December 15, 2011. This two cent (8.3%) increase in the Company’s quarterly cash dividend over the same quarter of last year, represents an annualized yield of 4.0% based on the Company’s closing price of $26.16 on October 24, 2011. This is the nineteenth (19th) consecutive year of dividend increases for the Company. Mr. Tryniski commented, “The payment of a meaningful dividend is an important component of our commitment to provide consistent and favorable long-term returns to our shareholders. The increase reflects the continued strength of both our current operating performance and capital position.”
Conference Call Scheduled
Company management will conduct an investor call at 11:00 a.m. (ET) tomorrow (October 26, 2011) to discuss third quarter results. The conference call can be accessed at 1-866-838-2054 (1-904-520-5766 if outside United States and Canada). An audio recording will be available one hour after the call until December 31, 2011, and may be accessed at 1-888-284-7564 (1-904-596-3174 if outside the United States and Canada) and entering access code 2699781. Investors may also listen live via the Internet at: http://www.videonewswire.com/event.asp?id=82654.
This webcast will be archived on this site for one full year and may be accessed at any point during this time at no cost. This earnings release, including supporting financial tables, is available within the press releases section of the Company's investor relations website at: http://www.ir.communitybanksystem.com.
Headquartered in DeWitt, N.Y., Community Bank System, Inc. has $6.5 billion in assets and over 170 customer facilities. The Company’s banking subsidiary, Community Bank, N.A. operates across Upstate New York and Northeastern Pennsylvania, where it conducts business as First Liberty Bank & Trust. Its other subsidiaries include: Benefit Plans Administrative Services, Inc., an employee benefits consulting and trust administration firm with offices in Upstate New York, Pittsburgh and Philadelphia, Pennsylvania and Houston, Texas; the CBNA Insurance Agency, with offices in five northern New York communities; Community Investment Services, Inc., a wealth management firm delivering a wide range of financial products throughout the Company's branch network; and Nottingham Advisors, an investment management and advisory firm with offices in Buffalo, N.Y. and North Palm Beach, Florida. For more information, visit: www.communitybankna.com or www.firstlibertybank.com.
|
Summary of Financial Data |
|||||||||
| (Dollars in thousands, except per share data) | |||||||||
| Quarter Ended | Year-to-date | ||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||
| 2011 | 2010 | 2011 | 2010 | ||||||
| Earnings | |||||||||
| Loan income | $50,702 | $45,094 | $142,470 | $134,618 | |||||
| Investment income | 19,716 | 17,503 | 58,085 | 51,654 | |||||
| Total interest income | 70,418 | 62,597 | 200,555 | 186,272 | |||||
| Interest expense | 15,850 | 16,273 | 46,277 | 50,721 | |||||
| Net interest income | 54,568 | 46,324 | 154,278 | 135,551 | |||||
| Provision for loan losses | 1,043 | 1,400 | 3,143 | 5,270 | |||||
| Net interest income after provision for loan losses | 53,525 | 44,924 | 151,135 | 130,281 | |||||
| Deposit service fees | 11,134 | 11,180 | 31,307 | 33,036 | |||||
| Mortgage banking revenues | 320 | 1,215 | 1,698 | 2,290 | |||||
| Other banking services | 1,179 | 863 | 2,222 | 1,826 | |||||
| Trust, investment and asset management fees | 2,904 | 2,400 | 7,866 | 7,442 | |||||
| Benefit plan administration, consulting and actuarial fees | 7,685 | 7,256 | 23,722 | 22,415 | |||||
| Investment securities and debt extinguishment gain/(loss), net | (6) | 0 | 8 | 0 | |||||
| Total noninterest income | 23,216 | 22,914 | 66,823 | 67,009 | |||||
| Salaries and employee benefits | 26,543 | 23,056 | 75,185 | 68,501 | |||||
| Occupancy and equipment and furniture | 6,103 | 5,574 | 18,413 | 17,414 | |||||
| Amortization of intangible assets | 1,161 | 1,277 | 3,251 | 4,985 | |||||
| Acquisition expenses & special charges | 381 | 57 | 4,689 | 256 | |||||
| Other | 13,905 | 14,388 | 40,997 | 41,609 | |||||
| Total operating expenses | 48,093 | 44,352 | 142,535 | 132,765 | |||||
| Income before income taxes | 28,648 | 23,486 | 75,423 | 64,525 | |||||
| Income taxes | 8,640 | 6,224 | 21,269 | 17,099 | |||||
| Net income | $20,008 | $17,262 | $54,154 | $47,426 | |||||
| Basic earnings per share | $0.54 | $0.52 | $1.52 | $1.43 | |||||
| Diluted earnings per share | $0.54 | $0.51 | $1.50 | $1.42 | |||||
|
Summary of Financial Data |
|||||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| 2011 | 2010 | ||||||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||
| Earnings | |||||||||||
| Loan income | $50,702 | $49,471 | $42,297 | $44,085 | $45,094 | ||||||
| Investment income | 19,716 | 20,379 | 17,990 | 17,924 | 17,503 | ||||||
| Total interest income | 70,418 | 69,850 | 60,287 | 62,009 | 62,597 | ||||||
| Interest expense | 15,850 | 15,663 | 14,764 | 15,876 | 16,273 | ||||||
| Net interest income | 54,568 | 54,187 | 45,523 | 46,133 | 46,324 | ||||||
| Provision for loan losses | 1,043 | 1,050 | 1,050 | 1,935 | 1,400 | ||||||
| Net interest income after provision for loan losses | 53,525 | 53,137 | 44,473 | 44,198 | 44,924 | ||||||
| Deposit service fees | 11,134 | 10,488 | 9,685 | 10,321 | 11,180 | ||||||
| Mortgage banking revenues | 320 | 982 | 396 | 1,408 | 1,215 | ||||||
| Other banking services | 1,179 | 645 | 398 | 462 | 863 | ||||||
| Trust, investment and asset management fees | 2,904 | 2,782 | 2,180 | 2,391 | 2,400 | ||||||
| Benefit plan administration, consulting and actuarial fees | 7,685 | 7,854 | 8,183 | 7,201 | 7,256 | ||||||
| Investment securities and debt extinguishment gain/(loss), net | (6) | 14 | 0 | 0 | 0 | ||||||
| Total noninterest income | 23,216 | 22,765 | 20,842 | 21,783 | 22,914 | ||||||
| Salaries and employee benefits | 26,543 | 25,531 | 23,111 | 22,900 | 23,056 | ||||||
| Occupancy and equipment and furniture | 6,103 | 6,253 | 6,057 | 5,520 | 5,574 | ||||||
| Amortization of intangible assets | 1,161 | 1,189 | 901 | 972 | 1,277 | ||||||
| Acquisition expenses & special charges | 381 | 3,617 | 691 | 1,107 | 57 | ||||||
| Other | 13,905 | 14,536 | 12,556 | 13,622 | 14,388 | ||||||
| Total operating expenses | 48,093 | 51,126 | 43,316 | 44,121 | 44,352 | ||||||
| Income before income taxes | 28,648 | 24,776 | 21,999 | 21,860 | 23,486 | ||||||
| Income taxes | 8,640 | 6,790 | 5,839 | 5,966 | 6,224 | ||||||
| Net income | $20,008 | $17,986 | $16,160 | $15,894 | $17,262 | ||||||
| Basic earnings per share | $0.54 | $0.49 | $0.48 | $0.48 | $0.52 | ||||||
| Diluted earnings per share | $0.54 | $0.49 | $0.48 | $0.47 | $0.51 | ||||||
| Profitability | |||||||||||
| Return on assets | 1.23% | 1.14% | 1.19% | 1.15% | 1.25% | ||||||
| Return on equity | 10.67% | 10.15% | 10.70% | 10.27% | 11.28% | ||||||
| Noninterest income/operating income (FTE) (1) | 28.5% | 28.1% | 29.6% | 30.3% | 31.4% | ||||||
| Efficiency ratio (2) | 57.0% | 57.2% | 59.3% | 57.9% | 57.9% | ||||||
| Components of Net Interest Margin (FTE) | |||||||||||
| Loan yield | 5.81% | 5.77% | 5.73% | 5.73% | 5.81% | ||||||
| Cash equivalents yield | 0.25% | 0.24% | 0.25% | 0.25% | 0.27% | ||||||
| Investment yield | 4.55% | 4.75% | 5.01% | 5.00% | 4.84% | ||||||
| Earning asset yield | 5.13% | 5.24% | 5.30% | 5.36% | 5.41% | ||||||
| Interest-bearing deposit rate | 0.70% | 0.70% | 0.75% | 0.86% | 0.90% | ||||||
| Borrowing rate | 4.27% | 4.24% | 4.28% | 4.28% | 4.28% | ||||||
| Cost of all interest-bearing funds | 1.32% | 1.34% | 1.47% | 1.56% | 1.59% | ||||||
| Cost of funds (includes DDA) | 1.12% | 1.14% | 1.25% | 1.32% | 1.35% | ||||||
| Net interest margin (FTE) | 4.04% | 4.13% | 4.08% | 4.07% | 4.08% | ||||||
| Fully tax-equivalent adjustment | $3,836 | $4,018 | $3,969 | $3,865 | $3,788 | ||||||
| Summary of Financial Data | |||||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| 2011 | 2010 | ||||||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||
| Average Balances | |||||||||||
| Loans | $3,481,087 | $3,454,246 | $3,005,926 | $3,061,060 | $3,088,590 | ||||||
| Cash equivalents | 240,127 | 177,154 | 159,044 | 105,242 | 50,484 | ||||||
| Taxable investment securities | 1,458,127 | 1,447,815 | 1,188,182 | 1,159,110 | 1,182,243 | ||||||
| Nontaxable investment securities | 560,051 | 579,795 | 565,564 | 554,014 | 550,660 | ||||||
| Total interest-earning assets | 5,739,392 | 5,659,010 | 4,918,716 | 4,879,426 | 4,871,977 | ||||||
| Total assets | 6,447,210 | 6,313,391 | 5,487,618 | 5,481,129 | 5,474,952 | ||||||
| Interest-bearing deposits | 3,926,457 | 3,864,671 | 3,234,986 | 3,206,327 | 3,217,831 | ||||||
| Borrowings | 832,505 | 839,003 | 830,454 | 831,025 | 832,568 | ||||||
| Total interest-bearing liabilities | 4,758,962 | 4,703,674 | 4,065,440 | 4,037,352 | 4,050,399 | ||||||
| Noninterest-bearing deposits | 867,373 | 813,789 | 739,515 | 743,698 | 736,203 | ||||||
| Shareholders' equity | $743,730 | $710,765 | $612,559 | $613,734 | $606,912 | ||||||
| Balance Sheet Data | |||||||||||
| Cash and cash equivalents | $425,877 | $273,693 | $296,938 | $211,837 | $179,556 | ||||||
| Investment securities | 2,075,283 | 2,088,105 | 1,792,246 | 1,742,324 | 1,769,149 | ||||||
| Loans: | |||||||||||
| Business lending | 1,261,125 | 1,290,893 | 1,006,114 | 1,023,286 | 1,045,849 | ||||||
| Consumer mortgage | 1,167,780 | 1,149,219 | 1,055,164 | 1,057,332 | 1,065,297 | ||||||
| Consumer installment - indirect | 564,423 | 549,449 | 500,058 | 494,813 | 508,502 | ||||||
| Home equity | 328,468 | 330,213 | 299,925 | 305,936 | 312,396 | ||||||
| Consumer installment - direct | 154,673 | 158,376 | 139,183 | 144,996 | 148,353 | ||||||
| Total loans | 3,476,469 | 3,478,150 | 3,000,444 | 3,026,363 | 3,080,397 | ||||||
| Allowance for loan losses | 42,463 | 42,531 | 42,147 | 42,510 | 42,610 | ||||||
| Intangible assets | 360,228 | 363,015 | 311,076 | 311,714 | 312,686 | ||||||
| Other assets | 208,460 | 230,053 | 190,815 | 194,778 | 197,039 | ||||||
| Total assets | 6,503,854 | 6,390,485 | 5,549,372 | 5,444,506 | 5,496,217 | ||||||
| Deposits: | |||||||||||
| Noninterest-bearing | 887,009 | 849,071 | 754,892 | 741,166 | 738,994 | ||||||
| Non-maturity interest-bearing | 2,782,241 | 2,721,589 | 2,361,312 | 2,272,013 | 2,253,447 | ||||||
| Time | 1,169,503 | 1,186,442 | 904,827 | 920,866 | 973,894 | ||||||
| Total deposits | 4,838,753 | 4,757,102 | 4,021,031 | 3,934,045 | 3,966,335 | ||||||
| Borrowings | 728,335 | 728,441 | 728,385 | 728,460 | 729,508 | ||||||
| Subordinated debt held by unconsolidated subsidiary trusts | 102,042 | 102,036 | 102,030 | 102,024 | 102,018 | ||||||
| Other liabilities | 79,091 | 72,835 | 73,826 | 72,719 | 82,556 | ||||||
| Total liabilities | 5,748,221 | 5,660,414 | 4,925,272 | 4,837,248 | 4,880,417 | ||||||
| Shareholders' equity | 755,633 | 730,071 | 624,100 | 607,258 | 615,800 | ||||||
| Total liabilities and shareholders' equity | 6,503,854 | 6,390,485 | 5,549,372 | 5,444,506 | 5,496,217 | ||||||
| Capital | |||||||||||
| Tier 1 leverage ratio | 8.17% | 8.07% | 8.42% | 8.23% | 7.99% | ||||||
| Tangible equity / net tangible assets (3) | 6.79% | 6.44% | 6.36% | 6.14% | 6.21% | ||||||
| Diluted weighted average common shares O/S | 37,312 | 37,061 | 33,989 | 33,786 | 33,606 | ||||||
| Period end common shares outstanding | 36,829 | 36,807 | 33,429 | 33,319 | 33,162 | ||||||
| Cash dividends declared per common share | $0.26 | $0.24 | $0.24 | $0.24 | $0.24 | ||||||
| Book value | $20.52 | $19.84 | $18.67 | $18.23 | $18.57 | ||||||
| Tangible book value(3) | $11.37 | $10.59 | $10.01 | $9.49 | $9.74 | ||||||
| Common stock price (end of period) | $22.69 | $24.79 | $24.27 | $27.77 | $23.01 | ||||||
| Summary of Financial Data | ||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||
| 2011 | 2010 | |||||||||||
| 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | ||||||||
| Asset Quality | ||||||||||||
| Nonaccrual loans | $16,670 | $17,833 | $14,953 | $15,378 | $16,025 | |||||||
| Accruing loans 90+ days delinquent | 2,319 | 2,499 | 2,774 | 3,091 | 1,863 | |||||||
| Total nonperforming loans | 18,989 | 20,332 | 17,727 | 18,469 | 17,888 | |||||||
| Other real estate owned (OREO) | 2,776 | 3,269 | 1,945 | 2,011 | 2,689 | |||||||
| Total nonperforming assets | 21,765 | 23,601 | 19,672 | 20,480 | 20,577 | |||||||
| Net charge-offs | 1,111 | 666 | 1,413 | 2,035 | 1,393 | |||||||
| Loan loss allowance/loans outstanding | 1.22% | 1.22% | 1.40% | 1.40% | 1.38% | |||||||
| Nonperforming loans/loans outstanding | 0.54% | 0.58% | 0.59% | 0.61% | 0.58% | |||||||
| Loan loss allowance/nonperforming loans | 226% | 209% | 238% | 230% | 238% | |||||||
| Net charge-offs/average loans | 0.13% | 0.08% | 0.19% | 0.26% | 0.18% | |||||||
| Delinquent loans/ending loans | 1.56% | 1.50% | 1.46% | 1.91% | 1.64% | |||||||
| Loan loss provision/net charge-offs | 94% | 158% | 74% | 95% | 100% | |||||||
| Nonperforming assets/total assets | 0.33% | 0.37% | 0.35% | 0.38% | 0.37% | |||||||
|
(1) |
Excludes gain (loss) on investment securities and amortization/accretion of fair market value purchase accounting adjustments. |
|
|
(2) |
Excludes intangible amortization, goodwill impairment, acquisition expenses, special charges, gain (loss) on investment securities, and amortization/accretion of fair market value purchase accounting adjustments. |
|
|
(3) |
Includes deferred tax liabilities (of approximately $23.5 million at 9/30/11) related to tax deductible goodwill. |
|
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from CBU’s expectations: the successful integration of operations of its acquisitions; competition; changes in economic conditions, interest rates and financial markets; and changes in legislation or regulatory requirements. CBU does not assume any duty to update forward-looking statements.