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Dec 31, 2022
Community Bank Q4 2022 Earnings Report
Reported strong results driven by an increase in net interest income and a decrease in fully-diluted average shares outstanding, offset by higher operating expenses, lower noninterest revenues, and increases in the provision for credit losses and income taxes.
Key Takeaways
Community Bank System, Inc. reported a strong fourth quarter in 2022, with GAAP earnings per share up by 21.3% over the prior year's quarter. The company's performance was driven by improvements in net interest income, supported by strong loan growth. Total revenues increased by 10.2% compared to the previous year's fourth quarter.
GAAP earnings per share increased by 21.3% compared to the prior year's fourth quarter.
Operating earnings per share (non-GAAP) increased by 18.5% over the prior year's fourth quarter.
Adjusted pre-tax, pre-provision net revenue per share (non-GAAP) increased by 18.3% over the prior year.
Total revenues were meaningfully higher due to continued improvements in net interest income driven by strong loan growth.
Forward Guidance
The Company anticipates receiving approximately $600 million in investment securities principal cash flows during 2023, which are expected to be used to pay down overnight borrowings or redeployed into new loans.
Positive Outlook
- Regulatory capital levels remain strong.
- The commercial loan pipeline remains healthy.
- There continues to be an ample amount of new business opportunities for our financial services businesses.
- Strong earnings performance
- Diversified streams of revenue
Challenges Ahead
- Continued weakening of the economic forecast.
- Average total deposits decreased $154.4 million, or 1.2%, consistent with industry expectations.
- Shareholders’ equity of $1.55 billion at December 31, 2022 was $549.1 million, or 26.1%, lower than one year ago.
- The Company recorded a provision for credit losses of $2.8 million in the fourth quarter due to strong loan growth and continued weakening of the economic forecast.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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