Community Bank System (CBU) AI Stock Analysis

• Market Cap: $3.29B
• Dividend Yield: 3.14%
• Average Volume (3M): 234.13K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.81
• Revenue Growth: 9.41%
• EPS Growth: 20.64%
• Country: US
• Employees: 2,730
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.12
• Shares Outstanding: 52,661,488
• 10 Day Avg. Volume: 292,282
• 30 Day Avg. Volume: 234,131
• PEG Ratio: 0.44
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 14.69
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 12.87
• 1Y Price Target: $63.50
• Price Target Upside: 1.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $69.00 ▲(10.40% Upside)

Overall score reflects solid underlying financial performance (growth and improving TTM profitability) tempered by historical variability in leverage/cash metrics. Technicals are moderately positive (uptrend with balanced momentum), valuation is supportive (mid-teens P/E and ~3% yield), and the earnings outlook is constructive but constrained by higher planned expenses and higher expected credit provisions.

Positive Factors

Diversified revenue mix

CBU's multi‑line model (community banking plus employee benefit, insurance and wealth) shifts revenue toward fee‑based income. That structural diversification reduces reliance on cyclical loan spreads, stabilizes margins over time, and supports cross‑sell and resilience through rate or credit cycles.

Consistent revenue and margin improvement

Sustained top‑line growth and recent margin expansion reflect expanding NII and noninterest income. Durable revenue momentum plus improving net and EBIT margins indicate stronger earnings power and capacity to absorb moderate shocks while funding reinvestment and capital deployment.

Improving capital and cash generation

Rising equity and falling leverage alongside stronger operating and free cash flow materially enhance financial flexibility. Consistent FCF covering a large portion of earnings supports strategic investments, buybacks and inorganic growth without materially weakening the capital base.

Negative Factors

Rising credit provisions

An uptick in provisioning signals emerging asset‑quality pressure; if sustained it will compress net income and could erode capital cushions. For a regional bank, higher provisions can persist across cycles and require either slower growth or additional capital to maintain ratios.

Rising operating costs

Growing noninterest expenses from expansion and tech/data costs pressure efficiency ratios. If cost growth outpaces revenue improvement, margin compression could be structural, requiring productivity initiatives or slower branch/employee expansion to protect long‑term ROE.

Leverage and margin volatility

Material year‑to‑year swings in debt/equity and margins indicate sensitivity to funding and rate cycles. Such volatility raises the likelihood of periodic capital or funding actions and makes earnings less predictable, complicating long‑term planning and risk management.

Community Bank System Business Overview & Revenue Model

Company Description

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management; and employee benefit services, as well as operates as a full-service insurance agency that offers personal and commercial lines of insurance, and other risk management products and services. Further, it provides contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, actuarial and benefit consulting, VEBA/HRA, and health and welfare consulting services. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and advisory products, as well as master recordkeeping services. As of January 24, 2022, it operated approximately 215 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

How the Company Makes Money

Community Bank System generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest earned on loans and investments, which constitute a significant portion of the bank's earnings. The company offers a variety of loans, including commercial, residential, and consumer loans, with interest rates that contribute to its overall revenue. Non-interest income comes from various sources, including fees for services such as account maintenance, ATM usage, and transaction fees, as well as income from its employee benefit services segment. Additionally, CBU may engage in strategic partnerships and acquisitions to expand its service offerings and customer base, further enhancing its revenue potential.

Community Bank System Financial Statement Overview

Summary

Income statement strength (revenue growth and improving TTM margins) is offset by balance-sheet and cash-flow variability across periods (historical leverage swings and uneven cash coverage metrics), suggesting results can be more cycle-sensitive than the latest TTM trend implies.

Income Statement

CBU shows strong top-line momentum, with revenue rising from $617M (2020) to $941M (2024) and $993M in TTM (Trailing-Twelve-Months), alongside a sharp acceleration in the latest period. Profitability is solid for a regional bank, with net margin improving from ~19.4% (2024) to ~20.7% in TTM and EBIT margin also stepping up (25.2% to 27.0%). A key watch-out is margin volatility versus earlier years (notably higher margins in 2021–2022 and a much higher gross margin in 2023), suggesting earnings power can swing with the rate/credit cycle.

Balance Sheet

The balance sheet looks generally healthy with equity growth (about $1.55B in 2022 to $1.76B in 2024 and $1.94B in TTM) and leverage trending better recently: debt-to-equity improved from 0.57 (2024) to 0.47 in TTM. Returns on equity have also improved versus 2023 (7.8%) to 10.4% (2024) and 11.3% in TTM. The main weakness is historical leverage volatility (debt-to-equity spiked to 1.23 in 2022), which highlights that capital structure and risk posture can change meaningfully year to year.

Cash Flow

Cash generation is solid and improving: operating cash flow increased from $242M (2024) to $283M in TTM, while free cash flow rose to $230M in TTM and shows strong latest growth. Free cash flow covers a large portion of earnings (about 81% in TTM and ~91% in 2024), supporting earnings quality. A notable concern is that the provided operating cash flow coverage metric is very low in recent periods (TTM and 2023–2024), indicating weaker cash coverage on that measure versus prior years and suggesting cash conversion can be more uneven depending on balance-sheet movements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	993.48M	940.71M	755.98M	702.45M	633.65M	617.28M
Gross Profit	776.26M	723.53M	640.67M	664.58M	629.49M	582.19M
EBITDA	297.06M	265.36M	196.58M	270.74M	271.51M	236.72M
Net Income	205.83M	182.48M	131.92M	188.08M	189.69M	164.68M
Balance Sheet
Total Assets	16.96B	16.39B	15.56B	15.84B	15.55B	13.93B
Cash, Cash Equivalents and Short-Term Investments	3.10B	508.96M	3.11B	4.36B	6.81B	5.19B
Total Debt	763.35M	998.87M	765.20M	1.14B	329.88M	371.29M
Total Liabilities	15.02B	14.62B	13.86B	14.28B	13.45B	11.83B
Stockholders Equity	1.94B	1.76B	1.70B	1.55B	2.10B	2.10B
Cash Flow
Free Cash Flow	230.30M	221.57M	209.84M	201.68M	189.17M	164.70M
Operating Cash Flow	283.02M	242.28M	228.42M	214.60M	202.55M	179.48M
Investing Cash Flow	-676.42M	-835.62M	335.78M	-2.14B	-1.53B	-398.72M
Financing Cash Flow	292.54M	599.38M	-583.13M	259.22M	1.56B	1.66B

Community Bank System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBU, the sentiment is Positive. The current price of 62.5 is above the 20-day moving average (MA) of 61.40, above the 50-day MA of 59.44, and above the 200-day MA of 56.94, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBU.

Community Bank System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSFS	76 Outperform	$3.54B	12.72	10.27%	1.16%	-3.62%	10.83%
WSBC	75 Outperform	$3.39B	15.86	6.54%	4.35%	41.49%	-5.53%
CBU	73 Outperform	$3.29B	15.74	11.01%	3.14%	9.41%	20.64%
FHB	72 Outperform	$3.28B	12.07	9.62%	3.96%	-4.45%	16.92%
TOWN	70 Outperform	$3.23B	15.84	7.37%	3.04%	9.48%	12.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFNC	62 Neutral	$2.94B	-7.30	-12.42%	4.41%	-55.53%	-387.04%

Community Bank System Corporate Events

Community Bank System to Acquire ClearPoint Federal Bank

On January 15, 2026, Community Financial System, Inc. announced that its wholly owned subsidiary, Community Bank, N.A., entered into an Agreement and Plan of Merger to acquire ClearPoint Federal Bank & Trust, a federally chartered savings association that is a leading trust administrator in the roughly $20 billion revenue U.S. death care industry. ClearPoint brings approximately $1.5 billion in assets under management, $112 million in deposits with a relatively low cost of funds, and a business model heavily weighted toward fee income with no lending exposure, supported by strong recent growth in revenue and net income and a solid year-to-date return on assets as of September 2025. The acquisition is positioned as strategically complementary to Community Financial’s Nottingham Financial Group, is expected to increase Nottingham’s revenue by 20% and its contribution to the parent company by 1 percentage point, and to shift the pro forma revenue mix further toward fee income, while delivering a double-digit return on capital, slight earnings-per-share accretion and meaningful longer-term revenue synergy opportunities for stakeholders.

The most recent analyst rating on (CBU) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Community Bank System stock, see the CBU Stock Forecast page.

Community Bank System announces leadership transition for 2026

Community Bank, N.A. implemented a planned leadership transition at the start of 2026, as Senior Vice President and Chief Banking Officer Jeffrey M. Levy retired on December 31, 2025, and was succeeded by Matthew K. Durkee, formerly President, Commercial Banking, effective January 1, 2026; Levy will remain involved through a consulting agreement from January 5 to June 30, 2026 to support continuity. Separately, on December 17, 2025, the board approved a new annual stock repurchase program authorizing the buyback of up to 2,633,000 shares of common stock during 2026, replacing an earlier program that expired on December 31, 2025 and under which 206,054 shares were repurchased in 2025, signaling continued capital management efforts that may affect shareholder returns and share liquidity.

The most recent analyst rating on (CBU) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Community Bank System stock, see the CBU Stock Forecast page.

Community Bank System Enhances Investor Transparency

On November 12, 2025, Community Financial System, Inc. posted an investor presentation on its website for upcoming meetings with investors and analysts. This move is likely aimed at enhancing transparency and engagement with stakeholders, potentially impacting the company’s investor relations positively.

The most recent analyst rating on (CBU) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Community Bank System stock, see the CBU Stock Forecast page.