Community Bank System (CBU)
NYSE:CBU
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Community Bank System
(NYSE:CBU)
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Rating:77Outperform
Price Target:
$72.00
▲(13.73% Upside)
Action:ReiteratedDate:04/29/26
CBU scores well primarily on solid financial performance (improving cash generation, healthier leverage, and better recent profitability) and a positive earnings-call backdrop with guidance intact and strong NII/margin trends. Technicals add support with an uptrend across major moving averages. Valuation is fair with a supportive dividend, though uneven revenue history and some credit/expense headwinds temper the upside.
Positive Factors
Net interest income & margin expansion
Eight consecutive quarters of NII expansion and a q/q NIM improvement show the bank is converting funding-cost tailwinds into core interest income. Durable margin expansion and a lower cost of funds strengthen recurring earnings power and cash generation over the medium term.
Negative Factors
Uneven revenue growth
A 2025 revenue decline after prior gains signals variability in top-line drivers. Persistent uneven revenue makes earnings less predictable and increases reliance on margin expansion or one-time items to hit targets, complicating multi-quarter planning and operational leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest income & margin expansion
Eight consecutive quarters of NII expansion and a q/q NIM improvement show the bank is converting funding-cost tailwinds into core interest income. Durable margin expansion and a lower cost of funds strengthen recurring earnings power and cash generation over the medium term.
Read all positive factors
Community Bank System (CBU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.27B
Dividend Yield3.14%
Average Volume (3M)234.13K
Price to Earnings (P/E)15.3
Beta (1Y)0.87
Revenue Growth7.54%
EPS Growth15.36%
CountryUS
Employees2,730
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.15
Shares Outstanding52,537,727
10 Day Avg. Volume292,282
30 Day Avg. Volume234,131
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)1.61
Price to Sales (P/S)3.47
P/FCF Ratio13.80
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue4.00
Enterprise Value/Gross Profit5.45
Enterprise Value/Ebitda11.71
Forecast
1Y Price Target
$67.00Price Target Upside5.83% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.71
Revenue Forecast (FY)$895.62M
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, Emplo...
How the Company Makes Money
CBU generates earnings primarily through a mix of bank interest income and non-interest (fee) income across its operating businesses. (1) Net interest income (banking): The core revenue engine is the spread between interest earned on loans and inv...
Community Bank System Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented a clearly positive operating quarter highlighted by double-digit net interest income growth, margin expansion, strong loan and deposit growth, record operating PPNR and operating EPS, and active but disciplined capital deployment (including opportunistic buybacks and targeted M&A). Headwinds were manageable and largely timing- or investment-related: insurance contingent commission timing, expense increases from strategic branch expansion and acquisitions, modest upticks in early-stage delinquency metrics, and short-term deposit cost seasonality. Management maintained full-year guidance and emphasized diversified revenue, strong liquidity, and continued organic and targeted inorganic growth.Positive Updates
Top-Line and EPS Growth
Total revenue grew 9% year-over-year. GAAP diluted EPS was $1.08, up $0.15 or 16.1% year-over-year. Management reported a 17% increase in operating diluted EPS versus the prior-year period and record operating earnings per share and operating pre-tax pre-provision net revenue (PPNR) per share (operating PPNR per share of $1.10, up $0.21 year-over-year).
Negative Updates
Insurance Revenue Timing Headwind
Insurance Services faced a difficult year-over-year comparison due to timing of contingent commission payments that occurred in 2025 rather than the typical pattern; this reduced insurance noninterest revenue in Q1 with contingent commissions expected to be realized mostly in Q2 (~$1.5–$2.0 million range).
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line and EPS Growth
Total revenue grew 9% year-over-year. GAAP diluted EPS was $1.08, up $0.15 or 16.1% year-over-year. Management reported a 17% increase in operating diluted EPS versus the prior-year period and record operating earnings per share and operating pre-tax pre-provision net revenue (PPNR) per share (operating PPNR per share of $1.10, up $0.21 year-over-year).
Read all positive updates
Company Guidance
Management said full‑year 2026 guidance remains intact, with expense growth forecast 4–7% (mid‑single digits) and full‑year noninterest expenses targeted at $535M–$550M (≈$135M/quarter), while reiterating expectations for continued earnings growth; Q1 metrics cited included GAAP EPS $1.08 (+$0.15, +16.1% YoY), operating diluted EPS ~+17% YoY, operating PPNR per share $1.10 (+$0.21 YoY, +$0.03 q/q), net interest income $134.7M (+$14.5M, +12.1% YoY; +$1.3M q/q), FTE NIM 3.45% (up 6 bps q/q; Q2 guide +3–5 bps), cost of funds 1.2% (down 7 bps q/q), operating noninterest revenue +$3.2M (+4.2% YoY; 37% of operating revenues) with insurance contingent commissions typically ~$1.5–$2.0M in Q2, provision for credit losses $5.0M, total noninterest expense $133.0M (−$5.5M q/q; +$7.7M YoY), ending loans +$181.4M (+1.7% q/q; +$710M, +6.8% YoY), deposits +$978.1M (+7% YoY; +$483M, +3.4% q/q, including $543.7M from Santander), allowance for credit losses $90.2M (81 bps of loans; ~7x TTM NCOs), and continued disciplined capital deployment (opportunistic buybacks—recent repurchase in the low $60s—and targeted M&A with ClearPoint pending regulatory approval).Community Bank System Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 928.71M | 940.71M | 755.98M | 702.45M | 633.65M |
| Gross Profit | 682.00M | 723.53M | 640.67M | 664.58M | 629.49M |
| EBITDA | 317.25M | 265.36M | 196.58M | 270.74M | 271.51M |
| Net Income | 210.46M | 182.48M | 131.92M | 188.08M | 189.69M |
Balance Sheet | |||||
| Total Assets | 17.41B | 16.39B | 15.56B | 15.84B | 15.55B |
| Cash, Cash Equivalents and Short-Term Investments | 301.75M | 508.96M | 3.11B | 4.36B | 6.81B |
| Total Debt | 746.66M | 998.87M | 765.20M | 1.14B | 329.88M |
| Total Liabilities | 15.41B | 14.62B | 13.86B | 14.28B | 13.45B |
| Stockholders Equity | 2.01B | 1.76B | 1.70B | 1.55B | 2.10B |
Cash Flow | |||||
| Free Cash Flow | 233.33M | 221.57M | 209.84M | 201.68M | 189.17M |
| Operating Cash Flow | 301.86M | 242.28M | 228.42M | 214.60M | 202.55M |
| Investing Cash Flow | -182.10M | -835.62M | 335.78M | -2.14B | -1.53B |
| Financing Cash Flow | -15.01M | 599.38M | -583.13M | 259.22M | 1.56B |
Community Bank System Technical Analysis
Positive
63.31
Price Trends
60.72
Positive
60.15
Positive
58.21
Positive
Market Momentum
0.93
Negative
67.08
Neutral
72.90
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 63.31 is above the 20-day moving average (MA) of 59.85, above the 50-day MA of 60.72, and above the 200-day MA of 58.21, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBU.
Community Bank System Risk Analysis
Community Bank System disclosed 36 risk factors in its most recent earnings report. Community Bank System reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Bank System Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.71B | 10.00 | 11.34% | 1.16% | -2.05% | ― | |
78 Outperform | $3.31B | 11.13 | 10.19% | 3.96% | 0.68% | 24.52% | |
77 Outperform | $3.27B | 15.30 | 10.99% | 3.14% | 7.54% | 15.36% | |
70 Outperform | $3.26B | 9.35 | 8.00% | 4.35% | 49.38% | 102.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $3.22B | 18.57 | 6.38% | 3.04% | 14.22% | -15.75% | |
62 Neutral | $3.08B | 10.35 | -10.51% | 4.41% | -57.23% | -320.70% |
* Financial Sector Average
CBU
Community Bank System
62.23
9.36
17.70%
SFNC
Simmons 1st Nat'l
21.25
3.39
19.01%
TOWN
TowneBank
34.93
3.00
9.41%
WSBC
WesBanco
33.94
5.50
19.33%
WSFS
Wsfs Financial
71.15
20.22
39.70%
FHB
First Hawaiian
26.93
5.01
22.87%
Community Bank System Corporate Events
Business Operations and StrategyExecutive/Board Changes
Community Bank System Adds Independent Director to Board
Positive
Feb 11, 2026
Community Financial System, Inc., a New York Stock Exchange-listed diversified financial services provider, operates major businesses in regional banking, employee benefits administration, insurance brokerage and wealth management through subsidia...
Business Operations and StrategyFinancial Disclosures
Community Bank System Updates Investor Presentation and Outlook
Neutral
Feb 11, 2026
On February 11, 2026, Community Financial System, Inc. posted a new investor presentation on its website for use in upcoming meetings with investors and analysts. The materials, available via the Events Presentations section of its investor relat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.