Community Bank System (CBU)
NYSE:CBU
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Community Bank System
(NYSE:CBU)
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Rating:70Outperform
Price Target:
$67.00
â–²(9.05% Upside)
Action:ReiteratedDate:02/28/26
CBU scores well on financial performance (improving profitability, de-leveraging, and stronger 2025 cash generation). Valuation is supportive with a reasonable P/E and a ~3% dividend yield. The main restraint is mixed technicals with weak near-term trend versus longer-term support, while the earnings call was constructive on growth but tempered by higher expense and credit provision guidance.
Positive Factors
Improving leverage and capital base
A materially lower debt-to-equity and higher shareholders’ equity strengthen the bank’s capital flexibility, enabling durable support for lending, deposit volatility and M&A. Improved capital cushions credit losses, supports dividends/buybacks and reduces reliance on expensive external funding over time.
Negative Factors
Uneven and declining recent revenue
A notable revenue decline in 2025 signals top-line volatility that can persist absent clear recovery drivers. Uneven revenues complicate multi-year planning, increase execution risk for efficiency initiatives, and limit the operating leverage available to absorb expense and credit headwinds.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and capital base
A materially lower debt-to-equity and higher shareholders’ equity strengthen the bank’s capital flexibility, enabling durable support for lending, deposit volatility and M&A. Improved capital cushions credit losses, supports dividends/buybacks and reduces reliance on expensive external funding over time.
Read all positive factors
Community Bank System (CBU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.24B
Dividend Yield3.14%
Average Volume (3M)234.13K
Price to Earnings (P/E)15.3
Beta (1Y)0.85
Revenue Growth9.41%
EPS Growth20.64%
CountryUS
Employees2,730
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.12
Shares Outstanding52,723,930
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/Revenue3.97
Enterprise Value/Gross Profit5.40
Enterprise Value/Ebitda11.61
Forecast
1Y Price Target
$66.33Price Target Upside7.96% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.7
Revenue Forecast (FY)$894.92M
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
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 com...
Community Bank System Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and revenue performance with record operating revenues, sustained net interest income expansion, healthy deposit and loan growth, high-return businesses, and strategic M&A progress (Santander branches and ClearPoint). These positives were balanced by rising noninterest expenses (including one-time acquisition and incentive items), planned investments that pressured certain businesses (employee benefit services), higher projected credit provisions for 2026, and a higher effective state tax rate that will weigh on margins. Management emphasized expense management and automation as priorities for 2026 and provided quantified guidance for growth and expense ranges.Positive Updates
Record Operating Revenues and Strong Operating EPS
Total operating revenues reached a record $215.6 million in Q4 2025. Operating earnings per share were $1.12 in Q4, and operating PPNR per share hit $1.58, an increase of $0.18 year-over-year.
Negative Updates
Rising Noninterest Expenses and One-Time Items
Total noninterest expenses were $138.5 million in Q4, an increase of $10.2 million or 8% from the prior quarter. Excluding a $2.1 million increase in acquisition expenses tied to the Santander branch deal, noninterest expenses rose $8.1 million or 6.4% quarter-over-quarter. Adjusted Q4 noninterest expenses were $131.9 million, up $4.3 million or 3.4%.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Operating Revenues and Strong Operating EPS
Total operating revenues reached a record $215.6 million in Q4 2025. Operating earnings per share were $1.12 in Q4, and operating PPNR per share hit $1.58, an increase of $0.18 year-over-year.
Read all positive updates
Company Guidance
For 2026 the company guided loan growth of 3.5%–6% and deposit growth of 2%–3%, net interest income up 8%–12% and noninterest revenues up 4%–8%; it expects a provision for credit losses of $20M–$25M, core noninterest expenses of $535M–$550M (about a 4%–7% increase vs. 2025, including ~$8M–$9M of Santander-related incremental expense), and an effective tax rate of 23%–24%. Management noted Q1 typically carries higher noninterest expenses (merit increases, higher FICA/payroll taxes and seasonal snow removal) and is guiding NIM modestly higher in Q1 by roughly 2–4 basis points; guidance excludes the impact of pending/future acquisitions and the company plans to deploy maturing securities into loans where possible (with ~ $600M of securities maturing in 2027).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
61.44
Price Trends
60.73
Positive
59.60
Positive
57.96
Positive
Market Momentum
0.08
Negative
64.58
Neutral
90.89
Negative
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 61.44 is above the 20-day moving average (MA) of 57.84, above the 50-day MA of 60.73, and above the 200-day MA of 57.96, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 90.89 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.62B | 10.45 | 10.61% | 1.16% | -3.62% | 10.83% | |
70 Outperform | $3.24B | 15.30 | 10.99% | 3.14% | 9.41% | 20.64% | |
70 Outperform | $3.47B | 8.17 | 5.67% | 4.35% | 41.49% | -5.53% | |
70 Outperform | $3.24B | 11.43 | 9.62% | 3.96% | -4.45% | 16.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $3.24B | 15.10 | 7.31% | 3.04% | 9.48% | 12.83% | |
61 Neutral | $2.96B | -6.78 | -11.48% | 4.41% | -55.53% | -387.04% |
* Financial Sector Average
CBU
Community Bank System
61.44
8.84
16.81%
SFNC
Simmons 1st Nat'l
20.43
2.34
12.96%
TOWN
TowneBank
35.16
4.51
14.73%
WSBC
WesBanco
36.13
8.63
31.40%
WSFS
Wsfs Financial
68.64
19.99
41.09%
FHB
First Hawaiian
26.39
4.78
22.12%
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...
Business Operations and StrategyM&A Transactions
Community Bank System to Acquire ClearPoint Federal Bank
Positive
Jan 15, 2026
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 associati...
Business Operations and StrategyExecutive/Board ChangesStock Buyback
Community Bank System announces leadership transition for 2026
Positive
Jan 6, 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, Com...
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.