Decline in first quarter net income
DeWITT — As it nears completion of its acquisition of Elmira Savings Bank (NASDAQ: ESBK), Community Bank System, Inc. (NYSE: CBU) announced on April 22 that it has received regulatory approval from the U.S. Bureau of the Currency Controller for this transaction.
The DeWitt-based banking company also said it had obtained a waiver from filing an application with the Federal Reserve Bank of New York for the transaction.
The regulatory approval announcement came days before Community Bank System reported lower net profit in the first quarter of 2022.
Upcoming acquisition
The acquisition, which was valued at approximately $83 million when first announced last fall, is expected to close on May 13, subject to customary closing conditions and approval from the Department of Financial Services. New York State.
“Community Bank is delighted to welcome the customers and employees of Elmira Savings Bank to our family as we work together to integrate two high quality banks with a long history of serving their customers and communities,” Mark Tryniski , president and CEO of Community Bank System, said in a statement.
On October 4, Community Bank System announced for the first time that it would acquire Elmira Savings Bank in an all-cash transaction valued at $82.8 million. Community Bank believes the transaction will provide it with an “enhanced presence” in several central and southern New York markets, including Elmira, Corning and Ithaca.
Elmira Savings Bank has total assets of $632 million and 12 branches in an area of five counties, mostly in the southern part.
Decrease in net income
On April 24, Community Bank System reported that its net income fell 11% to $47.1 million, or 86 cents per share, in the first quarter, from $52.9 million, or 97 cents, in the first. quarter 2021.
The decrease is mainly attributable to the increase in the provision for credit losses, operating expenses, income taxes and fully diluted shares outstanding. This was partially offset, in part, by higher net interest income and non-interest income, the banking company said in its earnings report.
Community Bank System’s operating earnings per share – which excludes acquisition costs, acquisition-related contingent consideration adjustments and unrealized gain (loss) on equity securities, after tax – was 87 cents in the first quarter of this year. That topped analysts’ consensus estimate of 76 cents, according to Zacks Equity Research.
