Community Bank System, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Community Bank System, Inc. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

COMMUNITY BANK SYSTEM, INC. (CBU) filed a Annual Report (10-K) with the SEC on February 29, 2024. Community Bank System, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing provides detailed financial information and business operations for the company. The report covers the period ending December 31, 2023. The company's principal executive offices are located in DeWitt, NY. Community Bank System, Inc. operates in the National Commercial Banks sector.

Why It Matters

For investors and stakeholders tracking COMMUNITY BANK SYSTEM, INC., this filing contains several important signals. This 10-K filing is a comprehensive overview of Community Bank System, Inc.'s financial health and strategic positioning for the fiscal year 2023, crucial for investors to assess performance and future outlook. Understanding the details within this report allows stakeholders to evaluate the company's compliance with financial regulations and its operational efficiency in the competitive banking landscape.

Risk Assessment

Risk Level: low — COMMUNITY BANK SYSTEM, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news, indicating a stable, ongoing operational status.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Community Bank System, Inc.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (COMMUNITY BANK SYSTEM, INC.)
• 20240229 — Filed As Of Date (COMMUNITY BANK SYSTEM, INC.)
• 6021 — Standard Industrial Classification (NATIONAL COMMERCIAL BANKS)

Key Players & Entities

• COMMUNITY BANK SYSTEM, INC. (company) — FILER
• 0000723188 (company) — CENTRAL INDEX KEY
• DEWITT (company) — CITY
• NY (company) — STATE
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240229 (date) — FILED AS OF DATE

FAQ

Industry Context

Community Bank System, Inc. operates within the National Commercial Banks industry, a sector characterized by traditional lending, deposit-taking, and financial services.

Regulatory Implications

As a publicly traded company, Community Bank System, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the full 10-K filing for detailed financial statements, including balance sheets, income statements, and cash flow statements.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and strategic initiatives.
3. Examine the Risk Factors section to understand potential challenges and uncertainties facing Community Bank System, Inc.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted for the 2023 10-K report.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 par value per share CBU New York St
• $8.1 m — onsideration for these acquisitions was $8.1 million, including $6.7 million in cash a
• $6.7 million — cquisitions was $8.1 million, including $6.7 million in cash and $1.4 million in contingent
• $1.4 million — ion, including $6.7 million in cash and $1.4 million in contingent consideration arrangement
• $5.1 m — ng 2023. Aggregate assets acquired were $5.1 million, including $4.9 million of custom
• $4.9 million — s acquired were $5.1 million, including $4.9 million of customer list intangible assets and
• $3.0 million — ts and the Company recorded goodwill of $3.0 million. 3 Table of Contents Axiom Realty G
• $1.8 million — l estate finance and advisory firm, for $1.8 million in cash. The Company recorded a $1.2 mi
• $1.2 million — million in cash. The Company recorded a $1.2 million customer list intangible and recognized
• $0.6 million — customer list intangible and recognized $0.6 million of goodwill in conjunction with the acq
• $82.2 million — headquartered in Elmira, New York, for $82.2 million in cash. The merger enhanced the Compan
• $583.6 million — vice network and acquired approximately $583.6 million of identifiable assets, including $436.
• $436.8 million — llion of identifiable assets, including $436.8 million of loans, $11.3 million of investment s
• $11.3 million — ets, including $436.8 million of loans, $11.3 million of investment securities and $8.0 milli
• $8.0 million — .3 million of investment securities and $8.0 million of core deposit intangibles, as well as

Filing Documents

• cbu-20231231x10k.htm (10-K) — 9355KB
• cbu-20231231xex4d5.htm (EX-4.5) — 10KB
• cbu-20231231xex21d1.htm (EX-21.1) — 14KB
• cbu-20231231xex23d1.htm (EX-23.1) — 4KB
• cbu-20231231xex31d1.htm (EX-31.1) — 15KB
• cbu-20231231xex31d2.htm (EX-31.2) — 14KB
• cbu-20231231xex32d1.htm (EX-32.1) — 6KB
• cbu-20231231xex32d2.htm (EX-32.2) — 6KB
• cbu-20231231xex97d1.htm (EX-97.1) — 36KB
• cbu-20231231x10k001.jpg (GRAPHIC) — 11KB
• cbu-20231231x10k002.jpg (GRAPHIC) — 99KB
• 0001410578-24-000095.txt (&nbsp;) — 39919KB
• cbu-20231231.xsd (EX-101.SCH) — 139KB
• cbu-20231231_cal.xml (EX-101.CAL) — 152KB
• cbu-20231231_def.xml (EX-101.DEF) — 761KB
• cbu-20231231_lab.xml (EX-101.LAB) — 1450KB
• cbu-20231231_pre.xml (EX-101.PRE) — 1152KB
• cbu-20231231x10k_htm.xml (XML) — 11084KB

Business

Business 3 Item 1A

Risk Factors

Risk Factors 15 Item 1B Unresolved Staff Comments 26 Item 1C Cybersecurity 26 Item 2

Properties

Properties 29 Item 3

Legal Proceedings

Legal Proceedings 29 Item 4 Mine Safety Disclosures 29 PART II Item 5 Market for the Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities 29 Item 6 [Reserved] 32 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 77 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data: 78 Consolidated Statements of Condition 79 Consolidated Statements of Income 80 Consolidated Statements of Comprehensive Income (Loss) 81 Consolidated Statements of Changes in Shareholders' Equity 82 Consolidated Statements of Cash Flows 83

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 84 Report on Internal Control over Financial Reporting 145 Report of Independent Registered Public Accounting Firm 146 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 148 Item 9A

Controls and Procedures

Controls and Procedures 148 Item 9B Other Information 148 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 148 PART III Item 10 Directors, Executive Officers and Corporate Governance 149 Item 11

Executive Compensation

Executive Compensation 149 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 149 Item 13 Certain Relationships and Related Transactions, and Director Independence 149 Item 14 Principal Accounting Fees and Services 149 PART IV Item 15 Exhibits, Financial Statement Schedules 149 Item 16 Form 10-K Summary 154

Signatures

Signatures 155 2 Table of Contents Part I This Annual Report on Form 10-K contains certain forward-looking statements with respect to the financial condition, results of operations and business of Community Bank System, Inc. These forward-looking statements by their nature address matters that involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements are set forth herein under the caption "Forward-Looking Statements."

Business

Item 1. Business Community Bank System, Inc. (the "Company") was incorporated on April 15, 1983, under the Delaware General Corporation Law. Its principal office is located at 5790 Widewaters Parkway, DeWitt, New York 13214. The Company's business philosophy is to operate as a diversified financial services enterprise providing a broad array of banking and other financial services to retail, commercial, institutional and municipal customers. The Company is a registered financial holding company which wholly-owns two significant subsidiaries: Community Bank, N.A. (the "Bank" or "CBNA"), and Benefit Plans Administrative Services, Inc. ("BPAS"). As of December 31, 2023, BPAS owns five subsidiaries: Benefit Plans Administrative Services, LLC ("BPA"), a provider of defined contribution plan administration services; Northeast Retirement Services, LLC ("NRS"), a provider of institutional transfer agency, master recordkeeping services, fund administration, trust, and retirement plan services; BPAS Actuarial & Pension Services, LLC ("BPAS-APS"), a provider of actuarial and benefit consulting services; BPAS Trust Company of Puerto Rico, a Puerto Rican trust company; and Hand Benefits & Trust Company ("HB&T"), a provider of collective investment fund administration and institutional trust services. BPA owns one subsidiary, Fringe Benefits Design of Minnesota, Inc. ("FBD"), a provider of retirement plan administration and benefit consulting services. NRS owns one subsidiary, Global Trust Company, Inc. ("GTC"), a non-depository trust company which provides fiduciary services for collective investment trusts and other products. HB&T owns one subsidiary, Hand Securities, Inc. ("HSI"), an introducing broker-dealer. As of December 31, 2023, the Bank operates 193 full-service branches and 12 drive-thru only locations throughout 42 counties of Upstate New York, six counties of Northeastern Pennsylvania, 12 counties of Vermont, and one county of Western Massachusetts, offering a ran

View Full Filing

View this 10-K filing on SEC EDGAR