10-Q · May 8, 2026
Community Financial System, Inc. reported a strong first quarter for 2026 with net income of $57.2 million, up 15.3%, and EPS of $1.08, a 16.1% increase compared to the prior year. The growth was primarily driven by…
Earnings analysis · 10-Q
CBU earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Community Financial System delivered Q2 2026 revenue of $223.155 million and diluted EPS of $1.16; EPS improved sequentially and year over year but missed consensus by $0.02, while revenue exceeded estimates. Net income…
Read full summary
Community Financial System delivered Q2 2026 revenue of $223.155 million and diluted EPS of $1.16; EPS improved sequentially and year over year but missed consensus by $0.02, while revenue exceeded estimates. Net income increased to $61.334 million from $51.331 million, supported by net interest income and a 3.46% net interest margin. The filing provides no formal financial guidance, but its balance-sheet assumptions imply moderate deposit and earning-asset growth; higher-rate scenarios remain a material headwind, with modeled NII declines of up to $3.856 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
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Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.16
What stood out
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Revenue beat; EPS rose but missed estimates
Q2 2026 revenue was $223.155 million, exceeding the $221.381 million consensus estimate by approximately 0.8%. Diluted EPS was $1.16, up from $1.08 in Q1 2026 and $0.97 in Q2 2025, but below the $1.18 consensus estimate.
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Net income and core banking income improved
Net income was $61.334 million versus $51.331 million a year earlier, an increase of approximately 19.5%. Prior-period earnings information indicates net interest income of $139.144 million and a 3.46% net interest margin.
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Investment portfolio is predominantly high quality
The investment portfolio remains concentrated in high-quality securities: Treasury, agency, mortgage-backed and collateralized mortgage obligation securities represented 90.0% of the portfolio and were rated AAA by Moody’s and AA+ by S&P.
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Model assumes moderate balance-sheet growth
Management’s modeled balance-sheet outlook assumes average deposits increase approximately 2.4% and average earning assets increase approximately 2.1% over the next 12 months, largely due to forecasted loan growth.
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Capital deployment supports liquidity and loans
The company expects, within its interest-rate modeling assumptions, approximately $30.0 million of additional mortgage-backed security purchases over the next 12 months. Excess investment cash inflows are expected to support overnight-borrowing repayment and loan growth.
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Share repurchase authorization remains available
The Board-authorized repurchase program permits repurchases of up to 2,633,000 shares, or 5.0% of common stock outstanding, through December 31, 2026. During Q2, 10,083 shares were purchased at an average price of $62.18.
What to watch
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Higher rates pressure projected NII
The filing quantifies asset-liability sensitivity to higher rates: projected annualized net interest income declines by $2.345 million, or 0.4%, under a +100-basis-point scenario and by $3.856 million, or 0.7%, under a +200-basis-point scenario, primarily because funding costs rise faster than asset income.
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Non-government securities add credit exposure
The filing states that 10.0% of the investment portfolio consists of state and political-subdivision obligations and corporate debt securities; 95.6% of that portion carries a minimum rating of A-. This creates greater credit sensitivity than the 90.0% government-agency and mortgage-backed portion.
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No formal risk-factor update; model uncertainty remains
The company states there were no material changes to the risk-factor disclosure from the December 31, 2025 Form 10-K. However, the filing notes that the interest-rate model assumes average deposits grow 2.4%, and deviations in deposit balances, funding betas or the yield curve could make results materially different from the modeled sensitivity.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. The filing states that its interest-rate sensitivity analysis is not a Company forecast; modeled assumptions include approximately 2.4% deposit growth, 2.1% earning-asset growth, and $30.0 million of additional mortgage-backed security purchases over the next 12 months.
Earlier filings 4
10-K · February 27, 2026
Community Financial System reported multi-year growth in revenue, loans and deposits in 2025 with total net revenue (net interest income plus noninterest revenues) of $818.0M and net income of $210.5M (diluted EPS…
10-Q · November 6, 2025
Community Financial System reported a strong Q3 with net income of $55,088,000 (diluted EPS $1.04), up from $43,901,000 a year earlier. Net interest income improved to $128,165,000 and noninterest revenues rose to…
10-Q · August 8, 2025
Community Financial System reported Q2 2025 revenue of $199,256,000 and diluted EPS of $0.97, up from $183,799,000 and $0.91 a year ago. Net interest income strengthened to $124,748,000 (+$15,339,000 YoY) while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.