CBU Q4 Deep Dive: Diversification and Deposit Growth Support Steady Results

Stock Story

Regional banking company Community Financial System reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 10% year on year to $215.6 million. Its non-GAAP profit of $1.07 per share was 5.3% below analysts’ consensus estimates.

Community Bank (CBU) Q4 CY2025 Highlights:

Revenue: $215.6 million vs analyst estimates of $212.2 million (10% year-on-year growth, 1.6% beat)
Adjusted EPS: $1.07 vs analyst expectations of $1.13 (5.3% miss)
Market Capitalization: $3.24 billion

StockStory’s Take

Community Bank’s fourth quarter performance reflected steady execution across its diverse business segments, with management pointing to particular strength in net interest income and ongoing loan portfolio growth. CEO Dimitar Karaivanov highlighted, “We benefited from both mid-single-digit asset growth and expanding margin which drove very meaningful operating income growth.” The company’s insurance and wealth management services also contributed positively, offsetting expense noise tied to acquisitions and incentive payouts.

Looking ahead, management’s guidance is shaped by expectations for continued loan and deposit growth, further expansion into under-tapped Northeast markets, and progress on automation investments. Karaivanov emphasized that harnessing AI and automation will be a central focus for expense management in the coming year, stating, “We now need to see it fully in the bottom line.” The ClearPoint acquisition and new branch openings are expected to broaden the company’s revenue base and support mid- to high-single-digit growth in several business lines.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to broad-based loan and deposit growth, record net interest income, and contributions from recent acquisitions, while also acknowledging increased expenses tied to branch integration and performance incentives.

Net interest income expansion: The banking segment saw its seventh consecutive quarter of net interest income growth, driven by lower funding costs and ongoing loan portfolio expansion, supporting operating results amid a competitive lending environment.
Deposit growth from acquisitions: Total deposits increased as a result of both organic growth and the successful integration of seven Santander branches, which management described as accelerating their retail banking strategy in key growth markets.
Diversification through noninterest revenues: Noninterest revenues, comprising 38% of the company’s total, reflected steady contributions from insurance, employee benefit services, and wealth management, reinforcing Community Bank’s multi-segment approach to financial services.
Expense increases tied to growth: Higher noninterest expenses were attributed to acquisition-related integration costs, incentive compensation, and branch expansion activities, with management noting these investments are expected to yield longer-term benefits.
Progress in automation and efficiency: The company’s focus on automation has saved over 200,000 hours over three years, allowing headcount to remain stable while supporting business growth, with management aiming to realize further efficiency gains in 2026.

Drivers of Future Performance

Community Bank’s outlook focuses on loan and deposit growth, efficiency gains from technology, and expanded service offerings.

Branch and market expansion: Management expects mid-single-digit growth in loan balances as newly opened branches mature and the company penetrates under-tapped markets, with commercial and consumer lending seen as primary drivers.
Expense discipline through automation: Investments in AI and process automation are expected to help offset rising costs and support stable operating margins, as the company continues to integrate recent acquisitions and pursue further efficiency improvements.
Growth from niche acquisitions: The pending ClearPoint acquisition is anticipated to enhance trust administration capabilities and open cross-selling opportunities for wealth management and banking products, supporting noninterest income growth and customer diversification.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be watching (1) whether branch integrations and new market entries are converting into sustained loan and deposit growth, (2) the extent to which automation and AI investments translate into lower expense growth and improved margins, and (3) progress on the ClearPoint acquisition and its impact on noninterest income. Updates on customer retention and market share will also be important indicators of execution.

Community Bank currently trades at $61.47, in line with $61.77 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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UnitedHealth, NextEra, Texas Instruments set to report earnings Tuesday

Investing.com

Earnings season continues as we prepare for another busy day of financial results. Below we highlight companies expected to report earnings the next trading day so you can position yourself ahead of potential market moves. Leading the action are industry giants UnitedHealth Group, NextEra Energy, Texas Instruments, Boeing, and Raytheon Technologies, whose reports could provide valuable insights into various sectors of the economy.

Earnings Before the Open:

• UnitedHealth Group (UNH) - Estimated EPS: $2.12, Estimated Revenue: $113.77B

• NextEra Energy Inc (NEE) - Estimated EPS: $0.5571, Estimated Revenue: $6.78B

• Boeing Co (BA) - Estimated EPS: -$0.4532, Estimated Revenue: $22.4B

• United Tech (RTX) - Estimated EPS: $1.47, Estimated Revenue: $22.69B

• Union Pacific (UNP) - Estimated EPS: $2.87, Estimated Revenue: $6.12B

• HCA Holdings Inc (HCA) - Estimated EPS: $7.45, Estimated Revenue: $19.67B

• Northrop Grumman (NOC) - Estimated EPS: $6.99, Estimated Revenue: $11.61B

• Sysco Corp (SYY) - Estimated EPS: $0.9768, Estimated Revenue: $20.78B

• Roper Industries (ROP) - Estimated EPS: $5.14, Estimated Revenue: $2.08B

• United Parcel (UPS) - Estimated EPS: $2.2, Estimated Revenue: $23.96B

• Paccar Inc (PCAR) - Estimated EPS: $1.07, Estimated Revenue: $6.03B

• Kimberly Clark (KMB) - Estimated EPS: $1.81, Estimated Revenue: $4.09B

• Synchrony Fin (SYF) - Estimated EPS: $2.04, Estimated Revenue: $3.84B

• Atlas Copco AB (ATLKY) - Estimated EPS: $0.1557, Estimated Revenue: $4.66B

• Atlas Copco (ATLCY) - Estimated EPS: $0.1557, Estimated Revenue: $4.66B

• Sandvik AB (SDVKY) - Estimated EPS: $0.3584, Estimated Revenue: $3.42B

• Invesco Ltd (IVZ) - Estimated EPS: $0.5722, Estimated Revenue: $1.24B

• American Airlines Group (AAL) - Estimated EPS: $0.3848, Estimated Revenue: $14.04B

• Polaris Industries (PII) - Estimated EPS: $0.0501, Estimated Revenue: $1.81B

• Applied Industrial Technologies (AIT) - Estimated EPS: $2.49, Estimated Revenue: $1.17B

• Commvault System (CVLT) - Estimated EPS: $0.9807, Estimated Revenue: $299.05M

• Popular Inc (BPOP) - Estimated EPS: $3.03, Estimated Revenue: $831.74M

• Community Bank System Inc (CBU) - Estimated EPS: $1.13, Estimated Revenue: $212.85M

• First BanCorp New Common Stock (FBP) - Estimated EPS: $0.5068, Estimated Revenue: $256.2M

• BBCN Bancorp (HOPE) - Estimated EPS: $0.2525, Estimated Revenue: $142.9M

• Jet Blue (JBLU) - Estimated EPS: -$0.4593, Estimated Revenue: $2.22B

• World Acceptance (WRLD) - Estimated EPS: $0.78, Estimated Revenue: $133.49M

• Camden National (CAC) - Estimated EPS: $1.32, Estimated Revenue: $66.17M

• Capital City Bank (CCBG) - Estimated EPS: $0.8867, Estimated Revenue: $64.65M

• Provident Financial Holdings (PROV) - Estimated EPS: $0.335, Estimated Revenue: $10.5M

• Sage Group PLC (SGPYY) - Estimated EPS not available, Estimated Revenue not available

Earnings After the Close:

• Texas Instru (TXN) - Estimated EPS: $1.29, Estimated Revenue: $4.45B

• Seagate Technology (STX) - Estimated EPS: $2.79, Estimated Revenue: $2.73B

• Packaging Corp (PKG) - Estimated EPS: $2.45, Estimated Revenue: $2.44B

• Boston Ppty (BXP) - Estimated EPS: $0.4907, Estimated Revenue: $861M

• Nextracker (NXT) - Estimated EPS: $0.70, Estimated Revenue: $745.13M

• F5 Networks Inc (FFIV) - Estimated EPS: $3.65, Estimated Revenue: $755.96M

• Ppg Industries (PPG) - Estimated EPS: $1.58, Estimated Revenue: $3.78B

• Manhattan Associa (MANH) - Estimated EPS: $1.13, Estimated Revenue: $264.68M

• Logitech International S.A.-Exch (LOGI) - Estimated EPS: $1.74, Estimated Revenue: $1.4B

• UMB Financial Corp (UMBF) - Estimated EPS: $2.7, Estimated Revenue: $677.77M

• K12 Inc (LRN) - Estimated EPS: $2.01, Estimated Revenue: $627.9M

• Qorvo Inc (QRVO) - Estimated EPS: $1.86, Estimated Revenue: $988.69M

• Greif Bros Corp (GEF) - Estimated EPS: $0.67, Estimated Revenue: $1.01B

• Greif Bros Corp B (GEFb) - Estimated EPS: $0.67, Estimated Revenue: $1.01B

• Enova International Inc (ENVA) - Estimated EPS: $3.17, Estimated Revenue: $838.59M

• Renasant Corp (RNST) - Estimated EPS: $0.78, Estimated Revenue: $275.85M

• Provident Financial Services Inc (PFS) - Estimated EPS: $0.555, Estimated Revenue: $225.35M

• WesBanco (WSBC) - Estimated EPS: $0.85, Estimated Revenue: $265.53M

• National Bak Hld (NBHC) - Estimated EPS: $0.8163, Estimated Revenue: $107.48M

• QCR Holdings (QCRH) - Estimated EPS: $1.99, Estimated Revenue: $106.87M

• First Commonwealth Financial Corp (FCF) - Estimated EPS: $0.4167, Estimated Revenue: $135.63M

• Trustmark Corp (TRMK) - Estimated EPS: $0.9109, Estimated Revenue: $206.64M

• HAFC (HAFC) - Estimated EPS: $0.7025, Estimated Revenue: $71.4M

• Orrstown Financial (ORRF) - Estimated EPS: $1.06, Estimated Revenue: $63.95M

• Flushing Financial (FFIC) - Estimated EPS: $0.35, Estimated Revenue: $62.27M

• Shore Bancshares (SHBI) - Estimated EPS: $0.4673, Estimated Revenue: $57.97M

• Bridgewater Bancshares Inc (BWB) - Estimated EPS: $0.41, Estimated Revenue: $38.08M

Be sure to check back daily for updates and insights into the earnings season and real-time results at Investing.com’s Earnings Calendar and Headlines section. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Community Bank (CBU) Reports Earnings Tomorrow: What To Expect

Stock Story

Community Financial System

+0.23%

Regional banking company Community Financial System will be reporting results this Tuesday morning. Here’s what you need to know.

Community Bank met analysts’ revenue expectations last quarter, reporting revenues of $206.8 million, up 9.4% year on year. It was a slower quarter for the company, with a slight miss of analysts’ net interest income estimates and revenue in line with analysts’ estimates.

Is Community Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Community Bank’s revenue to grow 8.2% year on year to $212.2 million, slowing from the 10.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.13 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Community Bank has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Community Bank’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 5%, and Dime Community Bancshares reported revenues up 24.5%, topping estimates by 5.2%. ServisFirst Bancshares traded up 14.6% following the results while Dime Community Bancshares was also up 12.5%.

Read our full analysis of ServisFirst Bancshares’s results here and Dime Community Bancshares’s results here.

There has been positive sentiment among investors in the regional banks segment, with share prices up 2.6% on average over the last month. Community Bank is up 5.3% during the same time and is heading into earnings with an average analyst price target of $66.60 (compared to the current share price of $62).

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Community Financial System Announces Fourth Quarter and Full Year 2025 Earnings Conference Call

Dow Jones Newswires

Community Financial System

+0.23%

SYRACUSE, N.Y.--(BUSINESS WIRE)--December 19, 2025--

Community Financial System, Inc. (the "Company") will host a conference call to discuss its financial and operating results for the fourth quarter and full year ended December 31, 2025.

 
Event:    Fourth Quarter 2025 Earnings Conference Call 
 
When:     Tuesday, January 27, 2026 at 11:00 a.m. Eastern Time 
 
Access:   Dial-In (U.S.):            1-833-630-0464 
 Dial-In (International):            1-412-317-1809 
 Webcast:                            https://app.webinar.net/5l1qd0vnwKo

Dimitar Karaivanov, President and Chief Executive Officer, and Marya Burgio Wlos, Executive Vice President and Chief Financial Officer, will discuss the Company's fourth quarter and full year results. Management's prepared remarks will last approximately 15 minutes, followed by a question-and-answer session.

The Company's results for the quarter will be released prior to market open on January 27, 2026, and will also be available in the 'News' section of the Company's website at https://communityfinancialsystem.com.

A replay of the webcast will be available on the site for one year at no cost.

About Community Financial System, Inc.

Community Financial System, Inc. is a diversified financial services company that is focused on four main business lines — banking services, employee benefit services, insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country's 100 largest banking institutions with over $16 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. The Company's Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Company's OneGroup NY, Inc. subsidiary is a top 68 U.S. insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Nottingham Financial Group operating unit. The Company is listed on the New York Stock Exchange and the Company's stock trades under the symbol CBU. For more information about the Company and each of its four main business lines visit https://communityfinancialsystem.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251219993317/en/

CONTACT: For further information, please contact:

Marya Burgio Wlos, EVP & Chief Financial Officer

Office: (315) 299-2946

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This electronics giant is a new Top Pick at Morgan Stanley

Investing.com

Brookfield Business Partners LP

Investing.com -- Morgan Stanley has named a Japanese electronics giant as a new Top Pick, lifting its price target to JPY2,500 from JPY2,100 per share in a note on Wednesday.

The bank told investors that Panasonic Holdings’ more muted stock performance in 2025, up just 11% year-to-date, masks a stronger long-term story driven by data center demand rather than electric vehicles.

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According to Morgan Stanley, Panasonic has lagged “mainly due to uncertainty in the automotive battery business.”

However, analyst Kazuo Yoshikawa now argues that growing confidence in the company’s Energy segment, particularly “industrial and consumer batteries centered on data centers,” should offset the stagnation expected in automotive batteries from FY3/27 onward.

If this shift becomes clearer, Yoshikawa believes “recognition of Panasonic as an AI/data center play could increase, leading to multiple expansion.”

A key driver behind Morgan Stanley’s bullishness is the company’s battery backup unit (BBU) roadmap.

The bank highlights that “over 80% of projected BBU sales through FY3/29 are already ‘awarded,’” with additional rack-design discussions ongoing.

Upcoming launches are said to include Built-in CBU shelves in FY3/27 and high-voltage BBUs in FY3/29, both described as next-generation products.

Morgan Stanley has also raised its valuation multiple for the industrial and consumer battery business, increasing the applied EBITDA multiple from 9x to “about 11x,” reflecting stronger growth prospects for data center BBUs.

The bank believes the stock’s risk-reward is “favorable,” and notes that Panasonic’s renewed focus adds to the investment case.

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Regional Banks Stocks Q3 Recap: Benchmarking Community Bank (NYSE:CBU)

Stock Story

UMB Financial Corporation Depositary Shares Each Representing a 1/400th Interest in a Share of 7.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B

+0.02%

UMB Financial Corporation Depositary Shares, each representing a 1/400th of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock

0.00%

Community Financial System

+0.23%

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Community Bank and the rest of the regional banks stocks fared in Q3.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.

Community Bank

Tracing its roots back to 1866 in upstate New York, Community Financial System is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.

Community Bank reported revenues of $207.1 million, up 9.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a slight miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates.

Interestingly, the stock is up 3.5% since reporting and currently trades at $57.99.

Read our full report on Community Bank here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.9% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $68.36.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

As expected, the stock is down 16.6% since the results and currently trades at $64.41.

Read our full analysis of The Bancorp’s results here.

National Bank Holdings

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

National Bank Holdings reported revenues of $108.9 million, up 2.7% year on year. This print topped analysts’ expectations by 3.9%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ net interest income estimates.

The stock is up 1.2% since reporting and currently trades at $37.45.

Read our full, actionable report on National Bank Holdings here, it’s free for active Edge members.

UMB Financial

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

UMB Financial reported revenues of $678.3 million, up 67% year on year. This number beat analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and a decent beat of analysts’ tangible book value per share estimates.

The stock is flat since reporting and currently trades at $112.52.

Read our full, actionable report on UMB Financial here, it’s free for active Edge members.

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Texas Capital Bank, S&T Bancorp, Hope Bancorp, First Busey, and Community Bank Shares Skyrocket, What You Need To Know

Stock Story

First Busey

+0.68%

First Busey Corporation Depositary Shares, Each Representing a 1/40thInterest in a Share of 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock

Texas Capital Bancshares

-1.46%

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Regional Banks company Texas Capital Bank jumped 4.3%. Is now the time to buy Texas Capital Bank? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company S&T Bancorp jumped 4.5%. Is now the time to buy S&T Bancorp? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company Hope Bancorp jumped 4.6%. Is now the time to buy Hope Bancorp? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company First Busey jumped 4.5%. Is now the time to buy First Busey? Access our full analysis report here, it’s free for active Edge members.
Regional Banks company Community Bank jumped 4.4%. Is now the time to buy Community Bank? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Hope Bancorp (HOPE)

Hope Bancorp’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 6% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

Hope Bancorp is down 13.9% since the beginning of the year, and at $10.32 per share, it is trading 26.4% below its 52-week high of $14.02 from November 2024. Investors who bought $1,000 worth of Hope Bancorp’s shares 5 years ago would now be looking at an investment worth $1,063.

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