Delaware
|
001-13695
|
16-1213679
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
5790 Widewaters Parkway, DeWitt, New York
|
13214-1883
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
|
||
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No. | Description | |
99 | Press Release, dated July 20, 2016 |
Date: July 21, 2016
|
/s/ Mark Tryniski
|
Mark E. Tryniski, President, Chief Executive Officer and Director
|
|
Date: July 21, 2016
|
/s/ Scott Kingsley
|
Scott Kingsley, Executive Vice President and Chief Financial Officer
|
![]() |
News Release
For further information, please contact:
|
5790 Widewaters Parkway, DeWitt, N.Y. 13214
|
Scott A. Kingsley, EVP & Chief Financial Officer
Office: (315) 445-3121
|
|
- GAAP earnings of $25.9 million, or $0.58 per share |
|
|
- Generated 7% annualized quarterly loan growth |
|
Summary of Financial Data
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||
|
Quarter Ended
|
Year-to-Date
|
||||||||||||||
June 30, 2016
|
June 30, 2015
|
June 30, 2016
|
June 30, 2015
|
|||||||||||||
Earnings
|
||||||||||||||||
Loan income
|
$
|
52,509
|
$
|
45,791
|
$
|
104,159
|
$
|
91,382
|
||||||||
Investment income
|
18,601
|
18,089
|
36,707
|
34,952
|
||||||||||||
Total interest income
|
71,110
|
63,880
|
140,866
|
126,334
|
||||||||||||
Interest expense
|
2,804
|
2,652
|
5,679
|
5,266
|
||||||||||||
Net interest income
|
68,306
|
61,228
|
135,187
|
121,068
|
||||||||||||
Provision for loan losses
|
2,305
|
591
|
3,646
|
1,214
|
||||||||||||
Net interest income after provision for loan losses
|
66,001
|
60,637
|
131,541
|
119,854
|
||||||||||||
Deposit service fees
|
15,008
|
13,213
|
28,742
|
25,683
|
||||||||||||
Revenues from mortgage banking and other banking services
|
1,597
|
799
|
3,176
|
1,854
|
||||||||||||
Wealth management and insurance services
|
10,496
|
4,385
|
21,453
|
8,831
|
||||||||||||
Employee benefit services
|
11,671
|
11,322
|
23,682
|
22,397
|
||||||||||||
Total noninterest income
|
38,772
|
29,719
|
77,053
|
58,765
|
||||||||||||
Salaries and employee benefits
|
37,950
|
31,010
|
77,088
|
62,039
|
||||||||||||
Occupancy and equipment
|
7,409
|
6,844
|
15,072
|
14,239
|
||||||||||||
Amortization of intangible assets
|
1,403
|
880
|
2,845
|
1,799
|
||||||||||||
Acquisition expenses
|
263
|
361
|
340
|
756
|
||||||||||||
Other
|
19,331
|
16,953
|
38,680
|
33,163
|
||||||||||||
Total operating expenses
|
66,356
|
56,048
|
134,025
|
111,996
|
||||||||||||
Income before income taxes
|
38,417
|
34,308
|
74,569
|
66,623
|
||||||||||||
Income taxes
|
12,560
|
10,468
|
24,309
|
20,486
|
||||||||||||
Net income
|
$
|
25,857
|
$
|
23,840
|
$
|
50,260
|
$
|
46,137
|
||||||||
Basic earnings per share
|
$
|
0.58
|
$
|
0.58
|
$
|
1.14
|
$
|
1.13
|
||||||||
Diluted earnings per share
|
$
|
0.58
|
$
|
0.58
|
$
|
1.13
|
$
|
1.12
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
||||||||||||||||
Earnings
|
||||||||||||||||||||
Loan income
|
$
|
52,509
|
$
|
51,650
|
$
|
49,321
|
$
|
47,040
|
$
|
45,791
|
||||||||||
Investment income
|
18,601
|
18,106
|
18,683
|
18,244
|
18,089
|
|||||||||||||||
Total interest income
|
71,110
|
69,756
|
68,004
|
65,284
|
63,880
|
|||||||||||||||
Interest expense
|
2,804
|
2,875
|
3,015
|
2,921
|
2,652
|
|||||||||||||||
Net interest income
|
68,306
|
66,881
|
64,989
|
62,363
|
61,228
|
|||||||||||||||
Provision for loan losses
|
2,305
|
1,341
|
3,327
|
1,906
|
591
|
|||||||||||||||
Net interest income after provision for loan losses
|
66,001
|
65,540
|
61,662
|
60,457
|
60,637
|
|||||||||||||||
Deposit service fees
|
15,008
|
13,734
|
13,605
|
13,459
|
13,213
|
|||||||||||||||
Revenues from mortgage banking and other banking services
|
1,597
|
1,579
|
1,061
|
2,045
|
799
|
|||||||||||||||
Wealth management and insurance services
|
10,496
|
10,957
|
6,825
|
4,552
|
4,385
|
|||||||||||||||
Employee benefit services
|
11,671
|
12,011
|
11,661
|
11,330
|
11,322
|
|||||||||||||||
Loss on sale of investments
|
0
|
0
|
(4
|
)
|
0
|
0
|
||||||||||||||
Total noninterest income
|
38,772
|
38,281
|
33,148
|
31,386
|
29,719
|
|||||||||||||||
Salaries and employee benefits
|
37,950
|
39,138
|
33,138
|
31,179
|
31,010
|
|||||||||||||||
Occupancy and equipment
|
7,409
|
7,663
|
6,702
|
6,652
|
6,844
|
|||||||||||||||
Amortization of intangible assets
|
1,403
|
1,442
|
1,021
|
843
|
880
|
|||||||||||||||
Acquisition expenses
|
263
|
77
|
5,719
|
562
|
361
|
|||||||||||||||
Other
|
19,331
|
19,349
|
18,400
|
16,843
|
16,953
|
|||||||||||||||
Total operating expenses
|
66,356
|
67,669
|
64,980
|
56,079
|
56,048
|
|||||||||||||||
Income before income taxes
|
38,417
|
36,152
|
29,830
|
35,764
|
34,308
|
|||||||||||||||
Income taxes
|
12,560
|
11,749
|
9,759
|
10,742
|
10,468
|
|||||||||||||||
Net income
|
25,857
|
24,403
|
20,071
|
25,022
|
23,840
|
|||||||||||||||
Basic earnings per share
|
$
|
0.58
|
$
|
0.55
|
$
|
0.48
|
$
|
0.61
|
$
|
0.58
|
||||||||||
Diluted earnings per share
|
$
|
0.58
|
$
|
0.55
|
$
|
0.47
|
$
|
0.60
|
$
|
0.58
|
||||||||||
Profitability
|
||||||||||||||||||||
Return on assets
|
1.20
|
%
|
1.14
|
%
|
0.98
|
%
|
1.25
|
%
|
1.25
|
%
|
||||||||||
Return on equity
|
8.62
|
%
|
8.34
|
%
|
7.41
|
%
|
9.77
|
%
|
9.44
|
%
|
||||||||||
Return on tangible equity(3)
|
13.63
|
%
|
13.38
|
%
|
10.98
|
%
|
14.82
|
%
|
14.40
|
%
|
||||||||||
Noninterest income/operating income (FTE) (1)
|
35.3
|
%
|
35.5
|
%
|
32.8
|
%
|
32.4
|
%
|
31.6
|
%
|
||||||||||
Efficiency ratio (2)
|
59.0
|
%
|
61.4
|
%
|
57.6
|
%
|
56.4
|
%
|
58.3
|
%
|
||||||||||
Components of Net Interest Margin (FTE)
|
||||||||||||||||||||
Loan yield
|
4.35
|
%
|
4.33
|
%
|
4.43
|
%
|
4.40
|
%
|
4.40
|
%
|
||||||||||
Cash equivalents yield
|
0.46
|
%
|
0.47
|
%
|
0.25
|
%
|
0.22
|
%
|
0.28
|
%
|
||||||||||
Investment yield
|
3.06
|
%
|
2.97
|
%
|
2.98
|
%
|
2.94
|
%
|
3.15
|
%
|
||||||||||
Earning asset yield
|
3.87
|
%
|
3.82
|
%
|
3.86
|
%
|
3.81
|
%
|
3.92
|
%
|
||||||||||
Interest-bearing deposit rate
|
0.14
|
%
|
0.14
|
%
|
0.14
|
%
|
0.14
|
%
|
0.15
|
%
|
||||||||||
Borrowing rate
|
1.50
|
%
|
1.33
|
%
|
0.83
|
%
|
0.72
|
%
|
0.84
|
%
|
||||||||||
Cost of all interest-bearing funds
|
0.20
|
%
|
0.20
|
%
|
0.22
|
%
|
0.21
|
%
|
0.20
|
%
|
||||||||||
Cost of funds (includes DDA)
|
0.15
|
%
|
0.16
|
%
|
0.17
|
%
|
0.17
|
%
|
0.16
|
%
|
||||||||||
Net interest margin (FTE)
|
3.73
|
%
|
3.67
|
%
|
3.70
|
%
|
3.65
|
%
|
3.76
|
%
|
||||||||||
Fully tax-equivalent adjustment
|
$
|
2,605
|
$
|
2,524
|
$
|
3,041
|
$
|
3,162
|
$
|
3,115
|
Summary of Financial Data
|
||||||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
||||||||||||||||
Average Balances
|
||||||||||||||||||||
Loans
|
$
|
4,866,574
|
$
|
4,812,575
|
$
|
4,459,575
|
$
|
4,287,062
|
$
|
4,211,962
|
||||||||||
Cash equivalents
|
19,456
|
22,355
|
12,448
|
12,395
|
11,325
|
|||||||||||||||
Taxable investment securities
|
2,178,448
|
2,172,983
|
2,214,690
|
2,187,818
|
2,031,234
|
|||||||||||||||
Nontaxable investment securities
|
588,897
|
603,297
|
614,891
|
635,627
|
607,585
|
|||||||||||||||
Total interest-earning assets
|
7,653,375
|
7,611,210
|
7,301,604
|
7,122,902
|
6,862,106
|
|||||||||||||||
Total assets
|
8,656,653
|
8,604,264
|
8,161,843
|
7,919,966
|
7,678,719
|
|||||||||||||||
Interest-bearing deposits
|
5,517,287
|
5,458,273
|
4,943,210
|
4,739,513
|
4,777,195
|
|||||||||||||||
Borrowings
|
249,263
|
296,964
|
607,771
|
675,958
|
438,931
|
|||||||||||||||
Total interest-bearing liabilities
|
5,766,550
|
5,755,237
|
5,550,981
|
5,415,471
|
5,216,126
|
|||||||||||||||
Noninterest-bearing deposits
|
1,532,322
|
1,527,585
|
1,405,416
|
1,363,022
|
1,321,738
|
|||||||||||||||
Shareholders' equity
|
1,206,353
|
1,177,246
|
1,074,243
|
1,016,448
|
1,012,470
|
|||||||||||||||
Balance Sheet Data
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
161,634
|
$
|
138,513
|
$
|
153,210
|
$
|
156,836
|
$
|
143,047
|
||||||||||
Investment securities
|
2,931,302
|
2,902,878
|
2,847,940
|
2,917,263
|
2,868,050
|
|||||||||||||||
Loans:
|
||||||||||||||||||||
Consumer mortgage
|
1,779,295
|
1,777,792
|
1,769,754
|
1,621,862
|
1,608,064
|
|||||||||||||||
Business lending
|
1,536,546
|
1,509,421
|
1,497,271
|
1,288,772
|
1,295,889
|
|||||||||||||||
Consumer indirect
|
993,132
|
941,151
|
935,760
|
872,988
|
837,449
|
|||||||||||||||
Home equity
|
399,870
|
403,273
|
403,514
|
345,446
|
340,578
|
|||||||||||||||
Consumer direct
|
195,959
|
189,535
|
195,076
|
184,479
|
181,623
|
|||||||||||||||
Total loans
|
4,904,802
|
4,821,172
|
4,801,375
|
4,313,547
|
4,263,603
|
|||||||||||||||
Allowance for loan losses
|
46,526
|
45,596
|
45,401
|
45,588
|
45,282
|
|||||||||||||||
Intangible assets, net
|
483,478
|
484,881
|
484,146
|
384,525
|
385,515
|
|||||||||||||||
Other assets
|
307,421
|
314,053
|
311,399
|
270,583
|
293,838
|
|||||||||||||||
Total assets
|
8,742,111
|
8,615,901
|
8,552,669
|
7,997,166
|
7,908,771
|
|||||||||||||||
Deposits:
|
||||||||||||||||||||
Noninterest-bearing
|
1,546,253
|
1,533,085
|
1,499,616
|
1,357,554
|
1,337,101
|
|||||||||||||||
Non-maturity interest-bearing
|
4,664,635
|
4,808,650
|
4,569,310
|
4,081,796
|
4,020,192
|
|||||||||||||||
Time
|
746,966
|
777,327
|
804,548
|
708,760
|
729,527
|
|||||||||||||||
Total deposits
|
6,957,854
|
7,119,062
|
6,873,474
|
6,148,110
|
6,086,820
|
|||||||||||||||
Borrowings
|
267,600
|
33,700
|
301,300
|
558,100
|
566,200
|
|||||||||||||||
Subordinated debt held by unconsolidated subsidiary trusts
|
102,158
|
102,152
|
102,146
|
102,140
|
102,134
|
|||||||||||||||
Accrued interest and other liabilities
|
177,570
|
160,322
|
135,102
|
143,790
|
153,278
|
|||||||||||||||
Total liabilities
|
7,505,182
|
7,415,236
|
7,412,022
|
6,952,140
|
6,908,432
|
|||||||||||||||
Shareholders' equity
|
1,236,929
|
1,200,665
|
1,140,647
|
1,045,026
|
1,000,339
|
|||||||||||||||
Total liabilities and shareholders' equity
|
8,742,111
|
8,615,901
|
8,552,669
|
7,997,166
|
7,908,771
|
|||||||||||||||
Capital
|
||||||||||||||||||||
Tier 1 leverage ratio
|
10.14
|
%
|
9.95
|
%
|
10.32
|
%
|
10.09
|
%
|
10.20
|
%
|
||||||||||
Tangible equity/net tangible assets (3)
|
9.58
|
%
|
9.25
|
%
|
8.59
|
%
|
9.14
|
%
|
8.63
|
%
|
||||||||||
Diluted weighted average common shares O/S
|
44,636
|
44,356
|
42,373
|
41,470
|
41,265
|
|||||||||||||||
Period end common shares outstanding
|
44,179
|
44,070
|
43,775
|
41,019
|
40,877
|
|||||||||||||||
Cash dividends declared per common share
|
$
|
0.31
|
$
|
0.31
|
$
|
0.31
|
$
|
0.31
|
$
|
0.30
|
||||||||||
Book value
|
$
|
28.00
|
$
|
27.24
|
$
|
26.06
|
$
|
25.48
|
$
|
24.47
|
||||||||||
Tangible book value(3)
|
$
|
17.99
|
$
|
17.16
|
$
|
15.90
|
$
|
17.05
|
$
|
15.96
|
||||||||||
Common stock price (end of period)
|
$
|
41.09
|
$
|
38.21
|
$
|
39.94
|
$
|
37.17
|
$
|
37.77
|
Summary of Financial Data
|
||||||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||
2nd Qtr
|
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
||||||||||||||||
Asset Quality
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
22,149
|
$
|
23,765
|
$
|
21,728
|
$
|
23,133
|
$
|
21,440
|
||||||||||
Accruing loans 90+ days delinquent
|
1,910
|
2,327
|
2,195
|
2,075
|
1,558
|
|||||||||||||||
Total nonperforming loans
|
24,059
|
26,092
|
23,923
|
25,208
|
22,998
|
|||||||||||||||
Other real estate owned (OREO)
|
1,726
|
2,031
|
2,088
|
2,531
|
2,324
|
|||||||||||||||
Total nonperforming assets
|
25,785
|
28,123
|
26,011
|
27,739
|
25,322
|
|||||||||||||||
Net charge-offs
|
1,376
|
1,146
|
3,514
|
1,600
|
314
|
|||||||||||||||
Allowance for loan losses/loans outstanding
|
0.95
|
%
|
0.95
|
%
|
0.95
|
%
|
1.06
|
%
|
1.06
|
%
|
||||||||||
Nonperforming loans/loans outstanding
|
0.49
|
%
|
0.54
|
%
|
0.50
|
%
|
0.58
|
%
|
0.54
|
%
|
||||||||||
Allowance for loan losses/nonperforming loans
|
193
|
%
|
175
|
%
|
190
|
%
|
181
|
%
|
197
|
%
|
||||||||||
Net charge-offs/average loans
|
0.11
|
%
|
0.10
|
%
|
0.31
|
%
|
0.15
|
%
|
0.03
|
%
|
||||||||||
Delinquent loans/ending loans
|
1.10
|
%
|
1.00
|
%
|
1.16
|
%
|
1.19
|
%
|
1.09
|
%
|
||||||||||
Loan loss provision/net charge-offs
|
168
|
%
|
117
|
%
|
95
|
%
|
119
|
%
|
188
|
%
|
||||||||||
Nonperforming assets/total assets
|
0.29
|
%
|
0.33
|
%
|
0.30
|
%
|
0.35
|
%
|
0.32
|
%
|
||||||||||
Asset Quality (excluding loans acquired since 1/1/09)
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
18,259
|
$
|
20,045
|
$
|
18,804
|
$
|
20,504
|
$
|
18,558
|
||||||||||
Accruing loans 90+ days delinquent
|
1,574
|
1,837
|
1,802
|
1,876
|
1,463
|
|||||||||||||||
Total nonperforming loans
|
19,833
|
21,882
|
20,606
|
22,380
|
20,021
|
|||||||||||||||
Other real estate owned (OREO)
|
1,258
|
1,497
|
1,546
|
1,720
|
1,518
|
|||||||||||||||
Total nonperforming assets
|
21,091
|
23,379
|
22,152
|
24,100
|
21,539
|
|||||||||||||||
Net charge-offs
|
1,404
|
898
|
3,420
|
1,473
|
425
|
|||||||||||||||
Allowance for loan losses/loans outstanding
|
1.02
|
%
|
1.04
|
%
|
1.05
|
%
|
1.10
|
%
|
1.11
|
%
|
||||||||||
Nonperforming loans/loans outstanding
|
0.46
|
%
|
0.52
|
%
|
0.49
|
%
|
0.55
|
%
|
0.50
|
%
|
||||||||||
Allowance for loan losses/nonperforming loans
|
224
|
%
|
200
|
%
|
212
|
%
|
201
|
%
|
223
|
%
|
||||||||||
Net charge-offs/average loans
|
0.13
|
%
|
0.09
|
%
|
0.34
|
%
|
0.14
|
%
|
0.04
|
%
|
||||||||||
Delinquent loans/ending loans
|
1.08
|
%
|
1.00
|
%
|
1.19
|
%
|
1.14
|
%
|
1.04
|
%
|
||||||||||
Loan loss provision/net charge-offs
|
120
|
%
|
112
|
%
|
62
|
%
|
127
|
%
|
191
|
%
|
||||||||||
Nonperforming assets/total assets
|
0.26
|
%
|
0.29
|
%
|
0.28
|
%
|
0.31
|
%
|
0.28
|
%
|
(1) Excludes gains and losses on sales of investment securities and debt prepayments.
|
(2) Excludes intangible amortization, acquisition expenses, litigation settlement charge, gains and losses on sales of investment
securities and losses on debt extinguishments
|
(3) Includes deferred tax liabilities (of approximately $41.5 million at 6/30/16) generated from tax deductible goodwill.
|