Community Financial System, Inc. Announces Increase to Its Quarterly Dividend Resulting in Its 32nd Consecutive Year of Dividend Increases

Rhea-AI Summary

Community Financial System (NYSE: CBU) has announced a 2.2% increase in its quarterly cash dividend to $0.46 per share, payable on October 10, 2024. This marks the company's 32nd consecutive year of dividend increases, reflecting its consistent profitability and strong cash flows. The new dividend represents an annualized yield of 3.25% based on the July 16, 2024 closing share price of $56.63.

CEO Dimitar Karaivanov highlighted that Community Financial System has returned over $750 million to shareholders through dividends in the past decade. This consistent dividend growth demonstrates the company's commitment to providing favorable long-term returns to its shareholders.

SYRACUSE, N.Y.--(BUSINESS WIRE)-- Community Financial System, Inc. (NYSE: CBU) (the “Company”) announced that it has declared a quarterly cash dividend of $0.46 per share on its common stock. The dividend will be payable on October 10, 2024 to shareholders of record as of September 13, 2024.

The $0.46 cash dividend represents a $0.01, or 2.2%, increase and an annualized yield of 3.25% based on the closing share price of $56.63 on July 16, 2024. President and Chief Executive Officer, Dimitar Karaivanov, commented, “Our consistent profitability, rooted in our financial services business model, coupled with our strong cash flows, have positioned us to increase our dividend for 32 consecutive years. We have returned over $750 million to our Shareholders through dividends over the last 10 years and believe a growing dividend demonstrates our commitment to provide favorable long term returns to our Shareholders.”

About Community Financial System, Inc.

Community Financial System, Inc. is a diversified financial services company that is focused on four main business lines – banking, 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 $15 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 75 U.S. insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Wealth Management 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 visit www.cbna.com or www.communityfinancialsystem.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of CBU’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from its expectations: the macroeconomic and other challenges and uncertainties related to or resulting from recent bank failures; current and future economic and market conditions, including the effects on CRE and housing or vehicle prices, unemployment rates, high inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters, and global economic growth; fiscal and monetary policies of the Federal Reserve Board; the potential adverse effects of unusual and infrequently occurring events; litigation and actions of regulatory authorities; management’s estimates and projections of interest rates and interest rate policies; the effect of changes in the level of checking, savings, or money market account deposit balances and other factors that affect net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; ability to contain costs in inflationary conditions; the effect on financial market valuations on CBU’s fee income businesses, including its employee benefit services, wealth management services, and insurance services businesses; the successful integration of operations of its acquisitions and performance of new branches; competition; changes in legislation or regulatory requirements, including capital requirements; and the timing for receiving regulatory approvals and completing pending merger and acquisition transactions. For more information about factors that could cause actual results to differ materially from CBU’s expectations, refer to its annual, periodic and other reports filed with the Securities and Exchange Commission (“SEC”), including the discussion under the “Risk Factors” section of such reports filed with the SEC and available on CBU’s website at www.communityfinancialsystem.com and on the SEC’s website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and CBU undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240717140602/en/

For further information, please contact:

Joseph E. Sutaris,

EVP & Chief Financial Officer

Office: (315) 445-7396

Source: Community Financial System, Inc.

FAQ

What is Community Financial System's new quarterly dividend for 2024?

Community Financial System (CBU) has declared a new quarterly cash dividend of $0.46 per share for 2024, representing a 2.2% increase from the previous dividend.

When will Community Financial System's (CBU) new dividend be payable?

The new quarterly dividend of $0.46 per share will be payable on October 10, 2024, to shareholders of record as of September 13, 2024.

How many consecutive years has Community Financial System (CBU) increased its dividend?

Community Financial System (CBU) has increased its dividend for 32 consecutive years, demonstrating a long-term commitment to returning value to shareholders.

What is the annualized dividend yield for Community Financial System (CBU) based on the July 16, 2024 closing price?

Based on the closing share price of $56.63 on July 16, 2024, Community Financial System's (CBU) new dividend represents an annualized yield of 3.25%.

How much has Community Financial System (CBU) returned to shareholders through dividends in the past decade?

According to the press release, Community Financial System (CBU) has returned over $750 million to shareholders through dividends over the last 10 years.