Community Financial System, Inc. Announces Quarterly Common Stock Dividend and Results of Annual Shareholders’ Meeting

Rhea-AI Summary

Community Financial System (NYSE: CBU) has announced a quarterly cash dividend of $0.45 per share, payable on July 10, 2024, to shareholders of record by June 14, 2024. This dividend corresponds to an annual yield of 3.78% based on a share price of $47.64 as of May 14, 2024.

At the Annual Shareholders' Meeting on May 15, 2024, all twelve directors were re-elected for one-year terms. Shareholders also approved the executive compensation programs and an amendment to the 2022 Long-Term Incentive Plan. The appointment of PricewaterhouseCoopers LLP as the independent public accounting firm was ratified.

Positive

• Quarterly cash dividend of $0.45 per share.
• Annualized dividend yield of 3.78%.
• Re-election of all twelve directors, showing stability in leadership.
• Approval of executive compensation programs, indicating shareholder support.
• Amendment to the 2022 Long-Term Incentive Plan approved.
• Ratification of PricewaterhouseCoopers LLP as independent public accounting firm.

Negative

• Dividend yield based on a closing share price of $47.64, potentially indicating that share price performance might not be very strong.
• No new directors elected, which could suggest a lack of fresh perspectives in the board.

SYRACUSE, N.Y.--(BUSINESS WIRE)-- Community Financial System, Inc. (NYSE: CBU) (the “Company”) announced that it has declared a quarterly cash dividend of $0.45 per share on its common stock. The dividend will be payable on July 10, 2024 to Shareholders of record as of June 14, 2024. The $0.45 cash dividend represents an annualized yield of 3.78% based on the closing share price of $47.64 on May 14, 2024.

The Company also announced that its Shareholders voted in line with the Board of Directors’ recommendations on all proposals at its Annual Shareholders’ Meeting on May 15, 2024 and elected all twelve (12) of the directors standing for re-election for a one-year term. The Shareholders also (i) approved, on an advisory basis, the Company’s executive compensation programs, (ii) approved an amendment to the Company’s 2022 Long-Term Incentive Plan, as amended, and (iii) ratified the appointment of PricewaterhouseCoopers LLP to serve as the Company’s independent registered public accounting firm.

About Community Financial System, Inc.

Earlier today, the Company announced that it has changed its corporate name from Community Bank System, Inc. to Community Financial System, Inc. (the “Company”). The Company is a diversified financial services company that is focused on four main business lines – banking, employee benefit services, insurance services and wealth management. 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. Effective May 24, 2024, the Company will trade under the name Community Financial System, Inc. 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/20240515427569/en/

Joseph E. Sutaris,

EVP & Chief Financial Officer

Office: (315) 445-7396

Source: Community Bank System, Inc.

FAQ

What is the dividend yield for Community Financial System (CBU) in 2024?

The annualized dividend yield is 3.78% based on a share price of $47.64 as of May 14, 2024.

When will Community Financial System (CBU) pay the quarterly dividend?

The quarterly cash dividend will be payable on July 10, 2024.

What was decided at the Community Financial System (CBU) Annual Shareholders' Meeting in May 2024?

Shareholders re-elected all twelve directors, approved the executive compensation programs, an amendment to the 2022 Long-Term Incentive Plan, and ratified PricewaterhouseCoopers LLP as the independent public accounting firm.

Who has been appointed as the independent public accounting firm for Community Financial System (CBU)?

PricewaterhouseCoopers LLP has been ratified as the independent public accounting firm.

What is the amount of the quarterly cash dividend announced by Community Financial System (CBU)?

The quarterly cash dividend is $0.45 per share.

What is the record date for the Community Financial System (CBU) dividend announced in 2024?

The record date for the dividend is June 14, 2024.