Community Bank (CBU) Earnings Call Transcript

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• Automation initiatives have saved 200,000+ hours over 3 years while keeping headcount flat as business grew

  80% confidence

• Provision for credit losses in 2026 is expected to be $20M-$25M

  80% confidence

• The company plans to continue making 8-12 acquisitions annually, mostly in fee businesses, characterized as small 'singles/doubles'

  80% confidence

• Insurance Services growth is expected to be mid-single digits in 2026

  80% confidence

• Wealth Management Services growth is expected to be mid-single digits in 2026

  80% confidence

• Management wants to own more of the company, not less, indicating confidence in prospects

  80% confidence

• Employee Benefit Services growth is expected to be mid-to-high single digits in 2026

  80% confidence

• Community Bank achieved 16% operating earnings growth in 2025 while making the largest organic growth investments that the company has ever made

  80% confidence

• Noninterest revenue growth for 2026 is expected to be 4%-8%

  80% confidence

• Net interest income growth for 2026 is expected to be 8%-12%

  80% confidence

• De novo deposits target for 2026 is approximately $200M, double from $100M in 2025, with path to $1B+ over 7-10 years

  80% confidence

• Q1 2026 NIM expansion is expected to be 2-4 basis points

  80% confidence

• Loan growth for 2026 is expected to be 3.5%-6%

  80% confidence

• Effective tax rate for 2026 is expected to be 23%-24%

  80% confidence

• Core noninterest expenses for 2026 are expected to be $535M-$550M, representing 4%-7% growth versus 2025

  80% confidence

• Loan origination yields in Q4 were in the low 6% range and trending lower, potentially reaching below 6% by end of Q1/Q2 2026

  80% confidence

• Deposit growth for 2026 is expected to be 2%-3%

  80% confidence

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