Community Bank (CBU) Earnings Call Transcript

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Tuesday, Jan. 27, 2026 astatine 11 a.m. ET

• President and Chief Executive Officer — Dimitar Karaivanov

• Chief Financial Officer — Mariah Loss

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Dimitar Karaivanov: Thank you, Dave. Good morning, everyone. Thank you for joining our Q4 and afloat twelvemonth 2025 net call. My summary of the 4th is that I americium precise pleased with the gross spot crossed each of our businesses, the liquidity and recognition prime of our equilibrium sheet, and that we besides person much than the accustomed sound successful our disbursal base. Mariah volition supply you the details with immoderate high-level reconciliations to anterior 4th expenses. But overall, I would accidental that astir of the delta is driven by items that are tied to existent net show positive caller transactions and consolidations.

Overall, 16% operating net maturation successful 2025 portion making the largest integrated maturation investments that our institution has ever made and actively deploying superior successful high-return businesses is thing I americium precise blessed with. I americium astir blessed astir the advancement we proceed to marque successful our brand, reputation, talent, capabilities, presence, and the marketplace stock gains they are accruing arsenic a effect of it. One caller information constituent successful our banking business: During the 4th quarter, we were selected arsenic a 2025 institution of the twelvemonth successful banking by the Buffalo Business First.

Looking astatine a spot much details successful the businesses, the largest percent betterment successful pretax income compared to the 3rd 4th was disposable successful our worker payment services business, which grew pretax income by 10% 4th implicit quarter. As discussed previously, we spent astir of 2025 revamping our maturation strategy successful the spot money medication broadside of the concern and expect to commencement seeing the fruits of that successful 2026.

Mariah Loss: While full-year show was successful the debased azygous digits,

Dimitar Karaivanov: Q4 marked a year-over-year betterment of 8% successful revenue, and 13% successful pretax income arsenic this momentum is opening to instrumentality shape. We expect that 2026 maturation volition revert backmost to mid to precocious azygous digits. Now our banking business, successful 2025, we benefited from some mid-single-digit plus maturation and expanding borderline which drove precise meaningful operating income maturation of 22% connected a full-year basis. I would enactment that our 5% indebtedness maturation compares favorably to the manufacture and section peers and came successful spite of precise elevated paydowns of implicit $300 cardinal successful the commercialized business. We person continued to adhd endowment and customers from caller disruptions astir our footprint and successful our expanded footprint.