Community Financial System, Inc. · NYSE:CBU
Community Financial System — Q2 2024 Earnings Presentation
123 slides from Community Financial System's earnings presentation, Jul 23, 2024
Slide 1: Investor Day 2024
FINANCIAL SYSTEM, INC. Investor Day 2024 COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU SEPTEMBER 2024
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Forward-looking statements often use w
Slide 3: Welcome & Opening Remarks
Welcome & Opening Remarks • • • • •
Slide 4: Investor Day Agenda
Investor Day Agenda 9:00 AM 9:05 AM 9:20 AM 9:40 AM 10:00 AM 10:15 AM 10:30 AM BY Welcome and Opening Remarks Eric “Rick” Stickels | Chair, CFS! Board of Directors Company Overview & Investment Thesis Dimitar Karaivanov | President & CEO Banking Jeffrey Levy | SVP & Chief Banking Officer Employee Be
Slide 5: Investor Day Speakers
Investor Day Speakers Eric “Rick” Stickels Chair, CFSI Board of Directors Joined CBU: 2015 Dimitar Karaivanov President & Chief Executive Officer Joined CBU: 2021 Jeffrey Levy Senior Vice President, Chief Banking Officer Joined CBU: 2018 Joseph Sutaris Executive Vice President, Chief Financial Offic
Slide 6: Company Overview & Investment Thesis
Company Overview & Investment Thesis
Slide 7: Company Overview
Company Overview / Professional Experience: \ * Joined CBU in 2021 as EVP, promoted to COO in 2022 and CEO in 2024 * Managing Director, Financial Institutions Group at Lazard * Managing Director, Financial Institutions Group at RBC Capital Markets Education & Certifications: * MBA, The Ohio State Un
Slide 8: About CBU
About CBU SUCCESSFUL AND GROWING FINANCIAL SERVICES COMPANY operating four scaled, complementary business lines Community FINANCIAL SYSTEM, INC. CB Operating Revenue Mix (YTD) = Net Interest 40% Income = Noninterest Revenues Ze5 $712.7M FBS total revenues oe Pas $e 28) 9 eB EQ: 5.5% mR ZOE Oa Bankin
Slide 9: How We Operate: Our Core Values
How We Operate: Our Core Values
Slide 10: Our Evolution Into a Diversified Financial Company
Our Evolution Into a Diversified Financial Company • • • • •
Slide 11: Our Investment Thesis
Our Investment Thesis: • • • • • •
Slide 12: Below Average Risk
Below Average Risk Revenue Growth Stability & 20% 3 15% S 10% 5 5% g 0% (5%) Banking Industry! 2018 2019 2020 2021 2022 2023 YTD 2024 Cost of Funds Net Charge-off Ratio 3.00% 2.43% 231% 0.20% 0.18% 0.17% 013% 2.00% 0.1% 134% 117% 0.10% 0.08% 0.08% 1.00% ona 0.68% 0.00% a 0.00% YTD 2024 TT™M 10-Yr Av
Slide 13: Above Average Returns
Above Average Returns Core Return on Assets! Core Return on Equity’ 139% 1.50% : : 15.00% ; ew 120% oc, 120% tops, 114% 14% 15% 10.2% 9.7 95% 9.2% % 97% 1.00% 10.00% _ ~ i 0,00% 0,00% YTD 2024 TT™ 10-Yr Avg YTD 2024 TT™ 10-Yr Avg = CBU mKRX (median) = CBU mKRX (median) Total Shareholder Return? 24.7
Slide 14: Our System Produces Premium Results
Our System Produces Premium Results 10Yr Avg. Relative Premium to KRX (median): 4.2x 5Yr Avg. Relative Premium to KRX (median): 6.1x Current Relative Premium to KRX (median): 5.0x
Slide 15: Our Opportunity Set: Banking (CBNA)
Our Opportunity Set: Banking (CBNA) 2023 Summary of Deposits Buffalo, NY Rochester, NY Syracuse, NY Albany, NY $ in Millions MSA MSA MSA MSA Deposit Market Size: $76,153 $32,626 $18,975 $47,811 Market 5-Year CAGR: 11.8% 7.4% 6.4% 16.1% CBNA Deposits: $237 $813 $1,052 $183 CBNA Market Share: 0.3% 2.5
Slide 16: Our Opportunity Set: Employee Benefit Services (BPAS)
Our Opportunity Set: Employee Benefit Services (BPAS) BPAS 10Yr Operating Revenue CAGR2:12.1% 5Yr Operating Revenue CAGR2: 5.9% 3Yr Operating Revenue CAGR2: 6.1% Top 5 880,000+ 6 Industry Note 5: There are over 111 million benefit plan participants in the United States
Slide 17: Our Opportunity Set: Insurance Services (OneGroup)
Our Opportunity Set: Insurance Services (OneGroup) OneGroup 7Yr Operating Revenue CAGR3: 9.8% 5Yr Operating Revenue CAGR3: 8.6% 3Yr Operating Revenue CAGR3: 13.9% 66th Top 5 13 Industry Note 6: The top 75 insurance agencies have grown revenue at a 13% CAGR (2019 – 2022)
Slide 18: Our Opportunity Set: Wealth Management Services
Our Opportunity Set: Wealth Management Services Wealth $12.5B 10Yr Operating Revenue CAGR2: 8.3% 5Yr Operating Revenue CAGR2: 6.1% 3Yr Operating Revenue CAGR2: 3.6% 15.4%
Slide 19: Consistently Improving Productivity
Consistently Improving Productivity 5Yr Op. Rev / FTE CAGR2: 4.6% 5Yr Op. Rev / FTE CAGR2: 1.6% 5Yr Op. Rev / FTE CAGR2: 5.5% 5Yr Op. Rev / FTE CAGR2: 3.4%
Slide 20: How Our System Works
How Our System Works Our Community Our Financial Solutions Our System • • Banking Insurance • • • Insurance • Wealth • • • Wealth Benefits • • • Benefits Banking •
Slide 21: Local Growth Opportunities
Local Growth Opportunities > 2.5% 1.5% - 2.5% U.S. Avg: 0% - 1.5% 1.60% < 0% • Non-MSA; excluded • • • • • •
Slide 22: Banking
Community FINANCIAL SYSTEM, INC. QQS Banking COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU BE Community BANK INVESTOR DAY 2024
Slide 23: Banking
a Banking / Professional Experience: > * SVP, Chief Banking Officer at Community Bank, N.A. (CBNA) * SVP, President of Commercial Banking at CBNA * Regional Executive at CBNA * EVP, President of Commercial Banking at NBT Bank * Various leadership roles at M&T Bank Education: * B.S., Business Economi
Slide 24: CBNA at a Glance
Ranked as one of America’s most trustworthy banks of 2023 by CBNA at a Glance Newsweek • • • • • • •
Slide 25: Liquidity & Credit Are Our Foundational Strengths
Liquidity & Credit Are Our Foundational Strengths 2 • • • 2
Slide 26: We Have Grown Net Interest Income Every Year Since 2006
We Have Grown Net Interest Income Every Year Since 2006
Slide 27: Business Line Summary
Business Line Summary • • • • • • • • • •
Slide 28: Loan Portfolios & Asset Quality
Loan Portfolios & Asset Quality
Slide 29: Our Banking Evolution
Our Banking Evolution ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 30: De-centralized Regional Structure
De-centralized Regional Structure
Slide 31: Established Growth Capabilities Across All Regions
Established Growth Capabilities Across All Regions
Slide 32: Retail & Business Banking
Retail & Business Banking • • • • • • • • • • • •
Slide 33: Optimizing Delivery Channels for Growth
• Optimizing • Delivery Channels • for Growth •
Slide 34: Digital Banking Capabilities
Digital Banking Capabilities • • • • • • • • •
Slide 35: Consumer Lending
Consumer Lending • • • • • • • • • • •
Slide 36: Consumer Lending
Consumer Lending Durable loss history versus industry’ Consumer Real Estate ($3.82 billion) * Broad product set including non-conforming, FHA, VA and ‘$time homebuyers program * 88% consumer mortgage / 12% home equity * 752 average origination FICO score Consumer Installment ($1.91 billion) * 30+ ye
Slide 37: Commercial Banking
Commercial Banking Strong Asset U7 Quality OC No significant industry or property concentrations ° i 1 1 1 e Low Average Credit Relationships Primarily operate in non-metropolitan footprint within contiguous states £2036) Community Financial System, Inc. | Investor Day 2024 Recent Investments Levera
Slide 38: Commercial Lending
0.07% 10-year average Commercial Lending net-charge off ratio (2014-2023) NOO CRE represents 197% of total bank-level capital compared to the KRX bank-held median of 242%
Slide 39: Commercial Banking Initiatives
Commercial Banking Initiatives • • • • • • • • • • • •
Slide 40: Expansion Markets Opportunity
Expansion Markets Opportunity 2023 Summary of Deposits Buffalo, NY Rochester, NY Syracuse, NY Albany, NY Allentown, PA Springfield, MA Manchester NH, $ in Millions MSA MSA MSA MSA MSA MSA MSA Deposit Market Size: $76,153 $32,626 $18,975 $47,811 $25,180 $15,924 $18,790 Market 5-Year CAGR: 11.8% 7.4%
Slide 41: Expansion Markets
Cornwall orillia Brockville © 2 Barrie . Peterborough sins Montpelier Belleville Vaughan Oshawa Toronto Portland hississsuga ° 8 - E Oakuille X ansion pioneer Catharines Rocher Markets vie 7 g z The Company is investing in : wotester am the retail network through foe SOE eect Si oo de novo branch ex
Slide 42: What the Future Brings
What the Future Brings More of the same, just a lot more of it, done more efficiently Community Bank has a well-established corporate culture with a simple, straight-forward, set of core values; Integrity, Excellence, Teamwork, Humility J (i Balanced approach of organic growth and M&A (> Continued f
Slide 43: Employee Benefit Services
FINANCIAL SYSTEM, INC. Employee Benefit Services BPAS
Slide 44: Employee Benefit Services
Employee Benefit Services • • • • • • •
Slide 45: One Company, One Call
One Company, One Call • • • • • • • •
Slide 46: BPAS at a Glance
BPAS at a Glance National Profile Customer Concentration BPAS operates from 16 offices nationally and serves clients in every U.S. state plus the Commonwealth of Puerto Rico. We partner with Financial Consultants and Plan Sponsors across the nation to provide best-in- class services. BPAS by Numbers
Slide 47: Our History
Our History Highlights e (73) (99) 1973: BPAS incorporated 1999: BPAS enters the IRA 1996: CFSI acquires BPAS, a TPA administration business with 17 employees and $1 million in annual revenue {07) {05) (03). XY XJ XJ ; ; S 2007: BPAS acquires Hand Benefits & Trust and expands 2005: BPAS opens a Pitt
Slide 48: Well Positioned For Success in a Growing Industry
Well Positioned For Success in a Growing Industry
Slide 49: Business Line Summary
Business Line Summary • • • • • •
Slide 50: Revenue Model & Performance
Revenue Model & TTM Revenue by Source 51% asset-based Performance 45% fee-based 4% other 10Yr Operating Revenue CAGR1,4: 12.1% 3Yr Avg. Operating Margin3,5: 42.9%
Slide 51: Recordkeeping & TPA
Recordkeeping & TPA • • • • • • • • • • • • • •
Slide 52: How We Win in Recordkeeping
How We Win in Recordkeeping • • • • • • • • • • • • •
Slide 53: State of the Art Technology
State of the Art Technology BPAS | Pa pant, Sponsor, & Partner Website Mile Marker Projection Tool BPAS University u.bpas.com Complete Financial Wellness Program Participant Service Center Account Balance $149,083.30 PARTICIPANT PORTAL Did You Know? Focus on Long-term Invest On-the-go Sessions of ©
Slide 54: Other Revenue Verticals
Other Revenue Verticals • • • • • • • • • • • • • • • • • • • • • • • •
Slide 55: CIT Fund Administration
BPAS is one of the three largest CIT Fund Administration special purpose trust companies focused on collective funds3 • • • • • • • Industry Note: Morningstar notes that CITs now represent 49% of total DC plan assets and will overtake mutual funds this year as the most popular target-date vehicle2
Slide 56: Future Outlook
Future Outlook Focus on growth & evolution a [> Attractive, growing market segment bjs [ Well-balanced and diversified business Ea Increasing internal connectivity with CBNA and Wealth |) Increasing automation / Al impact £2036) Communi nancial System, Inc. | Investor Day 2024
Slide 57: Insurance Services
FINANCIAL SYSTEM, INC. Insurance Services cD) ONEGROUP
Slide 58: Insurance Services
Insurance Services / Professional Experience: > * Chief Executive Officer at OneGroup * President at Bailey, Haskell & LaLonde/OneGroup * SVP Sales and Risk Management at Bailey, Haskell & LaLonde * Director of Risk Management at J. J. Naples Insurance Agency * Various leadership roles at Wausau Ins
Slide 59: Insurance Services
Insurance Services • • • • • • • • • • • •
Slide 60: OneGroup at a Glance
OneGroup at a Glance History 22 Locations Along the Eastern United States 1983, Retirement Income Services, Inc. established 1988 Bailey & Haskell Associates, Inc. established 1996 Benefit and HR consulting services added 2003 Financial investment advisory services added 2008 Workplace Health Soluti
Slide 61: Insurance Brokerage Industry
Insurance Brokerage Industry • • • •
Slide 62: Favorable Business Mix With Deep Specialties
Favorable Business Mix With Deep Specialties
Slide 63: Lines of Business
Lines of Business • • • • • • • • • •
Slide 64: Revenue Performance
Revenue Performance 7Yr Operating Revenue CAGR1,4: 9.8% 3Yr Avg. Operating Margin3,5: 18.8%
Slide 65: Carrier Depth
Excellent Loss Retention History . Ca rrier De pth 300+ Carrier Relationships * Top 3: $11 million, 28% of premiums * Top 10: $181 million, 46% of premiums Increasing Access to Specialty Programs ae) y) g Pp y Prog £2036) Community Financial System, Inc. | Investor Day 2024
Slide 66: Future Outlook
Future Outlook Community Finan | Investor Day 2024
Slide 67: Wealth Management Services
FINANCIAL SYSTEM, INC. Wealth Management Services YS COMMUNITY BANK Wealth Management
Slide 68: Wealth Management Services
Wealth Management Services • • • • •
Slide 69: Wealth Management Services
Wealth Management Services • • • • • • • • • • •
Slide 70: Well Positioned For Success in a Growing Industry
Well Positioned For Success in a Growing Industry
Slide 71: Uniquely Broad and Deep Capabilities
Uniquely Broad and Deep Capabilities • • • • • • • • • • • • • • • • • •
Slide 72: Trended Results
Trended Results The Wealth Management division has experienced a consistent level of both revenue and asset growth through market appreciation and organic efforts. TTM Revenue by Source AUMA Mix (6/30/24) 2.0% 87.0% = Fee-based = Transaction-based u Equities = Fixed Income = Asset-based feos Communi
Slide 73: Wealth Management Services: Financial Performance
Wealth Management Services: Financial Performance 10Yr Operating Revenue CAGR1,4: 8.3% 3Yr Avg. Operating Margin3,5: 31.2%
Slide 74: Future Outlook
Future Outlook yy > Greater penetration across CFSI family of businesses iS > Nationwide growth through BPAS Partnership Solutions/Outsourced Services TWA Greater wallet-share across all 4 verticals within wealth management business; Broker/Dealer, Trust, E2Q RIA and Retirement Plan Consulting £2036
Slide 75: Risk Management
Community FINANCIAL SYSTEM, INC. QQS Risk Management COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU INVESTOR DAY 2024
Slide 76: Risk Management
Risk Management /‘ Professional Experience: * SVP, Chief Risk Officer at Community Financial System, Inc. * Assistant Deputy Comptroller for Community Bank Supervision at the Office of the Comptroller of the Currency (OCC) + Director of Commercial Credit Policy at the OCC * VP of Portfolio Managemen
Slide 77: Risk Management Framework
Risk Management Framework Second Line of Defense Enterprise Risk Compliance Credit Risk Management Review + Governance, Risk + Consumer and Compliance compliance (GRC) program management + Complaint - Fair Lending and management and CRA risk analysis management + Model risk + Consumer management com
Slide 78: CBNA's Lending Philosophy & Credit Risk Management
CBNA’s Lending Philosophy & Credit Risk Management
Slide 79: Debt-to-Income Ratio
Debt-to-Income Ratio County-level, 2023 C2630) Community Financial Sys
Slide 80: Loan Losses
Loan Losses Net Charge-off Ratio (2005 — YTD 2024) 3.00% 2.50% Period Average’ 2.00% CBU: 0.19% nyj2- 7 1.50% Industry?: 0.77% 1.00% 0.50% 0.00% 2005 2006 2007 2008 2009 2010 20% 82012) «2013 «20142015 2016 = 2017,_— 2018) 2019 2020-2021 «2022, 2023, YTD 2024 —cBU — Industry’ "Simple average of al p
Slide 81: Loan Mix Comparison
Loan Mix Comparison CBNA RE Secured Loan Mix (72% of total loans) Industry’ RE Secured Loan Mix (67% of total loans) 5.0% 10.0% = Construction & Development = Construction & Development = 1-4 Family Residential = 1-4 Family Residential 44.0% = Multifamily = Multifamily 35.0% = CRE = CRE CBNA Non-RE
Slide 82: Retail Lending
Retail Lending Average LTV at Origination Average FICO at Origination 120% 770 99.0% 752 756 100% 750 80% 634% 730 60% 710 40% 690 20% 670 0% tl 650 Residential Mortgage Indirect Auto Residential Mortgage Indirect Auto Average Remaining Term (months) Origination FICOs > 660 150 137 100% 95.0% 97.0%
Slide 83: Funding Metrics
Funding Metrics Funding Characteristics CBNA Industry’ Core Deposits to Total Funding 81.71% 75.27% Short-Term Non-Core Funding to Total Funding 5.20% 15.12% Brokered Deposits to Total Deposits 0% 8.81% Net Loans to Core Deposits 78.38% 96.33% Net Loans to Deposits 74.63% 81.05% "Industry groups def
Slide 84: Deposit Granularity
Deposit Granularity Average Deposit Account Balance Average Deposit Account Balance $600 $1,200 $1,120 Thousands Thousands $500 $1,000 $400 $800 $300 $600 $508 $200 $400 $201 $100 $200 $17 $32 $0 $0 CBNA Industry First Republic Signature SVB
Slide 85: Financial Performance
Community FINANCIAL SYSTEM, INC. QQS Financial Performance COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU INVESTOR DAY 2024
Slide 86: Financial Performance
Financial Performance • • • • • • • •
Slide 87: Fundamental Elements of Our Enduring Success
Fundamental Elements of Our Enduring Success
Slide 88: Focus on Revenue Quality, Diversification and Sustainable Results
Focus on Revenue Quality, Diversification and Sustainable Results • •
Slide 89: Strong Asset Quality
Strong Asset Quality Historically Strong Asset Quality Metrics 400% Non-Performing Assets (“NPAs”)'? 200% enn ne (NPAs/ Assets) 3.00% Period Average® 2008 | CBU: 0.36% 1.00% } 2 1.499 0.00% Ti Jada ea 2005 2006 2007 2008 2009 2010 20M 2012 2013 2014 «2015 «2016 «2017 «2018 §= 2019-2020 2021«-2022:«-
Slide 90: Allowance Industry Comparison
Allowance Industry Comparison
Slide 91: Core Deposit Strength
22% cycle to date deposit beta1 24% cycle to date funding beta1 Core Deposit 30% cycle to date interest-bearing deposit beta1 Strength • • • • •
Slide 92: Liquidity Position & Sources
Liquidity Position & Sources • • • • •
Slide 93: Solid Capital Position
So | id Ca pita | e Solid Capital Position Position Ready to support growth * Tier 1 leverage ratio maintained well above PCA well-capitalized standards to support future $1.0 organic growth and strategic M&A * Risk-based capital ratios maintained welkabove $0.5 KRX peer levels reflective of solid c
Slide 94: Outperformance During Turbulence
Outperformance During Turbulence
Slide 95: Company Performance
Company Performance $0.95 $1.29 0.05% 9.3% 4.5% 0.06% 1.29% 40%
Slide 96: Segment Performance
Segment Performance 10Yr Operating Revenue CAGR3: 5.4% 10Yr Operating Revenue CAGR3: 12.1% 3Yr Avg. Operating Margin4: 38.9% 3Yr Avg. Operating Margin4: 42.9% 7Yr Operating Revenue CAGR3: 9.8% 10Yr Operating Revenue CAGR3: 8.3% 3Yr Avg. Operating Margin4: 18.8% 3Yr Avg. Operating Margin4: 31.2%
Slide 97: Capital Deployment
Since 12/31/2018 Capital Deployment 46.5% operating payout ratio 53.1% payout ratio
Slide 98: Catalysts for Earnings Growth & Shareholder Value Creation
Catalysts for Earnings Growth & Shareholder Value Creation
Slide 99: Loan Repricing Opportunity
28% of outstanding loan balances are expected to reprice or be repaid in the next 12 months1 Loan Repricing Opportunity • •
Slide 100: Securities Redeployment Opportunity
Securities Redeployment Opportunity • •
Slide 101: Opportunities and Financial Targets
Opportunities and Financial Targets • • • • • • • • • • •
Slide 102: Valuation Considerations
FINANCIAL SYSTEM, INC. Valuation Considerations COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU INVESTOR DAY 2024
Slide 103: Valuation Considerations
Valuation Considerations 10Yr Avg. Relative Premium to KRX (median): 4.2x 5Yr Avg. Relative Premium to KRX (median): 6.1x Current Relative Premium to KRX (median): 5.0x
Slide 104: P/E Reference Framework
P/E Reference Framework Employee Benefits (15.9x- 29.8%) Revenue Sta Revenue Quality "Estimates based onthe folowing publicly traded consumer nance fms: ALLY, AXP, BEN, COF, DES, SLM, SYF 2 Estimates based on the folowing publicly raced mms: ADP, 88, HGY, PAYX. SEI, SSNC ® Estimates based on the fol
Slide 105: Illustrative P/TBV Context
Illustrative P/TBV Context 5Yr 10Yr Avg Avg KRX (median): 1.52x 1.71x KRX (top quartile): 1.80x 2.05x
Slide 106: Closing Remarks
Community FINANCIAL SYSTEM, INC. QQS Closing Remarks COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU INVESTOR DAY 2024
Slide 107: Closing Remarks
Closing Remarks (eh Standout business model designed to provide Curlinssiiiva lay senate! \onfil! steady, consistent outperformance Above Average Return = Banking PPNR Growth ay Multiple growth catalysts across all four business anking row lines = Financial Services Operating Earnings Growth = ROA c
Slide 108: Thank you!
Thank you! INVESTOR RELATIONS CONTACT 315.445.7396
Slide 109: Appendix
Community FINANCIAL SYSTEM, INC. QQS Appendix COMMUNITY FINANCIAL SYSTEM, INC. | NYSE: CBU INVESTOR DAY 2024
Slide 110: Glossary of Terms
G lossary of Terms ACL Allowance for credit losses AFS Available for sale AIF Accredited investment fiduciary AML Anti-Money Laundering AOC! Accumulated other comprehensive income AUA Assets under administration AUM Assets under management AUMA Assets under management & administration BSA Bank Secre
Slide 111: Primary Subsidiaries
Wealth Banking Management 5 A i Services Services Services Insurance Employee Benefit Benefit Plans Community Bank, N.A. Ganramtity Innresiments OneGroup NY, Inc. Administrative Services, Services, Inc. ie 5 F Benefit Plans La} ACHE AGES: Administrative Services, Prima ry uc Nottingham Trust ; ill 7
Slide 112: Board of Directors
Board of Directors Engaged & Diversified Dimitar A. Karaivanov President & CEO. Joined: 2024 | Age:42 Eric E. Stickels Chairperson; Risk Joined: 2015 | Age: 63 Raymond C. Pecor Ill Exec / Gov / Risk Joined: 2017 | Age:55 Jeffery J. Knauss Comp / Gov / Risk Joined: 2021 | Age:38 Sally A. Steele Comp
Slide 113: KRX Peer Group
KRX Peer Group eer Company Name Total Assets! eer Company Name Total Assets! New York Community Bancorp, Inc. NYCB Hicksville, NY. $119,055 Texas Capital Bancshares, Inc. TCBI Dallas, TX $29,855 Webster Financial Corporation WBS Stamford, CT $76,838 WaFd, Inc. WAFD Seattle, WA $28,581 Popular, Inc.
Slide 114: Multifamily & NOO CRE by Location
Multifamily & NOO CRE by Location
Slide 115: Reconciliation of GAAP and Non-GAAP
Reconciliation of GAAP and Non-GAAP • • • •
Slide 116: Pre-tax, Pre-provision Components
Pre-tax, Pre-provision Components
Slide 117: Operating Net Income
Operating Net Income Dollars in thousands, except per share data 2024 YTD Net income (GAAP) $169,063 $164,676 $189,694 $188,081 $131,924 $88,787 $47,915 Acquisition expenses, net of tax effect 6,952 3,942 551 3,930 50 108 81 Acquisition-related contingent consideration adjustments, net of tax effect
Slide 118: Net Interest Margin & Operating ROA
Net Interest Margin & Operating ROA
Slide 119: Operating Revenues
Operating Revenues Dollars in thousands ; 2024 5 YTD) 4 Operating noninterest revenues (non-GAAP) Noninterest revenues (GAAP) $35,231 $102,180 $119,020 $123,299 $155,625 $202,423 $224,059 $230,619 $228,419 $246,235 $258,725 $214,834 $144,675 $74,390 Unrealized (gain) loss on equity securities - - -
Slide 120: Equity-to-Assets
Equity-to-Assets Dollars in thousands Total tangible assets (non-GAAP) Total assets (GAAP) $11,410,295 $13,931,094 $15,552,657 $15,835,651 $15,555,753 $15,906,816 Goodwill and other intangible assets, net (836,923) (846,648) (864,335) (902,837) (897,987) (905,780) Deferred taxes on goodwill and othe
Slide 121: Book Value
Book Value Dollars and shares in thousands Book value (GAAP) Total shareholders’ equity (GAAP) $1,855,234 $2,104,107 $2,100,807 $1,551,705 $1,697,937 $1,670,180 Period end common shares outstanding 51,794 53,593 53,878 53,737 53,327 52,523 Book value per share (GAAP) $35.82 $39.26 $38.99 $28.88 $31.
Slide 122: Operating Noninterest Expenses
Operating Noninterest Expenses
Slide 123: Core Results
Dollars in thousands, except per share data Net income (GAAP) $169,063 $164,676 $189,694 $188,081 $131,924 $88,787 $47,915 Acquisition expenses, net of statutory tax effect! 6801 3,897 554 3,966 50 110 82 Acquisition-related contingent consideration adjustments, net of statutory tax effect! - 158 (2
Community Financial System — Q2 2024 Earnings Presentation on 6ix