Community Financial System (CBU) investor relations material

Executive summary

• Net income for Q1 2026 was $57.2 million ($1.08 per share), up 16.1% year-over-year and 4.9% sequentially, with operating net income at $61.1 million ($1.15 per share), up 17.3% year-over-year and 2.7% sequentially, driven by organic expansion and supportive market conditions.

• Fourth consecutive quarter of record operating diluted EPS, reflecting strong core performance and organic momentum across all business lines.

• Recognized as CenterState CEO Business of the Year, highlighting strong regional impact and business momentum.

• Operating return on assets was 1.42% and operating return on equity was 12.30% for Q1 2026.

Financial highlights

• Net interest income reached $134.7 million, up 12.1% year-over-year, with net interest margin expanding to 3.45% (up 22 bps year-over-year); total revenues were $213.3 million, up 8.7% year-over-year.

• Noninterest revenues accounted for 36.8% of total revenues, with banking noninterest revenues up 14.2% year-over-year.

• Total noninterest expenses were $133 million, up 6.2% year-over-year, mainly due to higher salaries, occupancy, and technology investments.

• Provision for credit losses was $5.6 million, down 15.8% year-over-year, reflecting improved asset quality.

• Effective tax rate was 23.3%, up from 22.8% a year ago.

Outlook and guidance

• Management expects continued strong earnings growth for 2026, supported by diversified business lines, disciplined capital deployment, and ongoing investments in organic and inorganic growth.

• NIM expected to expand by 3-5 bps in Q2, aided by an FRB dividend.

• Expense growth guided to 4%-7% for the year, with a quarterly average of $135 million.

• Asset quality expected to remain solid, with allowance for credit losses reflecting stable macroeconomic forecasts.

• Auto lending and employee benefit services expected to grow at mid-single digits.