# Community Financial System (CBU) - Q2 2026 earnings

Reported July 28, 2026.

| | Reported | Consensus estimate |
| --- | --- | --- |
| Revenue | $223.2M | $221.8M |
| EPS | $1.16 | $1.18 |

Earnings filing reader: [8-K 0001104659-26-087355](https://www.opencapital.sh/filings/0001104659-26-087355)
Agent-readable filing: [Markdown](https://www.opencapital.sh/filings/0001104659-26-087355.md)
Original filing: [SEC.gov filing index](https://www.sec.gov/Archives/edgar/data/723188/000110465926087355/0001104659-26-087355-index.htm)
Canonical page (please cite this URL): https://www.opencapital.sh/stocks/cbu/earnings/q2-2026

---

**Exhibit
99.1**

Community
Financial System, Inc. Reports Second Quarter 2026 Results

SYRACUSE, N.Y. — July 28, 2026 — Community Financial System, Inc. (the “Company” or “CFSI”) (NYSE: CBU) reported second quarter 2026 results.
The results are available within the “News” section of the Company's investor relations website or directly at https://ir.cfsi.com/Q2-2026-CBU-Earnings-Release.

Company management will host a conference
call at 11:00 a.m. (ET) today, July 28, 2026, to discuss the second quarter 2026 results. The conference call can be accessed via webcast
at https://app.webinar.net/b0yzqVAwxjN or via dial-in at 1-833-630-0464 (United States) or 1-412-317-1809 (International).

**About Community Financial System,
Inc.**

Community Financial System, Inc. is
a diversified financial services company that is focused on four main business lines – banking services, employee benefit services,
insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest
banking institutions with over $17 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern
Pennsylvania, Vermont, Western Massachusetts and Southern New Hampshire. 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 68 U.S. insurance
agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Nottingham
Financial Group operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol
CBU. For more information about the Company and each of its four main business lines visit https://ir.cfsi.com.

| | **News Release** For further information, please contact: |
| --- | --- |
| 333 Butternut Drive, Syracuse, N.Y. 13214 | Marya Burgio Wlos, EVP & Chief Financial Officer Office: (315) 299-2946 |

**Community** Financial System,
Inc. Reports Second Quarter 2026 Results

SYRACUSE, N.Y. — July 28, 2026

Community Financial System,
Inc. (the “Company” or “CFSI”) (NYSE: CBU) reported second quarter 2026 net income of $61.3 million, or $1.16
per share and operating net income of $61.5 million, or $1.16 per share.

“Our Company delivered another
quarter of solid core performance with operating diluted earnings per share¹ of $1.16, up 11.5% year-over-year and representing
our fifth consecutive quarter of record results,” commented Dimitar A. Karaivanov, President and CEO.

“Our organic momentum continues
across all businesses and is also supported by margin and market value tailwinds. During the quarter we achieved an operating return
on assets¹ of 1.40% while continuing to actively invest in organic and inorganic growth initiatives including completing the
acquisition of ClearPoint Federal Bank & Trust. At the same time, we remain focused on expanding operating leverage and ensuring
that continued investments translate fully into bottom-line results. Importantly, our trajectory remains very attractive and we expect
acceleration across all of our businesses into the second half of the year.”

| Second Quarter 2026 Performance | Quarter-over- Quarter Increase (Decrease) | Year-over-Year Increase (Decrease) |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dollars in thousands, except per share data | 2nd Qtr 2026 | 1st Qtr 2026 | 2nd Qtr 2025 | $% |  | $% |  |  |
| Operating Performance | Diluted Earnings Per Share | $1.16 | $1.08 | $0.97 | $0.08 | 7.4% | $0.19 | 19.6% |
| Operating Diluted Earnings Per Share¹ | 1.16 | 1.15 | 1.04 | 0.01 | 0.9% | 0.12 | 11.5% |  |
| Operating Pre-Tax, Pre-Provision Net Revenue Per Share¹ | 1.62 | 1.61 | 1.41 | 0.01 | 0.6% | 0.21 | 14.9% |  |
| Return Metrics | Return on Assets | 1.40% | 1.33% | 1.24% | - | 0.07% | - | 0.16% |
| Operating Return on Assets¹ | 1.40% | 1.42% | 1.34% | - | (0.02%) | - | 0.06% |  |
| Return on Equity | 12.10% | 11.51% | 11.21% | - | 0.59% | - | 0.89% |  |
| Operating Return on Equity¹ | 12.13% | 12.30% | 12.10% | - | (0.17%) | - | 0.03% |  |

| Second Quarter 2026 Performance (continued) | Quarter-over-Quarter Increase (Decrease) | Year-over-Year Increase (Decrease) |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dollars in thousands, except per share data | 2nd Qtr 2026 | 1st Qtr 2026 | 2nd Qtr 2025 | $% |  | $% |  |  |
| Revenues | Total Revenues | $223,155 | $213,286 | $199,256 | $9,869 | 4.6% | $23,899 | 12.0% |
| Total Operating Revenues (FTE)¹ | 219,338 | 214,537 | 200,141 | 4,801 | 2.2% | 19,197 | 9.6% |  |
| Noninterest Revenues | 84,011 | 78,574 | 74,508 | 5,437 | 6.9% | 9,503 | 12.8% |  |
| Total Operating Noninterest Revenues¹ | 79,301 | 78,975 | 74,509 | 326 | 0.4% | 4,792 | 6.4% |  |
| Noninterest Revenues/Total Revenues | 37.6% | 36.8% | 37.4% | - | 0.8% | - | 0.2% |  |
| Operating Noninterest Revenues/Operating Revenues (FTE)¹ | 36.2% | 36.8% | 37.2% | - | (0.6%) | - | (1.0%) |  |
| Net Interest Income and Margin | Net Interest Income | $139,144 | $134,712 | $124,748 | $4,432 | 3.3% | $14,396 | 11.5% |
| Net Interest Margin | 3.46% | 3.43% | 3.27% | - | 0.03% | - | 0.19% |  |
| Net Interest Margin (FTE)¹ | 3.49% | 3.45% | 3.30% | - | 0.04% | - | 0.19% |  |
| Balance Sheet and Funding | Total Ending Loans | $11,282,824 | $11,131,184 | $10,519,117 | $151,640 | 1.4% | $763,707 | 7.3% |
| Total Ending Deposits | 14,710,409 | 14,870,122 | 13,701,768 | (159,713) | (1.1%) | 1,008,641 | 7.4% |  |
| Cost of Total Deposits | 1.07% | 1.10% | 1.19% | - | (0.03%) | - | (0.12%) |  |
| Cost of Funds | 1.18% | 1.20% | 1.32% | - | (0.02%) | - | (0.14%) |  |
| Risk Metrics | Annualized Loan Net Charge-Offs | 0.12% | 0.11% | 0.20% | - | 0.01% | - | (0.08%) |
| Tier 1 Leverage Ratio | 9.26% | 9.20% | 9.42% | - | 0.06% | - | (0.16%) |  |
| Loan-to-deposit ratio | 76.7% | 74.9% | 76.8% | - | 1.8% | - | (0.1%) |  |
| Non-owner occupied and multifamily commercial real estate (“CRE”) / total bank-level regulatory capital | 201% | 194% | 184% | - | 7% | - | 17% |  |

¹ Non-GAAP Measure. For
more information on Non-GAAP measures, refer to “Non-GAAP Measures” section along with the Quarterly GAAP to Non-GAAP
Reconciliations included within the “Summary of Financial Data (unaudited)” tables below.

| Second Quarter 2026 Business Segment Results² | Quarter-over-Quarter Increase (Decrease) | Year-over-Year Increase (Decrease) |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dollars in thousands | 2nd Qtr 2026 | 1st Qtr 2026 | 2nd Qtr 2025 | $% |  | $% |  |  |
| Banking and Corporate | Net interest income | $137,899 | $133,550 | $123,973 | $4,349 | 3.3% | $13,926 | 11.2% |
| Provision for credit losses | 4,607 | 5,636 | 4,117 | (1,029) | (18.3%) | 490 | 11.9% |  |
| Segment noninterest revenues | 21,529 | 21,979 | 19,949 | (450) | (2.0%) | 1,580 | 7.9% |  |
| Other segment expenses | 93,133 | 90,282 | 85,313 | 2,851 | 3.2% | 7,820 | 9.2% |  |
| Adjusted income before income taxes | $61,688 | $59,611 | $54,492 | $2,077 | 3.5% | $7,196 | 13.2% |  |
| Adjusted return on assets³ | 1.43% | 1.41% | 1.34% | - | 0.02% | - | 0.09% |  |
| Adjusted return on equity³ | 14.58% | 14.49% | 14.20% | - | 0.09% | - | 0.38% |  |
| Adjusted return on tangible equity1, 3 | 25.79% | 26.01% | 25.95% | - | (0.22%) | - | (0.16%) |  |
| Employee Benefit Services | Segment revenues | $36,361 | $36,311 | $33,892 | $50 | 0.1% | $2,469 | 7.3% |
| Segment expenses | 22,520 | 21,984 | 21,981 | 536 | 2.4% | 539 | 2.5% |  |
| Adjusted income before income taxes | $13,841 | $14,327 | $11,911 | ($486) | (3.4%) | $1,930 | 16.2% |  |
| Adjusted return on assets³ | 24.90% | 23.25% | 20.46% | - | 1.65% | - | 4.44% |  |
| Adjusted return on equity³ | 28.38% | 26.73% | 22.80% | - | 1.65% | - | 5.58% |  |
| Adjusted return on tangible equity1, 3 | 61.43% | 52.45% | 47.63% | - | 8.98% | - | 13.80% |  |
| Insurance Services | Segment revenues | $12,811 | $12,331 | $13,464 | $480 | 3.9% | ($653) | (4.8%) |
| Segment expenses | 10,806 | 10,482 | 11,217 | 324 | 3.1% | (411) | (3.7%) |  |
| Adjusted income before income taxes | $2,005 | $1,849 | $2,247 | $156 | 8.4% | ($242) | (10.8%) |  |
| Adjusted return on assets³ | 7.58% | 6.88% | 13.40% | - | 0.70% | - | (5.82%) |  |
| Adjusted return on equity³ | 8.74% | 8.05% | 16.76% | - | 0.69% | - | (8.02%) |  |
| Adjusted return on tangible equity1, 3 | 18.90% | 16.92% | 96.97% | - | 1.98% | - | (78.07%) |  |
| Wealth Management Services | Segment revenues | $11,217 | $11,063 | $9,219 | $154 | 1.4% | $1,998 | 21.7% |
| Segment expenses | 7,775 | 7,156 | 6,870 | 619 | 8.7% | 905 | 13.2% |  |
| Adjusted income before income taxes | $3,442 | $3,907 | $2,349 | ($465) | (11.9%) | $1,093 | 46.5% |  |
| Adjusted return on assets³ | 15.09% | 37.18% | 24.67% | - | (22.09%) | - | (9.58%) |  |
| Adjusted return on equity³ | 28.88% | 42.07% | 27.60% | - | (13.19%) | - | 1.28% |  |
| Adjusted return on tangible equity1, 3 | 33.96% | 48.24% | 31.38% | - | (14.28%) | - | 2.58% |  |

¹ Non-GAAP Measure. For
more information on Non-GAAP measures, refer to “Non-GAAP Measures” section along with the Quarterly GAAP to Non-GAAP
Reconciliations included within the “Summary of Financial Data (unaudited)” tables below.

² Refer to the “Summary
of Financial Data (unaudited)” tables below for reconciliations of the reported measure of segment profit (adjusted income before
income taxes) results to Company results and calculations of the segment adjusted return metrics. The reported measure of segment profit,
the reported segment assets and the reported segment equity that are used in the calculations of the segment adjusted return metrics
are presented in conformity with *ASC 280: Segment Reporting* and follow the methodology disclosed in the Company’s 2025 Annual
Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2026.

³ The segment adjusted return
metrics are reported on a pre-tax basis.

### Results of Operations

The Company reported second quarter 2026
net income of $61.3 million, or $1.16 per share. This compares to net income of $51.3 million, or $0.97 per share, for the second quarter
of 2025. The $0.19 increase in earnings per share was primarily driven by increases in net interest income and noninterest revenues,
partially offset by increases in the provision for credit losses, noninterest expenses and income taxes. Comparatively, the Company’s
earnings per share increased $0.08 from $1.08 per share for the linked first quarter of 2026, primarily due to increases in net interest
income and noninterest revenues and a decrease in the provision for credit losses, partially offset by increases in noninterest expenses
and income taxes.

**Net Interest Income and Net Interest
Margin**

*The Company’s record quarterly
net interest income reflected diminishing funding cost pressures and organic loan growth, supporting continued margin expansion.*

- Net interest income in the second quarter of 2026 was $139.1 million, up $14.4 million, or 11.5%, compared to the second quarter of 2025, and up $4.4 million, or 3.3%, from the first quarter of 2026.

- Net interest margin for the second quarter of 3.46% and fully tax-equivalent net interest margin, a non-GAAP measure, of 3.49%, both increased 19 basis points from the second quarter of 2025. These increases were primarily the result of a lower cost of interest-bearing liabilities and a higher yield on interest-earning assets.

- The yield on interest-earning assets increased 5 basis points to 4.61% over the prior year’s second quarter primarily driven by higher loan yields.

- The cost of interest-bearing liabilities decreased 18 basis points from 1.74% in the second quarter of 2025 to 1.56% in the second quarter of 2026, driven by a 15 basis point decrease in the average interest-bearing deposit rate.

- On a linked quarter basis, net interest margin and fully tax-equivalent net interest margin, a non-GAAP measure, increased by 3 basis points and 4 basis points, respectively. The yield on interest-earning assets increased 1 basis point, while the cost of funds decreased 2 basis points. This included a 3 basis point decrease in the cost of interest-bearing liabilities driven by a 3 basis point decrease in the average interest-bearing deposit rate to 1.44%. Excluding the impact of the semiannual Federal Reserve Bank dividend recorded in the second quarter of 2026, the yield on interest-earning assets decreased 1 basis point compared to the linked first quarter.

### Noninterest Revenues

*The Company’s noninterest revenue
streams generated 38% of total revenues in the second quarter.*

- Banking noninterest revenues, comprised of deposit service and other banking fees and mortgage banking revenues, totaled $21.3 million for the second quarter of 2026, an increase of $1.2 million, or 6.1%, from the second quarter of 2025 and a decrease of $0.5 million, or 2.4%, from the first quarter of 2026. The increase from the second quarter of 2025 was primarily comprised of higher debit interchange and ATM fees. The decrease from the linked first quarter reflected lower customer interest rate swap fee revenues.

- Employee benefit services revenues for the second quarter of 2026 were $34.9 million, an increase of $2.5 million, or 7.7%, in comparison to the second quarter of 2025 and an increase of $0.3 million, or 0.9%, from the first quarter of 2026. The increase from the prior year’s second quarter was largely driven by revenue growth in the recordkeeping and third-party administration services business line due in part to higher average market values of assets under administration.

- Insurance services revenues for the second quarter of 2026 were $13.2 million, which represents a $0.2 million, or 1.4%, decrease versus the prior year’s second quarter and a $0.6 million, or 4.8%, increase from the first quarter of 2026. The increase from the linked first quarter was due to changes in the timing of collections of contingent commission revenues. The decrease from the second quarter of 2025 was predominantly due to a softer insurance market and lower organic growth.

- Wealth management services revenues for the second quarter of 2026 totaled $10.4 million, an increase of $1.7 million, or 19.8%, from the second quarter of 2025 and an increase of $0.1 million, or 0.7%, from the first quarter of 2026. The increase from the second quarter of 2025 was reflective of revenue growth from the acquisition of ClearPoint Federal Bank & Trust (“ClearPoint”) and higher average market values of assets under management.

- The Company recognized a $4.7 million gain on equity securities during the second quarter of 2026 which included a $3.3 million gain associated with the sale of a limited partnership investment and a $0.9 million gain associated with the conversion of certain Visa Class B shares to Visa Class C shares.

### Noninterest Expenses and Income Taxes

*The Company continues to focus on
managing expenses consistent with its organic growth strategies and scale objectives, while evaluating efficiency opportunities and the
enhancement of operating leverage in all lines of business.*

- The Company recorded $137.7 million in total noninterest expenses in the second quarter of 2026, compared to $129.1 million of total noninterest expenses in the prior year’s second quarter. The $8.6 million, or 6.7% increase between the periods was primarily driven by higher salaries and employee benefits expenses, data processing and communications expenses and occupancy and equipment expenses.

- Salaries and employee benefits expenses increased $3.4 million, or 4.3%, from the second quarter of 2025, primarily due to incremental costs associated with acquisitions and de novo bank branches opened between the periods, along with the impact of annual merit-based increases.

- Data processing and communications expenses increased $3.0 million, or 17.9%, from the second quarter of 2025 reflective of the Company’s continued investment in customer-facing and back-office technologies, including artificial intelligence applications and other workflow efficiency initiatives. The increase also included a one-time $0.6 million early termination charge related to a debit card processing platform conversion.

- Occupancy and equipment expenses increased $2.4 million, or 20.9%, from the prior year’s second quarter, driven by incremental costs associated with the opening of de novo bank branches and regional headquarters and the Santander Bank, N.A. (“Santander”) branch acquisition.

- The effective tax rate for the second quarter of 2026 was 24.1%, an increase from 22.3% in the second quarter of 2025 and an increase from 23.3% in the first quarter of 2026. The increase from the second quarter of 2025 was primarily due to an increase in certain state income taxes while the increase from the first quarter of 2026 reflected a decrease in tax benefits related to stock-based compensation activity.

### Financial Position and Liquidity

*The Company’s financial position
and liquidity profile remain strong, demonstrating the effectiveness of its proactive asset and liability management and prudent financial
planning.*

- The Company’s total assets were $17.76 billion at June 30, 2026, representing a $1.10 billion, or 6.6%, increase from one year prior and an $18.9 million, or 0.1%, increase from the end of the first quarter of 2026. The increase in the Company’s total assets from one year prior was primarily driven by organic loan growth, the Santander branch acquisition and the ClearPoint acquisition.

- At June 30, 2026, the Company’s readily available sources of liquidity totaled $6.74 billion, including unrestricted cash and cash equivalents balances of $243.4 million, unpledged investment securities totaling $2.17 billion, unused borrowing capacity at the Federal Home Loan Bank of New York of $1.46 billion and $2.87 billion of funding availability at the Federal Reserve Bank’s discount window.

- The Company’s readily available sources of liquidity represent 239% of the Company’s estimated uninsured deposits, net of collateralized and intercompany deposits, at June 30, 2026.

- Estimated insured deposits, net of collateralized and intercompany deposits, represent 81% of total ending deposits at June 30, 2026.

### Deposits and Funding

*The Company continues to leverage
its strong core deposit base, characterized by low funding costs, to support its financial operations.*

- Ending deposits at June 30, 2026 of $14.71 billion were $159.7 million, or 1.1%, lower than the end of the first quarter of 2026 and were $1.01 billion, or 7.4%, higher than one year prior. The decrease from March 31, 2026 was primarily due to seasonal outflows of governmental deposit balances while the increase from one year prior was primarily driven by growth in consumer and business deposit balances, including the $543.7 million of deposits assumed in the Santander branch acquisition and the $120.1 million of deposits assumed in the ClearPoint acquisition.

- Ending borrowings of $764.1 million at June 30, 2026, which included $425.6 million of fixed rate Federal Home Loan Bank of New York term borrowings, $172.8 million of overnight borrowings, $157.6 million of customer repurchase agreements and $8.1 million of finance lease liabilities, increased $116.8 million, or 18.0%, from the end of the first quarter of 2026 and decreased $130.4 million, or 14.6%, from one year prior. The increase from the end of the linked first quarter primarily reflected an increase in overnight borrowings while the decrease from one year prior primarily reflected a decrease in fixed-rate term borrowings.

- The Company’s average cost of funds of 1.18% decreased 14 basis points from the second quarter of 2025 and decreased 2 basis points from the first quarter of 2026. The decreases between both periods reflected lower average deposit costs and a lower proportion of funding from higher rate borrowings.

- The quarterly average cost of total deposits of 1.07% remains comparatively low relative to the industry and decreased 12 basis points from the second quarter of 2025 and 3 basis points from the linked first quarter of 2026.

- 66% of the Company’s total deposits were in no- and relatively low-rate checking and savings accounts at the end of the second quarter of 2026. Time deposit accounts represented 14% of the Company’s total deposits at the end of the second quarter of 2026, a decrease of 1 percentage point from June 30, 2025 and consistent with the end of the linked first quarter.

### Loans and Credit Quality

*The Company’s predominantly
footprint-based loan portfolio is well diversified, with credit performance remaining a central priority. The Company’s asset quality
metrics, including net charge-offs and delinquent and nonperforming (nonaccrual loans and accruing loans 90 days or more past due) loan
levels, remain strong compared to the banking industry, reflecting the Company’s robust risk management practices and disciplined
credit quality standards.*

- Ending loans at June 30, 2026 totaled $11.28 billion, an increase of $151.6 million, or 1.4%, compared to March 31, 2026 and an increase of $763.7 million, or 7.3%, compared to one year prior. The increase from one year prior primarily reflected organic growth in the overall business and consumer lending portfolios while the increase from the end of the linked first quarter primarily reflected organic growth in the business lending portfolio. The Company’s non-owner occupied and multifamily CRE exposure remains diverse both geographically and by property type, and relatively low at 16% of total assets, 25% of total loans and 201% of total bank-level regulatory capital.

- At June 30, 2026, the Company’s allowance for credit losses totaled $91.7 million, or 0.81% of total loans outstanding, compared to $90.2 million, or 0.81% of total loans outstanding, at March 31, 2026, and $81.9 million, or 0.78% of total loans outstanding, at June 30, 2025. The increases were driven by a net reserve build in the business lending portfolio reflective of organic CRE loan growth.

- The Company recorded a $4.6 million provision for credit losses during the second quarter of 2026 compared to $5.6 million in the linked first quarter and $4.1 million in the prior year’s second quarter, reflective of organic loan growth and stable credit quality metrics.

- The Company recorded net charge-offs of $3.3 million, or an annualized 0.12% of average loans, in the second quarter of 2026 compared to net charge-offs of $5.1 million, or an annualized 0.20% of average loans, in the second quarter of 2025 and net charge-offs of $3.0 million, or an annualized 0.11% of average loans, in the first quarter of 2026.

- Total delinquent loans, consisting of loans 30 or more days past due and nonaccrual loans, as a percentage of total loans outstanding was 1.04% at the end of the second quarter of 2026. This compares to 1.12% at March 31, 2026 and 1.01% at June 30, 2025.

- At June 30, 2026, nonperforming loans were $56.8 million, or 0.50% of total loans outstanding compared to $53.7 million, or 0.48% of total loans outstanding at March 31, 2026, and $53.3 million, or 0.51% of total loans outstanding one year earlier.

**Shareholders’ Equity and Regulatory
Capital**

*The Company’s capital planning
and management activities, coupled with its diversified streams of income and prudent dividend practices, have allowed it to build and
maintain a strong capital position. At June 30, 2026, all of the regulatory capital ratios of the Company and Community Bank, N.A. (“CBNA”)
significantly exceeded well-capitalized standards.*

- Shareholders’ equity of $2.07 billion at June 30, 2026 was $189.7 million, or 10.1%, higher than one year ago, primarily due to a $129.1 million increase in retained earnings and a $61.0 million decrease in accumulated other comprehensive loss related to the Company’s investment securities portfolio. Shareholders’ equity increased $48.8 million, or 2.4%, from March 31, 2026, primarily driven by a $36.6 million increase in retained earnings and an $8.2 million decrease in accumulated other comprehensive loss related to the Company’s investment securities portfolio.

- The Company’s shareholders’ equity to assets ratio was 11.67% at June 30, 2026, an increase from 11.30% at June 30, 2025 and 11.41% at March 31, 2026.

- The Company’s tier 1 leverage ratio of 9.26% at June 30, 2026 remained substantially above the regulatory well-capitalized standard of 5.0% and decreased 16 basis points from one year earlier and increased 6 basis points from March 31, 2026. The decrease in the Company’s tier 1 leverage ratio from one year prior was primarily due to the intangible assets added as part of the Santander branch and ClearPoint acquisitions, as well as the impact of $26.5 million of common stock repurchases over the past twelve months.

- The Company’s tangible equity to tangible assets ratio (non-GAAP) was 6.86% at June 30, 2026, up from 6.51% a year earlier and 6.68% at March 31, 2026. Tangible equity (non-GAAP) increased $125.9 million, or 12.2%, from one year prior due to the aforementioned increase in retained earnings and decrease in accumulated other comprehensive loss related to the Company’s investment securities portfolio. Tangible assets (non-GAAP) increased $1.03 billion, or 6.5%, from the prior year due primarily to organic loan growth and the Santander branch and ClearPoint acquisitions.

**Dividend Increase and Stock Repurchase
Program**

*The payment of a meaningful and growing
dividend is an important component of the Company’s commitment to provide consistent and favorable long-term returns to its shareholders,
and it reflects the continued strength of the Company’s long-term operating results and capital position, and management’s
confidence in the future performance of the Company. The $0.02 increase in the quarterly dividend declared in the third quarter of 2026
marked the 34th consecutive year of dividend increases for the Company.*

- During the second quarter of 2026, the Company declared a quarterly cash dividend of $0.47 per share on its common stock, up 2.2% from the $0.46 dividend declared in the second quarter of 2025.

- On July 22, 2026, the Company announced a $0.02, or 4.3%, increase in the quarterly dividend to $0.49 per share on its common stock, payable on October 13, 2026 to shareholders of record as of September 15, 2026, representing an annualized yield of 2.9% based upon on the $66.59 closing price of the Company’s stock on July 27, 2026. This increase marked the 34th consecutive year of dividend increases for the Company and is supported by the strong earnings growth the Company has generated in recent quarters.

- In December 2025, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.63 million shares, or 5.0% of the Company’s common stock outstanding during the twelve-month period starting January 1, 2026. Such repurchases may be made at the discretion of the Company’s senior management based on market conditions and other relevant factors and will be acquired through open market or privately negotiated transactions as permitted under Rule 10b-18 of the Securities Exchange Act of 1934 and other applicable regulatory and legal requirements. There were 258,471 shares repurchased pursuant to the 2026 stock repurchase program during the first six months of 2026, including 8,471 shares repurchased during the second quarter of 2026.

**Wealth Management Services Expansion
with Acquisition of ClearPoint Federal Bank & Trust**

On June 1, 2026, the Company announced
that CBNA completed its acquisition of ClearPoint, a national leader in trust administration for the approximately $20 billion death
care industry, with over $1.5 billion of assets under management and a historical 3-year revenue CAGR of 9.7%. Total consideration was
$39.0 million in cash, subject to potential post-closing purchase price adjustments. Net assets acquired included $3.1 million of core
deposit intangibles, $8.1 million of other intangibles and the Company recorded $10.4 million of goodwill in conjunction with the acquisition.
The transaction significantly expands the revenue and offerings of Nottingham Financial Group, the Company’s wealth management
services business, and contributes to the Company’s strategic capital deployment into durable, recurring and growing income streams.
The new business operates as ClearPoint Trust, a division of CBNA.

### Non-GAAP Measures

The Company also provides supplemental
reporting of its results on an “operating” and “tangible” basis. Results on an “operating” basis
exclude the after-tax effects of acquisition expenses, acquisition-related contingent consideration adjustments, restructuring expenses,
litigation accrual, gain (loss) on equity securities and amortization of intangible assets. Results on a “tangible” basis
exclude goodwill and intangible asset balances, net of accumulated amortization and applicable deferred tax amounts. The Company also
provides supplemental ratio reporting at the segment level, which includes adjusted return on tangible equity. Adjusted return on tangible
equity represents annualized adjusted income before income taxes applicable to each segment as a percentage of average tangible equity
for each respective segment. In addition, the Company provides supplemental reporting for “operating pre-tax, pre-provision net
revenues,” which subtracts the provision for credit losses, acquisition expenses, acquisition-related contingent consideration
adjustments, restructuring expenses, litigation accrual, gain (loss) on equity securities and amortization of intangible assets from
income before income taxes. Although these items are non-GAAP measures, the Company’s management believes this information helps
investors and analysts measure underlying core performance and provides better comparability to other organizations that have not engaged
in acquisitions. The Company also provides supplemental reporting of its net interest income and net interest margin on a fully tax-equivalent
(“FTE”) basis, which includes an adjustment to net interest income that represents taxes that would have been paid had nontaxable
investment securities and loans been taxable. Although FTE net interest income and net interest margin are non-GAAP measures, the Company’s
management believes this information helps enhance comparability of the performance of assets that have different tax liabilities. The
amounts for such items are presented in the tables that accompany this release.

### Conference Call Scheduled

Company management will host a conference
call at 11:00 a.m. (ET) today, July 28, 2026, to discuss the second quarter 2026 results. The conference call can be accessed via webcast
at https://app.webinar.net/b0yzqVAwxjN or via dial-in at 1-833-630-0464 (United States) or 1-412-317-1809 (International).

This earnings release is also available
within the ”News” section of the Company's investor relations website at https://ir.cfsi.com/news/. A replay of the
earnings call webcast will also be available on this site for at least one year.

**About Community Financial System,
Inc.**

Community Financial System, Inc. is a
diversified financial services company that is focused on four main business lines – banking services, employee benefit services,
insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest
banking institutions with over $17 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern
Pennsylvania, Vermont, Western Massachusetts and Southern New Hampshire. 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 68 U.S. insurance
agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Nottingham
Financial Group operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol
CBU. For more information about the Company and each of its four main business lines visit https://ir.cfsi.com.

### Forward-Looking Statements

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 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, tariffs 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 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 https://ir.cfsi.com and on the SEC’s website at https://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.

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | Quarter Ended | Year-to-Date |  |  |
| --- | --- | --- | --- | --- |
|  | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 |
| Earnings |  |  |  |  |
| Loan income | $157,530 | $146,534 | $311,908 | $289,438 |
| Investment income | 26,822 | 26,344 | 52,431 | 51,087 |
| Total interest income | 184,352 | 172,878 | 364,339 | 340,525 |
| Interest expense | 45,208 | 48,130 | 90,483 | 95,565 |
| Net interest income | 139,144 | 124,748 | 273,856 | 244,960 |
| Provision for credit losses | 4,607 | 4,117 | 10,243 | 10,807 |
| Net interest income after provision for credit losses | 134,537 | 120,631 | 263,613 | 234,153 |
| Deposit service and other banking fees | 20,098 | 19,086 | 40,809 | 37,194 |
| Mortgage banking | 1,191 | 972 | 2,291 | 1,970 |
| Employee benefit services | 34,877 | 32,380 | 69,449 | 65,002 |
| Insurance services | 13,195 | 13,388 | 25,781 | 27,589 |
| Wealth management services | 10,403 | 8,683 | 20,735 | 18,545 |
| Gain (loss) on equity securities | 4,710 | (1) | 4,309 | 244 |
| Loss from equity method investments | (463) | 0 | (789) | 0 |
| Total noninterest revenues | 84,011 | 74,508 | 162,585 | 150,544 |
| Salaries and employee benefits | 82,431 | 79,021 | 162,753 | 155,463 |
| Data processing and communications | 19,686 | 16,699 | 37,557 | 32,821 |
| Occupancy and equipment | 13,885 | 11,486 | 28,767 | 24,184 |
| Business development and marketing | 2,556 | 4,001 | 5,091 | 7,131 |
| Legal and professional fees | 4,314 | 4,368 | 9,384 | 9,217 |
| Amortization of intangible assets | 4,408 | 3,369 | 8,654 | 6,851 |
| Other | 10,453 | 10,158 | 18,563 | 18,725 |
| Total noninterest expenses | 137,733 | 129,102 | 270,769 | 254,392 |
| Income before income taxes | 80,815 | 66,037 | 155,429 | 130,305 |
| Income taxes | 19,481 | 14,706 | 36,877 | 29,360 |
| Net income | $61,334 | $51,331 | $118,552 | $100,945 |
| Basic earnings per share | $1.16 | $0.97 | $2.25 | $1.91 |
| Diluted earnings per share | $1.16 | $0.97 | $2.24 | $1.90 |

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Earnings |  |  |  |  |  |
| Loan income | $157,530 | $154,378 | $154,768 | $152,509 | $146,534 |
| Investment income | 26,822 | 25,609 | 26,699 | 24,774 | 26,344 |
| Total interest income | 184,352 | 179,987 | 181,467 | 177,283 | 172,878 |
| Interest expense | 45,208 | 45,275 | 48,042 | 49,118 | 48,130 |
| Net interest income | 139,144 | 134,712 | 133,425 | 128,165 | 124,748 |
| Provision for credit losses | 4,607 | 5,636 | 4,979 | 5,564 | 4,117 |
| Net interest income after provision for credit losses | 134,537 | 129,076 | 128,446 | 122,601 | 120,631 |
| Deposit service and other banking fees | 20,098 | 20,711 | 23,209 | 19,980 | 19,086 |
| Mortgage banking | 1,191 | 1,100 | 385 | 1,180 | 972 |
| Employee benefit services | 34,877 | 34,572 | 36,564 | 34,408 | 32,380 |
| Insurance services | 13,195 | 12,586 | 12,684 | 14,137 | 13,388 |
| Wealth management services | 10,403 | 10,332 | 9,574 | 8,946 | 8,683 |
| Gain (loss) on equity securities | 4,710 | (401) | (105) | 236 | (1) |
| Loss from equity method investments | (463) | (326) | (285) | 0 | 0 |
| Total noninterest revenues | 84,011 | 78,574 | 82,026 | 78,887 | 74,508 |
| Salaries and employee benefits | 82,431 | 80,322 | 81,920 | 76,532 | 79,021 |
| Data processing and communications | 19,686 | 17,871 | 18,221 | 19,119 | 16,699 |
| Occupancy and equipment | 13,885 | 14,882 | 12,646 | 11,419 | 11,486 |
| Business development and marketing | 2,556 | 2,535 | 3,419 | 4,585 | 4,001 |
| Legal and professional fees | 4,314 | 5,070 | 4,212 | 4,469 | 4,368 |
| Amortization of intangible assets | 4,408 | 4,246 | 3,737 | 3,258 | 3,369 |
| Other | 10,453 | 8,110 | 14,397 | 8,937 | 10,158 |
| Total noninterest expenses | 137,733 | 133,036 | 138,552 | 128,319 | 129,102 |
| Income before income taxes | 80,815 | 74,614 | 71,920 | 73,169 | 66,037 |
| Income taxes | 19,481 | 17,396 | 17,498 | 18,081 | 14,706 |
| Net income | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Basic earnings per share | $1.16 | $1.08 | $1.03 | $1.04 | $0.97 |
| Diluted earnings per share | $1.16 | $1.08 | $1.03 | $1.04 | $0.97 |
| Profitability (GAAP) |  |  |  |  |  |
| Return on assets (GAAP) | 1.40% | 1.33% | 1.26% | 1.30% | 1.24% |
| Return on equity (GAAP) | 12.10% | 11.51% | 11.04% | 11.62% | 11.21% |
| Noninterest revenues/total revenues (GAAP) | 37.6% | 36.8% | 38.1% | 38.1% | 37.4% |
| Efficiency ratio (GAAP) | 61.7% | 62.4% | 64.3% | 62.0% | 64.8% |
| Profitability (non-GAAP) |  |  |  |  |  |
| Operating return on assets (non-GAAP) | 1.40% | 1.42% | 1.38% | 1.38% | 1.34% |
| Operating return on equity (non-GAAP) | 12.13% | 12.30% | 12.08% | 12.25% | 12.10% |
| Return on tangible equity (non-GAAP) | 22.91% | 21.96% | 20.88% | 22.27% | 22.09% |
| Operating return on tangible equity (non-GAAP) | 21.76% | 22.19% | 21.70% | 22.43% | 22.63% |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) | 36.2% | 36.8% | 37.9% | 37.9% | 37.2% |
| Operating efficiency ratio (non-GAAP) | 60.6% | 59.8% | 61.0% | 59.9% | 62.0% |

Summary
of Financial Data (unaudited)

(Dollars
in thousands, except per share data)

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Components of Net Interest Margin (FTE) |  |  |  |  |  |
| Loan yield | 5.66% | 5.68% | 5.68% | 5.68% | 5.63% |
| Cash equivalents yield | 3.60% | 3.61% | 3.84% | 3.92% | 4.33% |
| Investment yield | 2.17% | 2.10% | 2.14% | 2.12% | 2.17% |
| Earning asset yield | 4.61% | 4.60% | 4.60% | 4.59% | 4.56% |
| Interest-bearing deposit rate | 1.44% | 1.47% | 1.55% | 1.59% | 1.59% |
| Borrowing rate | 3.63% | 3.55% | 3.57% | 3.82% | 3.56% |
| Cost of all interest-bearing funds | 1.56% | 1.59% | 1.68% | 1.76% | 1.74% |
| Cost of total deposits | 1.07% | 1.10% | 1.15% | 1.17% | 1.19% |
| Cost of funds (includes noninterest-bearing deposits) | 1.18% | 1.20% | 1.27% | 1.33% | 1.32% |
| Net interest margin | 3.46% | 3.43% | 3.37% | 3.30% | 3.27% |
| Net interest margin (FTE) (non-GAAP) | 3.49% | 3.45% | 3.39% | 3.33% | 3.30% |
| Fully tax-equivalent adjustment (non-GAAP) | $893 | $850 | $875 | $880 | $884 |
| Average Balances |  |  |  |  |  |
| Loans | $11,177,112 | $11,029,905 | $10,819,267 | $10,664,241 | $10,455,637 |
| Cash equivalents | 221,063 | 230,593 | 223,700 | 46,550 | 159,688 |
| Taxable investment securities | 4,294,350 | 4,272,245 | 4,266,451 | 4,268,660 | 4,256,943 |
| Nontaxable investment securities | 420,288 | 407,433 | 411,771 | 413,663 | 417,323 |
| Total interest-earning assets | 16,112,813 | 15,940,176 | 15,721,189 | 15,393,114 | 15,289,591 |
| Total assets | 17,621,066 | 17,468,804 | 17,179,984 | 16,755,095 | 16,590,741 |
| Interest checking, savings and money market deposits | 8,857,654 | 8,685,727 | 8,470,840 | 8,086,979 | 8,094,208 |
| Time deposits | 2,102,360 | 2,185,114 | 2,138,368 | 2,088,861 | 2,125,683 |
| Customer repurchase agreements | 190,610 | 214,361 | 220,670 | 187,845 | 240,817 |
| Overnight borrowings | 15,709 | 9,406 | 37,554 | 151,495 | 16,408 |
| FHLB and other borrowings | 437,956 | 450,643 | 462,991 | 531,979 | 587,523 |
| Total interest-bearing liabilities | 11,604,289 | 11,545,251 | 11,330,423 | 11,047,159 | 11,064,639 |
| Noninterest-bearing deposits | 3,799,141 | 3,703,510 | 3,702,200 | 3,640,964 | 3,522,734 |
| Shareholders' equity | 2,032,654 | 2,016,141 | 1,955,306 | 1,881,116 | 1,836,965 |

### Summary of Financial Data (unaudited)

**(Dollars in thousands, except per
share data)**

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Balance Sheet Data |  |  |  |  |  |
| Cash and cash equivalents | $258,174 | $572,173 | $301,755 | $245,247 | $237,248 |
| Investment securities: |  |  |  |  |  |
| Available-for-sale | 2,957,963 | 2,848,132 | 2,875,341 | 2,859,312 | 2,832,370 |
| Held-to-maturity | 1,478,386 | 1,460,750 | 1,454,166 | 1,442,308 | 1,430,991 |
| Equity and other | 87,857 | 81,717 | 77,252 | 78,944 | 86,709 |
| Total investment securities | 4,524,206 | 4,390,599 | 4,406,759 | 4,380,564 | 4,350,070 |
| Loans: |  |  |  |  |  |
| Business lending | 5,040,619 | 4,883,451 | 4,733,867 | 4,663,878 | 4,541,192 |
| Consumer mortgage | 3,629,301 | 3,619,067 | 3,617,186 | 3,544,277 | 3,523,025 |
| Consumer indirect | 1,871,343 | 1,894,011 | 1,859,354 | 1,834,766 | 1,767,213 |
| Home equity | 539,174 | 534,439 | 533,755 | 510,933 | 494,183 |
| Consumer direct | 202,387 | 200,216 | 205,595 | 196,408 | 193,504 |
| Total loans | 11,282,824 | 11,131,184 | 10,949,757 | 10,750,262 | 10,519,117 |
| Allowance for credit losses | 91,696 | 90,193 | 87,921 | 84,944 | 81,851 |
| Goodwill and intangible assets, net | 963,694 | 943,314 | 942,716 | 899,967 | 898,381 |
| Other assets | 826,568 | 797,782 | 790,230 | 766,708 | 742,053 |
| Total assets | 17,763,770 | 17,744,859 | 17,303,296 | 16,957,804 | 16,665,018 |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing | 3,872,611 | 3,732,720 | 3,683,442 | 3,686,772 | 3,588,602 |
| Non-maturity interest-bearing | 8,767,234 | 8,997,532 | 8,497,337 | 8,337,797 | 8,010,808 |
| Time | 2,070,564 | 2,139,870 | 2,206,306 | 2,032,281 | 2,102,358 |
| Total deposits | 14,710,409 | 14,870,122 | 14,387,085 | 14,056,850 | 13,701,768 |
| Customer repurchase agreements | 157,577 | 201,027 | 231,163 | 224,169 | 180,621 |
| Other borrowings | 606,520 | 446,319 | 458,770 | 539,180 | 713,839 |
| Accrued interest and other liabilities | 216,499 | 203,399 | 220,244 | 198,655 | 185,699 |
| Total liabilities | 15,691,005 | 15,720,867 | 15,297,262 | 15,018,854 | 14,781,927 |
| Shareholders' equity | 2,072,765 | 2,023,992 | 2,006,034 | 1,938,950 | 1,883,091 |
| Total liabilities and shareholders' equity | 17,763,770 | 17,744,859 | 17,303,296 | 16,957,804 | 16,665,018 |
| Capital and Other |  |  |  |  |  |
| Shareholders’ equity/total assets (GAAP) | 11.67% | 11.41% | 11.59% | 11.43% | 11.30% |
| Tangible equity/tangible assets (non-GAAP) | 6.86% | 6.68% | 6.75% | 6.73% | 6.51% |
| Tier 1 leverage ratio | 9.26% | 9.20% | 9.21% | 9.46% | 9.42% |
| Loan-to-deposit ratio | 76.7% | 74.9% | 76.1% | 76.5% | 76.8% |
| Diluted weighted average common shares outstanding | 52,915 | 52,967 | 52,959 | 53,036 | 53,117 |
| Period end common shares outstanding | 52,598 | 52,537 | 52,682 | 52,662 | 52,869 |
| Cash dividends declared per common share | $0.47 | $0.47 | $0.47 | $0.47 | $0.46 |
| Book value (GAAP) | $39.41 | $38.53 | $38.08 | $36.82 | $35.62 |
| Tangible book value (non-GAAP) | $21.96 | $21.40 | $21.02 | $20.57 | $19.46 |
| Common stock price at quarter-end | $67.12 | $58.65 | $57.44 | $58.64 | $56.87 |

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Asset Quality |  |  |  |  |  |
| Nonaccrual loans | $49,690 | $47,103 | $49,509 | $49,327 | $45,808 |
| Accruing loans 90+ days delinquent | 7,112 | 6,595 | 6,948 | 6,730 | 7,519 |
| Total nonperforming loans | 56,802 | 53,698 | 56,457 | 56,057 | 53,327 |
| Other real estate owned | 7,699 | 8,134 | 8,209 | 7,851 | 7,954 |
| Total nonperforming assets | 64,501 | 61,832 | 64,666 | 63,908 | 61,281 |
| Net charge-offs | 3,297 | 2,972 | 2,328 | 2,471 | 5,114 |
| Allowance for credit losses/loans outstanding | 0.81% | 0.81% | 0.80% | 0.79% | 0.78% |
| Nonperforming loans/loans outstanding | 0.50% | 0.48% | 0.52% | 0.52% | 0.51% |
| Allowance for credit losses/nonperforming loans | 161% | 168% | 156% | 152% | 153% |
| Net charge-offs/average loans | 0.12% | 0.11% | 0.09% | 0.09% | 0.20% |
| Delinquent loans/ending loans | 1.04% | 1.12% | 1.10% | 1.00% | 1.01% |
| Provision for credit losses/net charge-offs | 140% | 190% | 214% | 225% | 80% |
| Nonperforming assets/total assets | 0.36% | 0.35% | 0.37% | 0.38% | 0.37% |
| Quarterly GAAP to Non-GAAP Reconciliations |  |  |  |  |  |
| Operating pre-tax, pre-provision net revenue (non-GAAP) |  |  |  |  |  |
| Net income (GAAP) | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Income taxes | 19,481 | 17,396 | 17,498 | 18,081 | 14,706 |
| Income before income taxes | 80,815 | 74,614 | 71,920 | 73,169 | 66,037 |
| Provision for credit losses | 4,607 | 5,636 | 4,979 | 5,564 | 4,117 |
| Pre-tax, pre-provision net revenue (non-GAAP) | 85,422 | 80,250 | 76,899 | 78,733 | 70,154 |
| Acquisition expenses | 231 | 433 | 2,848 | 747 | 67 |
| Acquisition-related contingent consideration adjustments | (103) | 0 | 0 | 0 | 0 |
| Restructuring expenses | 0 | 0 | (26) | 0 | 1,525 |
| Litigation accrual | 335 | 0 | 0 | 0 | 0 |
| (Gain) loss on equity securities | (4,710) | 401 | 105 | (236) | 1 |
| Amortization of intangible assets | 4,408 | 4,246 | 3,737 | 3,258 | 3,369 |
| Operating pre-tax, pre-provision net revenue (non-GAAP) | $85,583 | $85,330 | $83,563 | $82,502 | $75,116 |
| Operating pre-tax, pre-provision net revenue per share (non-GAAP) |  |  |  |  |  |
| Diluted earnings per share (GAAP) | $1.16 | $1.08 | $1.03 | $1.04 | $0.97 |
| Income taxes | 0.37 | 0.33 | 0.33 | 0.34 | 0.27 |
| Income before income taxes | 1.53 | 1.41 | 1.36 | 1.38 | 1.24 |
| Provision for credit losses | 0.09 | 0.11 | 0.10 | 0.11 | 0.08 |
| Pre-tax, pre-provision net revenue per share (non-GAAP) | 1.62 | 1.52 | 1.46 | 1.49 | 1.32 |
| Acquisition expenses | 0.00 | 0.01 | 0.05 | 0.01 | 0.00 |
| Acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Restructuring expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 |
| Litigation accrual | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| (Gain) loss on equity securities | (0.09) | 0.00 | 0.00 | 0.00 | 0.00 |
| Amortization of intangible assets | 0.08 | 0.08 | 0.07 | 0.06 | 0.06 |
| Operating pre-tax, pre-provision net revenue per share (non-GAAP) | $1.62 | $1.61 | $1.58 | $1.56 | $1.41 |

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |  |  |  |  |  |
| Operating net income (non-GAAP) |  |  |  |  |  |
| Net income (GAAP) | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Acquisition expenses | 231 | 433 | 2,848 | 747 | 67 |
| Tax effect of acquisition expenses | (53) | (99) | (658) | (155) | (12) |
| Subtotal (non-GAAP) | 61,512 | 57,552 | 56,612 | 55,680 | 51,386 |
| Acquisition-related contingent consideration adjustments | (103) | 0 | 0 | 0 | 0 |
| Tax effect of acquisition-related contingent consideration adjustments | 24 | 0 | 0 | 0 | 0 |
| Subtotal (non-GAAP) | 61,433 | 57,552 | 56,612 | 55,680 | 51,386 |
| Restructuring expenses | 0 | 0 | (26) | 0 | 1,525 |
| Tax effect of restructuring expenses | 0 | 0 | 6 | 0 | (274) |
| Subtotal (non-GAAP) | 61,433 | 57,552 | 56,592 | 55,680 | 52,637 |
| Litigation accrual | 335 | 0 | 0 | 0 | 0 |
| Tax effect of litigation accrual | (78) | 0 | 0 | 0 | 0 |
| Subtotal (non-GAAP) | 61,690 | 57,552 | 56,592 | 55,680 | 52,637 |
| (Gain) loss on equity securities | (4,710) | 401 | 105 | (236) | 1 |
| Tax effect of (gain) loss on equity securities | 1,090 | (91) | (24) | 49 | 0 |
| Subtotal (non-GAAP) | 58,070 | 57,862 | 56,673 | 55,493 | 52,638 |
| Amortization of intangible assets | 4,408 | 4,246 | 3,737 | 3,258 | 3,369 |
| Tax effect of amortization of intangible assets | (1,020) | (967) | (863) | (677) | (605) |
| Operating net income (non-GAAP) | $61,458 | $61,141 | $59,547 | $58,074 | $55,402 |
| Operating diluted earnings per share (non-GAAP) |  |  |  |  |  |
| Diluted earnings per share (GAAP) | $1.16 | $1.08 | $1.03 | $1.04 | $0.97 |
| Acquisition expenses | 0.00 | 0.01 | 0.05 | 0.01 | 0.00 |
| Tax effect of acquisition expenses | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 |
| Subtotal (non-GAAP) | 1.16 | 1.09 | 1.07 | 1.05 | 0.97 |
| Acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Tax effect of acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Subtotal (non-GAAP) | 1.16 | 1.09 | 1.07 | 1.05 | 0.97 |
| Restructuring expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 |
| Tax effect of restructuring expenses | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| Subtotal (non-GAAP) | 1.16 | 1.09 | 1.07 | 1.05 | 0.99 |
| Litigation accrual | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| Tax effect of litigation accrual | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Subtotal (non-GAAP) | 1.17 | 1.09 | 1.07 | 1.05 | 0.99 |
| (Gain) loss on equity securities | (0.09) | 0.00 | 0.00 | 0.00 | 0.00 |
| Tax effect of (gain) loss on equity securities | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Subtotal (non-GAAP) | 1.10 | 1.09 | 1.07 | 1.05 | 0.99 |
| Amortization of intangible assets | 0.08 | 0.08 | 0.07 | 0.06 | 0.06 |
| Tax effect of amortization of intangible assets | (0.02) | (0.02) | (0.02) | (0.02) | (0.01) |
| Operating diluted earnings per share (non-GAAP) | $1.16 | $1.15 | $1.12 | $1.09 | $1.04 |

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | 2026 2025 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |  |  |  |  |  |
| Return on assets |  |  |  |  |  |
| Net income (GAAP) | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Average total assets | 17,621,066 | 17,468,804 | 17,179,984 | 16,755,095 | 16,590,741 |
| Return on assets (GAAP) | 1.40% | 1.33% | 1.26% | 1.30% | 1.24% |
| Operating return on assets (non-GAAP) |  |  |  |  |  |
| Operating net income (non-GAAP) | $61,458 | $61,141 | $59,547 | $58,074 | $55,402 |
| Average total assets | 17,621,066 | 17,468,804 | 17,179,984 | 16,755,095 | 16,590,741 |
| Operating return on assets (non-GAAP) | 1.40% | 1.42% | 1.38% | 1.38% | 1.34% |
| Return on equity |  |  |  |  |  |
| Net income (GAAP) | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Average total equity | 2,032,654 | 2,016,141 | 1,955,306 | 1,881,116 | 1,836,965 |
| Return on equity (GAAP) | 12.10% | 11.51% | 11.04% | 11.62% | 11.21% |
| Operating return on equity (non-GAAP) |  |  |  |  |  |
| Operating net income (non-GAAP) | $61,458 | $61,141 | $59,547 | $58,074 | $55,402 |
| Average total equity | 2,032,654 | 2,016,141 | 1,955,306 | 1,881,116 | 1,836,965 |
| Operating return on equity (non-GAAP) | 12.13% | 12.30% | 12.08% | 12.25% | 12.10% |
| Net interest margin |  |  |  |  |  |
| Net interest income | $139,144 | $134,712 | $133,425 | $128,165 | $124,748 |
| Total average interest-earning assets | 16,112,813 | 15,940,176 | 15,721,189 | 15,393,114 | 15,289,591 |
| Net interest margin | 3.46% | 3.43% | 3.37% | 3.30% | 3.27% |
| Net interest margin (FTE) (non-GAAP) |  |  |  |  |  |
| Net interest income | $139,144 | $134,712 | $133,425 | $128,165 | $124,748 |
| Fully tax-equivalent adjustment (non-GAAP) | 893 | 850 | 875 | 880 | 884 |
| Fully tax-equivalent net interest income (non-GAAP) | 140,037 | 135,562 | 134,300 | 129,045 | 125,632 |
| Total average interest-earning assets | 16,112,813 | 15,940,176 | 15,721,189 | 15,393,114 | 15,289,591 |
| Net interest margin (FTE) (non-GAAP) | 3.49% | 3.45% | 3.39% | 3.33% | 3.30% |
| Operating noninterest revenues (non-GAAP) |  |  |  |  |  |
| Noninterest revenues (GAAP) | $84,011 | $78,574 | $82,026 | $78,887 | $74,508 |
| (Gain) loss on equity securities | (4,710) | 401 | 105 | (236) | 1 |
| Total operating noninterest revenues (non-GAAP) | $79,301 | $78,975 | $82,131 | $78,651 | $74,509 |
| Operating noninterest expenses (non-GAAP) |  |  |  |  |  |
| Noninterest expenses (GAAP) | $137,733 | $133,036 | $138,552 | $128,319 | $129,102 |
| Acquisition expenses | (231) | (433) | (2,848) | (747) | (67) |
| Acquisition-related contingent consideration adjustments | 103 | 0 | 0 | 0 | 0 |
| Restructuring expenses | 0 | 0 | 26 | 0 | (1,525) |
| Litigation accrual | (335) | 0 | 0 | 0 | 0 |
| Amortization of intangible assets | (4,408) | (4,246) | (3,737) | (3,258) | (3,369) |
| Total operating noninterest expenses (non-GAAP) | $132,862 | $128,357 | $131,993 | $124,314 | $124,141 |

Summary
of Financial Data (unaudited)

(Dollars
in thousands, except per share data)

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |  |  |  |  |  |
| Operating revenues (non-GAAP) |  |  |  |  |  |
| Net interest income (GAAP) | $139,144 | $134,712 | $133,425 | $128,165 | $124,748 |
| Noninterest revenues (GAAP) | 84,011 | 78,574 | 82,026 | 78,887 | 74,508 |
| Total revenues (GAAP) | 223,155 | 213,286 | 215,451 | 207,052 | 199,256 |
| (Gain) loss on equity securities | (4,710) | 401 | 105 | (236) | 1 |
| Total operating revenues (non-GAAP) | $218,445 | $213,687 | $215,556 | $206,816 | $199,257 |
| Noninterest revenues/total revenues |  |  |  |  |  |
| Total noninterest revenues (GAAP) – numerator | $84,011 | $78,574 | $82,026 | $78,887 | $74,508 |
| Total revenues (GAAP) – denominator | 223,155 | 213,286 | 215,451 | 207,052 | 199,256 |
| Noninterest revenues/total revenues (GAAP) | 37.6% | 36.8% | 38.1% | 38.1% | 37.4% |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) |  |  |  |  |  |
| Total operating noninterest revenues (non-GAAP) – numerator | $79,301 | $78,975 | $82,131 | $78,651 | $74,509 |
| Total operating revenues (non-GAAP) | 218,445 | 213,687 | 215,556 | 206,816 | 199,257 |
| Fully tax-equivalent adjustment (non-GAAP) | 893 | 850 | 875 | 880 | 884 |
| Total operating revenues (FTE) (non-GAAP) – denominator | 219,338 | 214,537 | 216,431 | 207,696 | 200,141 |
| Operating noninterest revenues/operating revenues (FTE) (non- GAAP) | 36.2% | 36.8% | 37.9% | 37.9% | 37.2% |
| Efficiency ratio (GAAP) |  |  |  |  |  |
| Total noninterest expenses (GAAP) – numerator | $137,733 | $133,036 | $138,552 | $128,319 | $129,102 |
| Total revenues (GAAP) – denominator | 223,155 | 213,286 | 215,451 | 207,052 | 199,256 |
| Efficiency ratio (GAAP) | 61.7% | 62.4% | 64.3% | 62.0% | 64.8% |
| Operating efficiency ratio (non-GAAP) |  |  |  |  |  |
| Total operating noninterest expenses (non-GAAP) - numerator | $132,862 | $128,357 | $131,993 | $124,314 | $124,141 |
| Total operating revenues (FTE) (non-GAAP) - denominator | 219,338 | 214,537 | 216,431 | 207,696 | 200,141 |
| Operating efficiency ratio (non-GAAP) | 60.6% | 59.8% | 61.0% | 59.9% | 62.0% |
| Total tangible assets (non-GAAP) |  |  |  |  |  |
| Total assets (GAAP) | $17,763,770 | $17,744,859 | $17,303,296 | $16,957,804 | $16,665,018 |
| Goodwill and intangible assets, net | (963,694) | (943,314) | (942,716) | (899,967) | (898,381) |
| Deferred taxes on goodwill and intangible assets, net | 45,873 | 43,752 | 43,905 | 44,130 | 44,336 |
| Total tangible assets (non-GAAP) | $16,845,949 | $16,845,297 | $16,404,485 | $16,101,967 | $15,810,973 |
| Total tangible common equity (non-GAAP) |  |  |  |  |  |
| Shareholders' equity (GAAP) | $2,072,765 | $2,023,992 | $2,006,034 | $1,938,950 | $1,883,091 |
| Goodwill and intangible assets, net | (963,694) | (943,314) | (942,716) | (899,967) | (898,381) |
| Deferred taxes on goodwill and intangible assets, net | 45,873 | 43,752 | 43,905 | 44,130 | 44,336 |
| Total tangible common equity (non-GAAP) | $1,154,944 | $1,124,430 | $1,107,223 | $1,083,113 | $1,029,046 |

Summary
of Financial Data (unaudited)

(Dollars
in thousands, except per share data)

|  | 2026 | 2025 |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr |
| Quarterly GAAP to Non-GAAP Reconciliations |  |  |  |  |  |
| Shareholders’ equity-to-assets ratio at quarter end |  |  |  |  |  |
| Total shareholders’ equity (GAAP) – numerator | $2,072,765 | $2,023,992 | $2,006,034 | $1,938,950 | $1,883,091 |
| Total assets (GAAP) – denominator | 17,763,770 | 17,744,859 | 17,303,296 | 16,957,804 | 16,665,018 |
| Shareholders’ equity-to-assets ratio at quarter end (GAAP) | 11.67% | 11.41% | 11.59% | 11.43% | 11.30% |
| Tangible equity-to-tangible assets ratio at quarter end (non-GAAP) |  |  |  |  |  |
| Total tangible common equity (non-GAAP) - numerator | $1,154,944 | $1,124,430 | $1,107,223 | $1,083,113 | $1,029,046 |
| Total tangible assets (non-GAAP) - denominator | 16,845,949 | 16,845,297 | 16,404,485 | 16,101,967 | 15,810,973 |
| Tangible equity-to-tangible assets ratio at quarter end (non-GAAP) | 6.86% | 6.68% | 6.75% | 6.73% | 6.51% |
| Return on tangible equity (non-GAAP) |  |  |  |  |  |
| Net income (GAAP) | $61,334 | $57,218 | $54,422 | $55,088 | $51,331 |
| Amortization of intangible assets, net of tax | 3,388 | 3,279 | 2,874 | 2,581 | 2,764 |
| Net income, excluding amortization of intangible assets (non-GAAP) | 64,722 | 60,497 | 57,296 | 57,669 | 54,095 |
| Average shareholders’ equity | 2,032,654 | 2,016,141 | 1,955,306 | 1,881,116 | 1,836,965 |
| Average goodwill and intangible assets, net | (944,432) | (942,701) | (910,627) | (897,943) | (899,416) |
| Average deferred taxes on goodwill and intangible assets, net | 44,813 | 43,829 | 44,018 | 44,233 | 44,490 |
| Average tangible common equity (non-GAAP) | 1,133,035 | 1,117,269 | 1,088,697 | 1,027,406 | 982,039 |
| Return on tangible equity (non-GAAP) | 22.91% | 21.96% | 20.88% | 22.27% | 22.09% |
| Operating return on tangible equity (non-GAAP) |  |  |  |  |  |
| Operating net income (non-GAAP) | $61,458 | $61,141 | $59,547 | $58,074 | $55,402 |
| Average tangible common equity (non-GAAP) | 1,133,035 | 1,117,269 | 1,088,697 | 1,027,406 | 982,039 |
| Operating return on tangible equity (non-GAAP) | 21.76% | 22.19% | 21.70% | 22.43% | 22.63% |
| Book value (GAAP) |  |  |  |  |  |
| Total shareholders’ equity (GAAP) – numerator | $2,072,765 | $2,023,992 | $2,006,034 | $1,938,950 | $1,883,091 |
| Period end common shares outstanding – denominator | 52,598 | 52,537 | 52,682 | 52,662 | 52,869 |
| Book value (GAAP) | $39.41 | $38.53 | $38.08 | $36.82 | $35.62 |
| Tangible book value (non-GAAP) |  |  |  |  |  |
| Total tangible common equity (non-GAAP) – numerator | $1,154,944 | $1,124,430 | $1,107,223 | $1,083,113 | $1,029,046 |
| Period end common shares outstanding – denominator | 52,598 | 52,537 | 52,682 | 52,662 | 52,869 |
| Tangible book value (non-GAAP) | $21.96 | $21.40 | $21.02 | $20.57 | $19.46 |

|  | 2026 | 2025 |  |
| --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 2nd Qtr |
| Quarterly Segment Information Reconciliations |  |  |  |
| Reconciliation of total segment adjusted income before income taxes to total consolidated income before income taxes |  |  |  |
| Total segment adjusted income before income taxes | $80,976 | $79,694 | $70,999 |
| Gain (loss) on equity securities | 4,710 | (401) | (1) |
| Amortization of intangible assets | (4,408) | (4,246) | (3,369) |
| Restructuring expenses | 0 | 0 | (1,525) |
| Litigation accrual | (335) | 0 | 0 |
| Acquisition-related contingent consideration adjustments | 103 | 0 | 0 |
| Acquisition expenses | (231) | (433) | (67) |
| Total consolidated income before income taxes | $80,815 | $74,614 | $66,037 |

**Summary
of Financial Data (unaudited)**

**(Dollars
in thousands, except per share data)**

|  | 2026 | 2025 |  |
| --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 2nd Qtr |
| Quarterly Segment Information Reconciliations |  |  |  |
| Reconciliation of average total segment assets to average total consolidated assets |  |  |  |
| Average total segment assets | $17,761,380 | $17,593,896 | $16,706,798 |
| Elimination of intersegment cash and deposits | (140,314) | (125,092) | (116,057) |
| Average total consolidated assets | $17,621,066 | $17,468,804 | $16,590,741 |
| Banking and Corporate |  |  |  |
| Adjusted return on assets |  |  |  |
| Adjusted income before income taxes | $61,688 | $59,611 | $54,492 |
| Average segment assets | 17,340,916 | 17,192,358 | 16,367,824 |
| Adjusted return on assets | 1.43% | 1.41% | 1.34% |
| Adjusted return on equity |  |  |  |
| Adjusted income before income taxes | $61,688 | $59,611 | $54,492 |
| Average shareholders’ equity | 1,697,155 | 1,667,914 | 1,539,499 |
| Adjusted return on equity | 14.58% | 14.49% | 14.20% |
| Adjusted return on tangible equity (non-GAAP) |  |  |  |
| Adjusted income before income taxes | $61,688 | $59,611 | $54,492 |
| Average shareholders’ equity | 1,697,155 | 1,667,914 | 1,539,499 |
| Average goodwill and intangible assets, net | (778,189) | (779,128) | (737,359) |
| Average deferred taxes on goodwill and intangible assets, net | 40,487 | 40,533 | 40,281 |
| Average tangible common equity (non-GAAP) | 959,453 | 929,319 | 842,421 |
| Adjusted return on tangible equity (non-GAAP) | 25.79% | 26.01% | 25.95% |
| Employee Benefit Services |  |  |  |
| Adjusted return on assets |  |  |  |
| Adjusted income before income taxes | $13,841 | $14,327 | $11,911 |
| Average segment assets | 222,977 | 249,917 | 233,553 |
| Adjusted return on assets | 24.90% | 23.25% | 20.46% |
| Adjusted return on equity |  |  |  |
| Adjusted income before income taxes | $13,841 | $14,327 | $11,911 |
| Average shareholders’ equity | 195,639 | 217,387 | 209,573 |
| Adjusted return on equity | 28.38% | 26.73% | 22.80% |
| Adjusted return on tangible equity (non-GAAP) |  |  |  |
| Adjusted income before income taxes | $13,841 | $14,327 | $11,911 |
| Average shareholders’ equity | 195,639 | 217,387 | 209,573 |
| Average goodwill and intangible assets, net | (107,934) | (109,742) | (113,475) |
| Average deferred taxes on goodwill and intangible assets, net | 2,670 | 3,127 | 4,200 |
| Average tangible common equity (non-GAAP) | 90,375 | 110,772 | 100,298 |
| Adjusted return on tangible equity (non-GAAP) | 61.43% | 52.45% | 47.63% |

Summary
of Financial Data (unaudited)

(Dollars
in thousands, except per share data)

|  | 2026 | 2025 |  |
| --- | --- | --- | --- |
|  | 2nd Qtr | 1st Qtr | 2nd Qtr |
| Quarterly Segment Information Reconciliations |  |  |  |
| Insurance Services |  |  |  |
| Adjusted return on assets |  |  |  |
| Adjusted income before income taxes | $2,005 | $1,849 | $2,247 |
| Average segment assets | 106,026 | 109,005 | 67,236 |
| Adjusted return on assets | 7.58% | 6.88% | 13.40% |
| Adjusted return on equity |  |  |  |
| Adjusted income before income taxes | $2,005 | $1,849 | $2,247 |
| Average shareholders’ equity | 92,051 | 93,172 | 53,762 |
| Adjusted return on equity | 8.74% | 8.05% | 16.76% |
| Adjusted return on tangible equity (non-GAAP) |  |  |  |
| Adjusted income before income taxes | $2,005 | $1,849 | $2,247 |
| Average shareholders’ equity | 92,051 | 93,172 | 53,762 |
| Average goodwill and intangible assets, net | (49,460) | (48,682) | (44,197) |
| Average deferred taxes on goodwill and intangible assets, net | (43) | (160) | (271) |
| Average tangible common equity (non-GAAP) | 42,548 | 44,330 | 9,294 |
| Adjusted return on tangible equity (non-GAAP) | 18.90% | 16.92% | 96.97% |
| Wealth Management Services |  |  |  |
| Adjusted return on assets |  |  |  |
| Adjusted income before income taxes | $3,442 | $3,907 | $2,349 |
| Average segment assets | 91,461 | 42,616 | 38,185 |
| Adjusted return on assets | 15.09% | 37.18% | 24.67% |
| Adjusted return on equity |  |  |  |
| Adjusted income before income taxes | $3,442 | $3,907 | $2,349 |
| Average shareholders’ equity | 47,809 | 37,668 | 34,131 |
| Adjusted return on equity | 28.88% | 42.07% | 27.60% |
| Adjusted return on tangible equity (non-GAAP) |  |  |  |
| Adjusted income before income taxes | $3,442 | $3,907 | $2,349 |
| Average shareholders’ equity | 47,809 | 37,668 | 34,131 |
| Average goodwill and intangible assets, net | (8,849) | (5,149) | (4,385) |
| Average deferred taxes on goodwill and intangible assets, net | 1,699 | 329 | 280 |
| Average tangible common equity (non-GAAP) | 40,659 | 32,848 | 30,026 |
| Adjusted return on tangible equity (non-GAAP) | 33.96% | 48.24% | 31.38% |

*# # #*

| | **News Release** For further information, please contact: |
| --- | --- |
| 333 Butternut Drive, Syracuse, N.Y. 13214 | Marya Burgio Wlos, EVP & Chief Financial Officer Office: (315) 299-2946 |