Community Financial | 8-K: FY2026 Q1 Revenue: USD 213.29 M

Revenue: As of FY2026 Q1, the actual value is USD 213.29 M.EPS: As of FY2026 Q1, the actual value is USD 1.08, missing the estimate of USD 1.0867.EBIT: As of FY2026 Q1, the actual value is USD -54.46 M.Overall Performance (First Quarter 2026)Net Income (GAAP): $57.2 million, compared to $49.6 million in the first quarter of 2025, an increase of $7.6 million. On a linked-quarter basis, net income increased by $2.8 million from $54.4 million in the fourth quarter of 2025.Operating Net Income (non-GAAP): $61.1 million.Return on Assets (GAAP): 1.33%, an increase of 0.11% year-over-year from 1.22% in Q1 2025, and an increase of 0.07% quarter-over-quarter from 1.26% in Q4 2025.Operating Return on Assets (non-GAAP): 1.42%, an increase of 0.14% year-over-year from 1.28% in Q1 2025, and an increase of 0.04% quarter-over-quarter from 1.38% in Q4 2025.Return on Equity (GAAP): 11.51%, an increase of 0.23% year-over-year from 11.28% in Q1 2025, and an increase of 0.47% quarter-over-quarter from 11.04% in Q4 2025.Operating Return on Equity (non-GAAP): 12.30%, an increase of 0.46% year-over-year from 11.84% in Q1 2025, and an increase of 0.22% quarter-over-quarter from 12.08% in Q4 2025.RevenuesTotal Revenues (GAAP): $213,286 thousand, up $17,038 thousand (8.7%) year-over-year from $196,248 thousand in Q1 2025. Quarter-over-quarter, total revenues decreased by - $2,165 thousand (-1.0%) from $215,451 thousand in Q4 2025.Total Operating Revenues (FTE) (non-GAAP): $214,537 thousand, up $17,640 thousand (9.0%) year-over-year from $196,897 thousand in Q1 2025. Quarter-over-quarter, total operating revenues decreased by - $1,894 thousand (-0.9%) from $216,431 thousand in Q4 2025.Noninterest Revenues (GAAP): $78,574 thousand, up $2,538 thousand (3.3%) year-over-year from $76,036 thousand in Q1 2025. Quarter-over-quarter, noninterest revenues decreased by - $3,452 thousand (-4.2%) from $82,026 thousand in Q4 2025.Total Operating Noninterest Revenues (non-GAAP): $78,975 thousand, up $3,184 thousand (4.2%) year-over-year from $75,791 thousand in Q1 2025. Quarter-over-quarter, total operating noninterest revenues decreased by - $3,156 thousand (-3.8%) from $82,131 thousand in Q4 2025.Noninterest Revenues/Total Revenues (GAAP): 36.8%, a decrease of -1.9% year-over-year from 38.7% in Q1 2025, and a decrease of -1.3% quarter-over-quarter from 38.1% in Q4 2025.Operating Noninterest Revenues/Operating Revenues (FTE) (non-GAAP): 36.8%, a decrease of -1.7% year-over-year from 38.5% in Q1 2025, and a decrease of -1.1% quarter-over-quarter from 37.9% in Q4 2025.Net Interest Income and MarginNet Interest Income: $134,712 thousand, up $14,500 thousand (12.1%) year-over-year from $120,212 thousand in Q1 2025. Quarter-over-quarter, net interest income increased by $1,287 thousand (1.0%) from $133,425 thousand in Q4 2025.Net Interest Margin: 3.43%, up 0.22% year-over-year from 3.21% in Q1 2025, and up 0.06% quarter-over-quarter from 3.37% in Q4 2025.Net Interest Margin (FTE) (non-GAAP): 3.45%, up 0.21% year-over-year from 3.24% in Q1 2025, and up 0.06% quarter-over-quarter from 3.39% in Q4 2025.Yield on Interest-Earning Assets: 4.60%, up 0.09% year-over-year from 4.51% in Q1 2025, and consistent quarter-over-quarter from 4.60% in Q4 2025.Cost of Interest-Bearing Liabilities: 1.59%, down -0.16% year-over-year from 1.75% in Q1 2025, and down -0.09% quarter-over-quarter from 1.68% in Q4 2025.Cost of Total Deposits: 1.10%, down -0.07% year-over-year from 1.17% in Q1 2025, and down -0.05% quarter-over-quarter from 1.15% in Q4 2025.Cost of Funds: 1.20%, down -0.13% year-over-year from 1.33% in Q1 2025, and down -0.07% quarter-over-quarter from 1.27% in Q4 2025.Operational Metrics (Noninterest Expenses and Income Taxes)Total Noninterest Expenses (GAAP): $133,036 thousand, up $7,746 thousand (6.2%) year-over-year from $125,290 thousand in Q1 2025. Quarter-over-quarter, total noninterest expenses decreased by - $5,516 thousand (-4.0%) from $138,552 thousand in Q4 2025.Salaries and Employee Benefits: $80,322 thousand, up $3,880 thousand (5.1%) year-over-year from $76,442 thousand in Q1 2025.Occupancy and Equipment Expenses: $14,882 thousand, up $2,184 thousand (17.2%) year-over-year from $12,698 thousand in Q1 2025.Data Processing and Communications Expenses: $17,871 thousand, up $1,749 thousand (10.8%) year-over-year from $16,122 thousand in Q1 2025.Acquisition Expenses: $433 thousand in Q1 2026.Effective Tax Rate: 23.3% in Q1 2026, up from 22.8% in Q1 2025, and down from 24.3% in Q4 2025.Balance Sheet and FundingTotal Ending Loans: $11,131,184 thousand, up $710,043 thousand (6.8%) year-over-year from $10,421,141 thousand in Q1 2025. Quarter-over-quarter, total ending loans increased by $181,427 thousand (1.7%) from $10,949,757 thousand in Q4 2025.Total Ending Deposits: $14,870,122 thousand, up $978,075 thousand (7.0%) year-over-year from $13,892,047 thousand in Q1 2025. Quarter-over-quarter, total ending deposits increased by $483,037 thousand (3.4%) from $14,387,085 thousand in Q4 2025.Total Assets: $17.74 billion at March 31, 2026, up $980.6 million (5.8%) year-over-year from March 31, 2025, and up $441.6 million (2.6%) from December 31, 2025.Readily Available Sources of Liquidity: $6.83 billion at March 31, 2026, including $557.4 million in unrestricted cash and cash equivalents, $1.76 billion in unpledged investment securities, $1.62 billion in unused borrowing capacity at Federal Home Loan Bank of New York, and $2.89 billion in funding availability at the Federal Reserve Bank’s discount window.Estimated Insured Deposits: 81% of total ending deposits at March 31, 2026.Ending Borrowings: $647.3 million at March 31, 2026, down - $214.7 million (-24.9%) year-over-year from Q1 2025, and down - $42.6 million (-6.2%) quarter-over-quarter from Q4 2025.Shareholders’ Equity: $2.02 billion at March 31, 2026, up $189.9 million (10.4%) year-over-year from Q1 2025, and up $18.0 million (0.9%) quarter-over-quarter from Q4 2025.Shareholders’ Equity to Assets Ratio (GAAP): 11.41% at March 31, 2026, up from 10.94% at March 31, 2025, and down from 11.59% at December 31, 2025.Tangible Equity to Tangible Assets Ratio (non-GAAP): 6.68% at March 31, 2026, up from 6.15% at March 31, 2025, and down from 6.75% at December 31, 2025.Tier 1 Leverage Ratio: 9.20% at March 31, 2026, down -0.09% year-over-year from 9.29% in Q1 2025, and down -0.01% quarter-over-quarter from 9.21% in Q4 2025.Loan-to-Deposit Ratio: 74.9% at March 31, 2026, down -0.1% year-over-year from 75.0% in Q1 2025, and down -1.2% quarter-over-quarter from 76.1% in Q4 2025.Asset QualityProvision for Credit Losses: $5,636 thousand in Q1 2026, compared to $6,690 thousand in Q1 2025, a decrease of - $1,054 thousand (-15.8%) year-over-year. Quarter-over-quarter, it increased by $657 thousand (13.2%) from $4,979 thousand in Q4 2025.Allowance for Credit Losses: $90.2 million, or 0.81% of total loans outstanding, at March 31, 2026, compared to $82.8 million, or 0.79% of total loans outstanding, at March 31, 2025.Annualized Loan Net Charge-Offs: 0.11% in Q1 2026, compared to 0.13% in Q1 2025, a decrease of -0.02%. Quarter-over-quarter, it increased by 0.02% from 0.09% in Q4 2025.Total Delinquent Loans (30+ days past due and nonaccrual): 1.12% of total loans outstanding at March 31, 2026, compared to 1.29% at March 31, 2025, and 1.10% at December 31, 2025.Nonperforming Loans (90+ days delinquent and non-accruing): $53.7 million, or 0.48% of total loans outstanding at March 31, 2026, compared to $75.0 million, or 0.72% of total loans outstanding, one year earlier. This also decreased from $56.5 million, or 0.52% of total loans outstanding, at December 31, 2025.Non-owner occupied and multifamily commercial real estate (“CRE”) / total bank-level regulatory capital: 194% in Q1 2026, up 3% year-over-year from 191% in Q1 2025, and up 3% quarter-over-quarter from 191% in Q4 2025.Segment Revenue and Expenses (First Quarter 2026)Banking and Corporate:Net interest income: $133,550 thousand, up $14,111 thousand (11.8%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $1,138 thousand (0.9%) from Q4 2025.Segment noninterest revenues: $21,979 thousand, up $2,946 thousand (15.5%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $1,577 thousand (-6.7%) from Q4 2025.Other segment expenses: $90,282 thousand, up $4,773 thousand (5.6%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $2,240 thousand (-2.4%) from Q4 2025.Adjusted income before income taxes: $59,611 thousand, up $13,338 thousand (28.8%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $1,144 thousand (2.0%) from Q4 2025.Employee Benefit Services:Segment revenues: $36,311 thousand, up $2,195 thousand (6.4%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $2,080 thousand (-5.4%) from Q4 2025.Segment expenses: $21,984 thousand, up $1,308 thousand (6.3%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $410 thousand (-1.8%) from Q4 2025.Adjusted income before income taxes: $14,327 thousand, up $887 thousand (6.6%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $1,670 thousand (-10.4%) from Q4 2025.Insurance Services:Segment revenues: $12,331 thousand, down - $1,939 thousand (-13.6%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $144 thousand (-1.2%) from Q4 2025.Segment expenses: $10,482 thousand, up $320 thousand (3.1%) year-over-year from Q1 2025. Quarter-over-quarter, it decreased by - $1,064 thousand (-9.2%) from Q4 2025.Adjusted income before income taxes: $1,849 thousand, down - $2,259 thousand (-55.0%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $920 thousand (99.0%) from Q4 2025.Wealth Management Services:Segment revenues: $11,063 thousand, up $577 thousand (5.5%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $865 thousand (8.5%) from Q4 2025.Segment expenses: $7,156 thousand, up $305 thousand (4.5%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $149 thousand (2.1%) from Q4 2025.Adjusted income before income taxes: $3,907 thousand, up $272 thousand (7.5%) year-over-year from Q1 2025. Quarter-over-quarter, it increased by $716 thousand (22.4%) from Q4 2025.Outlook / GuidanceCommunity Financial System, Inc. anticipates strong earnings growth through the remainder of 2026, driven by organic momentum and positive impacts from margin and market values. The pending acquisition of ClearPoint Federal Bank & Trust is expected to close in Q2 2026, which will expand the Wealth Management Services segment’s revenue and offerings. Management aims to enhance operating leverage and ensure recent investments contribute to bottom-line results.