4. Community Bank System
Shares of Community Bank System (CBU) of DeWitt, N.Y., closed at $27.36 Monday, returning 2% during 2012, with a three-year total return of 33.5% and a five-year return of 70%.
The shares traded for 2.1 times tangible book value, and for 12.9 times the consensus 2013 EPS estimate of $2.13. The consensus 2014 EPS estimate is $2.15.
Based on Monday's close and a quarterly payout of 27 cents, the shares had a dividend yield of 3.95%.
For the first quarter of 2010 through the third quarter of 2012, Community Bank System's return on average tangible common equity was 19.36%.Community Bank System in the third quarter acquired 19 branches in Central, Western and Northern New York from First Niagara Financial Group (FNFG) and HSBC (HBC) for roughly $27 million, taking on $798 million in deposits and $160 million in loans. The company had $7.6 billion in total assets as of Sept. 30. Third-quarter earnings were $18.4 million, or 46 cents a share, declining from $21.1 million, or 53 cents a share, the previous quarter, and from $18.8 million, or 48 cents a share, a year earlier. The earnings decline mainly reflected expenses associated with the branch acquisitions. Third-quarter net interest income increased to $58.8 million from $57.88 million in the second quarter and $54.6 million in the third quarter of 2013 because of the branch acquisitions, along with growth in mortgage and auto loans, but the net interest margin narrowed to 3.79% from 3.96% the previous quarter and 4.04% a year earlier. CBU's third-quarter return on average tangible common equity was 14.09%. KBW analyst Damon DelMonte rates Community Bank System "Market Perform" with a $28 price target, saying in October after the third-quarter results were announced that "positive momentum continues for CBU as the bank once again posted record
Interested in more on Community Bank System? See TheStreet Ratings' report card for this stock.
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