# EDGAR Filing Document

**Accession Number:** 0000723188
**File Stem:** 0001104659-25-069506
**Filing Date:** 2025-7
**Character Count:** 79388
**Document Hash:** bfa204cc974b3b47dd5ef9dbf14983a5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-069506.hdr.sgml**: 20250722

**ACCESSION NUMBER**: 0001104659-25-069506

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250722

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250722

**DATE AS OF CHANGE**: 20250722

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** COMMUNITY FINANCIAL SYSTEM, INC.
- **CENTRAL INDEX KEY:** 0000723188
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 161213679
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13695
- **FILM NUMBER:** 251139018

**BUSINESS ADDRESS:**
- **STREET 1:** 5790 WIDEWATERS PKWY
- **CITY:** DEWITT
- **STATE:** NY
- **ZIP:** 13214
- **BUSINESS PHONE:** 8007242262

**MAIL ADDRESS:**
- **STREET 1:** 5790 WIDEWATERS PARKWAY
- **CITY:** DEWITT
- **STATE:** NY
- **ZIP:** 13214

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COMMUNITY BANK SYSTEM, INC.
- **DATE OF NAME CHANGE:** 20130806

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COMMUNITY BANK NA, a subsidiary of Community Bank System Inc
- **DATE OF NAME CHANGE:** 20130729

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COMMUNITY BANK NA, a subsidiary of Community Bank System Inc.
- **DATE OF NAME CHANGE:** 20130726

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **July 22, 2025**

![](tm2521368d1_8kimg01.jpg)

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-13695** | **16-1213679** |
| (State or other jurisdiction of<br> incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **5790 Widewaters Parkway, DeWitt, New York** | **13214** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(315) 445-2282**

Not applicable.

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading<br> Symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, $1.00 par value per share | &nbsp;&nbsp;CBU | &nbsp;&nbsp;New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On July 22, 2025, Community Financial System, Inc. announced its results of operations for the second quarter ended June 30, 2025. The public announcement was made by means of a news release, the text of which is furnished as Exhibit 99.1.

The information in this Form 8-K, including Exhibit 99.1 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Exhibits**

The following exhibit is being furnished pursuant to Item 2.02 above.

[99.1](tm2521368d1_ex99-1.htm) [Press Release, dated July 22, 2025, issued by Community Financial System, Inc.](tm2521368d1_ex99-1.htm)

104 Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| **Community Financial System, Inc.** | **Community Financial System, Inc.** |
| By: | /s/ Marya Burgio Wlos |
| Name: Marya Burgio Wlos | Name: Marya Burgio Wlos |
| Title: Executive Vice President and Chief Financial Officer | Title: Executive Vice President and Chief Financial Officer |

---

Dated: July 22, 2025

**Exhibit Index**

---

| | |
|:---|:---|
| <u>Exhibit Number</u> | <u>Description</u> |
| [99.1](tm2521368d1_ex99-1.htm) | [Press Release, dated July 22, 2025, issued by Community Financial System, Inc.](tm2521368d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |

---

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| ![](tm2521368d1_ex99-1img001.jpg) | **<u>News Release</u>**<br> For further information, please contact: |
| 5790 Widewaters Parkway, DeWitt, N.Y. 13214 | Marya Burgio Wlos, EVP & Chief Financial Officer<br> Office: (315) 299-2946 |

---

**Community Financial System, Inc. Reports Second Quarter 2025 Results**

SYRACUSE, N.Y. — July 22, 2025 — Community Financial System, Inc. (the "Company") (NYSE: CBU) reported second quarter 2025 results that are included in the attached supplement. This earnings release and attached supplement are also available within the "News" section of the Company's investor relations website at <u>https://communityfinancialsystem.com/news</u>. A replay of the earnings call webcast will also be available on this site for at least one year.

<u>Second Quarter 2025 Performance Summary</u>

· *Net income of $51.3 million, or $0.97 per share, increased $0.06 per share from the prior year's second quarter and increased $0.04 per share from the first quarter of 2025* 

· *Operating net income<sup>1</sup> of $55.4 million, or $1.04 per share, increased $0.09 per share from the prior year's second quarter and increased $0.06 per share from the first quarter of 2025* 

· *Total revenues of $199.3 million, a new quarterly record for the Company, increased $15.5 million, or 8.4%, from the prior year's second quarter and increased $3.0 million, or 1.5%, from the first quarter of 2025* 

· *Net interest income of $124.7 million, a new quarterly record for the Company, increased $15.3 million, or 14.0%, from the prior year's second quarter and increased $4.5 million, or 3.8%, from the first quarter of 2025* 

· *Total non-bank financial services (employee benefit services, insurance services and wealth management services) noninterest revenues of $54.5 million, increased $0.3 million, or 0.6%, from the prior year's second quarter and decreased $2.2 million, or 3.9%, from the first quarter of 2025* 

· *Operating pre-tax, pre-provision net revenue ("PPNR")<sup>1</sup>of $75.1 million, or $1.41 per share, increased $0.12 per share from the prior year's second quarter and increased $0.01 per share from the first quarter of 2025* 

· *Total ending loans of $10.52 billion increased $98.0 million, or 0.9%, from the end of the first quarter of 2025 and increased $495.3 million, or 4.9%, from the end of the prior year's second quarter* 

· *Total ending deposits of $13.70 billion decreased $190.3 million, or 1.4%, from the end of the first quarter of 2025 and increased $563.9 million, or 4.3%, from the end of the prior year's second quarter* 

*<sup>1</sup>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 included within the Company's earnings release supplement.*

Company management will host a conference call at 11:00 a.m. (ET) today, July 22, 2025, to discuss the second quarter 2025 results. The conference call can be accessed at <u>https://app.webinar.net/n7jl8918GAN</u> or via dial-in at 1-833-630-0464 (1-412-317-1809 if outside the United States and Canada).

**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 $16 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. 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 66 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 <u>https://communityfinancialsystem.com</u>.

---

| | |
|:---|:---|
| ![](tm2521368d1_ex99-1img001.jpg) | **<u>News Release</u>**<br> For further information, please contact: |
| 5790 Widewaters Parkway, DeWitt, N.Y. 13214 | Marya Burgio Wlos, EVP & Chief Financial Officer<br> Office: (315) 299-2946 |

---

**Community Financial System, Inc. Reports Second Quarter 2025 Results**

SYRACUSE, N.Y. — July 22, 2025

Community Financial System, Inc. (the "Company") (NYSE: CBU) reported second quarter 2025 net income of $51.3 million, or $0.97 per share and operating net income<sup>1</sup> of $55.4 million, or $1.04 per share.

&nbsp;&nbsp;"Our Company continued to expand its solid core operating performance with meaningful growth in net income, operating net income<sup>1</sup> and operating pre-tax, pre-provision net revenue ("PPNR")<sup>1</sup> over the prior year's second quarter. Our results also improved from the linked first quarter, highlighted by a record quarterly operating diluted earnings per share<sup>1</sup> result of $1.04. This achievement was driven by margin expansion in the banking business, which more than offset seasonal headwinds in our non-banking financial services businesses. These results underscore the strength in the diversification of our four businesses and resulted in quarterly operating return on assets<sup>1</sup> of 1.34%," commented Dimitar A. Karaivanov, President and CEO.<br>"During the second quarter we were also pleased to announce an agreement with Santander Bank, N.A. to acquire seven bank branch locations in the Allentown, Pennsylvania area including certain branch-related loans, deposits and wealth management relationships; a move that accelerates our previously communicated retail growth strategy."<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**<u>Second Quarter 2025 Performance</u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Performance</u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Performance</u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Performance</u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Performance</u>** | &nbsp;&nbsp;**Quarter-over-<br> Quarter Increase<br> (Decrease)** | &nbsp;&nbsp;**Year-over-Year<br> Increase (Decrease)** |
| &nbsp;&nbsp;***Dollars in thousands, except per share data*** | &nbsp;&nbsp;***Dollars in thousands, except per share data*** | &nbsp;&nbsp;**2nd Qtr**<br> **2025** | &nbsp;&nbsp;**1st Qtr**<br> **2025** | &nbsp;&nbsp;**2nd Qtr<br> 2024** | $&nbsp;&nbsp;**%** | $&nbsp;&nbsp;**%** |
| &nbsp;&nbsp;**Operating Performance** | &nbsp;&nbsp;Diluted Earnings Per Share | &nbsp;&nbsp;$0.97 | &nbsp;&nbsp;$0.93 | &nbsp;&nbsp;$0.91 | &nbsp;&nbsp;4.3% | &nbsp;&nbsp;6.6% |
| &nbsp;&nbsp;**Operating Performance** | &nbsp;&nbsp;Operating Diluted Earnings Per Share<sup>1</sup> | &nbsp;&nbsp;1.04 | &nbsp;&nbsp;0.98 | &nbsp;&nbsp;0.95 | &nbsp;&nbsp;6.1% | &nbsp;&nbsp;9.5% |
| &nbsp;&nbsp;**Operating Performance** | &nbsp;&nbsp;Operating Pre-Tax, Pre-Provision Net Revenue Per Share<sup>1</sup> | &nbsp;&nbsp;1.41 | &nbsp;&nbsp;1.40 | &nbsp;&nbsp;1.29 | &nbsp;&nbsp;0.7% | &nbsp;&nbsp;9.3% |
| &nbsp;&nbsp;**Return Metrics** | &nbsp;&nbsp;Return on Assets | &nbsp;&nbsp;1.24% | &nbsp;&nbsp;1.22% | &nbsp;&nbsp;1.22% | &nbsp;&nbsp;0.02% | &nbsp;&nbsp;0.02% |
| &nbsp;&nbsp;**Return Metrics** | &nbsp;&nbsp;Operating Return on Assets<sup>1</sup> | &nbsp;&nbsp;1.34% | &nbsp;&nbsp;1.28% | &nbsp;&nbsp;1.29% | &nbsp;&nbsp;0.06% | &nbsp;&nbsp;0.05% |
| &nbsp;&nbsp;**Return Metrics** | &nbsp;&nbsp;Return on Equity | &nbsp;&nbsp;11.21% | &nbsp;&nbsp;11.28% | &nbsp;&nbsp;11.79% | &nbsp;&nbsp;(0.07%) | &nbsp;&nbsp;(0.58%) |
| &nbsp;&nbsp;**Return Metrics** | &nbsp;&nbsp;Operating Return on Equity<sup>1</sup> | &nbsp;&nbsp;12.10% | &nbsp;&nbsp;11.84% | &nbsp;&nbsp;12.43% | &nbsp;&nbsp;0.26% | &nbsp;&nbsp;(0.33%) |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Total Revenues | &nbsp;&nbsp;$199256 | &nbsp;&nbsp;$196248 | &nbsp;&nbsp;$183799 | &nbsp;&nbsp;1.5% | &nbsp;&nbsp;8.4% |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Total Operating Revenues<sup>1</sup> | &nbsp;&nbsp;199257 | &nbsp;&nbsp;196003 | &nbsp;&nbsp;183164 | &nbsp;&nbsp;1.7% | &nbsp;&nbsp;8.8% |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Noninterest Revenues | &nbsp;&nbsp;74508 | &nbsp;&nbsp;76036 | &nbsp;&nbsp;74390 | &nbsp;&nbsp;(2.0%) | &nbsp;&nbsp;0.2% |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Total Operating Noninterest Revenues<sup>1</sup> | &nbsp;&nbsp;74509 | &nbsp;&nbsp;75791 | &nbsp;&nbsp;73755 | &nbsp;&nbsp;(1.7%) | &nbsp;&nbsp;1.0% |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Noninterest Revenues/Total Revenues | &nbsp;&nbsp;37.4% | &nbsp;&nbsp;38.7% | &nbsp;&nbsp;40.5% | &nbsp;&nbsp;(1.3%) | &nbsp;&nbsp;(3.1%) |
| &nbsp;&nbsp;**Revenues** | &nbsp;&nbsp;Operating Noninterest Revenues/Operating Revenues (FTE)<sup>1</sup> | &nbsp;&nbsp;37.2% | &nbsp;&nbsp;38.5% | &nbsp;&nbsp;40.1% | &nbsp;&nbsp;(1.3%) | &nbsp;&nbsp;(2.9%) |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | | | | &nbsp;&nbsp;**Quarter-over-Quarter Increase (Decrease)** | &nbsp;&nbsp;**Year-over-Year Increase (Decrease)** |
| &nbsp;&nbsp;***Dollars in thousands, except per share data*** | &nbsp;&nbsp;***Dollars in thousands, except per share data*** | <br>&nbsp;&nbsp;**2nd Qtr**<br> **2025** | <br>&nbsp;&nbsp;**1st Qtr**<br> **2025** | <br>&nbsp;&nbsp;**2nd Qtr 2024** | $&nbsp;&nbsp;**%** | $&nbsp;&nbsp;**%** |
| &nbsp;&nbsp;**Net Interest Income and Margin** | &nbsp;&nbsp;Net Interest Income | &nbsp;&nbsp;$124748 | &nbsp;&nbsp;$120212 | &nbsp;&nbsp;$109409 | &nbsp;&nbsp;3.8% | &nbsp;&nbsp;14.0% |
| &nbsp;&nbsp;**Net Interest Income and Margin** | &nbsp;&nbsp;Net Interest Margin | &nbsp;&nbsp;3.27% | &nbsp;&nbsp;3.21% | &nbsp;&nbsp;3.01% | &nbsp;&nbsp;0.06% | &nbsp;&nbsp;0.26% |
| &nbsp;&nbsp;**Net Interest Income and Margin** | &nbsp;&nbsp;Net Interest Margin (FTE)<sup>1</sup> | &nbsp;&nbsp;3.30% | &nbsp;&nbsp;3.24% | &nbsp;&nbsp;3.04% | &nbsp;&nbsp;0.06% | &nbsp;&nbsp;0.26% |
| &nbsp;&nbsp;**Balance Sheet and Funding** | &nbsp;&nbsp;Total Ending Loans | &nbsp;&nbsp;$10519117 | &nbsp;&nbsp;$10421141 | &nbsp;&nbsp;$10023857 | &nbsp;&nbsp;0.9% | &nbsp;&nbsp;4.9% |
| &nbsp;&nbsp;**Balance Sheet and Funding** | &nbsp;&nbsp;Total Ending Deposits | &nbsp;&nbsp;13701768 | &nbsp;&nbsp;13892047 | &nbsp;&nbsp;13137888 | &nbsp;&nbsp;(1.4%) | &nbsp;&nbsp;4.3% |
| &nbsp;&nbsp;**Balance Sheet and Funding** | &nbsp;&nbsp;Cost of Total Deposits | &nbsp;&nbsp;1.19% | &nbsp;&nbsp;1.17% | &nbsp;&nbsp;1.23% | &nbsp;&nbsp;0.02% | &nbsp;&nbsp;(0.04%) |
| &nbsp;&nbsp;**Balance Sheet and Funding** | &nbsp;&nbsp;Cost of Funds | &nbsp;&nbsp;1.32% | &nbsp;&nbsp;1.33% | &nbsp;&nbsp;1.37% | &nbsp;&nbsp;(0.01%) | &nbsp;&nbsp;(0.05%) |
| &nbsp;&nbsp;**Risk Metrics** | &nbsp;&nbsp;Annualized Loan Net Charge-Offs | &nbsp;&nbsp;0.20% | &nbsp;&nbsp;0.13% | &nbsp;&nbsp;0.05% | &nbsp;&nbsp;0.07% | &nbsp;&nbsp;0.15% |
| &nbsp;&nbsp;**Risk Metrics** | &nbsp;&nbsp;Tier 1 Leverage Ratio | &nbsp;&nbsp;9.42% | &nbsp;&nbsp;9.29% | &nbsp;&nbsp;9.07% | &nbsp;&nbsp;0.13% | &nbsp;&nbsp;0.35% |
| &nbsp;&nbsp;**Risk Metrics** | &nbsp;&nbsp;Loan-to-deposit ratio | &nbsp;&nbsp;76.8% | &nbsp;&nbsp;75.0% | &nbsp;&nbsp;76.3% | &nbsp;&nbsp;1.8% | &nbsp;&nbsp;0.5% |
| &nbsp;&nbsp;**Risk Metrics** | &nbsp;&nbsp;Non-owner occupied and multifamily commercial real estate ("CRE") / total bank-level regulatory capital | &nbsp;&nbsp;184% | &nbsp;&nbsp;191% | &nbsp;&nbsp;198% | &nbsp;&nbsp;(7%) | &nbsp;&nbsp;(14%) |

---

<sup>1</sup>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.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**<u>Second Quarter 2025 Business Segment Results<sup>2</sup></u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Business Segment Results<sup>2</sup></u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Business Segment Results<sup>2</sup></u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Business Segment Results<sup>2</sup></u>** | &nbsp;&nbsp;**<u>Second Quarter 2025 Business Segment Results<sup>2</sup></u>** | &nbsp;&nbsp;**Quarter-over-Quarter**<br> **Increase (Decrease)** | &nbsp;&nbsp;**Year-over-Year**<br> **Increase (Decrease)** |
| &nbsp;&nbsp;***Dollars in thousands*** | &nbsp;&nbsp;***Dollars in thousands*** | &nbsp;&nbsp;**2nd Qtr 2025** | &nbsp;&nbsp;**1st Qtr 2025** | &nbsp;&nbsp;**2nd Qtr 2024** | $&nbsp;&nbsp;**%** | $&nbsp;&nbsp;**%** |
| &nbsp;&nbsp;**Banking and Corporate** | &nbsp;&nbsp;Net interest income | &nbsp;&nbsp;$123973 | &nbsp;&nbsp;$119439 | &nbsp;&nbsp;$108535 | &nbsp;&nbsp;3.8% | &nbsp;&nbsp;14.2% |
| &nbsp;&nbsp;**Banking and Corporate** | &nbsp;&nbsp;Provision for credit losses | &nbsp;&nbsp;4117 | &nbsp;&nbsp;6690 | &nbsp;&nbsp;2708 | &nbsp;&nbsp;(38.5%) | &nbsp;&nbsp;52.0% |
| &nbsp;&nbsp;**Banking and Corporate** | &nbsp;&nbsp;Operating noninterest revenues | &nbsp;&nbsp;19949 | &nbsp;&nbsp;19033 | &nbsp;&nbsp;19502 | &nbsp;&nbsp;4.8% | &nbsp;&nbsp;2.3% |
| &nbsp;&nbsp;**Banking and Corporate** | &nbsp;&nbsp;Other segment expenses | &nbsp;&nbsp;85313 | &nbsp;&nbsp;85509 | &nbsp;&nbsp;78185 | &nbsp;&nbsp;(0.2%) | &nbsp;&nbsp;9.1% |
| &nbsp;&nbsp;**Banking and Corporate** | &nbsp;&nbsp;Adjusted income before income taxes | &nbsp;&nbsp;$54492 | &nbsp;&nbsp;$46273 | &nbsp;&nbsp;$47144 | &nbsp;&nbsp;17.8% | &nbsp;&nbsp;15.6% |
| &nbsp;&nbsp;**Employee Benefit Services** | &nbsp;&nbsp;Segment operating revenues | &nbsp;&nbsp;$33892 | &nbsp;&nbsp;$34116 | &nbsp;&nbsp;$33753 | &nbsp;&nbsp;(0.7%) | &nbsp;&nbsp;0.4% |
| &nbsp;&nbsp;**Employee Benefit Services** | &nbsp;&nbsp;Segment expenses | &nbsp;&nbsp;21981 | &nbsp;&nbsp;20676 | &nbsp;&nbsp;20206 | &nbsp;&nbsp;6.3% | &nbsp;&nbsp;8.8% |
| &nbsp;&nbsp;**Employee Benefit Services** | &nbsp;&nbsp;Adjusted income before income taxes | &nbsp;&nbsp;$11911 | &nbsp;&nbsp;$13440 | &nbsp;&nbsp;$13547 | &nbsp;&nbsp;(11.4%) | &nbsp;&nbsp;(12.1%) |
| &nbsp;&nbsp;**Insurance Services** | &nbsp;&nbsp;Segment operating revenues | &nbsp;&nbsp;$13464 | &nbsp;&nbsp;$14270 | &nbsp;&nbsp;$13364 | &nbsp;&nbsp;(5.6%) | &nbsp;&nbsp;0.7% |
| &nbsp;&nbsp;**Insurance Services** | &nbsp;&nbsp;Segment expenses | &nbsp;&nbsp;11217 | &nbsp;&nbsp;10162 | &nbsp;&nbsp;10645 | &nbsp;&nbsp;10.4% | &nbsp;&nbsp;5.4% |
| &nbsp;&nbsp;**Insurance Services** | &nbsp;&nbsp;Adjusted income before income taxes | &nbsp;&nbsp;$2247 | &nbsp;&nbsp;$4108 | &nbsp;&nbsp;$2719 | &nbsp;&nbsp;(45.3%) | &nbsp;&nbsp;(17.4%) |
| &nbsp;&nbsp;**Wealth Management Services** | &nbsp;&nbsp;Segment operating revenues | &nbsp;&nbsp;$9219 | &nbsp;&nbsp;$10486 | &nbsp;&nbsp;$9151 | &nbsp;&nbsp;(12.1%) | &nbsp;&nbsp;0.7% |
| &nbsp;&nbsp;**Wealth Management Services** | &nbsp;&nbsp;Segment expenses | &nbsp;&nbsp;6870 | &nbsp;&nbsp;6851 | &nbsp;&nbsp;7123 | &nbsp;&nbsp;0.3% | &nbsp;&nbsp;(3.6%) |
| &nbsp;&nbsp;**Wealth Management Services** | &nbsp;&nbsp;Adjusted income before income taxes | &nbsp;&nbsp;$2349 | &nbsp;&nbsp;$3635 | &nbsp;&nbsp;$2028 | &nbsp;&nbsp;(35.4%) | &nbsp;&nbsp;15.8% |

---

<sup>2</sup>Refer to Quarterly Segment Information Reconciliations included within the "Summary of Financial Data (unaudited)" tables below for reconciliations of total segment results to consolidated Community Financial System, Inc. results.

**Results of Operations**

The Company reported second quarter 2025 net income of $51.3 million, or $0.97 per share. This compares to net income of $47.9 million, or $0.91 per share, for the second quarter of 2024. The $0.06 increase in earnings per share was primarily driven by an increase in net interest income, partially offset by increases in noninterest expenses and the provision for credit losses. Comparatively, the Company's diluted earnings per share increased $0.04 from $0.93 per share for the linked first quarter of 2025, primarily due to an increase in net interest income and a decrease in the provision for credit losses, partially offset by an increase in noninterest expenses and a decrease in noninterest revenues.

**Net Interest Income and Net Interest Margin**

*The Company's record quarterly net interest income reflected organic loan growth and repricing along with abating funding cost pressures that drove margin expansion.*

&nbsp;&nbsp;&nbsp;&nbsp;· Net
 interest income in the second quarter of 2025 was $124.7 million, up $15.3 million, or 14.0%,
 compared to the second quarter of 2024, and up $4.5 million, or 3.8%, from the first quarter
 of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· Net
 interest margin for the second quarter of 3.27% and fully tax-equivalent net interest margin,
 a non-GAAP measure, of 3.30% both increased 26 basis points from the second quarter of 2024.
 These increases were primarily the result of a higher yield on interest-earning assets which
 increased 21 basis points to 4.56% over the prior year's second quarter primarily driven
 by higher loan yields.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 cost of interest-bearing liabilities decreased nine basis points from 1.83% in the second
 quarter of 2024 to 1.74% in the second quarter of 2025 including a 15 basis point decrease
 in the average borrowing rate and a nine basis point decrease in the average interest-bearing
 deposit rate.

&nbsp;&nbsp;&nbsp;&nbsp;· On
 a linked quarter basis, net interest margin and fully tax-equivalent net interest margin,
 a non-GAAP measure, both increased by six basis points. The yield on interest-earning assets
 increased five basis points, while the cost of funds decreased one basis point, including
 a one basis point decrease in the cost of interest-bearing liabilities.

**Noninterest Revenues**

*The Company's banking and non-banking financial services (including employee benefit services, insurance services and wealth management services) noninterest revenue streams generated 37.4% of total revenues in the second quarter.*

&nbsp;&nbsp;&nbsp;&nbsp;· Banking
 noninterest revenues, comprised of deposit service and other banking fees and mortgage banking
 revenues, were $20.1 million for the second quarter of 2025, an increase of $0.4 million,
 or 2.1%, from the second quarter of 2024 and an increase of $1.0 million, or 5.0%, from the
 first quarter of 2025. The increases between both periods were driven by higher customer
 interest rate swap fee revenues and CRE financing and advisory revenues.

&nbsp;&nbsp;&nbsp;&nbsp;· Employee
 benefit services revenues for the second quarter of 2025 were $32.4 million, an increase
 of $0.3 million, or 0.8%, in comparison to the second quarter of 2024 and a decrease of $0.2
 million, or 0.7%, from the first quarter of 2025. The decrease from the linked first quarter
 primarily reflected lower actuarial consulting services revenues that are seasonally lower
 in the second quarter.

&nbsp;&nbsp;&nbsp;&nbsp;· Insurance
 services revenues for the second quarter of 2025 were $13.4 million, which represents a $0.1
 million, or 0.6%, increase versus the prior year's second quarter and a $0.8 million,
 or 5.7%, decrease from the first quarter of 2025. The decrease from the linked first quarter
 was primarily due to the timing of contingent commission revenues that were predominantly
 recognized in the first quarter.

&nbsp;&nbsp;&nbsp;&nbsp;· Wealth
 management services revenues for the second quarter of 2025 totaled $8.7 million, consistent
 with the second quarter of 2024 and a decrease of $1.2 million, or 12.0%, from the first
 quarter of 2025. The decrease from the linked first quarter was largely driven by a decline
 in certain trust administration fee income streams that are seasonally higher in the first
 quarter.

**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.*

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company recorded $129.1 million in total noninterest expenses in the second quarter of 2025,
 compared to $119.0 million of total noninterest expenses in the prior year's second
 quarter. The $10.1 million, or 8.5%, increase between the periods was mainly driven by higher
 salaries and employee benefits, data processing and communications and other expenses.

&nbsp;&nbsp;&nbsp;&nbsp;· Salaries
 and employee benefits expenses increased $5.6 million, or 7.6%, primarily driven by merit
 and market-related increases in employee wages and incentive compensation along with higher
 employee medical costs.

&nbsp;&nbsp;&nbsp;&nbsp;· Data
 processing and communications expenses increased $1.4 million, or 9.3%, reflective of the
 Company's continued investment in customer-facing and back-office technologies.

&nbsp;&nbsp;&nbsp;&nbsp;· Other
 expenses increased $2.1 million, or 25.6%, primarily due to $1.5 million of restructuring
 expenses associated with severance payments accrued for a workforce optimization plan due
 to planned branch consolidations and other operational initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 effective tax rate for the second quarter of 2025 was 22.3%, down from 22.8% in the second
 quarter of 2024 and the first quarter of 2025.

**Financial Position and Liquidity**

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

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's total assets were $16.67 billion at June 30, 2025, representing a $758.2
 million, or 4.8%, increase from one year prior and a $99.3 million, or 0.6%, decrease from
 the end of the first quarter of 2025. The increase in the Company's total assets during
 the last 12 months was primarily driven by organic interest-earning asset growth while the
 decrease from March 31, 2025 was reflective of lower cash and cash equivalents balances
 due to seasonal net governmental deposit outflows.

&nbsp;&nbsp;&nbsp;&nbsp;· At
 June 30, 2025, the Company's readily available sources of liquidity totaled $5.94
 billion, including unrestricted cash and cash equivalents balances of $231.2 million, investment
 securities unpledged as collateral totaling $1.82 billion, unused borrowing capacity at the
 Federal Home Loan Bank of New York of $1.27 billion and $2.62 billion of funding availability
 at the Federal Reserve Bank's discount window.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's readily available sources of liquidity represent 246% of the Company's
 estimated uninsured deposits, net of collateralized and intercompany deposits at June 30,
 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· Estimated
 insured deposits, net of collateralized and intercompany deposits, represent 82% of total
 ending deposits at June 30, 2025.

**Deposits and Funding**

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

&nbsp;&nbsp;&nbsp;&nbsp;· Ending
 deposits at June 30, 2025 of $13.70 billion were $190.3 million, or 1.4%, lower than
 the end of the first quarter of 2025 due to seasonal outflows of governmental deposit balances.
 Ending deposits were $563.9 million, or 4.3%, higher than one year prior reflective of competitive
 offerings and expansion of governmental deposit relationships as part to the Company's
 business development efforts.

&nbsp;&nbsp;&nbsp;&nbsp;· Ending
 borrowings of $894.5 million at June 30, 2025, which included $575.0 million of fixed
 rate Federal Home Loan Bank of New York term borrowings, $180.6 million of customer repurchase
 agreements, $130.4 million of overnight borrowings and $8.5 million of finance lease liabilities,
 increased $32.4 million, or 3.8%, from the end of the first quarter of 2025 and decreased
 $37.7 million, or 4.0%, from one year prior.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's average cost of funds decreased five basis points, from 1.37% in the second
 quarter of 2024 to 1.32% in the second quarter of 2025 and decreased one basis point from
 the first quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 quarterly average cost of total deposits of 1.19% decreased four basis points from the second
 quarter of 2024 and was up two basis points from the linked first quarter, but remained comparatively
 low relative to the industry.

&nbsp;&nbsp;&nbsp;&nbsp;· 65%
 of the Company's total deposits were in no- and low-rate checking and savings accounts
 at the end of the second quarter of 2025. Time deposit accounts represented 15% of the Company's
 total deposits at the end of the second quarter of 2025, a decrease of one percentage point
 from June 30, 2024 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 quality remaining a central priority. Net charge-offs were elevated this quarter driven by the charge-off of one previously reserved for CRE loan relationship. However, this action along with the substantial repayment of another previously reserved for CRE loan relationship contributed to an improvement in delinquent and nonperforming loan metrics. The Company's asset quality metrics, including net charge-offs and delinquent and nonperforming loans, remain relatively low compared to the banking industry, reflecting the Company's robust risk management practices and disciplined credit quality standards.*

&nbsp;&nbsp;&nbsp;&nbsp;· Ending
 loans at June 30, 2025 of $10.52 billion were $98.0 million, or 0.9%, higher than March 31,
 2025 and $495.3 million, or 4.9%, higher than one year prior. The increase from the end of
 the prior year's second quarter was driven by organic growth in the overall business
 and consumer lending portfolios while the increase from the end of the linked first quarter
 was primarily attributable to organic growth in the consumer indirect portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;· At
 June 30, 2025, the Company's allowance for credit losses totaled $81.9 million,
 or 0.78% of total loans outstanding, compared to $82.8 million, or 0.79% of total loans outstanding,
 at March 31, 2025 and $71.4 million, or 0.71% of total loans outstanding, at June 30,
 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company recorded a $4.1 million provision for credit losses during the second quarter of
 2025 reflective of organic loan growth and continued economic uncertainty. Additionally,
 specifically allocated reserves decreased $7.4 million during the second quarter of 2025
 in connection with the charge-off of one non-owner occupied CRE loan relationship and the
 substantial repayment of one multifamily CRE loan relationship. While certain macroeconomic
 concerns persist related to non-owner occupied and multifamily CRE, the Company's exposure
 to these portfolios remains diverse both geographically and by property type, and relatively
 low at 15% of total assets, 24% of total loans and 184% of total bank-level regulatory capital.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company recorded net charge-offs of $5.1 million, or an annualized 0.20% of average loans,
 in the second quarter of 2025 compared to net charge-offs of $1.3 million, or an annualized
 0.05% of average loans, in the second quarter of 2024 and net charge-offs of $3.2 million,
 or an annualized 0.13% of average loans, in the first quarter of 2025. The increase in net
 charge-offs during the second quarter of 2025 was primarily driven by a $4.3 million charge-off
 associated with the previously mentioned non-owner occupied CRE loan relationship. Net charge-offs
 outside of the previously identified non-owner occupied CRE loan relationship were $0.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;· Total
 delinquent loans, which includes loans 30 or more days past due and nonaccrual loans, as
 a percentage of total loans outstanding was 1.01% at the end of the second quarter of 2025.
 This compares to 0.95% at June 30, 2024 and 1.29% at March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· At
 June 30, 2025, nonperforming (90 or more days delinquent and non-accruing) loans were
 $53.3 million, or 0.51% of total loans outstanding compared to $75.0 million, or 0.72% of
 total loans outstanding at March 31, 2025 and $50.5 million, or 0.50% of total loans
 outstanding one year earlier. The decrease in nonperforming loans from the end of the first
 quarter of 2025 was primarily attributable to a decrease in nonaccrual business lending loan
 balances, driven largely by the derecognition of the two previously mentioned CRE loan relationships.

&nbsp;&nbsp;&nbsp;&nbsp;· Total
 nonperforming assets, which includes nonperforming loans and other real estate owned, were
 $61.3 million, or 0.37% of total assets compared to $77.7 million, or 0.46% of total assets,
 at March 31, 2025 and $52.2 million, or 0.33% of total assets, at June 30, 2024.
 The decrease in nonperforming assets during the second quarter of 2025 was driven by the
 aforementioned decrease in nonperforming loans partially offset by a $5.2 million increase
 in other real estate owned driven by the $5.4 million addition of commercial property associated
 with the previously mentioned charged-off CRE loan relationship.

**Shareholders' Equity and Regulatory Capital**

*The Company's capital planning and management activities, coupled with its diversified streams of revenue and prudent dividend practices, have allowed it to build and maintain a strong capital position. At June 30, 2025, all of the Company's and Community Bank, N.A.'s regulatory capital ratios significantly exceeded well-capitalized standards.*

&nbsp;&nbsp;&nbsp;&nbsp;· Shareholders'
 equity of $1.88 billion at June 30, 2025 was $212.9 million, or 12.7%, higher than one
 year ago, primarily due to a $97.5 million increase in retained earnings and an $89.9 million
 decrease in accumulated other comprehensive loss related to the Company's investment
 securities portfolio. Shareholders' equity increased $49.0 million, or 2.7%, from March 31,
 2025, primarily driven by a $27.0 million increase in retained earnings and an $18.2 million
 decrease in accumulated other comprehensive loss related to the Company's investment
 securities portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's shareholders' equity to assets ratio was 11.30% at June 30, 2025,
 up from 10.50% at June 30, 2024 and 10.94% at March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's tier 1 leverage ratio of 9.42% at June 30, 2025 increased 35 basis points
 from one year earlier and increased 13 basis points from March 31, 2025, remaining substantially
 above the regulatory well-capitalized standard of 5.0%.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's tangible equity to tangible assets ratio (non-GAAP) was 6.51% at June 30,
 2025, up from 5.38% a year earlier and from 6.15% at March 31, 2025. Tangible equity
 (non-GAAP) increased $219.7 million, or 27.1%, 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
 $765.0 million, or 5.1%, from the prior year due primarily to interest-earning asset growth.

**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 $0.01 increase in the quarterly dividend declared in the third quarter of 2025 marked the 33<sup>rd</sup> consecutive year of dividend increases for the Company.*

&nbsp;&nbsp;&nbsp;&nbsp;· During
 the second quarter of 2025, the Company declared a quarterly cash dividend of $0.46 per share
 on its common stock, up 2.2% from the $0.45 dividend declared in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· On
 July 16, 2025, the Company announced an additional one cent, or 2.2%, increase in the
 quarterly dividend to $0.47 per share on its common stock, payable on October 10, 2025
 to shareholders of record as of September 12, 2025, representing an annualized yield
 of 3.2% based upon on the $57.92 closing price of the Company's stock on July 21,
 2025. This increase marked the 33<sup>rd</sup> consecutive year of dividend increases for
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 December 2024, 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,
 2025. 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. No shares were
 repurchased pursuant to the 2025 stock repurchase program in the first six months of 2025.

**Acquisition Will Expand Pennsylvania Franchise**

On June 24, 2025, Community Bank, N.A. entered into a purchase and assumption agreement to acquire seven branch locations in the Allentown, Pennsylvania market from Santander Bank, N.A. The transaction accelerates the Company's de novo expansion in the Greater Lehigh Valley, complements its existing commercial and consumer lending presence in the market, and is expected to add approximately $600 million of customer deposits as well as branch-related loans and wealth management relationships. The branch transaction is expected to close during the fourth quarter of 2025 subject to customary regulatory approval.

**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, loss on sales of investment securities, unrealized 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. 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, loss on sales of investment securities, unrealized 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 fully tax-equivalent 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 22, 2025, to discuss the second quarter 2025 results. The conference call can be accessed at <u>https://app.webinar.net/n7jl8918GAN</u> or via dial-in at 1-833-630-0464 (1-412-317-1809 if outside the United States and Canada).

This earnings release, including supporting financial tables, is also available within the "News" section of the Company's investor relations website at <u>https://communityfinancialsystem.com/news/</u>. 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 $16 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont and Western Massachusetts. 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 66 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 <u>https://communityfinancialsystem.com</u>.

**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 <u>https://communityfinancialsystem.com</u> and on the SEC's website at <u>https://sec.gov</u>. 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.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Year-to-Date** | **Year-to-Date** |
| **Summary of Financial Data (unaudited)**<br>**(Dollars in thousands, except per share data)**<br>| **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| **Earnings** | | | | |
| Loan income | $146534 | $133159 | $289438 | $260657 |
| Investment income | 26344 | 23879 | 51087 | 49040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 172878 | 157038 | 340525 | 309697 |
| Interest expense | 48130 | 47629 | 95565 | 93298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 124748 | 109409 | 244960 | 216399 |
| Provision for credit losses | 4117 | 2708 | 10807 | 8856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 120631 | 106701 | 234153 | 207543 |
| Deposit service and other banking fees | 19086 | 17364 | 37194 | 35271 |
| Mortgage banking | 972 | 2275 | 1970 | 2620 |
| Employee benefit services | 32380 | 32118 | 65002 | 63816 |
| Insurance services | 13388 | 13307 | 27589 | 24416 |
| Wealth management services | 8683 | 8691 | 18545 | 17901 |
| Loss on sales of investment securities | 0 | (232) | 0 | (232) |
| Unrealized (loss) gain on equity securities | (1) | 867 | 244 | 883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest revenues | 74508 | 74390 | 150544 | 144675 |
| Salaries and employee benefits | 79021 | 73447 | 155463 | 146510 |
| Data processing and communications | 16699 | 15274 | 32821 | 29622 |
| Occupancy and equipment | 11486 | 10715 | 24184 | 22077 |
| Business development and marketing | 4001 | 4139 | 7131 | 7184 |
| Legal and professional fees | 4368 | 3459 | 9217 | 7800 |
| Amortization of intangible assets | 3369 | 3877 | 6851 | 7453 |
| Other | 10158 | 8088 | 18725 | 16437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expenses | 129102 | 118999 | 254392 | 237083 |
| Income before income taxes | 66037 | 62092 | 130305 | 115135 |
| Income taxes | 14706 | 14177 | 29360 | 26348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $51331 | $47915 | $100945 | $88787 |
| Basic earnings per share | $0.97 | $0.91 | $1.91 | $1.67 |
| Diluted earnings per share | $0.97 | $0.91 | $1.90 | $1.67 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Earnings** |  |  |  |  |  |
| Loan income | $146534 | $142904 | $144638 | $140472 | $133159 |
| Investment income | 26344 | 24743 | 25293 | 23428 | 23879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 172878 | 167647 | 169931 | 163900 | 157038 |
| Interest expense | 48130 | 47435 | 49958 | 51155 | 47629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 124748 | 120212 | 119973 | 112745 | 109409 |
| Provision for credit losses | 4117 | 6690 | 6208 | 7709 | 2708 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 120631 | 113522 | 113765 | 105036 | 106701 |
| Deposit service and other banking fees | 19086 | 18108 | 19315 | 19537 | 17364 |
| Mortgage banking | 972 | 998 | 746 | 1055 | 2275 |
| Employee benefit services | 32380 | 32622 | 33950 | 33215 | 32118 |
| Insurance services | 13388 | 14201 | 12181 | 13652 | 13307 |
| Wealth management services | 8683 | 9862 | 9875 | 8892 | 8691 |
| Loss on sales of investment securities | 0 | 0 | 0 | (255) | (232) |
| Unrealized (loss) gain on equity securities | (1) | 245 | 247 | 101 | 867 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest revenues | 74508 | 76036 | 76314 | 76197 | 74390 |
| Salaries and employee benefits | 79021 | 76442 | 76247 | 78022 | 73447 |
| Data processing and communications | 16699 | 16122 | 16327 | 15894 | 15274 |
| Occupancy and equipment | 11486 | 12698 | 10995 | 10586 | 10715 |
| Business development and marketing | 4001 | 3130 | 4510 | 4365 | 4139 |
| Legal and professional fees | 4368 | 4849 | 3800 | 3723 | 3459 |
| Amortization of intangible assets | 3369 | 3482 | 3437 | 3369 | 3877 |
| Other | 10158 | 8567 | 10223 | 8244 | 8088 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expenses | 129102 | 125290 | 125539 | 124203 | 118999 |
| Income before income taxes | 66037 | 64268 | 64540 | 57030 | 62092 |
| Income taxes | 14706 | 14654 | 14747 | 13129 | 14177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $51331 | $49614 | $49793 | $43901 | $47915 |
| Basic earnings per share | $0.97 | $0.94 | $0.94 | $0.83 | $0.91 |
| Diluted earnings per share | $0.97 | $0.93 | $0.94 | $0.83 | $0.91 |
| **Profitability (GAAP)** |  |  |  |  |  |
| Return on assets (GAAP) | 1.24% | 1.22% | 1.21% | 1.09% | 1.22% |
| Return on equity (GAAP) | 11.21% | 11.28% | 11.27% | 10.21% | 11.79% |
| Noninterest revenues/total revenues (GAAP) | 37.4% | 38.7% | 38.9% | 40.3% | 40.5% |
| Efficiency ratio (GAAP) | 64.8% | 63.8% | 64.0% | 65.7% | 64.7% |
| **Profitability (non-GAAP)** |  |  |  |  |  |
| Operating return on assets (non-GAAP) | 1.34% | 1.28% | 1.29% | 1.16% | 1.29% |
| Operating return on equity (non-GAAP) | 12.10% | 11.84% | 11.99% | 10.85% | 12.43% |
| Return on tangible equity (non-GAAP) | 20.97% | 21.69% | 21.97% | 20.53% | 24.90% |
| Operating return on tangible equity (non-GAAP) | 22.63% | 22.76% | 23.36% | 21.80% | 26.25% |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) | 37.2% | 38.5% | 38.6% | 40.2% | 40.1% |
| Operating efficiency ratio (non-GAAP) | 62.0% | 61.9% | 61.8% | 63.6% | 62.5% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Components of Net Interest Margin (FTE)** |  |  |  |  |  |
| Loan yield | 5.63% | 5.58% | 5.58% | 5.51% | 5.38% |
| Cash equivalents yield | 4.33% | 4.30% | 4.71% | 4.90% | 5.10% |
| Investment yield | 2.17% | 2.11% | 2.15% | 2.05% | 2.11% |
| Earning asset yield | 4.56% | 4.51% | 4.52% | 4.43% | 4.35% |
| Interest-bearing deposit rate | 1.59% | 1.59% | 1.68% | 1.69% | 1.68% |
| Borrowing rate | 3.56% | 3.63% | 3.57% | 4.08% | 3.71% |
| Cost of all interest-bearing funds | 1.74% | 1.75% | 1.84% | 1.93% | 1.83% |
| Cost of total deposits | 1.19% | 1.17% | 1.23% | 1.23% | 1.23% |
| Cost of funds (includes noninterest-bearing deposits) | 1.32% | 1.33% | 1.38% | 1.44% | 1.37% |
| Net interest margin | 3.27% | 3.21% | 3.17% | 3.03% | 3.01% |
| Net interest margin (FTE) (non-GAAP) | 3.30% | 3.24% | 3.20% | 3.05% | 3.04% |
| Fully tax-equivalent adjustment (non-GAAP) | $884 | $894 | $882 | $872 | $953 |
| **Average Balances** |  |  |  |  |  |
| Loans | $10455637 | $10402985 | $10331217 | $10155343 | $9969462 |
| Cash equivalents | 159688 | 130649 | 93910 | 38481 | 48872 |
| Taxable investment securities | 4256943 | 4211921 | 4187538 | 4165783 | 4119882 |
| Nontaxable investment securities | 417323 | 419746 | 423323 | 436762 | 466757 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 15289591 | 15165301 | 15035988 | 14796369 | 14604973 |
| Total assets | 16590741 | 16439357 | 16324320 | 16058219 | 15778974 |
| Interest-bearing deposits | 10219891 | 10051681 | 9871799 | 9537203 | 9679296 |
| Borrowings | 844748 | 910172 | 915475 | 1030199 | 785946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 11064639 | 10961853 | 10787274 | 10567402 | 10465242 |
| Noninterest-bearing deposits | 3522734 | 3519962 | 3603416 | 3611755 | 3534516 |
| Shareholders' equity | 1836965 | 1783646 | 1757467 | 1709791 | 1633875 |
| **Balance Sheet Data** |  |  |  |  |  |
| Cash and cash equivalents | $237248 | $518021 | $197004 | $346110 | $201493 |
| Investment securities | 4350070 | 4301343 | 4218386 | 4287551 | 4166562 |
| Loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business lending | 4541192 | 4540002 | 4505178 | 4391629 | 4294173 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer mortgage | 3523025 | 3504151 | 3489780 | 3427317 | 3368166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer indirect | 1767213 | 1707938 | 1767655 | 1780586 | 1723002 |
| &nbsp;&nbsp;&nbsp;&nbsp;Home equity | 494183 | 481248 | 477425 | 460964 | 452013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer direct | 193504 | 187802 | 192327 | 191178 | 186503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 10519117 | 10421141 | 10432365 | 10251674 | 10023857 |
| Allowance for credit losses | 81851 | 82840 | 79114 | 76167 | 71442 |
| Goodwill and intangible assets, net | 898381 | 900332 | 901471 | 900623 | 905780 |
| Other assets | 742053 | 706299 | 715932 | 694909 | 680566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 16665018 | 16764296 | 16386044 | 16404700 | 15906816 |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | 3588602 | 3526485 | 3557219 | 3586845 | 3649389 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-maturity interest-bearing | 8010808 | 8215773 | 7707037 | 7704925 | 7446935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | 2102358 | 2149789 | 2177451 | 2184401 | 2041564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 13701768 | 13892047 | 13441707 | 13476171 | 13137888 |
| Customer repurchase agreements | 180621 | 266581 | 261553 | 317448 | 215453 |
| Other borrowings | 713839 | 595455 | 737312 | 630970 | 716721 |
| Accrued interest and other liabilities | 185699 | 176138 | 182637 | 195164 | 166574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 14781927 | 14930221 | 14623209 | 14619753 | 14236636 |
| Shareholders' equity | 1883091 | 1834075 | 1762835 | 1784947 | 1670180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | 16665018 | 16764296 | 16386044 | 16404700 | 15906816 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Capital and Other** |  |  |  |  |  |
| Shareholders' equity/total assets (GAAP) | 11.30% | 10.94% | 10.76% | 10.88% | 10.50% |
| Tangible equity/tangible assets (non-GAAP) | 6.51% | 6.15% | 5.83% | 5.97% | 5.38% |
| Tier 1 leverage ratio | 9.42% | 9.29% | 9.19% | 9.12% | 9.07% |
| Loan-to-deposit ratio | 76.8% | 75.0% | 77.6% | 76.1% | 76.3% |
| Diluted weighted average common shares outstanding | 53117 | 53130 | 53078 | 52911 | 52935 |
| Period end common shares outstanding | 52869 | 52836 | 52668 | 52546 | 52523 |
| Cash dividends declared per common share | $0.46 | $0.46 | $0.46 | $0.46 | $0.45 |
| Book value (GAAP) | $35.62 | $34.71 | $33.47 | $33.97 | $31.80 |
| Tangible book value (non-GAAP) | $19.46 | $18.52 | $17.20 | $17.66 | $15.41 |
| Common stock price at quarter-end | $56.87 | $56.86 | $61.68 | $58.07 | $47.21 |
| **Asset Quality** |  |  |  |  |  |
| Nonaccrual loans | $45808 | $69051 | $66387 | $59013 | $47407 |
| Accruing loans 90+ days delinquent | 7519 | 5928 | 7000 | 3833 | 3106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | 53327 | 74979 | 73387 | 62846 | 50513 |
| Other real estate owned | 7954 | 2746 | 2781 | 2279 | 1662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | 61281 | 77725 | 76168 | 65125 | 52175 |
| Net charge-offs | 5114 | 3229 | 3211 | 2772 | 1286 |
| Allowance for credit losses/loans outstanding | 0.78% | 0.79% | 0.76% | 0.74% | 0.71% |
| Nonperforming loans/loans outstanding | 0.51% | 0.72% | 0.70% | 0.61% | 0.50% |
| Allowance for credit losses/nonperforming loans | 153% | 110% | 108% | 121% | 141% |
| Net charge-offs/average loans | 0.20% | 0.13% | 0.12% | 0.11% | 0.05% |
| Delinquent loans/ending loans | 1.01% | 1.29% | 1.24% | 1.07% | 0.95% |
| Provision for credit losses/net charge-offs | 80% | 207% | 193% | 278% | 211% |
| Nonperforming assets/total assets | 0.37% | 0.46% | 0.46% | 0.40% | 0.33% |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Operating pre-tax, pre-provision net revenue (non-GAAP)** |  |  |  |  |  |
| Net income (GAAP) | $51331 | $49614 | $49793 | $43901 | $47915 |
| Income taxes | 14706 | 14654 | 14747 | 13129 | 14177 |
| Income before income taxes | 66037 | 64268 | 64540 | 57030 | 62092 |
| Provision for credit losses | 4117 | 6690 | 6208 | 7709 | 2708 |
| Pre-tax, pre-provision net revenue (non-GAAP) | 70154 | 70958 | 70748 | 64739 | 64800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expenses | 67 | 1 | 8 | 66 | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration adjustments | 0 | 0 | 400 | (156) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | 1525 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0 | (50) | (83) | 102 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0 | 0 | 0 | 255 | 232 |
| Unrealized loss (gain) on equity securities | 1 | (245) | (247) | (101) | (867) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 3369 | 3482 | 3437 | 3369 | 3877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating pre-tax, pre-provision net revenue (non-GAAP) | $75116 | $74146 | $74263 | $68274 | $68146 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Operating pre-tax, pre-provision net revenue per share (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share (GAAP) | $0.97 | $0.93 | $0.94 | $0.83 | $0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 0.27 | 0.28 | 0.28 | 0.25 | 0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 1.24 | 1.21 | 1.22 | 1.08 | 1.17 |
| Provision for credit losses | 0.08 | 0.12 | 0.11 | 0.15 | 0.06 |
| Pre-tax, pre-provision net revenue per share (non-GAAP) | 1.32 | 1.33 | 1.33 | 1.23 | 1.23 |
| Acquisition expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Unrealized loss (gain) on equity securities | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| Amortization of intangible assets | 0.06 | 0.07 | 0.07 | 0.06 | 0.07 |
| Operating pre-tax, pre-provision net revenue per share (non-GAAP) | $1.41 | $1.40 | $1.40 | $1.29 | $1.29 |
| **Operating net income (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $51331 | $49614 | $49793 | $43901 | $47915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expenses | 67 | 1 | 8 | 66 | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of acquisition expenses | (12) | 0 | (1) | (15) | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 51386 | 49615 | 49800 | 43952 | 47996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration adjustments | 0 | 0 | 400 | (156) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of acquisition-related contingent consideration adjustments | 0 | 0 | (41) | 35 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 51386 | 49615 | 50159 | 43831 | 47996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | 1525 | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of restructuring expenses | (274) | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 52637 | 49615 | 50159 | 43831 | 47996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0 | (50) | (83) | 102 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of litigation accrual | 0 | 12 | 8 | (23) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 52637 | 49577 | 50084 | 43910 | 47996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0 | 0 | 0 | 255 | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of loss on sales of investment securities | 0 | 0 | 0 | (58) | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 52637 | 49577 | 50084 | 44107 | 48176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on equity securities | 1 | (245) | (247) | (101) | (867) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of unrealized loss (gain) on equity securities | 0 | 57 | 25 | 23 | 193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 52638 | 49389 | 49862 | 44029 | 47502 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 3369 | 3482 | 3437 | 3369 | 3877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of amortization of intangible assets | (605) | (804) | (350) | (762) | (864) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating net income (non-GAAP) | $55402 | $52067 | $52949 | $46636 | $50515 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Operating diluted earnings per share (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share (GAAP) | $0.97 | $0.93 | $0.94 | $0.83 | $0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of acquisition expenses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.97 | 0.93 | 0.94 | 0.83 | 0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of acquisition-related contingent consideration adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.97 | 0.93 | 0.94 | 0.83 | 0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of restructuring expenses | (0.01) | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.99 | 0.93 | 0.94 | 0.83 | 0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of litigation accrual | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.99 | 0.93 | 0.94 | 0.83 | 0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of loss on sales of investment securities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.99 | 0.93 | 0.94 | 0.83 | 0.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on equity securities | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of unrealized loss (gain) on equity securities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal (non-GAAP) | 0.99 | 0.93 | 0.94 | 0.83 | 0.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 0.06 | 0.07 | 0.07 | 0.06 | 0.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of amortization of intangible assets | (0.01) | (0.02) | (0.01) | (0.01) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating diluted earnings per share (non-GAAP) | $1.04 | $0.98 | $1.00 | $0.88 | $0.95 |
| **Return on assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $51331 | $49614 | $49793 | $43901 | $47915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average total assets | 16590741 | 16439357 | 16324320 | 16058219 | 15778974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on assets (GAAP) | 1.24% | 1.22% | 1.21% | 1.09% | 1.22% |
| **Operating return on assets (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating net income (non-GAAP) | $55402 | $52067 | $52949 | $46636 | $50515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average total assets | 16590741 | 16439357 | 16324320 | 16058219 | 15778974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating return on assets (non-GAAP) | 1.34% | 1.28% | 1.29% | 1.16% | 1.29% |
| **Return on equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $51331 | $49614 | $49793 | $43901 | $47915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average total equity | 1836965 | 1783646 | 1757467 | 1709791 | 1633875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on equity (GAAP) | 11.21% | 11.28% | 11.27% | 10.21% | 11.79% |
| **Operating return on equity (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating net income (non-GAAP) | $55402 | $52067 | $52949 | $46636 | $50515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average total equity | 1836965 | 1783646 | 1757467 | 1709791 | 1633875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating return on equity (non-GAAP) | 12.10% | 11.84% | 11.99% | 10.85% | 12.43% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Net interest margin** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $124748 | $120212 | $119973 | $112745 | $109409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average interest-earning assets | 15289591 | 15165301 | 15035988 | 14796369 | 14604973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | 3.27% | 3.21% | 3.17% | 3.03% | 3.01% |
| **Net interest margin (FTE) (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $124748 | $120212 | $119973 | $112745 | $109409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully tax-equivalent adjustment (non-GAAP) | 884 | 894 | 882 | 872 | 953 |
| Fully tax-equivalent net interest income (non-GAAP) | 125632 | 121106 | 120855 | 113617 | 110362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average interest-earning assets | 15289591 | 15165301 | 15035988 | 14796369 | 14604973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin (FTE) (non-GAAP) | 3.30% | 3.24% | 3.20% | 3.05% | 3.04% |
| **Operating noninterest revenues (non-GAAP)** |  |  |  |  |  |
| Noninterest revenues (GAAP) | $74508 | $76036 | $76314 | $76197 | $74390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0 | 0 | 0 | 255 | 232 |
| Unrealized loss (gain) on equity securities | 1 | (245) | (247) | (101) | (867) |
| Total operating noninterest revenues (non-GAAP) | $74509 | $75791 | $76067 | $76351 | $73755 |
| **Operating noninterest expenses (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expenses (GAAP) | $129102 | $125290 | $125539 | $124203 | $118999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expenses | (67) | (1) | (8) | (66) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration adjustments | 0 | 0 | (400) | 156 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | (1525) | 0 | 0 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0 | 50 | 83 | (102) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | (3369) | (3482) | (3437) | (3369) | (3877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating noninterest expenses (non-GAAP) | $124141 | $121857 | $121777 | $120822 | $115018 |
| **Operating revenues (non-GAAP)** |  |  |  |  |  |
| Net interest income (GAAP) | $124748 | $120212 | $119973 | $112745 | $109409 |
| Noninterest revenues (GAAP) | 74508 | 76036 | 76314 | 76197 | 74390 |
| Total revenues (GAAP) | 199256 | 196248 | 196287 | 188942 | 183799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0 | 0 | 0 | 255 | 232 |
| Unrealized loss (gain) on equity securities | 1 | (245) | (247) | (101) | (867) |
| Total operating revenues (non-GAAP) | $199257 | $196003 | $196040 | $189096 | $183164 |
| **Noninterest revenues/total revenues** |  |  |  |  |  |
| Total noninterest revenues (GAAP) – numerator | $74508 | $76036 | $76314 | $76197 | $74390 |
| Total revenues (GAAP) – denominator | 199256 | 196248 | 196287 | 188942 | 183799 |
| Noninterest revenues/total revenues (GAAP) | 37.4% | 38.7% | 38.9% | 40.3% | 40.5% |
| **Operating noninterest revenues/operating revenues (FTE) (non-GAAP)** |  |  |  |  |  |
| Total operating noninterest revenues (non-GAAP) – numerator | $74509 | $75791 | $76067 | $76351 | $73755 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues (non-GAAP) | 199257 | 196003 | 196040 | 189096 | 183164 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully tax-equivalent adjustment (non-GAAP) | 884 | 894 | 882 | 872 | 953 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues (FTE) (non-GAAP) – denominator | 200141 | 196897 | 196922 | 189968 | 184117 |
| Operating noninterest revenues/operating revenues (FTE) (non-GAAP) | 37.2% | 38.5% | 38.6% | 40.2% | 40.1% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Efficiency ratio (GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expenses (GAAP) – numerator | $129102 | $125290 | $125539 | $124203 | $118999 |
| Total revenues (GAAP) – denominator | 199256 | 196248 | 196287 | 188942 | 183799 |
| Efficiency ratio (GAAP) | 64.8% | 63.8% | 64.0% | 65.7% | 64.7% |
| **Operating efficiency ratio (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating noninterest expenses (non-GAAP) - numerator | $124141 | $121857 | $121777 | $120822 | $115018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues (FTE) (non-GAAP) - denominator | 200141 | 196897 | 196922 | 189968 | 184117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating efficiency ratio (non-GAAP) | 62.0% | 61.9% | 61.8% | 63.6% | 62.5% |
| **Total tangible assets (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets (GAAP) | $16665018 | $16764296 | $16386044 | $16404700 | $15906816 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangible assets, net | (898381) | (900332) | (901471) | (900623) | (905780) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes on goodwill and intangible assets, net | 44336 | 44644 | 44618 | 43832 | 44921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tangible assets (non-GAAP) | $15810973 | $15908608 | $15529191 | $15547909 | $15045957 |
| **Total tangible common equity (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity (GAAP) | $1883091 | $1834075 | $1762835 | $1784947 | $1670180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangible assets, net | (898381) | (900332) | (901471) | (900623) | (905780) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes on goodwill and intangible assets, net | 44336 | 44644 | 44618 | 43832 | 44921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tangible common equity (non-GAAP) | $1029046 | $978387 | $905982 | $928156 | $809321 |
| **Shareholders' equity-to-assets ratio at quarter end** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity (GAAP) – numerator | $1883091 | $1834075 | $1762835 | $1784947 | $1670180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets (GAAP) – denominator | 16665018 | 16764296 | 16386044 | 16404700 | 15906816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity-to-assets ratio at quarter end (GAAP) | 11.30% | 10.94% | 10.76% | 10.88% | 10.50% |
| **Tangible equity-to-tangible assets ratio at quarter end (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total tangible common equity (non-GAAP) - numerator | $1029046 | $978387 | $905982 | $928156 | $809321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total tangible assets (non-GAAP) - denominator | 15810973 | 15908608 | 15529191 | 15547909 | 15045957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible equity-to-tangible assets ratio at quarter end (non-GAAP) | 6.51% | 6.15% | 5.83% | 5.97% | 5.38% |
| **Return on tangible equity (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $51331 | $49614 | $49793 | $43901 | $47915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average shareholders' equity | 1836965 | 1783646 | 1757467 | 1709791 | 1633875 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average goodwill and intangible assets, net | (899416) | (900530) | (900118) | (903281) | (905134) |
| &nbsp;&nbsp;&nbsp;&nbsp;Average deferred taxes on goodwill and intangible assets, net | 44490 | 44631 | 44225 | 44376 | 45177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average tangible common equity (non-GAAP) | 982039 | 927747 | 901574 | 850886 | 773918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on tangible equity (non-GAAP) | 20.97% | 21.69% | 21.97% | 20.53% | 24.90% |
| **Operating return on tangible equity (non-GAAP)** |  |  |  |  |  |
| Operating net income (non-GAAP) | $55402 | $52067 | $52949 | $46636 | $50515 |
| Average tangible common equity (non-GAAP) | 982039 | 927747 | 901574 | 850886 | 773918 |
| Operating return on tangible equity (non-GAAP) | 22.63% | 22.76% | 23.36% | 21.80% | 26.25% |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of Financial Data (unaudited)** |  |  |  |  |  |
| **(Dollars in thousands, except per share data)** | | | | | |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **2nd Qtr** | **1st Qtr** | **4th Qtr** | **3rd Qtr** | **2nd Qtr** |
| **Quarterly GAAP to Non-GAAP Reconciliations** |  |  |  |  |  |
| **Book value (GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity (GAAP) – numerator | $1883091 | $1834075 | $1762835 | $1784947 | $1670180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Period end common shares outstanding – denominator | 52869 | 52836 | 52668 | 52546 | 52523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Book value (GAAP) | $35.62 | $34.71 | $33.47 | $33.97 | $31.80 |
| **Tangible book value (non-GAAP)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total tangible common equity (non-GAAP) – numerator | $1029046 | $978387 | $905982 | $928156 | $809321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Period end common shares outstanding – denominator | 52869 | 52836 | 52668 | 52546 | 52523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible book value (non-GAAP) | $19.46 | $18.52 | $17.20 | $17.66 | $15.41 |

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** |
| | **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** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total segment adjusted income before income taxes | $70999 | $67456 | $65438 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of investment securities | 0 | 0 | (232) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (loss) gain on equity securities | (1) | 245 | 867 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | (3369) | (3482) | (3877) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses | (1525) | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation accrual | 0 | 50 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expenses | (67) | (1) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consolidated income before income taxes | $66037 | $64268 | $62092 |

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