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Community Bank System rebrands as Community Financial System

EditorBrando Bricchi
Published 05/15/2024, 11:18 AM
CBU
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SYRACUSE, N.Y. - Community Bank System, Inc. (NYSE: NYSE:CBU), a multifaceted financial services organization, announced today its corporate rebranding to Community Financial System, Inc., reflecting its expanded services and mission. The change, effective immediately, aligns with the company's growth and diversification strategy, encompassing banking, benefits administration, insurance, and wealth management services.

The company's President and CEO, Dimitar A. Karaivanov, highlighted the rebranding as a representation of the company's evolution and its commitment to offering a comprehensive range of financial services. He emphasized the significance of the four business units, which contribute to over 39% of the company's revenue through diversified fee income, a figure reportedly more than double that of its industry counterparts.

Community Financial System, Inc. operates under several subsidiaries, including Community Bank, N.A., which is recognized as one of the top banks in the U.S. by Forbes. Other subsidiaries such as BPAS and OneGroup NY, Inc. have also received accolades, with BPAS being named a Top 5 Recordkeeper by the National Association of Plan Advisors and OneGroup ranking within the top 100 Property/Casualty Agencies by Insurance Journal.

This rebranding does not affect the company's ticker symbol on the New York Stock Exchange, where its common stock will continue to be listed under 'CBU' until May 24, 2024, after which it will trade as Community Financial System, Inc. The company's banking subsidiary is among the nation's 100 largest banking institutions, with over $15 billion in assets and approximately 200 customer facilities across various states.

The press release also contains forward-looking statements regarding the company's future operations and market performance. These statements are subject to risks and uncertainties, and actual results may differ materially from expectations.

This news is based on a press release statement from Community Bank System, Inc., which has not been independently verified. The company advises readers to refer to its reports filed with the Securities and Exchange Commission for more detailed information, including risk factors that could affect actual results.

InvestingPro Insights

As Community Bank System, Inc. (NYSE: CBU) embraces its new identity as Community Financial System, Inc., investors and market watchers are keen to understand how this shift might influence the company's financial health and stock performance. With a market capitalization of $2.5 billion and a solid track record of dividend growth, the company stands out as a stable player in the financial sector. The recent rebranding, reflective of an expansion and diversification in services, may further bolster investor confidence.

One of the standout InvestingPro Tips for Community Financial System, Inc. is its impressive history of dividend reliability. The company has not only raised its dividend for 26 consecutive years but has also maintained dividend payments for an astounding 41 years in a row. This consistency is a reassuring signal to shareholders who value regular income streams and long-term commitment to returns.

Examining the company's financials through InvestingPro Data, a few key metrics stand out. The price-to-earnings (P/E) ratio, which currently stands at 15.37, has slightly adjusted to 14.42 when looking at the last twelve months as of Q1 2024. This adjustment suggests a more favorable valuation for investors seeking entry points. Additionally, the company's revenue growth is notable, with a 10.43% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 41.68% for Q1 2024. These figures indicate a robust capacity for generating income, which could be a direct result of the company's diversified services and growth strategy.

For those interested in further insights and metrics, InvestingPro offers additional tips that can help in making informed investment decisions. To explore these insights and benefit from the full range of features, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With more tips available at InvestingPro, such as analysts' upward revisions of earnings and predictions of profitability for the year, investors can gain a comprehensive understanding of Community Financial System, Inc.'s potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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