The Bank Slate


Securities sales cut into Community Bank System profit

Community Bank System in Syracuse, N.Y., reported lower quarterly profit after joining the ranks of banks repositioning their balance sheets.

The $15.3 billion-asset company said in a press release that first-quarter net income fell 88% from a year earlier, to $5.8 million.

The company recorded a $52.3 million pretax loss after selling investment securities with a market value of $733.8 million. Net proceeds were used to pay down overnight borrowings with rising and “comparatively high” variable interest rates.

The company recorded a $3.5 million loan-loss provision “primarily due to an adverse change in the economic outlook.”

Total deposits increased by 0.8% from the previous quarter, to $13.1 billion.

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