Community Financial System in Syracuse, N.Y., reported higher quarterly profit despite purging underperforming securities and boosting its loan-loss provision.
The $17 billion-asset company said in a press release that its third-quarter net income rose by 11% from a year earlier, to $61.3 million.
Net interest income rose by 12%, to $143.5 million, while noninterest income increased by 6%, to $83.7 million.
The company recognized a $2.9 million net loss on investment securities after it sold $296.8 million of lower-yielding securities during the third quarter. The proceeds were used to repay higher-cost overnight borrowings, which was immediately accretive to net interest income.
The loan-loss provision was $5.6 million, up from the second quarter and the same as a year earlier.