Fit for the Future
Fit for
the Future
2 O 1 4 A N N U A L R E P O R T
2 O 1 4 A N N U A L R E P O R T
TA B L E O F C O N T E N T S
Shareholder Letter
Peer Comparison
Operations Review
2
6
8
Leadership and Governance
16
Administration
18
Selected Financial Highlights 24
Shareholder Information
25
The Company operates more than 190 customer facilities across Upstate New York and Northeastern Pennsylvania through its banking subsidiary, Community Bank, N.A. With assets of approximately $7.5 billion, the DeWitt, N.Y. headquartered company is among the country’s 150 largest financial institutions.We have built a market-leading branch system serving predominantly non-urban markets where we have earned the 1st or 2nd leading deposit market share in 75% of the towns where we operate.Our principal business focus is building additional value into our enterprise through selective and strategic acquisitions, disciplined lending, and a consistent approach to business regardless of economic conditions. Our goal is to generate a 10% average annual total shareholder return over time.Approximately 33% of our revenue comes from noninterest sources with approximately half flowing from our benefits administration and wealth management businesses. For 2014, our financial services businesses generated over $60 million in revenue, a strong foundation to build on. Our disciplined approach to lending has provided an enviable risk profile for the Bank where our asset quality metrics have remained consistently better than industry and peer group averages. The Company’s Tier I leverage ratio, a primary measure of regulatory capital, was 9.96% at the end of 2014, up 67 basis points from year-end 2013 primarily from strong net earnings retention.Community Bank’s healthy approach to business has resulted in it being named one of the nation’s best large banks in each of the last six years, in the annual Forbes.com analysis of America’s 100 largest financial institutions. Reflecting a history of consistent results, the Company has raised its cash dividend for 22 consecutive years, a significant milestone and evidence of our belief that payment of a meaningful and growing dividend is an important component of providing favorable long-term returns to our shareholders. A Healthy Profile I N V E S T M E N T R AT I O N A L E
Relentless focus on creating shareholder value
> Through superior performance
> Through growing dividends
Consistent execution over the past 20+ years
Effective and proven business model, built for tomorrow
Diversification driving non-interest income expansion
Disciplined approach to growth
> Through a locally-focused, branch-centric philosophy
> Through a record of successful and accretive acquisitions
Meaningful dividend and yield
Market cap of more than $1.4 billion
NYSE listed with significant liquidity
Total Average Annual Shareholder Returns
Through December 31, 2014, Including Reinvestment of Dividends
CBU
2 YEARS
5 YEARS
7 YEARS
15 YEARS
22.0%
18.9%
14.1%
12.4%
S&P 600 Commercial Bank
25.2%
16.4%
NASDAQ Bank
S&P 500
DJIA
21.9%
12.5%
22.7%
15.4%
19.4%
14.2%
2.5%
2.4%
7.3%
7.2%
6.0%
5.6%
4.2%
5.4%
C B U 2 0 1 4 A N N U A L R E P O R T 1
The Company’s total cumulative return to shareholders of 152.6% over the last seven years is more than 4 and ½ times the median return among America’s largest 100 banks for the same period.4½
Community Bank System’s consistent approach to business again yielded very strong results
in 2014. For the fifth consecutive year, we produced record operating earnings, alongside
encouraging regional economic trends. Record bottom-line results were matched in our record
revenues, loans and deposits, all attained with controlled costs and with capital levels that
exceeded both historic levels and regulatory requirements.
Fit for the Future
S H A R E H O L D E R L E T T E R
“Health is not valued till sickness comes.” Thomas Fuller coined this phrase nearly
400 years ago, and much can be drawn from its relevance to the banking industry
in recent years. Since 2007, prior to the start of the economic downturn, through
December 31, 2014, the number of FDIC-insured banking institutions in the United
States fell by 2,171, or 25%, including more than 500 banks that “failed.” Some liken
our industry to a Darwinian “survival of the fittest,” and in many ways this is accurate.
Community Bank is certainly among “the fittest.” However, far from simply “surviving,”
we aim to thrive. We understand the value of being fit and well – for our customers,
our communities, our associates and most importantly, our shareholders.
To date, we’ve done well by this aim. From 2007 through the end of 2014, Community
Bank delivered a 152.6% cumulative total return to shareholders, ranking 5th among
the largest 100 banks in the U.S. by assets and measuring more than four and a half
times the median of that group. Further, during this period of banking industry
underperformance among the broader universe of stocks, our shareholders received
more than twice the rate of return experienced by the S&P 500 and Russell 3000.
The same outperformance holds true over the longer term as well. With consistency,
we’ve rewarded our shareholders with returns few other companies can match.
In 2014 the number of years in which we have raised our dividend without
interruption reached 22 – a rarity among our industry. Among more than 1,000
publicly traded banks and thrifts, we are among a group of just eight to claim this
achievement. In fact, our growing dividend has contributed to our shareholders
receiving a compound annual total return of 13% per year over these last 22 years –
during which the company has reported consistent quarterly profits, delivered 12%
average annual growth in net income and delivered 11% annual growth in revenue.
Perhaps most gratifying: the steady increase in our dividend reflects our Board’s
confidence in the future direction of our business.
We are fit and nimble for a future in which the banking landscape may look wholly
different than the one that exists today. With changing customer preferences, rapidly
evolving risk management requirements, and shifting regulatory expectations of
what constitutes “health,” excellence is required. Our agility and strength will serve us
– and our customers, communities and shareholders – well.
R E C O R D 2 0 14 P E R F O R M A N C E
A look to the future would be incomplete without acknowledging the 2014 successes
upon which our growth strategy builds.
We reported record earnings per share of $2.22, up 9% over 2013. We effectively
integrated the eight branches we acquired in Northeast Pennsylvania in December
2013, as well as an add-on acquisition by our Benefit Plans business. We grew fee
revenues generated by both our banking and financial services businesses, up 16%
over 2013. In total, revenues grew 7%, including the benefit of 3% net interest income
expansion. With controlled expenses, our efficiency ratio improved to 57.9% from
59.3% in 2013.
Total assets and disciplined management of deposit funding costs continue to have
positive effects on margin results, but have generally not been able to fully offset
declining asset yields. We are pleased with our ability to hold net interest margin
steady at 3.91% for the second consecutive year. This was aided in large part by loan
2 F I T F O R T H E F U T U R E
Community Bank System has increased its cash dividend for 22 consecutive years, and is one of only eight banks in this very select group of “dividend achievers.” growth across all portfolios of $140 million, along with core deposit growth of over
$190 million.
As the economy has stabilized, so too have the costs we’ve incurred to manage
troubled loans. For example, the ratio of credit losses to average loans on our balance
sheet in 2014 fell to just 15 bps – that’s 15 hundredths of one percent – marking
the lowest level in seven years. Disciplined risk management has been key to this
success. We commit resources to continually improve our credit assessment and risk
management capabilities, and we are pleased that our outcomes have validated
this approach.
In tandem, our profitability grew substantially. Return on average assets – a core
measure of how efficiently we use our balance sheet to generate profits – grew
to 1.23%, the highest annual rate in 20 years. This high rate of capital generation
continued to reinforce our capital position, driving our Tier 1 risk-based capital ratio
to 17.61%, more than 480 basis points higher than the median for the largest 100 U.S.
banks. Even with our highest-ever capital levels, our return on equity in 2014 grew to
9.65%, our highest level in three years.
Our 2014 profitability increased an already strong capital base and positioned
Community Bank to continue building additional value into our enterprise.
Indeed, 2014 was the most productive year in Community Bank System’s history.
S T R E N G T H A N D P O S I T I O N I N G
We concluded 2014 with the best balance sheet we’ve ever had in terms of asset mix,
funding, credit quality and capital strength.
This, in part, reflects significant measures we’ve taken over the last two years to
position our balance sheet with a stronger mix of loans and core deposits.
For example, in the fourth quarter of 2014, average earning assets were up just
1.6% from the fourth quarter of 2013. However, all of the growth in earning assets
was in loans, rather than investment securities – a very positive mix development.
Likewise, the multi-year trend away from time deposits and into core checking,
savings and money market accounts continued in 2014, resulting in a further decline
in overall funding costs. The outcome was a stable 2014 net interest margin, which
at 3.91% was a considerable 60 basis points higher than the median among the
100 largest banks, which fell 11 basis points from 2013 to 2014.
What’s more, for an institution of our size, our average loan sizes are uniquely granular.
Our average commercial loan totals just $301,000, while our average residential
mortgage and home equity loans total just $102,000 and $41,000, respectively.
With more than 130,000 loan accounts and 566,000 deposit accounts, we are most
Dividend Growth Per Share
Book Value Per Share
05
06
07
08
09
10
11
12
13
14
05
06
07
08
09
10
11
12
13
14
10-year CAGR = 5.5%
10-year CAGR = 4.6%
C B U 2 0 1 4 A N N U A L R E P O R T 3
The Company’s book value per share has grown nearly 60% since the end of 2005.$24.00$18.00$12.00$6.00$1.20$0.90$0.60$0.30 pleased that our margins and returns are particularly robust relative to risk taken.
Our reserve coverage of non-performing loans further supports our conservative
approach: our reserves could adequately absorb more than 7 years of credit losses at
our recent loss rate.
Outstanding results have made capital accumulation over the past several years
considerable, which creates particularly favorable opportunity. With risk-based capital
ratios today that are above the industry and above where we’ve typically ranged, we
have ample capital, and we are eager to use it.
We are tremendously well-positioned in 2015, and will work hard to deploy capital
to continue to grow earnings and grow dividends for the benefit of our shareholders.
We haven’t been shy about our desire to expand through acquisition, which we
believe offers a supplemental opportunity for delivering added shareholder value
over time. We continue to focus on building additional value into our enterprise
through selective acquisitions, disciplined lending and a consistent approach to
business regardless of economic conditions.
You can be sure our historic approach to growth will remain at the core of our
strategy for the foreseeable future. Namely, we’ll pursue opportunity where others
don’t, we’ll put the branch and the communities we serve at the center of our
business, and we’ll seek orderly diversification across our banking and financial
services targets. Despite considerable industry and economic change, we believe this
approach will continue to support our strong performance and solid results.
D I V E R S I F I C AT I O N L E A D S T H E W AY
The rising significance of fee-driven revenue streams is among the most important
shifts in our industry today. The reasons are many. The current low-interest-rate
environment has persisted well beyond most economists’ predictions, challenging
interest-driven revenues earned from offering loans. Likewise, increasing regulatory
capital requirements have reinforced the merits of delivering value-added services for
which customers are willing to pay a fee, and which carry minimal capital requirements.
Much like the competitive triathlete who trains across a number of sports,
diversification is a key component of our success. Today, fee income streams comprise
33% of our revenues, compared to 25% for the largest 100 U.S. banks. Specifically, our
Benefit Plans Administration Services (BPAS) and Wealth Management businesses
contribute half of Community Bank’s non-interest income and 17% of total revenue.
Our national provider of retirement plan administration, actuarial, consulting and fund
administration services, BPAS reaches a diverse array of clients spanning the United
States and Puerto Rico. In essence, BPAS is a technology business with a scalable
platform. From just nine office locations, our 248 BPAS employees serve 350,000
plan participants and 3,600 professional engagements, with trust assets exceeding
$18 billion. Momentum is strong. In fact, BPAS’ 2014 revenues of $42.6 million were
more than double our 2007 level. Over the past ten years this platform has produced
17% compound annual growth in revenues, and we believe significant growth
opportunities remain.
Similarly, our Wealth Management Group is a national business seeing strong growth
due to referrals and customer-adviser loyalty. We see a clear opportunity to leverage
synergies between Wealth Management and the Community Bank branch network,
with the bank’s resources, branding and deep market penetration providing an
excellent source of referrals. With a portion of the group’s distribution coming through
Community Bank’s non-urban branch network, we are able to thrive in markets
where the bigger names in the financial services industry have exited or can’t justify
operating. With full-service brokerage and insurance offerings, investment advisory
and trust services, we offer unmatched capabilities in many of our markets.
This strength generated 16% compound annual growth in revenue over the past five
years, reaching $17.9 million in 2014. We believe our wealth management
group is positioned well for both organic and acquisition growth.
CBU has been a component of the S&P 1500 Dividend Aristocrats Index since 2012, when it raised its cash dividend for the 20th consecutive year. Looking ahead, perhaps our strongest asset in building out our financial services
offerings is the strength of the Community Bank franchise. Simply put, it makes
us an attractive acquirer to potential sellers. Combining the strong reputation and
capital position of Community Bank and the capital-light structure of our BPAS
and Wealth Management businesses means a strong, available currency and
attractive returns. We fully expect to continue executing our growth strategy for
these fee-driven businesses.
2 015… A N D B E Y O N D
2015 is off to a terrific start, highlighted by the February announcement of our
planned acquisition of Oneida Financial Corp. The merger will combine two
institutions with a long history of community-focused service and with a deposit
base that will rank fourth largest by market share in the Syracuse, New York area.
Equally exciting, Oneida’s impressive insurance, benefits administration, and wealth
management businesses will meaningfully strengthen and complement Community
Bank’s existing non-banking service capacity. Most importantly, Oneida has an
impeccable history of service to its customers and its communities, reflecting a
culture that aligns very well with that of Community Bank. We look forward to
welcoming the Oneida team when the transaction closes this summer.
2015 also brings the retirement of Brian R. Wright, a member of our Board of Directors
since 2011. Our Board is a driving force behind Community Bank’s consistent
philosophy and strength, and it is with great appreciation that we recognize Brian for
his dedicated service. Brian previously served as a director and Chairman of the Wilber
Corporation since 1982, and the wise counsel he brought to our Board affirms our
continued preference for welcoming directors through our regional bank acquisitions.
We are pleased that Community Bank will continue to benefit from Brian’s insight
and experience, as he will remain a member of the company’s Central New York
Advisory Board.
Community Bank System’s disciplined approach to business, similar to maintaining
a healthy lifestyle, has provided sustainable growth and bottom-line results,
while positioning the company to be “in shape” to seize new opportunities.
We are committed to healthy habits – disciplined business practices and consistent
execution – which we believe bodes well for our future. With healthy returns, healthy
performance, healthy relationships, healthy communities, and a healthy outlook,
we are truly fit for the future. Most importantly, we are pleased that our strength
and health contributes to the financial well-being of our customers, businesses,
communities and shareholders.
This year and always, you can expect us to maintain our relentless focus on creating
shareholder value, through superior performance and meaningful dividends.
We thank you for your continued support of Community Bank System, Inc.
Nicholas A. DiCerbo Chairman of the Board
Mark E. Tryniski President and Chief Executive Officer
C B U 2 0 1 4 A N N U A L R E P O R T 5
We haven’t been shy about our desire to expand through acquisition, which we believe offers a very productive opportunity for delivering added shareholder value over time. 6 F I T F O R T H E F U T U R E
In 2014, Forbes.com published its sixth annual analysis of “America’s Best and Worst Banks,” and once again Community Bank System was ranked near the top. The Forbes® analysis ranked CBU 12th best among America’s 100 largest banks and thrifts, based on a comparison of nine different metrics related to asset quality, capital adequacy and profitability. The Company was ranked 11th in 2012, and top 10 for each of the remaining years of this analysis, demonstrating a consistent ability to deliver superior performance across these important industry financial metrics.Performing Consistently Among the Best Large BanksFor the sixth consecutive year CBU was ranked among America’s best large banks by performance.6 The nine charts included here display the financial metrics used in the annual Forbes® analysis of
the “Best and Worst Large Banks.” Comparing CBU to the median values of the institutions included
in the Forbes® analysis illustrates why it has ranked among the country’s best performing banks
during the six years this comparison has been published. The metrics include net interest margin;
nonperforming loans (NPLs) as a percentage of loans; nonperforming assets as a percentage of
assets; reserves as a percentage of NPLs; two capital ratios (Tier 1 and Total risk-based), leverage ratio,
return on average equity and revenue growth.
Return on
Average Equity %
Net Interest
Margin (FTE) %
Revenue Growth %
09
10
11
12
13
14
09
10
11
12
13
14
09
10
11
12
13
14
Nonperforming Loans /
Loans Outstanding %
Allowance for Loan Losses /
Nonperforming Loans %
Nonperforming Assets /
Total Assets %
09
10
11
12
13
14
09
10
11
12
13
14
09
10
11
12
13
14
Tier 1 Risk Based
Capital Ratio %
Leverage %
Total Risk Based
Capital Ratio %
09
10
11
12
13
14
09
10
11
12
13
14
09
10
11
12
13
14
C B U 2 0 1 4 A N N U A L R E P O R T 7
CBUMedian of Top 100 Banks601218408125010151.002.03.010002003001.002.03.0408123.43.03.84.2501015 A Disciplined and
Differentiated Approach
to Growth
At Community Bank System, we understand that the journey to long-term
success is not a sprint – but rather, it’s achieved through consistent and
disciplined execution of a proven growth strategy. Operating primarily in
non-metropolitan markets, we’ve continued to find that the branch is still
an effective way for us to connect with our current and prospective retail
and small business customers. To support this philosophy, we’ve bolstered
our branch network significantly in recent years through strategic
acquisitions. Since 2006, we’ve added a net of more than 70 branches and
$3 billion in assets through seven branch or whole-bank acquisitions that
have added density to our Upstate New York and Pennsylvania footprint.
The “plug and play” flexibility of our branch-centric model allows us to
efficiently allocate resources and serve clients in historically lower-growth
areas. This strategy has been highly effective for us. During the fourth
quarter of 2014, our year-over-year average loan balances were up
4%, while average deposits were up 5%. We believe that this level of
high-quality, sustainable growth allows us the opportunity to create
incremental stakeholder value.
As we look ahead to 2015 and beyond, we expect to capitalize on
the progress we’ve made through growth initiatives in recent years.
With a very healthy balance sheet, our team is well-positioned to continue
to pursue growth opportunities, both organic and acquired. Utilizing our
strong financial position, we recently announced a definitive agreement
to merge with Oneida Financial Corp. for approximately $142 million in
stock and cash. The Oneida acquisition will add nearly $800 million in
total assets, deposits of $690 million, and 12 banking offices across
Madison and Oneida Counties in Upstate New York. The transaction
also adds benefits administration, wealth management, and insurance
businesses which will complement and expand our existing financial
services offerings.
Loan and Deposit Growth
In millions
4.6%
5.3%
5.4%
5.0%
6.2%
5.7%
4.9%
3.8%
8 F I T F O R T H E F U T U R E
1Q 14
2Q 14
3Q 14
4Q 14
Loans
Deposits
Average Balances and Year Over Year Growth$3,500$2,500$4,500$5,500$6,500CBU holds the 1st or 2nd deposit market share in 75% of the towns where it has a branch location. 75 C B U 2 0 1 4 A N N U A L R E P O R T 9
Our emphasis is on building and maintaining profitable customer relationships across all business lines. Financial Services Revenue
In millions
10-year CAGR = 13.7%
14
10 F I T F O R T H E F U T U R E
060705080910111213$20$40$60 Diversification Drives
Non-Interest Income Expansion
In 2014, Community Bank System grew non-interest income by more
than 9% year-over-year, to $119 million. In the past five years, that figure
has grown by 34%. This notable non-interest income expansion is the
result of strategic efforts to diversify our revenue streams, aimed at
making us less dependent on net interest income, and less susceptible
to changes in the interest rate environment.
Not only do we have a healthy mix of interest and non-interest income,
but we’ve also worked to create similar diversification within our
non-interest income sources. In 2014, financial services revenue from
wealth management and employee benefit services of more than
$60 million made up approximately half of total non-interest income
for the year. Our financial services businesses, Community Bank Wealth
Management and Benefit Plans Administrative Services, Inc. (BPAS),
operate well beyond the footprint of our local banking operations,
with offices in New York, Pennsylvania, Florida, Texas and Puerto Rico,
and assets under management or administration in 46 states. BPAS is a
leading provider of employee benefits administration and trust services,
actuarial and consulting services to customers on a national scale, and is
complemented by our wealth management group, made of four branded
firms providing a suite of insurance, investment, and personal and
institutional trust services.
Financial Services Coverage
Wealth Management
BPAS
States with AUM/AUA
PUERTO RICO
C B U 2 0 1 4 A N N U A L R E P O R T 11
33% of our 2014 total revenue came from non-interest income sources.At $60.5 million for 2014, CBU’s Financial Services revenue has more than tripled since 2005. 60.533lln Superior Execution
Builds Value
Long-term value creation is built through excellence across the board,
and it’s something we strive for throughout all levels and business lines
within our Company. Our philosophy of discipline that enables us to
achieve this is defined by high-quality credit, strong capital, consistent
operational execution and strategic M&A activity.
While our primarily non-urban footprint offers a slower level of growth,
we are comfortable with the stability found in these markets and excel
at capitalizing on it. We’ve maintained our hallmark risk management
standards while organically growing our lending portfolio and
producing strong asset quality metrics, regardless of the economic
conditions facing the industry.
At year-end, non-performing loans made up just 0.56% of loans
outstanding, compared to 1.95% for all commercial banks in the
U.S. Reserves for loan losses represented 1.14% of our legacy loans and
1.07% of total loans outstanding and based on full-year 2014 results,
represent over seven years of annualized net charge-offs. We expect
Community Bank’s superior asset quality to remain a differentiating
feature of our business model into the future.
Exceptional Asset Quality
At or for the twelve months ended December 31, 2014
Loan loss allowance/NPLs2
NPLs2/loans outstanding
Net charge-offs/
average loans3
Provision to net charge-offs
Earnings coverage of
net charge-offs (x)
CBU
ACBN 1
ACBN
ACBN
> $1B $1B-$10B
190%
0.56%
76%
1.95%
73%
2.02%
99%
1.42%
ACBN
> $10B
71%
2.10%
0.15%
117%
0.49%
72%
0.51%
71%
0.30%
91%
0.54%
70%
14.73
6.28
6.15
8.93
5.94
1 ACBN = All Commercial Banks, National
2 NPLs = Nonperforming loans
3 FDIC Statistics - Net charge-off to loans
12 F I T F O R T H E F U T U R E
Average loan balances grew by $202 million during 2014.202
Total Loans
In billions
10-year CAGR = 6.0%
14
C B U 2 0 1 4 A N N U A L R E P O R T 13
060705080910111213$4.0$3.0$2.0$1.0 14 F I T F O R T H E F U T U R E
Consistent Long-Term
Performance
We have delivered successful performance over the long-term for
one simple reason – we have a business model that is, and has always
been, built for tomorrow. Through economic downturns and periods of
prosperity alike, our markets have remained stable and predictable.
That, coupled with our conservative risk management, means that our
returns are particularly robust relative to risk taken.
This strategy has been the key to Community Bank System’s long-term
value creation and is what sets us apart from our peers and much of the
industry. In July, we raised our quarterly dividend for the 22nd consecutive
year to $0.30 per share, an increase of more than 7%. We are proud to
be among a select group of banks that have consistently increased their
annual dividend over this period. Our executive team and Board believe
that a consistent and growing dividend is integral to delivering long-term
value to our shareholders.
Our Growth Story
10 -Year CAGR
Loans
Average Deposits (core)
Net Interest Income
Non-Interest Income (banking)
Non-Interest Income (financial services)
Total Revenues
5.8% s
11.8% s
4.9% s
7.8% s
13.7% s
6.4% s
C B U 2 0 1 4 A N N U A L R E P O R T 15
The steady increase in our dividend reflects our Board’s confidence in the future direction of our business.
L E A D E R S H I P
E X E C U T I V E M A N A G E M E N T
Mark Tryniski
President and Chief Executive Officer
With CBU since 2003. Formerly served as
Chief Financial Officer and Chief Operating Officer. Partner
with Pricewaterhouse Coopers prior to joining CBU.
Scott Kingsley
Chief Financial Officer
With CBU since 2004. Served as CFO of
Carlisle Engineered Products prior to joining CBU.
Brian Donahue
Chief Banking Officer
With CBU since 1992. Formerly served as
Chief Credit Officer and as Senior Loan Officer
for the Southern Region.
Joe Getman
Executive Vice President and General Counsel
With CBU since 2008. Provided corporate counsel
to CBU as a senior partner at Bond, Schoeneck
& King, PLLC prior to joining CBU.
Brian R. Wright
The Board of Directors recognizes Brian R. Wright for his
tremendous service to Community Bank System, Inc. Prior to
joining the Board in 2011, he had served as a director and
Chairman of the Wilber Corporation since 1982. Mr. Wright, an
attorney, special counsel with Hinman, Howard & Kattell, LLP,
has provided exceptional guidance as a member of both
the Strategic/Executive, Compensation and the Nominating/
Corporate Governance Committees. Community Bank will
continue to benefit from his insight and experience, as he
will remain an important member of the company’s
Central New York Advisory Board.
Community Bank, N.A.
Regional Advisory Boards
Adirondack
Paul M. Cantwell, Jr.
William M. Dempsey
Alexander C. Edwards
Joseph Vernon Lamb III
James R. Langley, Jr.
Carl J. Madonna
Kim A. Murray
Central
Mary C. Albrecht
Olon T. Archer
Tom Harding
Joseph P. Mirabito
Benjamin C. Nesbitt
James L. Seward
Geoffrey A. Smith
Alfred S. Whittet
David F. Wilber III
Brian R. Wright
Pennsylvania
Edward A. Coach
Michael J. Coleman
John H. Graham
Scott E. Henry
Edward I. Johnson, Jr.
Thomas A. McCullough
William K. Nasser, Jr.
Russell G. Newell
Frank J. Niemiec
James M. O’Brien
16 F I T F O R T H E F U T U R E
B O A R D O F D I R E C T O R S
Nicholas A. DiCerbo
Chairman of the Board;
DiCerbo & Palumbo, Partner;
Director since 1984
James A. Wilson
Lead Director of the Board;
Retired, Parente Randolph, LLC, Principal Partner;
Nominating/ Corporate Governance Committee;
Audit/ Compliance/ Risk Management Committee, Chair;
Director since 2009
Brian R. Ace
Laceyville Hardware, Owner;
Compensation Committee, Vice Chair;
Nominating/ Corporate Governance Committee;
Director since 2003
Mark J. Bolus
Bolus Motor Lines, Inc., President and CEO;
Compensation Committee, Chair;
Strategic/ Executive Committee;
Director since 2010
Neil E. Fesette
Fesette Realty, LLC and Fesette Property Management,
Owner, President and CEO; Nominating/ Corporate
Governance Committee, Chair; Trust Committee;
Director since 2010
James A. Gabriel
Franklin & Gabriel, Owner; Trust Committee, Chair;
Loan/ALCO Committee, Vice Chair;
Strategic/Executive Committee;
Director since 1984
James W. Gibson
Retired, KPMG, LLP, Partner;
Audit/ Compliance/ Risk Management Committee;
Compensation Committee;
Director since 2009
Edward S. Mucenski
Pinto, Mucenski, Hooper, Van House & Company, P.C.,
Partner and Managing Director;
Compensation Committee; Audit / Compliance/ Risk
Management Committee, Vice Chair;
Director since 2010
John Parente
CP Media, LLC, CEO;
Loan/ ALCO Committee, Chair;
Strategic/ Executive Committee;
Audit / Compliance/ Risk Management Committee;
Director since 2010
Sally A. Steele
Attorney at Law;
Strategic/ Executive Committee, Chair; Trust Committee;
Director since 2003
Mark E. Tryniski
Community Bank System, Inc., President and CEO;
Director since 2006
John F. Whipple
Buffamante Whipple Buttafaro, P.C., CEO;
Nominating/ Corporate Governance Committee;
Audit/ Compliance/ Risk Management Committee;
Director since 2010
Note: All bank board members participate in the Loan /ALCO Committee
C B U 2 0 1 4 A N N U A L R E P O R T 17
Richard M. Heidrick, Senior Vice President,
Indirect Lending
Director of Special Projects
ADMINISTRATION
Finance & Treasury Management
Daniel P. O’Connell, Director of Internal Audit
Executive
Joseph J. Lemchak, Senior Vice President,
Dorothy A. Quarltere, Chief Compliance Officer
Mark E. Tryniski, President and
Chief Executive Officer
Chief Investment Officer
Susan S. Fox, Corporate Controller
Timothy Miller, Director of Information Security
Lawrence D. Witter, Financial Intelligence
Scott A. Kingsley, Executive Vice President,
Robert R. Frost, Director of Planning
Unit Director
Chief Financial Officer
& Financial Analysis
Brian D. Donahue, Executive Vice President,
Sean M. Howard, Senior Treasury Officer
Chief Banking Officer
George J. (Joe) Getman, Executive Vice President,
General Counsel
Retail & Business Banking
Joseph F. Serbun, Senior Vice President,
Chief Credit Officer
Hal Wentworth, Senior Vice President,
Retail Banking and Marketing
George J. Burke, Director of Mortgage Banking
Joseph E. Sutaris, Senior Vice President,
Regional Banking Executive
Robert A. Cirko, Senior Vice President,
Regional Retail Banking Manager
Scott J. Boser, Retail Lending Manager
Judith A. Meyer, Branch Services Administrator
Cynthia L. Lefko, Cash Management Product
and Sales Manager
Michael J. Stacey, Collections Manager
Credit Administration
Stephen G. Hardy, Senior Vice President,
Chief Credit Administrator
Nancy Mastrucci, Senior Credit Manager
Mark A. Guenthner, Special Assets Manager
Denise Rhoads, Commercial Appraisal Manager
18 F I T F O R T H E F U T U R E
Randy Pray, Corporate Purchasing Manager
Brian Fancher, Benefits Accounting Manager
Laura J. Mattice, General Accounting Manager
Dennelle T. Michalski, Financial Controls Manager
COMMUNIT Y BANK
Commercial Banking Officers
W E S T E R N R E G I O N
David McKinley, Commercial Banking Officer
David S. Alm, Senior Commercial Banking Officer
Mark P. Saglimben, Senior Commercial
Robert E. Pierce, Financial Reporting Manager
Banking Officer
Administrative Services
Scott P. Brechbuehl, Commercial Banking Officer
Timothy J. Baker, Senior Vice President,
Gretchen Copella, Commercial Banking Officer
Bernadette R. Barber, Senior Vice President,
Chief Human Resources Officer
Danielle M. Cima, Associate General Counsel,
Corporate Secretary
Michael N. Abdo, Associate General Counsel
Brett C. Fisk, Director of Facilities
Donna J. Drengel, Board Secretary
and Shareholder Relations
Technology & Operations
J. Michael Wilson, Senior Vice President,
Chief Technology Officer
Patrick M. Gorman, Commercial Banking Officer
Douglas O. Frank, Commercial Banking Officer
Michael Boza, Agricultural Banking Officer
N O R T H E R N R E G I O N
Nicholas S. Russell, Senior Vice President
of Commercial Banking Northern Region
Kevin J. Kent, Commercial Banking Officer
Paul Connelly, Commercial Banking Officer
Ronald J. Bacon, Senior Commercial
Banking Officer
Craig Stevens, Commercial Banking Officer
Aaron S. Friot, Director of Information Technology
Jeffrey T. Fallon, Commercial Banking Officer
Robin E. Dumas, Electronic Banking Manager
Amy Downey, Commercial Banking Officer
Barbara L. Snyder, Loan Operations Manager
Patricia Duffy, Agricultural Banking Officer
Christina E. Sullivan, Deposit Operations Manager
Matthew J. Rollins, Commercial Banking Officer
Risk Management
Paul J. Ward, Senior Vice President,
Chief Risk Officer
Mark J. Houghtaling, Director of Loan Review
Andrew Rice, Agricultural Banking Officer
D E W I T T / S Y R A C U S E R E G I O N
Luke Fagan, Commercial Banking Team Leader
William D. McIncrow, Commercial
Paul Baynum, Commercial Banking Officer
Thomas LaPage, Trust Officer, Canton
Banking Officer
Matthew Dougherty, Commercial
Patricia A. Crolly, Trust Officer, Scranton, PA
Russell E. Sturtz, Commercial Banking Officer
Banking Officer
Joseph Pedrotti, Commercial Banking Officer
Mary Elizabeth D’Andrea, Commercial
Banking Officer
Patricia A. Lowe, Trust Operations Officer
Priscilla R. Welch, Trust Officer, Oneonta
S O U T H E R N R E G I O N
Stephen H. Rich, Commercial Banking
Joseph S. Tomko, Commercial Banking Officer
Nottingham Advisors, LLC
Team Leader
Neil D. King, Commercial Banking Officer
Loren C. Herod, Agricultural Banking
Walter Sarafinko, Commercial Banking Officer
Team Leader
Arthur J. Sable, Commercial Banking Officer
J. David Clark, Commercial Banking Officer
David M. McHale, Commercial Banking Officer
A. Edward Nork, Commercial Banking Officer
Chief Investment Officer
Stacia L. Arnaud, Commercial Banking Officer
Karen A. Mohn, Chief Compliance Officer,
D. James Vedora, Commercial Banking Officer
Client Services Manager
John Pekarovsky, Commercial Banking Officer
Mark Miller, Commercial Banking Officer
Charles Van Hooft, Agricultural Banking Officer
Rebecca L. Snyder, Agricultural Banking Officer
WEALTH MANAGEMENT GROUP
Nicholas Verbanic, Vice President,
Portfolio Manager
Paul A. Restante, Managing Director
Community Investment Services, Inc.
Barbara Toczko-Maculloch, Senior Vice President,
Paul A. Restante, President
C E N T R A L R E G I O N
Pennsylvania Market Director
Jeffrey C. Lord, Commercial Banking
Theresa Kalil-Lennon, Senior Vice President,
Team Leader
Regional Sales Manager- Central/East
Financial Consultants
Audrey Pound, Operations Manager
Edward P. Michalek, Commercial
David B. Coon, Senior Vice President,
Peter Albano, Wilkes-Barre, PA
Banking Officer
Regional Sales Manager- Western NY
100 Corporate Parkway, Suite 338
Amherst, NY 14226
Thomas S. Quealy, Chief Executive Officer
Lawrence V. Whistler, President,
John M. Connolly, Commercial Banking Officer
Daniel P. Drappo, Senior Financial Consultant,
Jonathan M. Luce, Commercial Banking Officer
Allison M. Mosher, Commercial Banking Officer
S M A L L B U S I N E S S U N D E R W R I T I N G
Michael G. Austin, Small Business
Loan Manager
Richard R. Sisson, Underwriter
Beth Robbins, Underwriter
P E N N S Y LVA N I A R E G I O N
Robert P. Matley, Senior Vice President,
President Pennsylvania Banking
Warren C. Rozelle, Commercial Banking
Team Leader
Richard Kazmerick, Commercial Banking
Team Leader
Regional Sales Coordinator, ADK/North
Trust and Investment Services
Catherine B. Koebelin, Senior Vice President,
Chief Trust Officer, Olean
Charles J. Perrillo, Senior Vice President,
Chief Trust Investment Officer, Oneonta
Adam C. Niebanck, Trust Investment Officer,
Eric E. Brunet, Ogdensburg
Michael Bufalini, Watertown
Joseph M. Butler, Jr., Watertown
Thomas Ciolek, Olean/Avon
Shawn Derrick, Wellsville
Daniel P. Drappo, Black River
James G. Durso, Waterloo
Oneonta
Timothy Forman, Lake Placid
Amy B. Allen, Senior Trust Officer, Oneonta
Kevin C. Gildner, Wellsville
Vincent L. Mastrucci, Trust Officer, Scranton, PA
Jason Grover, Canandaigua
Paul J. Snodgrass, Trust Investment Officer, Canton
Justin P. Hooper, Plattsburgh
Robert P. Jewell, Trust Officer, Elmira
Randall J. Hulick, Springville
Patricia E. Barie, Trust Officer, Olean
C B U 2 0 1 4 A N N U A L R E P O R T 19
Kyle A. Leikam, Dunkirk
Linda S. Pritchard, Senior Vice President,
Boonville (101 Main Street and Headwaters Plaza)
Rick P. Little, Jermyn, PA
Andrew Lomanto, Plattsburgh/Malone
David Long, Horseheads/Consumer Square
Andrew Mangano, Fulton
Jude R. McDonough, Scranton, PA
Tim McNamara, Scranton, PA
Chad J. Murray, Falconer
Charles A. Nicosia, Oneonta
David H. O’Neil, Jr., Boonville
Brent Patry, Oneonta/Norwich
Joseph Topichak, Corning
Michele Wilck, Newark/Palmyra
CBNA Insurance Agency
Mark J. Moeller, President/CEO
Elaina Bradley
117 Park Street, Tupper Lake, NY
John Duprey
173 Margaret Street, Plattsburgh, NY
Diane Hazelton
6 Clinton Street, Heuvelton, NY
Andrew Ellis
Recordkeeping Services
Debra Roberts, Manager
3501 Masons Mill Road, Suite 505,
Canton
Huntingdon Valley, PA
David R. Peggs, Manager
Mary Anne Geary, Senior Vice President,
Champlain
DC Plan Services
Melissa M. Peryea, Manager
Richard Schultz, Senior Vice President,
Chateaugay
Fiduciary Services
Candice Pelkey, Branch Supervisor
Harbridge Consulting Group, LLC
Clayton
One Lincoln Center, Syracuse, NY
Vincent F. Spina, President
Steven P. Chase, Senior Vice President
Sarah E. Dam, Senior Vice President
Lori E. Fearnside, Manager
Fort Covington
Gayle E. Miner, Branch Supervisor
Gouverneur
Diane Easton, Manager
335 Lexington Ave., 5th Floor, New York, NY
Harrisville
Sheryl Gabriel, Senior Vice President
Karen Pierce, Branch Supervisor
Hermon
Hand Benefits & Trust
Connie J. Green, Manager
820 Gessner, Suite 1250, Houston, TX
Heuvelton
Richard Tacchino, Branch Supervisor
W. David Hand, Chief Executive Officer
Stephen Hand, President
James Goodwin, Vice President
Kathy Harvey, Senior Vice President
BPAS Trust Company, Puerto Rico
Alfredo Matheu, President, BPAS Puerto Rico
Tina M. Paczkowski, District Manager
Indian Lake
Brenda K. Lanphear, Manager
Lake Placid
Katie R. Stephenson, Manager
Long Lake
Viccann Novak, Manager
Lowville (7605 State Street)
Lowville (7395 Turin Road)
Stephen H. Allen, Manager
Lyons Falls
Nancy Fruin, Manager
Madrid
Marsha L. Watson, Manager
Malone (Elm Street)
Byron Tuthill, District Manager
Malone (West Main Street)
Stacey Brunell, Manager
8242 Route 3, Harrisville, NY
644 Fernandez Juncos Ave, Suite 301, San Juan, PR
Yvonne Webb
217 West Main Street, Malone, NY
BENEFIT PLAN SERV ICES
Barry S. Kublin, President
Benefit Plans Administrative Services, LLC
6 Rhoads Drive, Utica, NY
Paul M. Neveu, Executive Vice President
BRANCH LOCATIONS
Community Bank Northern New York Market
Adams
Christopher M. Castle, Manager
Alexandria Bay
Matthew Honeywell, Manager
Ausable Forks
Robert A. Malczyk, Vice President,
Valerie A. Daniels, Manager
Director of Sales
Black River
Christina S. Meagher, Manager
20 F I T F O R T H E F U T U R E
Massena
Waddington
Cicero
Joy Graves, Manager
Adrienne Smith, Branch Manager
Denise Cavallo, Manager
North Creek
Watertown (1125 Arsenal Street)
Clifton Springs
Lori A. DeMars, Manager
Elizabeth A. Brown, Manager
(26 East Main Street and Clifton Plaza)
Norwood
Watertown (216 Washington Street)
Adrienne Smith, Manager
Rita J. Walldroff, Regional Retail
Clymer
Theresa P. Dorgan, Manager
Ogdensburg (825 State Street)
Robert L. Seymour, District Manager
Ogdensburg (320 Ford Street)
Denise Barse, Manager
Old Forge
Barbara B. Criss, Manager
Plattsburgh (Margaret Street)
Kathie Coller, Manager
Plattsburgh (Route 3)
Banking Manager
Catherine Ward, Manager
West Carthage
Naura L. Christman, Manager
Whitehall
Holly A. Rabideau, Manager
Laurie L. Harvey, Manager
Corning (West Market Street)
Wendy B. Daines, Manager
Corning North
Robert Avvampato, Manager
Cuba
Community Bank Southern New York Market
Shavonne Henderson, Manager
Addison
Dansville
Robin K. Knapp, Manager
Jody R. Tonkery, District Manager
James E. Snook, Vice President, Manager
Alfred
Plattsburgh (468 Route 3)
Beth L. Plaisted, Manager
Dunkirk (3909 Vineyard Drive)
Jason DeChard, Manager
Kent G. Backus, Regional Retail
Allegany
Dunkirk (345 Central Avenue)
Banking Manager
James E. Snook, Manager
Stephanie L. Kolkowski, Manager
Jean M. Coughlin, Manager
Avon
Elmira
Plattsburgh (In-store – Wal-Mart)
Deborah K. Fitch, Manager
Denise E. Allen, District Manager
Arlene Favreau, Branch Supervisor
Angelica
Erwin/Painted Post
Potsdam (64-70 Market Street and May Road)
Diana L. Grastorf, Branch Supervisor
Angela M. Long, Branch Supervisor
Victoria G. Strader, Branch Manager
Pulaski
Steven P. Gaffney, Manager
Saranac Lake (Broadway)
Brenda Darrah, Manager
Saranac Lake (Lake Flower)
Renee L. Darrah, Manager
Bath
Falconer
Joel P. Brazie, Manager
Joann W. Anderson, Manager
Belfast
Fillmore
Lisa Perry, Branch Supervisor
Julie A. Hall, District Manager
Bolivar
Franklinville
Judy Gilliland, Manager
Sandra S. Wolfer, Manager
St. Regis Falls
Paul E. Lepore, District Manager
Tina Stephens, Manager
Canandaigua (County Road 10)
Fulton
Sherri Fleury, Branch Supervisor
Star Lake
Connie Green, Manager
Ticonderoga
Maria E. Beuerlein, Manager
Tupper Lake (Park Street)
John W. Salamy, Manager
Canandaigua (South Main Street)
Geneva (Canandaigua Road)
Christopher Bross, Manager
Tina Jackson, Manager
Cassadaga
Geneva (Seneca Street)
Susan C. Sekuterski, Manager
John Latanyshyn, Manager
Cato
Gowanda
Tiesha Combes, Manager
Ralph Swanson, Manager
C B U 2 0 1 4 A N N U A L R E P O R T 21
Hammondsport
Olean (201 North Union Street)
Silver Creek
Kelly L. Bussmann, Manager
Eric M. Garvin, Regional Retail Banking Manager
Mark J. Catalano, District Manager
Hannibal
Jody L. Spears, District Manager
Skaneateles
Debra A. Davis, District Manager
Olean (Delaware Park)
Desiree R. Murphy, Manager
Hornell
Melissa M. Ponticello, Manager
Orchard Park
Kelly Crandall, Manager
Horseheads-Consumer Square
Glenn Parsons, Manager
Houghton College
Kristen Woodarek, Manager
Oswego
Fred Aldrich IV, Manager
Julie A. Hall, District Manager
Ovid
Jacqueline M. Robinson, Manager
Interlaken
Denise Ector, Manager
Owego
Ithaca
Michael MacDonald, Manager
Palmyra
Florence Rossi, Manager
Jamestown (1281 North Main Street)
Kathleen S. Bemus, Manager
Jamestown (25 Main Street - Brooklyn Square)
Glori A. Taylor, Manager
Cheryl A. Ford, Manager
Penn Yan (151 Main Street)
Thomas R. May, Manager
Penn Yan (272 Lake Street)
Teresa A. Vivier, Manager
Lakewood
Lisa R. Allenson, District Manager
Phelps
Livonia
Ronda Howard, Manager
Moravia
Amy Shaffer, Manager
Portville (1471 East State Road)
Brenda Blackwell, Manager
Tracey Pille, Manager
Portville (7 North Main Street)
Katrina Savitcheff, Branch Supervisor
Mount Morris
Susan Neelin, Manager
Randolph
Diane M. Lecceardone, Manager
Naples
Joilette M. Pendleton, Manager
Ripley
Newark (Church Street)
Phyllis A. Adriaansen, Manager
Rushville
Patricia J. Knight, Manager
Newark Plaza
Ann Young, Manager
Nichols
Christine M. Copper, Manager
Salamanca
Robin K. Bowser, Manager
Kathleen M. Bowen, Manager
Seneca Falls
North Collins
Robin Hohman, Manager
22 F I T F O R T H E F U T U R E
David W. Sloan, Regional Retail
Banking Manager
Christine Plate, Manager
Sherman
Shannon R. Stevens, Manager
Springville (Cascade Drive)
Mary Ann Lutz, Manager
Springville (North Buffalo Street)
Brooke Baker, Manager
Waterloo
Larry D. Ledgerwood, Manager
Watkins Glen
Anthony Fraboni, Manager
Wellsville (4196 Bolivar Road)
Lori Dzielski, Manager
Wellsville (113 Main Street)
Virginia L. Elliott, Manager
Westfield
Carl Swan, Manager
Woodhull
Ashley Quick, Manager
Yorkshire
Joseph D. Fore, Manager
Community Bank Central New York Market
Boiceville
Brad Bernard, Manager
Cobleskill
Arthur C. Lafleur, III, District Manager
Cooperstown (Main Street
and Otsego, State Highway)
Naomi G. Grigoli, Manager
Delhi
Tina A. Seguare, Manager
Downsville
Jean M. Lacey, Manager
Fleischmanns
Marilee A. Asher, Manager
Halfmoon
Richard A. Griesche, Manager
Johnson City
Edwardsville
Scranton (Minooka - Davis Street)
Michelle Carlsson, Manager
Denise M. Johnson, Manager
David H. Lencicki, Manager
Milford
Freeland
Scranton (North Washington Avenue)
Rosemary Aborn, Manager
Daniel J. Boote, Manager
Suzanne Kennedy, Manager
Morris
Hazleton (Airport Road)
Michael Walling, District Manager
Paula Palance, Manager
Scranton (Wyoming Avenue)
Michelle Cook, Manager
Norwich (State Highway)
Caryn M. Wake, Manager
Norwich (Broad Street)
Terri Slater, Manager
Hazleton (North Church Street)
Towanda
Lori A. Roth, Manager
Lori A. Smith, Manager
Hazleton (West Broad Street)
Emmanuel Marte, Manager
Tunkhannock
Jennifer Chesner, Manager
Trucksville/Back Mountain
Susanne M. Mullin, Manager
Oneonta (Main Street)
Jermyn
Richard J. Follett, District Manager
John Peterson, Manager
Oneonta (Chestnut Street)
Paula M. Morell, Manager
Oneonta (Southside)
Sean A. Hall, Manager
Jessup
Wilkes Barre (Franklin Street)
Mary Z. Bieszczad, Manager
David P. Dobbs, District Manager
Kingston (James Street)
Susan Russick, Manager
Karen R. Shuster, Manager
Wilkes Barre (South Main Street)
Sandra A. Wheeler, Manager
Oneonta (FoxCare Center)
Laceyville
Lesley A. Bohacek, Manager
Greg Culver, Manager
Wyalusing
Karen Fuller, District Manager
Otego
Lansford
Beth Braun, Manager
John Greybosh, Manager
Schenevus
Lawton
Gerald V. Coombs, Jr., Manager
Doug Jackson, Manager
Sidney
Lehighton
Bridget Fisk, District Manager
Dana M. Cannariato, Manager
Sharon D. Cutting, Manager
Walton
Donna A. Bundy, Manager
Gold Club
Nancy Miller, Gold Club Manager
Little Meadows
Mary A. Sivers, Manager
Meshoppen
Jennifer Ramey, Manager
Montrose
Community Bank Pennsylvania Market
Steven Stranburg, Manager
Carbondale
Noxen/Bowman’s Creek
Bobbiann Davis, Manager
Colleen M. Bullock, Manager
Clarks Summit
Olyphant
David C. Griffin, Manager
Theresa A. Collins, District Manager
Daleville
Pittston
Susan M. Pitoniak, Manager
Gary Missal, Manager
Dickson City
Lisa Rochinski, Manager
Scranton (Keyser Avenue)
Lisa Browning, Manager
C B U 2 0 1 4 A N N U A L R E P O R T 23
Income Statement
In millions
2014
2006
Net interest income
$ 244.4
$ 134.8
Non-interest income
119.0
51.7
Operating expenses
226.6
129.6
Provision for loan loss
7.2
6.6
Net income
$ 91.4
$ 38.4
Net interest margin
3.91%
3.91%
CAGR
(8-year)
7.7%
11.0%
7.2%
1.1%
11.5%
0.0%
Per Share Data
Diluted
Earnings per share
$ 2.22
$ 1.26
Cash dividends declared
1.16
0.78
Book value
24.24
15.37
7.3%
5.1%
5.9%
Tangible book value
$ 15.63
$ 7.17
10.2%
Balance Sheet Data
End of period, In millions
Assets
Loans, net
Deposits
$ 7,489
$ 4,498
4,191
2,665
5,935
3,168
6.6%
5.8%
8.2%
Shareholders’ equity
$ 988
$ 462
10.0%
24 F I T F O R T H E F U T U R E
Selected Financial Highlights
Corporate Headquarters
Community Bank System, Inc.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
Investor Information
Keefe, Bruyette & Woods Inc.
Investor and shareholder information
Collyn Gilbert / 973.549.4092
regarding Community Bank System, Inc.,
collyn.gilbert@kbw.com
including all filings with the Securities
Phone: 315.445.2282 or 800.724.2262
and Exchange Commission, is available
Fax: 315.445.7347
through the company’s website:
www.communitybankna.com
www.communitybankna.com
Stock Listing
Copies may also be obtained without
Common stock of Community Bank
charge upon written request to:
System, Inc. is listed on the New York
Stock Exchange (NYSE) under the
symbol: CBU. Newspaper listing for
common stock: CmntyBkSys.
Annual Meeting
Ms. Josephine Anne E. Rurka
Investor Relations Department
Community Bank System, Inc.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
Wednesday, May 20, 2015
315.445.7300
10:00 a.m. EST
josie.rurka@communitybankna.com
The Regina A. Quick Center for the Arts
St. Bonaventure University
3261 New York 417
St. Bonaventure, New York 14778
Transfer Agent and
Registrant of Stock
Shareholders requiring a change of
name, address or ownership of stock,
or information about shareholder
records, lost or stolen certificates, and
dividend checks, direct deposit and
reinvestment should contact:
American Stock Transfer & Trust Company
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
800.937.5449
www.amstock.com
Independent Auditors
The Board of Directors appointed
PricewaterhouseCoopers, LLP as auditor
for the company for the year ended
December 31, 2014
Analyst Coverage
The following analysts published
research about Community Bank
System in 2014:
American Capital Partners
Anthony Polini / 908.625.1931
apolini@acpweb.com
Boenning & Scattergood
Matthew Schultheis / 610.832.5290
mschultheis@boenninginc.com
Guggenheim Partners
David Darst / 615.208.1224
david.darst@guggenheimpartners.com
Raymond James
William Wallace / 703.749.1485
william.wallace@raymondjames.com
RBC Capital Markets
Jake Civiello / 617.725.2152
jake.civiello@rbccm.com
Sandler O’Neill
Alexander Twerdahl / 212.466.7916
atwerdahl@sandleroneill.com
Sterne Agee
Matthew Breese / 207.699.5800
mbreese@sterneagee.com
Investor’s Choice Program
CBU offers convenient, low-cost options
for investors wishing to steadily buy
shares. For information, contact:
Ms. Donna J. Drengel
Shareholder Relations Department
Community Bank System, Inc.
5790 Widewaters Parkway
DeWitt, NY 13214 -1883
Phone: 315.445.7313
donna.drengel@communitybankna.com
or
American Stock Transfer & Trust Co.
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
800.937.5449
www.amstock.com
The Community Bank System, Inc. Annual Report contains forward-looking statements, within the provisions of the Private Security Litigation Reform Act
of 1995, that are based on current expectations, estimates, and projections about the industry, markets and economic environment in which the company
operates. Such statements involve risks and uncertainties that could cause actual results to differ materially from the results discussed in these statements.
These risks are detailed in the company’s periodic reports filed with the Securities and Exchange Commission.
C B U 2 0 1 4 A N N U A L R E P O R T 25
SHAREHOLDER INFORMATIONSafe Harbor Statement COMMUNITY BANK SYSTEM, INC.
5790 Widewaters Parkway
DeWitt, NY 13214-1883
800.724.2262
315.445.7347 fax
communitybankna.com