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SYRACUSE, N.Y. - Community Financial System, Inc. (NYSE:CBU), a $3.01 billion market cap financial services company, announced Wednesday a quarterly cash dividend of $0.47 per share on its common stock, representing a $0.01 or 2.2% increase from the previous dividend. According to InvestingPro data, the company has maintained dividend payments for 42 consecutive years.
The dividend will be payable on October 10, 2025, to shareholders of record as of September 12, 2025. Based on the July 15 closing share price of $56.40, the new dividend reflects an annualized yield of 3.33%.
"Today’s increase reflects the Board of Directors’ confidence in our sustainable long-term growth strategy as a diversified financial services company," said Dimitar Karaivanov, President and Chief Executive Officer, in a press release statement. The company’s confidence appears well-founded, with revenue growing at 7.37% and trading at a P/E ratio of 15.77. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets between $62 and $73.
The company noted this marks its 33rd consecutive year of annual dividend increases.
Community Financial System operates through four main business lines: banking services, employee benefit services, insurance services, and wealth management services. Its banking subsidiary, Community Bank, N.A., has over $16 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts.
The company’s stock trades on the New York Stock Exchange under the symbol CBU.
In other recent news, Community Financial System Inc. reported its financial results for the first quarter of 2025, where it exceeded earnings expectations but slightly missed revenue forecasts. The company reported a GAAP EPS of $0.93, surpassing the anticipated $0.91, while revenue came in at $196.2 million, slightly below the forecast of $197.1 million. The company also announced a strategic acquisition, entering into an agreement to acquire seven branch locations from Santander Bank in the Allentown, Pennsylvania area. This transaction involves Community Financial System assuming $600 million in deposits and $33 million in loans, with an 8% deposit premium paid in cash. The deal is expected to close in the fourth quarter of 2025, pending regulatory approval, and is projected to be slightly accretive to earnings.
Furthermore, the acquisition will expand Community Financial System’s presence in the Greater Lehigh Valley to 12 total retail locations, positioning it among the top five banks in the market. Analysts from Keefe, Bruyette & Woods maintained their Market Perform rating on the company, viewing the acquisition favorably for market share expansion. Additionally, the company’s diversified revenue profile, including banking, insurance, employee benefits, and wealth management, has contributed to its stable performance, despite the slight revenue miss. The company continues to focus on expanding its branch network and maintaining a strong liquidity position amidst broader economic uncertainties.
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