Regional Banks

credit / rates affecting interest expense

“The decrease in interest expense of $1.7 million was driven by a 7 basis point decrease in the cost of funds and a decrease in higher cost average borrowings of $80.9 million, partially offset by an increase in comparatively lower cost average interest-bearing deposit balances of $627.5 million. ​ ● The provision for credit losses of $21.4 million decreased $1.4 million from the prior year’s provision of $22.8 million, reflective of stable credit quality metrics.”

CBU 10-K

demand / volume

“The decreases in the rates paid on average interest-bearing deposits and on average borrowings were due to market-related interest rate changes between the periods, as well as a change in the proportion of overnight borrowings and term borrowings to total borrowings. ​ Average interest-bearing deposits increased $819.2 million compared to the prior year quarter, with increases in all deposit account types, including demand deposits, interest checking, savings, money market and time deposits.”

CBU 10-Q

credit / rates

“Average external borrowings decreased $80.9 million, or 8.8%, in 2025 as compared to 2024, primarily due to a decrease in average Federal Reserve short-term borrowings of $54.1 million, average securities sold under agreement to repurchase (“customer repurchase agreements”) of $46.7 million and average overnight borrowings of $20.9 million, partially offset by an increase in term FHLB borrowings of $40.8 million.”

CBU 10-K