CBU Sees Strong Growth Across Financial Services

By Tamara Parker • Wednesday, September 04 15:22 • Permanent Link

In 2023, CBNA's deposits in Buffalo, NY's MSA amounted to $237 million, reflecting a 12.6% 5-year CAGR, while its market share reached 0.3%. The company also had a 5-year CAGR of 4.9% in Syracuse, NY, reaching $1,052 million in deposits with a 5.5% market share. In Springfield, MA, the company saw a 6.6% 5-year CAGR in deposits amounting to $31 million, with a market share of 0.2%.

In terms of Employee Benefit Services, BPAS achieved a 12.1% 10-year operating revenue CAGR, with a 5-year CAGR of 5.9% and a 3-year CAGR of 6.1%. Additionally, its 3-year average operating margin was 42.9%.

For OneGroup's Insurance Services, the company achieved a 7-year operating revenue CAGR of 9.8%, with a 5-year CAGR of 8.6% and a 3-year CAGR of 13.9%. The 3-year average operating margin was 18.8%.

Wealth Management Services also saw growth with a 10-year operating revenue CAGR of 8.3%, a 5-year CAGR of 6.1%, and a 3-year CAGR of 3.6%. The 3-year average operating margin stood at 31.2%.

CBNA's Consumer Lending experienced a 10-year average net-charge off ratio of 0.07% and its NOO CRE represented 197% of total bank-level capital compared to the KRX bank-held median of 242%.

Furthermore, the company's Liquidity & Credit were highlighted as foundational strengths, with a 22% cycle to date deposit beta, 24% cycle to date funding beta, and 30% cycle to date interest-bearing deposit beta.

CBNA's segment performance showed a 10-year operating revenue CAGR of 12.1%, and a 3-year average operating margin of 42.9%, indicating strong performance.

In terms of relative premium to KRX, CBNA had a 10-year average of 4.2x and a 5-year average of 6.1x, with the current relative premium standing at 5.0x.

Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $59.97. If you want to know more, read the company's complete 8-K report here.

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