DeWITT — Community Bank System, Inc. (NYSE: CBU) reported that its net income rose more than 29 percent to $35.2 million, or 68 cents a share, in the third quarter from $27.2 million, or 61 cents, in the year-ago period. 

Its earnings per share, adjusted for one-time gains and expenses, was 73 cents a share. That beat analysts’ expectation for 67 cents, according to Zacks Investment Research.

Community Bank reported its earnings before the open of trading on Oct. 23. Its share price fell by $1.99, or more than 3.5 percent, that day to close at $53.75. Year to date, Community Bank’s stock price was down 13 percent, through Oct. 23. The stock had a huge 2016, however, gaining nearly 55 percent.

The DeWitt–based banking company generated total revenue of $137.3 million in the third quarter, up almost 27 percent over the prior-year quarter. That included a full quarter of revenue from both the Merchants Bancshares, Inc. and Northeast Retirement Services, Inc. (NRS) acquisitions that Community Bank completed in the first half of this year. 

Revenue was boosted by a 23 percent increase in average earning assets and continued growth in noninterest income, partially offset by a three basis-point decline in the net interest margin from the prior-year quarter, the earnings report stated. 

Community Bank’s third quarter net interest income totaled $84.4 million, up nearly $16 million, or more than 23 percent, compared to the third quarter of 2016.

A combination of acquired and organic growth resulted in a $10.6 million, or 48 percent, increase in wealth management, insurance, and employee-benefit services revenue. Deposit-service fees increased 24 percent year-over-year, primarily the result of the addition of Merchants, as well as increased card-related revenue, Community Bank said.

“We realized another record performance reflecting full third quarter contributions from our NRS acquisition completed in February, and from our Merchants Bancshares merger which closed in May,” Mark E. Tryniski, president and CEO of Community Bank System, said in the earnings report. “Both of these high-value transactions have performed above our initial expectations. NRS continued to grow both its top and bottom line performance at a double-digit pace, and the Merchants integration has proceeded smoothly with cost synergies running ahead of plan. Our accelerated operating performance, reflects improvements in expense management, credit quality and growth in non-interest income, all of which contributed to the 13% increase in per share results (excluding acquisition expenses) compared with the third quarter of 2016. We are well positioned to continue delivering a high level of operating performance for the benefit of our shareholders.”

Community Bank acquired Merchants for about $345 million in stock and cash and purchased NRS for about $149 million in stock and cash.

During the third quarter, Community Bank boosted its quarterly cash dividend to 34 cents per share on its common stock from 32 cents in the prior quarter and year-ago quarter. This increase marked the 25th consecutive year of dividend increases for Community Bank.

Community Bank System operates more than 230 branches across upstate New York, northeastern Pennsylvania, Vermont, and western Massachusetts through its banking subsidiary, Community Bank, N.A. With assets of about $10.8 billion, Community Bank is among the 150 largest financial institutions in the U.S.