Community Bank System Is Poised for a Rebound in 2021
DeWitt, New York-headquartered Community Bank System (NYSE: CBU), closed out 2020 one-more-earnings period removed from worst-case scenarios in the wake of the COVID-19 pandemic. The company's fourth-quarter 2020 report, issued Monday, demonstrated slight but tangible year-over-year revenue and net income growth.
The company's filing revealed a stronger loan portfolio that reflects declining default risk, though many of its loan clients are still struggling within a larger economy that hasn't yet rebounded from the pandemic. Community Bank System also raised its annual dividend and instituted an aggressive share-repurchase program for 2021. The company's stock shed 12% last year in a difficult period for the banking industry, and though investors still appear wary over bank stocks in general, the bank can certainly reward patient investors in the coming quarters -- especially those seeking total return.
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Source Fool.com
