29 Nonperforming loansloans outstanding 0

For more information,visit: or Summary of Financial Data(Dollars in thousands, expect per share data) Quarter EndedYear EndedDecember 31, December 31, 2008 200720082007Earnings Loan income$47,896$47,938 $186,833$186,784 Investment income 16,928 17,87964,02669,453Total interest income 64,824 65,817250,859 256,237 Interest expense24,428 30,828102,352 120,263 Net interest income 40,396 34,989148,507 135,974 Provision for loan losses 2,395880 6,730 2,004 Net interest income after provision for loan losses 38,001 34,109141,777 133,970 Deposit service fees9,4098,828 35,62432,012Other banking services876676 3,184 3,284 Trust, investment and asset management fees 1,9272,210 8,648 8,264 Benefit plan administration, consulting and actuarial fees6,6125,453 25,78819,700Debt extinguishment charges and investment securities losses, net 0(9,950) 230 (9,974) Total noninterest income18,824 7,217 73,47453,286Salaries and employee benefits21,690 20,06282,96275,714Professional fees 1,2701,383 4,565 4,987 Occupancy and equipment and furniture 5,1904,872 21,25618,961Amortization of intangible assets 2,0031,544 6,906 6,269 FDIC insurance626113 1,678 435 Goodwill impairment 1,7450 1,745 0 Other 10,097 9,275 38,05135,326Acquisition expenses1,3569 1,399 382 Total operating expenses43,977 37,258158,562 142,074 Income before income taxes12,848 4,068 56,68945,182Income taxes879(7,779) 10,7492,291 Net income $11,969$11,847 $45,940 $42,891Basic earnings per share $0.37$0.40 $1.51 $1.43Diluted earnings per share $0.37$0.39 $1.49 $1.42Diluted earnings per share-cash$0.46$0.44 $1.73 $1.62Summary of Financial Data (Dollars in thousands, except per share data) 2008 20074th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr EarningsLoan income $47,896$46,731$45,691$46,515$47,938Investment income16,928 15,083 15,379 16,636 17,879Total interest income64,824 61,814 61,070 63,151 65,817Interest expense 24,428 24,741 25,630 27,553 30,828Net interest income40,396 37,073 35,440 35,598 34,989Provision for loan losses2,3951,9851,570780880 Net interest income after provision for loan losses38,001 35,088 33,870 34,818 34,109Deposit service fees 9,4099,0448,9108,2618,828 Other banking services 8761,174539595676 Trust, investment and asset management fees1,9272,2342,3242,1632,210 Benefit plan administration, consulting and actuarial fees 6,6126,9315,9336,3125,453 Debt extinguishment charges and investment securities gains/ losses, net 00(57) 287(9,950) Total noninterest income 18,824 19,383 17,649 17,618 7,217 Salaries and employee benefits 21,690 21,114 19,772 20,386 20,062Professional fees1,2701,0959021,2981,383 Occupancy and equipment and furniture5,1905,3045,1895,5734,872 Amortization of intangible assets2,0031,7271,6451,5311,544 FDIC insurance 626665277110113 Goodwill impairment1,7450000 Other10,097 9,3139,1659,4769,275 Acquisition expenses 1,35638 509 Total operating expenses 43,977 39,256 36,955 38,374 37,258Income before income taxes 12,848 15,215 14,564 14,062 4,068 Income taxes 8793,4293,2773,164(7,779) Net income$11,969$11,786$11,287$10,898$11,847Basic earnings per share$0.37$0.39$0.38$0.37$0.40Diluted earnings per share$0.37$0.39$0.37$0.36$0.39Diluted earnings per share-cash(1)$0.46$0.44$0.42$0.41$0.44Profitability Return on assets 0.951.000.980.941.00 Return on equity 8.969.629.279.089.95 Cash return on equity(1) 11.22 10.84 10.44 10.20 11.14Noninterest income/operating income (FTE) (2)29.932.331.130.530.7 Efficiency ratio (3) 64.462.462.164.863.9 Components of Net Interest Margin (FTE) Loan yield 6.206.296.436.656.81 Investment yield 5.595.775.856.075.95 Earning asset yield6.006.136.256.466.52 Interest-bearing deposit rate1.992.212.422.682.85 Short-term borrowing rate3.733.874.074.174.13 Long-term borrowing rate 4.744.724.774.795.74 Cost of all interest-bearing funds 2.532.752.923.133.41 Cost of funds (includes DDA) 2.182.362.512.702.94 Net interest margin (FTE)3.863.823.783.813.63 Fully tax-equivalent adjustment $3,803 $3,645 $3,745 $3,890 $3,687 Summary of Financial Data (Dollars in thousands, except per share data) 2008 20074th Qtr3rd Qtr2nd Qtr1st Qtr4th Qtr Average BalancesLoans $3,082,283$2,963,504$2,869,338$2,822,100$2,801,660 Taxable investment securities932,872 770,902 779,958 808,962 937,656 Nontaxable investment securities 534,583 511,299 524,454 540,993 489,446 Total interest-earning assets4,549,738 4,245,705 4,173,750 4,172,055 4,228,762 Total assets 5,035,398 4,712,423 4,639,946 4,642,019 4,700,537 Interest-bearing deposits2,913,671 2,658,681 2,666,424 2,659,584 2,667,869 Short-term borrowings478,875 477,139 420,392 426,116 406,902 Long-term borrowings 448,622 449,292 449,474 457,177 511,919 Total interest-bearing liabilities 3,841,168 3,585,112 3,536,290 3,542,877 3,586,690 Noninterest-bearing deposits 615,540 590,098 563,045 555,927 574,266 Shareholders' equity$531,627$487,249$489,444$482,750$472,303 Balance Sheet DataCash and cash equivalents $213,753$103,595$123,233$160,394$130,823 Investment securities1,395,011 1,283,776 1,258,792 1,307,682 1,391,872 Loans:Consumer mortgage1,062,943 1,039,530 1,015,114 987,807 977,553 Business lending 1,058,846 1,028,400 1,011,137 998,443 984,780 Consumer installment 1,014,351 936,100 895,992 851,536 858,722 Total loans3,136,140 3,004,030 2,922,243 2,837,786 2,821,055 Allowance for loan losses39,57537,41337,12836,42836,427Intangible assets328,624 257,042 253,752 255,111 256,216 Other assets 140,599 155,489 136,891 133,870 133,963 Total assets 5,174,552 4,766,519 4,657,783 4,658,415 4,697,502 Deposits 3,700,812 3,226,393 3,247,348 3,243,382 3,228,464 Borrowings 760,558 901,659 772,646 766,153 801,604 Subordinated debt held by unconsolidated subsidiary trusts 101,975 101,969 101,963 101,956 127,724 Other liabilities66,55653,42352,17858,25660,926Total liabilities4,629,901 4,283,444 4,174,135 4,169,747 4,218,718 Shareholders' equity 544,651 483,075 483,648 488,668 478,784 Total liabilities and shareholders' equity 5,174,552 4,766,519 4,657,783 4,658,415 4,697,502 Capital Tier 1 leverage ratio7.22 7.73 7.75 7.59 7.77 Tangible equity / tangible assets4.46 5.01 5.22 5.30 5.01 Diluted weighted average common shares O/S 32,74230,28030,28030,03630,006Period end common shares outstanding 32,63330,09629,93529,89229,635Cash dividends declared per common share$0.22 $0.22 $0.21 $0.21 $0.21Book value 16.69 16.05 16.16 16.35 16.16 Tangible book value6.627.517.687.817.51Common stock price (end of period) 24.39 25.15 20.62 24.56 19.87 Summary of Financial Data(Dollars in thousands, except per share data) 20082007 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr Asset QualityNonaccrual loans $12,126$10,496$11,080$8,757 $8,267 Accruing loans 90 days delinquent5531,018370392622 Total nonperforming loans 12,679 11,514 11,450 9,1498,889 Other real estate owned (OREO)1,0598376371,0271,007 Total nonperforming assets13,738 12,351 12,087 10,176 9,896 Net charge-offs 2,3901,700870779900 Loan loss allowance/loans outstanding 1.261.251.271.281.29 Nonperforming loans/loans outstanding 0.400.380.390.320.32 Loan loss allowance/nonperforming loans 312 325 324 398 410Net charge-offs/average loans 0.310.230.120.110.13 Delinquent loans/ending loans 1.431.261.130.991.10 Loan loss provision/net charge-offs 100 117 180 100 98 Nonperforming assets/total assets 0.270.260.260.220.21 (1) Cash earnings excludes the after-tax effect of amortization of intangible assets, goodwill impairment, and market value adjustment amortization on acquired loans and deposits. (2) Excludes gain (loss) on investment securities & debt extinguishment.(3) Excludes intangible amortization, acquisition expenses, special charges and gain (loss) on investment securities & debt extinguishment.This press release contains forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995.The following factors, amongothers, could cause the actual results of CBUs operations to differ materiallyfrom CBUs expectations: the successful integration of operations of itsacquisitions; competition; changes in economic conditions, interest rates andfinancial markets; and changes in legislation or regulatory requirements.CBUdoes not assume any duty to update forward-looking statements.Community Bank System, Inc.Scott A. ) You practically can feel the loving wealth, spreading around the streets of Philly. At a point when Philly cheese steaks aren’t as tasty or lovable as the Philadelphia Phillies, the rabid town has again gone nuts, not over the Eagles or Michael Vick’s craze, not over the Sixers season-opener next week, and definitely not over the Flyers.For now, a fervid and rambunctious crowd is crazy for the Phillies on a raucous Broad Street, where the uncontrollable fanatics are wilder than the Philly Phanatic, celebrating back-to-back appearances in the World Series.No wonder there’s a crack in the Liberty Bell, when loud echoes are heard in an entire community that gives its heart to the luckiest franchise in Philly this century. No wonder why boos have turned into cheers the last few seasons.So, on another frigid night at Citizens Bank Park, the large capacity crowd erupted on nearly each homer crushed out of the hitters-friendly park.

That’s technically all you need to know, describing a well-experienced and mettlesome core predicating the factual character of champs. After all, entering the season, the Phillies knew what it took.Despite struggling and overcoming adversity, Philadelphia never quit and raised intensity a notch when producing wins suddenly became meaningful. Similar to last year, the Phillies informed the entire world where the champion banners belong.Similar to last year, they overmatched the Dodgers, having fun and precisely romping Los Angeles in five games to clinch the NLCS with a four-games-to-one differential.Greater than clinching the National League Title, the Phillies are in good position to become the first back-to-back world champion from the NL in 33 years.If the Phillies happen to fulfill that agenda and write a new chapter in the history books, they will be the first franchise to complete such an unforeseen achievement since the Cincinnati Reds defined tenacity, longevity, and unity in the 1970's. The Phillies constitute greatly the same features, staying together as a unified core and illustrating the significance of having chemistry.Meanwhile, Joe Torre’s squad is still growing. The Dodgers have good chemistry inside the clubhouse, but a feeble rotation was a vital factor in a horrid letdown.Missing out at the non-waiver trade deadline badly blemished the Dodgers, like watching Rocky Balboa in a one-sided heavyweight fight, or similar to watching Vick single-handedly thrash defenders in the” Wildcat” formation and rush for all-purpose yards.No need to take a guess Our country was earnestly awaiting a Broadway vs Hollywood, New York vs Los Angeles, Steinbrenner vs Torre, Yankees-Dodgers World Series. Believed to be one of the purest hitters in the game, $5 foot-longs at Subway are a factor, lifting his performance level. That’s one way to enhance your performance level, rightNot much of a factor in Game Five, Howard was greatly appreciated at the end of the night. He was honored with the series Most Valuable Player award, and absorbed more chants and cheers, rather than boos.

As the Phillies still believe with enough zest to win it all, Howard said excitedly, “We have one more step: then we got action.” The cleverest general manager, Ruben Amaro Jr., also stood before the crowd thanking all the loyal fans for their support, when credit goes to him for assembling and bringing in proper necessities to contend for back-to-back jubilance.He was very successful in fortifying the rotation, realizing how shaky the bullpen was for much of the year. In the offseason Ned Colletti overacted, centered on continuous negotiations with baseball agent and manipulator Scott Boras, just to hold on to the Mannywood marketing product that has abruptly deteriorated.There’s not much left to see from a so-called slugging wannabe who damn near contaminated an entire era as the masses never considered the Great Manny a bust. But his numbers have plunged since the league banned the most despised hitter in the game for a 50-game suspension. In just 32 at-bats the wannabe or Manny Being a Dope Idiot had disappointing results, finishing with a homer, four RBI and six strikeouts. Just from staring at the stat sheet, I noticed he had more strikeouts than RBI.If you ask me, I just can’t see a player who falsified the game returning in a blue uniform.Hopeful days are approaching for the Dodgers. Despite losing, positive signs were presented when outfielder Andre Ethier and first baseman James Loney each belted solo shots.The youth of the Dodgers are developing an identity, but they have yet risen to a premier level, needing to consolidate the pitching rotation.In a series summarized by dominant pitching, despite a substandard bullpen, the Phillies relied on the brilliant heroics of Cliff Lee, a left-handed ace who throws, by far, the greatest breaking ball in the game.Pedro Martinez was a stud and kept the Dodgers’ bats quiet. Martinez was a midseason acquisition that was very productive in timely situations.After all, the Phillies aren’t a fluke. Other players shined in critical roles, burning the Dodger Dogs, mostly on hits soaring through the chilled skies of Philly.

There was outfielder Jayson Werth, collecting five homers this postseason, and likely the biggest one of his career in the seventh inning when he lofted a solo shot.There was center fielder Shane Victorino, the Flyin’ Hawaiian and pest in center, rarely dropping shots traveling his direction. But offensively, he came up big, nailing a two-run homer off the sensational Clayton Kershaw in the sixth inning to give the Phillies a commanding 8-3 lead.That led to a Philly-tastic celebration, when players jived on the mound like big children. When Victorino caught a fly ball to record the final out, fireworks brightened the skies, just as the Phillies energized the crowd, igniting a towel-swinging party.The champagne was chilled, and when they made their way to the clubhouse the party started as teammates were drenched. But on the other side, in the dugout, sat the helpless Dodgers upset at how it all ended somberly and stared at the celebration reflecting from a disappointing letdown.Overcoming the heartbreaking defeat when the young Jonathan Broxton blew the save in Game Four, they came into the game with a ready mindset, but they were no match for the Phillies, who had all the weapons to overpower faith.Theory is, the Phillies weren’t only smarter, but overlooked and overmatched, confirming to the world that they still are the experts to beat In the City of Brotherly Love, champs reside and believe . Trump International Hotel & Tower New York is Awarded Five Stars by MobilTravel GuideAward Exemplifies Trump Hotel Collection's Unwavering Dedication to ServiceNEW YORK, Jan. 22 /PRNewswire/ Trump International Hotel & Tower New Yorkwas honored today with a 2009 Mobil Five-Star Award by Mobil Travel Guide, thelist that has defined the industry's highest standard for excellence inhospitality for over 50 years.