COMMUNITY FINANCIAL SYSTEM Business Summary

Community Financial System, Inc. (CBU) operates a diversified financial services model, generating revenue through a mix of net interest income from its core banking operations and a robust non-interest fee-based stream that accounts for approximately 40% of total operating revenue. The company’s primary segments include Banking (Community Bank, N.A.), which provides retail, commercial, and municipal services across the Northeast; Employee Benefit Services (Benefit Plans Administrative Services), offering national retirement plan administration and trust services; Insurance Services (OneGroup NY), a top-tier U.S. insurance agency; and Wealth Management (Nottingham Financial Group). CBU maintains a competitive edge through its high non-interest income ratio compared to traditional regional peers, positioning itself as a hybrid financial services provider rather than a pure-play bank. Key direct competitors include NBT Bancorp (NBTB), Northwest Bancshares (NWBI), and First Financial Bancorp (FFBC), against whom CBU differentiates through an aggressive acquisition strategy, including the recent integration of Santander branches and the early 2026 acquisition of ClearPoint Federal Bank & Trust. The leadership team is led by President and CEO Dimitar A. Karaivanov, who assumed the top role in 2024 following a distinguished tenure as Managing Director in Lazard’s Financial Institutions Group. He is supported by Executive Vice President and CFO Marya Burgio Wlos, appointed in March 2025, who brought extensive pedigree from senior roles at M&T Bank and UBS Asset Management. The operational team includes Senior Vice President and Chief Banking Officer Matthew K. Durkee, who transitioned into the role in January 2026, and Chief Technology and Operations Officer Aaron Friot, a veteran of the firm since 2003. The Board of Directors, chaired by Eric E. Stickels, recently enhanced its risk and insurance expertise with the February 2026 appointment of Brenda M. Hall, former COO of Selective Insurance Group. Founded in 1866, the company has evolved from its local origins into a multi-billion dollar diversified holding company with a strong institutional investor base.