CBU - Community Bank's Stock Price Appears Costly

• Deposit growth will likely remain decent due to the government stimulus. Deposit growth will likely boost earning assets.
• Loan growth will likely remain muted due to the upcoming forgiveness of the Paycheck Protection Program loans. A shift in asset-mix away from loans will pressurize the margin.
• The provision expense will likely decline because of a reduction in credit risk, and a high level of allowance for loan losses.
• The year-end target price suggests a small downside from the current market price. Further, CBU is offering a low and unattractive dividend yield.

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