COMMUNITY FINANCIAL SYSTEM, INC. Debt Disclosure

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NOTE I: BORROWINGS

Outstanding borrowings at December 31 are as follows:

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FHLB advances are collateralized by a blanket lien on the Company’s residential real estate loan portfolio.

Securities sold under agreement to repurchase includes $211.5 million that have overnight contractual maturity and $19.7 million that mature at various dates ranging from January through December 2026.

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The weighted-average interest rate on short-term borrowings outstanding at December 31, 2025 and 2024 was 1.28% and 2.42%, respectively, which includes securities sold under agreement to repurchase with a weighted average rate of 1.28% and 1.40% at December 31, 2025 and 2024, respectively.

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FHLB borrowings at December 31, 2025 have contractual maturity dates as follows:

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Interest on borrowings recorded in the consolidated statements of income consists of the following for the years ended December 31:
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During the first quarter of 2025, the Company entered into a new parent company unsecured committed revolving line of credit facility with a commercial bank in an amount of up to $50.0 million to be available for use for general corporate purposes including potential future merger and acquisition activity by its non-Bank subsidiaries. Outstanding borrowings under the revolving line of credit facility will bear interest at either fixed rates determined at closing or floating rates at the monthly Secured Overnight Financing Rate plus 2.25% at the option of the Company. The revolving line of credit facility will mature on February 25, 2027 and includes certain financial covenants. The Company has determined it is in compliance with these covenants as of December 31, 2025.

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The Bank has an unused line of credit of $25.0 million at December 31, 2025 and 2024. The Bank has unused borrowing capacity of approximately $1.58 billion through collateralized transactions with the FHLB and $2.78 billion through collateralized transactions with the FRB.

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During 2024, the Company secured $250.0 million of fixed rate FHLB term borrowings. The borrowings consist of three $50.0 million advances at interest rates ranging from 4.38% to 4.47% that were putable at the option of the FHLB in June 2025 and mature in June 2027 as the option was not exercised, and one $100.0 million advance that included a put option that was exercised by the FHLB in August 2025. The Company also secured $300.0 million in short - term borrowings through the Bank Term Funding Program at the Federal Reserve at a rate of 4.87%, to fund expected net loan growth. These short-term borrowings matured during March 2024 and the Bank Term Funding Program ceased making new loans as of March 11, 2024.

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During 2023, the Company secured $400.0 million of fixed rate FHLB term borrowings. The borrowings consist of a $100.0 million five year fixed rate advance with a rate of 4.50% and a $200.0 million five year monthly amortizing advance with a rate of 4.78%, both of which have contractual final maturity dates in August 2028, as well as a $50.0 million five year fixed rate advance with a rate of 4.44% and a $50.0 million five year monthly amortizing advance with a rate of 4.65%, both of which have contractual final maturity dates in December 2028.