Financial Institutions, Inc. (NASDAQ:FISI), today reported
financial and operational results for the second quarter ended June
30, 2017. Financial Institutions, Inc. (the “Company”) is the
parent company of Five Star Bank (the “Bank”), Scott Danahy Naylon,
LLC (“Scott Danahy Naylon” or “SDN”) and Courier Capital, LLC
(“Courier Capital”).
Net income for the quarter was $6.2 million,
compared to $7.9 million for the first quarter of 2017 and $7.2
million for the second quarter of 2016. After preferred dividends,
net income available to common shareholders was $5.9 million, or
$0.40 per diluted share, compared to $7.6 million, or $0.52 per
diluted share for the first quarter of 2017, and $6.8 million, or
$0.47 per diluted share, for the second quarter of 2016.
Results for the second quarter of 2017 were
negatively impacted by a $925 thousand provision for loan losses in
connection with the downgrade of one commercial credit relationship
and a $375 thousand net effect of two non-cash valuation
adjustments related to the 2014 acquisition of SDN.
President and Chief Executive Officer Martin K.
Birmingham stated, “We have continued to take advantage of market
disruption to complete strategic hires — adding lenders in nearly
all categories and adding credit and compliance professionals to
support growth. Growing our residential mortgage lending business
is a priority as we believe that our community bank delivery model
offers an attractive option to homebuyers. We have completed the
build-out of a team of highly-skilled and experienced residential
mortgage professionals in Buffalo, including a team of loan
officers and back office support personnel. We are pleased with the
progress we have made in expanding our lending platforms.
“Loan and nonpublic deposit growth were strong
in the quarter and in-line with our strategic plan. Total loans
were 4.8% higher than the end of the first quarter and 13.8% higher
than June 30, 2016. Nonpublic deposits were up 4.7% from March 31st
and up 9.3% from the year earlier period.
“Commercial mortgage loans, commercial business
loans and consumer indirect loans increased during the quarter by
7.3%, 6.1% and 5.2%, respectively. Consumer indirect lending is a
unique core competency for Five Star Bank, based on the foundation
of a consistent and disciplined underwriting process and an
experienced management team. Our indirect lending business is a
prime lending operation that continues to perform very well
compared to peers, even through challenging times in the auto
finance sector, with low delinquency levels and net charge-offs on
the low end of our historic range.
“It is also important to note that our recently
opened financial solution centers in downtown Rochester and
downtown Buffalo continue to gain traction. These branches are
prime locations and we believe they will serve as strong bases for
our continued growth in Western New York.”
Chief Financial Officer Kevin B. Klotzbach
added, “We believe that our strategy to drive noninterest income is
working, in spite of challenges in one line of business. We
recently made thoughtful and strategic organizational changes at
SDN to increase the focus on growing both commercial and personal
insurance revenues and reduce related operating expenses. We remain
positive on the strategic contribution of this subsidiary which has
supported the diversification of revenue, growth of fee income and
strengthening of customer relationships. Growth in noninterest
income continues to be a high priority.
“Our provision for loan losses increased in the
quarter, primarily as a result of two factors: a commercial
credit downgrade and growth in our loan portfolio. It is not
unusual for banks to experience commercial credit downgrades in the
normal course of business and we are focused on maximizing
recovery. In addition, the provision increases as a function of
total loan portfolio growth. During the first six months of 2017,
we grew our loan portfolio by $176.7 million, resulting in an
increase in the provision for loan losses of approximately $2.3
million."
Second Quarter 2017 Highlights:
- Net interest income of $27.4 million increased $2.2 million, or
8.8%, as compared to the second quarter of 2016
- Noninterest income of $9.3 million was $417 thousand, or 4.7%,
higher than the second quarter of 2016
- Total assets, interest-earning assets and loans all reached
record-high levels at quarter-end:
- Total assets increased $31.7 million during the quarter, to
$3.89 billion
- Total interest-earning assets increased $69.5 million during
the quarter, to $3.59 billion
- Total loans increased $114.2 million during the quarter, to
$2.52 billion
- The quarterly cash dividend of $0.21 per common share
represented a 2.83% annualized dividend yield as of June 30, 2017,
and a return of 53% of second quarter net income to common
shareholders
- Total risk-based capital was 13.09% at quarter-end,
representing a strong capital position to support future
growth
- The Company launched an “at-the-market” equity offering program
under which it may sell up to $40 million of its common stock
- Shareholders elected Donald K. Boswell to the Board of
Directors, the fourth new board member added over the course of the
past three years
“At-The-Market” Offering of Common Stock
On May 30, 2017, the Company announced an
“at-the-market” equity offering program under which it may sell up
to $40 million of its common stock. The Company expects to use the
net proceeds of this offering to support organic growth and other
general corporate purposes, including contributing capital to its
banking subsidiary, Five Star Bank. During the quarter ended June
30, 2017, the Company sold 571,597 shares of its common stock under
this program at a weighted average price of $30.59, representing
gross proceeds of $17.5 million. Net proceeds received were $16.7
million.
Valuation Adjustments Related to Scott Danahy
Naylon
The Company completed an evaluation of the
contingent earn out liability related to its 2014 acquisition of
SDN, resulting in a contingent consideration liability adjustment
of $1.2 million. Concurrently, an impairment test of goodwill
related to SDN was also performed and it was determined that the
carrying value of SDN goodwill exceeded its fair value, resulting
in a $1.6 million non-cash goodwill impairment charge.
Net Interest Income and Net Interest
Margin
- Net interest income was $27.4 million for the quarter, $427
thousand higher than the first quarter of 2017 and $2.2 million
higher than the second quarter of 2016.
- Average interest-earning assets for the quarter were $3.56
billion, $78.6 million higher than the first quarter of 2017 and
$326.8 million higher than the second quarter of 2016. The primary
driver of the increase was loans, which in turn were funded
primarily by increased deposits. Net interest margin was negatively
impacted by a flattening of the yield curve in the quarter.
- Second quarter 2017 net interest margin was 3.18%, five basis
points lower than the first quarter of 2017 and the second quarter
of 2016. Net interest margin was negatively impacted by a
flattening of the yield curve in the quarter.
Noninterest Income
Noninterest income was $9.3 million for the
quarter as compared to $7.8 million in the first quarter of 2017
and $8.9 million in the second quarter of 2016.
- Excluding the net gain on investment securities from all
periods, noninterest income was $9.1 million in the second quarter
of 2017, $1.5 million higher than $7.6 million in the first quarter
of 2017, and $1.6 million higher than $7.5 million in the second
quarter of 2016.
- A significant component of the increase was the $1.2 million
non-cash fair value adjustment of contingent consideration
liability previously described.
Noninterest Expense
Noninterest expense was $23.9 million for the
quarter as compared to $20.9 million in the first quarter of 2017
and $22.1 million in the second quarter of 2016.
- The increase in noninterest expense as compared to the first
quarter of 2017 was primarily the result of the $1.6 million
non-cash goodwill impairment charge combined with higher salaries
and employee benefits and occupancy and equipment expenses related
to our organic growth initiatives, including the residential
mortgage lending expansion. In addition, health care claims were
approximately $385 thousand higher in the second quarter of
2017.
- The increase in noninterest expense as compared to the second
quarter of 2016 was due to the same factors described above,
partially offset by lower professional services expense in 2017. In
addition, late in the first quarter of 2016 the Company implemented
several initiatives to reduce operating expenses which were
reflected in the second quarter of 2016.
Income Taxes
Income tax expense was $2.7 million for the
quarter as compared to $3.2 million in the first quarter of 2017
and $2.9 million in the second quarter of 2016. The effective tax
rate was 30.5% for the quarter as compared to 28.5% for the first
quarter of 2017 and 28.8% for the second quarter 2016. The higher
effective tax rate was a result of the $1.6 million non-cash
goodwill impairment charge related to the SDN acquisition,
partially offset by the $1.2 million non-cash fair value adjustment
of the contingent consideration liability related to the SDN
acquisition, both of which were non-taxable adjustments.
Balance Sheet and Capital Management
Total assets were $3.89 billion at June 30,
2017, up $31.7 million from $3.86 billion at March 31, 2017, and up
$305.9 million from $3.59 billion at June 30, 2016. The increases
were largely the result of loan growth funded primarily by deposit
growth.
Total loans were $2.52 billion at June 30, 2017,
up $114.2 million, or 4.8%, from March 31, 2017, and up $305.0
million, or 13.8%, from June 30, 2016.
- Commercial business loans totaled $398.3 million, up $22.8
million, or 6.1%, from March 31, 2017, and up $48.9 million, or
14.0%, from June 30, 2016.
- Commercial mortgage loans totaled $724.1 million, up $49.1
million, or 7.3%, from March 31, 2017, and up $109.9 million, or
17.9%, from June 30, 2016.
- Residential real estate loans totaled $432.1 million, up $3.9
million, or 0.9%, from March 31, 2017, and up $23.7 million, or
5.8%, from June 30, 2016.
- Consumer indirect loans totaled $826.7 million, up $40.6
million, or 5.2%, from March 31, 2017, and up $129.8 million, or
18.6%, from June 30, 2016.
Total deposits were $3.13 billion at June 30,
2017, a decrease of $37.2 million from March 31, 2017, and an
increase of $274.5 million from June 30, 2016. The decrease from
March 31, 2017, was primarily due to public deposit seasonality,
partially offset by the impact of CD and money market campaigns in
the second quarter of 2017. The increase from June 30, 2016, was
primarily the result of successful business development efforts in
both municipal and retail banking, including the second quarter
deposit campaigns. Public deposit balances represented 27% of total
deposits at June 30, 2017, compared to 31% at March 31, 2017 and
27% at June 30, 2016.
Short-term borrowings were $347.5 million at
June 30, 2017, up $44.2 million from March 31, 2017, and up $9.2
million from June 30, 2016.
Shareholders’ equity was $347.6 million at June
30, 2017, compared to $325.7 million at March 31, 2017, and $322.2
million at June 30, 2016. Common book value per share was $21.84 at
June 30, 2017, an increase of $0.63 or 3.0% from $21.21 at March
31, 2017, and an increase of $0.86 or 4.1% from $20.98 at June 30,
2016. The increases in shareholders’ equity and common book value
per share are attributable to common stock issued through our
“at-the-market” stock offering plus net income less dividends paid,
net of the change in unrealized gain (loss) on investment
securities, a component of accumulated other comprehensive
loss.
During the second quarter of 2017, the Company
declared a common stock dividend of $0.21 per common share. The
second quarter of 2017 dividend returned 53% of second quarter net
income to common shareholders.
Regulatory capital ratios at June 30, 2017, were
higher than the prior quarter and prior year due to increased
capital as a result of the recent “at-the-market” stock
offering:
- Leverage Ratio was 7.70%, compared to 7.30% and 7.39% at March
31, 2017, and June 30, 2016, respectively.
- Common Equity Tier 1 Ratio was 9.86%, compared to 9.46% and
9.63% at March 31, 2017, and June 30, 2016, respectively.
- Tier 1 Risk-Based Capital was 10.48%, compared to 10.11% and
10.33% at March 31, 2017, and June 30, 2016, respectively.
- Total Risk-Based Capital was 13.09%, compared to 12.75% and
13.08% at March 31, 2017, and June 30, 2016, respectively.
Credit Quality
Non-performing loans were $12.6 million at June
30, 2017, as compared to $8.0 million at March 31, 2017, and $6.6
million at June 30, 2016. The increase was primarily the result of
the second quarter internal downgrade of two commercial credit
relationships with unpaid principal balances totaling $5.6
million.
- The ratio of non-performing loans to total loans was 0.50% at
June 30, 2017, compared to 0.33% at March 31, 2017, and 0.30% at
June 30, 2016.
- The provision for loan losses for the quarter was $3.8 million,
an increase of $1.1 million from the first quarter of 2017 and an
increase of $1.9 million from the second quarter of 2016. The
increase in provision is primarily attributable to growth in the
total loan portfolio combined with the impact of the downgrade of
one commercial credit relationship. The downgrade necessitated a
provision and increase in allowance for loan losses of
approximately $925 thousand. The relationship was 30-59 days past
due as of June 30, 2017, and we continue to monitor the situation
closely.
- The ratio of annualized net charge-offs to total average loans
was 0.29% in the current quarter, compared to 0.45% in the prior
quarter and 0.19% in the second quarter of 2016.
- The ratio of allowance for loan losses to total loans was 1.32%
at June 30, 2017, 1.29% at March 31, 2017, and 1.29% at June 30,
2016.
- The ratio of allowance for loan losses to non-performing loans
was 263% at June 30, 2017, 388% at March 31, 2017, and 435% at June
30, 2016.
About Financial Institutions,
Inc.
Financial Institutions, Inc. provides
diversified financial services through its subsidiaries Five Star
Bank, Scott Danahy Naylon and Courier Capital. Five Star Bank
provides a wide range of consumer and commercial banking and
lending services to individuals, municipalities and businesses
through a network of more than 50 offices and 70 ATMs throughout
Western and Central New York State. Scott Danahy Naylon provides a
broad range of insurance services to personal and business clients
across 45 states. Courier Capital provides customized investment
management, investment consulting and retirement plan services to
individuals, businesses, institutions, foundations and retirement
plans. Financial Institutions, Inc. and its subsidiaries
employ approximately 650 individuals. The Company’s stock is listed
on the NASDAQ Global Select Market under the symbol FISI.
Additional information is available at www.fiiwarsaw.com.
Non-GAAP Financial
Information
This news release contains disclosure regarding
tangible common equity, tangible common equity to tangible assets,
tangible common book value per share, average tangible common
equity and return on average tangible common equity, which are
determined by methods other than in accordance with U.S. generally
accepted accounting principles (“GAAP”). The Company believes that
these non-GAAP measures are useful to our investors as measures of
the strength of the Company’s capital and ability to generate
earnings on tangible common equity invested by our shareholders.
These non-GAAP measures provide supplemental information that may
help investors to analyze our capital position without regard to
the effects of intangible assets. Non-GAAP financial measures have
inherent limitations and are not uniformly applied by issuers.
Therefore, these non-GAAP financial measures should not be
considered in isolation, or as a substitute for comparable measures
prepared in accordance with GAAP. The comparable GAAP financial
measures and reconciliation to the comparable GAAP financial
measures can be found in Appendix A to this document.
Safe Harbor Statement
This press release may contain forward-looking
statements as defined by Section 21E of the Securities Exchange Act
of 1934, as amended, that involve significant risks and
uncertainties. Statements herein are based on certain assumptions
and analyses by the Company and are factors it believes are
appropriate in the circumstances. Actual results could differ
materially from those contained in or implied by such statements
for a variety of reasons including, but not limited to: the
Company’s ability to implement its strategic plan, the Company’s
ability to redeploy investment assets into loan assets, whether the
Company experiences greater credit losses than expected, whether
the Company experiences breaches of its, or third party,
information systems, the attitudes and preferences of the Company’s
customers, the Company’s ability to successfully integrate and
profitably operate Scott Danahy Naylon and Courier Capital, the
competitive environment, fluctuations in the fair value of
securities in its investment portfolio, changes in the regulatory
environment and the Company’s compliance with regulatory
requirements, changes in interest rates, general economic and
credit market conditions nationally and regionally.
Consequently, all forward-looking statements made herein are
qualified by these cautionary statements and the cautionary
language in the Company’s Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q and other documents filed with the SEC.
Except as required by law, the Company undertakes no obligation to
revise these statements following the date of this press
release.
FINANCIAL INSTITUTIONS, INC.Selected
Financial Information (Unaudited)(Amounts in thousands,
except per share amounts)
|
2017 |
|
2016 |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
SELECTED
BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
84,537 |
|
|
$ |
149,699 |
|
|
$ |
71,277 |
|
|
$ |
110,721 |
|
|
$ |
67,624 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
Available
for sale |
|
540,575 |
|
|
|
540,406 |
|
|
|
539,926 |
|
|
|
559,495 |
|
|
|
619,719 |
|
Held-to-maturity |
|
533,471 |
|
|
|
545,381 |
|
|
|
543,338 |
|
|
|
528,708 |
|
|
|
478,549 |
|
Total
investment securities |
|
1,074,046 |
|
|
|
1,085,787 |
|
|
|
1,083,264 |
|
|
|
1,088,203 |
|
|
|
1,098,268 |
|
Loans held for
sale |
|
1,864 |
|
|
|
2,097 |
|
|
|
1,050 |
|
|
|
844 |
|
|
|
209 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Commercial business |
|
398,343 |
|
|
|
375,518 |
|
|
|
349,547 |
|
|
|
350,588 |
|
|
|
349,432 |
|
Commercial mortgage |
|
724,064 |
|
|
|
675,007 |
|
|
|
670,058 |
|
|
|
636,338 |
|
|
|
614,141 |
|
Residential real estate loans |
|
432,053 |
|
|
|
428,171 |
|
|
|
427,937 |
|
|
|
425,882 |
|
|
|
408,367 |
|
Residential real estate lines |
|
118,611 |
|
|
|
120,874 |
|
|
|
122,555 |
|
|
|
123,663 |
|
|
|
125,054 |
|
Consumer
indirect |
|
826,708 |
|
|
|
786,120 |
|
|
|
752,421 |
|
|
|
729,644 |
|
|
|
696,908 |
|
Other
consumer |
|
17,093 |
|
|
|
16,937 |
|
|
|
17,643 |
|
|
|
17,879 |
|
|
|
17,929 |
|
Total
loans |
|
2,516,872 |
|
|
|
2,402,627 |
|
|
|
2,340,161 |
|
|
|
2,283,994 |
|
|
|
2,211,831 |
|
Allowance
for loan losses |
|
33,159 |
|
|
|
31,081 |
|
|
|
30,934 |
|
|
|
29,350 |
|
|
|
28,525 |
|
Total
loans, net |
|
2,483,713 |
|
|
|
2,371,546 |
|
|
|
2,309,227 |
|
|
|
2,254,644 |
|
|
|
2,183,306 |
|
Total interest-earning
assets |
|
3,593,106 |
|
|
|
3,523,613 |
|
|
|
3,428,541 |
|
|
|
3,357,609 |
|
|
|
3,292,528 |
|
Goodwill and other
intangible assets, net |
|
73,477 |
|
|
|
75,343 |
|
|
|
75,640 |
|
|
|
75,943 |
|
|
|
76,252 |
|
Total assets |
|
3,891,538 |
|
|
|
3,859,865 |
|
|
|
3,710,340 |
|
|
|
3,687,365 |
|
|
|
3,585,589 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
677,124 |
|
|
|
666,332 |
|
|
|
677,076 |
|
|
|
657,624 |
|
|
|
626,240 |
|
Interest-bearing demand |
|
631,451 |
|
|
|
698,962 |
|
|
|
581,436 |
|
|
|
629,413 |
|
|
|
560,284 |
|
Savings
and money market |
|
999,125 |
|
|
|
1,069,901 |
|
|
|
1,034,194 |
|
|
|
1,052,224 |
|
|
|
960,325 |
|
Time
deposits |
|
824,786 |
|
|
|
734,464 |
|
|
|
702,516 |
|
|
|
724,096 |
|
|
|
711,156 |
|
Total
deposits |
|
3,132,486 |
|
|
|
3,169,659 |
|
|
|
2,995,222 |
|
|
|
3,063,357 |
|
|
|
2,858,005 |
|
Short-term
borrowings |
|
347,500 |
|
|
|
303,300 |
|
|
|
331,500 |
|
|
|
230,200 |
|
|
|
338,300 |
|
Long-term borrowings,
net |
|
39,096 |
|
|
|
39,078 |
|
|
|
39,061 |
|
|
|
39,043 |
|
|
|
39,025 |
|
Total interest-bearing
liabilities |
|
2,841,958 |
|
|
|
2,845,705 |
|
|
|
2,688,707 |
|
|
|
2,674,976 |
|
|
|
2,609,090 |
|
Shareholders’
equity |
|
347,641 |
|
|
|
325,688 |
|
|
|
320,054 |
|
|
|
326,271 |
|
|
|
322,176 |
|
Common shareholders’
equity |
|
330,301 |
|
|
|
308,348 |
|
|
|
302,714 |
|
|
|
308,931 |
|
|
|
304,836 |
|
Tangible common equity
(1) |
|
256,824 |
|
|
|
233,005 |
|
|
|
227,074 |
|
|
|
232,988 |
|
|
|
228,584 |
|
Unrealized gain (loss)
on investment securities, net of tax |
$ |
(232 |
) |
|
$ |
(1,938 |
) |
|
$ |
(2,530 |
) |
|
$ |
9,444 |
|
|
$ |
10,886 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
15,127 |
|
|
|
14,536 |
|
|
|
14,538 |
|
|
|
14,528 |
|
|
|
14,528 |
|
Treasury shares |
|
137 |
|
|
|
156 |
|
|
|
154 |
|
|
|
164 |
|
|
|
164 |
|
CAPITAL RATIOS
AND PER SHARE DATA: |
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
7.70 |
% |
|
|
7.30 |
% |
|
|
7.36 |
% |
|
|
7.39 |
% |
|
|
7.39 |
% |
Common equity Tier 1
ratio |
|
9.86 |
% |
|
|
9.46 |
% |
|
|
9.59 |
% |
|
|
9.58 |
% |
|
|
9.63 |
% |
Tier 1 risk-based
capital |
|
10.48 |
% |
|
|
10.11 |
% |
|
|
10.26 |
% |
|
|
10.27 |
% |
|
|
10.33 |
% |
Total risk-based
capital |
|
13.09 |
% |
|
|
12.75 |
% |
|
|
12.97 |
% |
|
|
12.98 |
% |
|
|
13.08 |
% |
Common equity to
assets |
|
8.49 |
% |
|
|
7.99 |
% |
|
|
8.16 |
% |
|
|
8.38 |
% |
|
|
8.50 |
% |
Tangible common equity
to tangible assets (1) |
|
6.73 |
% |
|
|
6.16 |
% |
|
|
6.25 |
% |
|
|
6.45 |
% |
|
|
6.51 |
% |
|
|
|
|
|
|
|
|
|
|
Common book value per
share |
$ |
21.84 |
|
|
$ |
21.21 |
|
|
$ |
20.82 |
|
|
$ |
21.26 |
|
|
$ |
20.98 |
|
Tangible common book
value per share (1) |
$ |
16.98 |
|
|
$ |
16.03 |
|
|
$ |
15.62 |
|
|
$ |
16.04 |
|
|
$ |
15.73 |
|
Stock price (Nasdaq:
FISI): |
|
|
|
|
|
|
|
|
|
High |
$ |
35.35 |
|
|
$ |
35.40 |
|
|
$ |
34.55 |
|
|
$ |
27.63 |
|
|
$ |
29.49 |
|
Low |
$ |
29.09 |
|
|
$ |
30.50 |
|
|
$ |
25.98 |
|
|
$ |
25.16 |
|
|
$ |
24.56 |
|
Close |
$ |
29.80 |
|
|
$ |
32.95 |
|
|
$ |
34.20 |
|
|
$ |
27.11 |
|
|
$ |
26.07 |
|
________(1) See Appendix A – Reconciliation to
Non-GAAP Financial Measures for the computation of this Non-GAAP
measure.
FINANCIAL INSTITUTIONS, INC.Selected
Financial Information (Unaudited)(Amounts in thousands,
except per share amounts)
|
Six months ended |
|
2017 |
|
2016 |
|
June 30, |
|
Second |
|
First |
|
Fourth |
|
Third |
|
Second |
|
2017 |
|
2016 |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
SELECTED INCOME
STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
61,947 |
|
|
$ |
55,881 |
|
|
$ |
31,409 |
|
|
$ |
30,538 |
|
|
$ |
29,990 |
|
|
$ |
29,360 |
|
|
$ |
28,246 |
|
Interest expense |
|
7,530 |
|
|
|
5,963 |
|
|
|
3,987 |
|
|
|
3,543 |
|
|
|
3,268 |
|
|
|
3,310 |
|
|
|
3,047 |
|
Net
interest income |
|
54,417 |
|
|
|
49,918 |
|
|
|
27,422 |
|
|
|
26,995 |
|
|
|
26,722 |
|
|
|
26,050 |
|
|
|
25,199 |
|
Provision for loan
losses |
|
6,613 |
|
|
|
4,320 |
|
|
|
3,832 |
|
|
|
2,781 |
|
|
|
3,357 |
|
|
|
1,961 |
|
|
|
1,952 |
|
Net
interest income after provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
for loan
losses |
|
47,804 |
|
|
|
45,598 |
|
|
|
23,590 |
|
|
|
24,214 |
|
|
|
23,365 |
|
|
|
24,089 |
|
|
|
23,247 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposits |
|
3,585 |
|
|
|
3,479 |
|
|
|
1,840 |
|
|
|
1,745 |
|
|
|
1,888 |
|
|
|
1,913 |
|
|
|
1,755 |
|
Insurance
income |
|
2,564 |
|
|
|
2,855 |
|
|
|
1,133 |
|
|
|
1,431 |
|
|
|
1,134 |
|
|
|
1,407 |
|
|
|
1,183 |
|
ATM and
debit card |
|
2,785 |
|
|
|
2,746 |
|
|
|
1,456 |
|
|
|
1,329 |
|
|
|
1,500 |
|
|
|
1,441 |
|
|
|
1,421 |
|
Investment advisory |
|
2,860 |
|
|
|
2,608 |
|
|
|
1,429 |
|
|
|
1,431 |
|
|
|
1,274 |
|
|
|
1,326 |
|
|
|
1,365 |
|
Company
owned life insurance |
|
918 |
|
|
|
1,854 |
|
|
|
473 |
|
|
|
445 |
|
|
|
468 |
|
|
|
486 |
|
|
|
486 |
|
Investments in limited partnerships |
|
105 |
|
|
|
92 |
|
|
|
135 |
|
|
|
(30 |
) |
|
|
47 |
|
|
|
161 |
|
|
|
36 |
|
Loan
servicing |
|
243 |
|
|
|
228 |
|
|
|
123 |
|
|
|
120 |
|
|
|
104 |
|
|
|
104 |
|
|
|
112 |
|
Net gain
on sale of loans held for sale |
|
120 |
|
|
|
156 |
|
|
|
72 |
|
|
|
48 |
|
|
|
38 |
|
|
|
46 |
|
|
|
78 |
|
Net gain
on investment securities |
|
416 |
|
|
|
2,000 |
|
|
|
210 |
|
|
|
206 |
|
|
|
269 |
|
|
|
426 |
|
|
|
1,387 |
|
Net gain
(loss) on other assets |
|
4 |
|
|
|
86 |
|
|
|
6 |
|
|
|
(2 |
) |
|
|
28 |
|
|
|
199 |
|
|
|
82 |
|
Contingent consideration liability adjustment |
|
1,200 |
|
|
|
- |
|
|
|
1,200 |
|
|
|
- |
|
|
|
1,170 |
|
|
|
- |
|
|
|
- |
|
Other |
|
2,369 |
|
|
|
2,029 |
|
|
|
1,256 |
|
|
|
1,113 |
|
|
|
1,168 |
|
|
|
1,030 |
|
|
|
1,011 |
|
Total
noninterest income |
|
17,169 |
|
|
|
18,133 |
|
|
|
9,333 |
|
|
|
7,836 |
|
|
|
9,088 |
|
|
|
8,539 |
|
|
|
8,916 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
23,355 |
|
|
|
22,432 |
|
|
|
11,986 |
|
|
|
11,369 |
|
|
|
11,458 |
|
|
|
11,325 |
|
|
|
10,818 |
|
Occupancy
and equipment |
|
8,148 |
|
|
|
7,289 |
|
|
|
4,184 |
|
|
|
3,964 |
|
|
|
3,623 |
|
|
|
3,617 |
|
|
|
3,664 |
|
Professional services |
|
2,428 |
|
|
|
4,280 |
|
|
|
1,229 |
|
|
|
1,199 |
|
|
|
948 |
|
|
|
956 |
|
|
|
2,833 |
|
Computer
and data processing |
|
2,483 |
|
|
|
2,246 |
|
|
|
1,312 |
|
|
|
1,171 |
|
|
|
1,116 |
|
|
|
1,089 |
|
|
|
1,159 |
|
Supplies
and postage |
|
1,004 |
|
|
|
1,058 |
|
|
|
467 |
|
|
|
537 |
|
|
|
499 |
|
|
|
490 |
|
|
|
464 |
|
FDIC
assessments |
|
926 |
|
|
|
877 |
|
|
|
469 |
|
|
|
457 |
|
|
|
452 |
|
|
|
406 |
|
|
|
441 |
|
Advertising and promotions |
|
751 |
|
|
|
957 |
|
|
|
473 |
|
|
|
278 |
|
|
|
436 |
|
|
|
302 |
|
|
|
530 |
|
Amortization of intangibles |
|
588 |
|
|
|
637 |
|
|
|
291 |
|
|
|
297 |
|
|
|
303 |
|
|
|
309 |
|
|
|
315 |
|
Goodwill
impairment charge |
|
1,575 |
|
|
|
- |
|
|
|
1,575 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other |
|
3,625 |
|
|
|
3,562 |
|
|
|
1,955 |
|
|
|
1,670 |
|
|
|
1,880 |
|
|
|
2,124 |
|
|
|
1,896 |
|
Total
noninterest expense |
|
44,883 |
|
|
|
43,338 |
|
|
|
23,941 |
|
|
|
20,942 |
|
|
|
20,715 |
|
|
|
20,618 |
|
|
|
22,120 |
|
Income
before income taxes |
|
20,090 |
|
|
|
20,393 |
|
|
|
8,982 |
|
|
|
11,108 |
|
|
|
11,738 |
|
|
|
12,010 |
|
|
|
10,043 |
|
Income tax expense |
|
5,901 |
|
|
|
5,624 |
|
|
|
2,736 |
|
|
|
3,165 |
|
|
|
3,045 |
|
|
|
3,541 |
|
|
|
2,892 |
|
Net
income |
|
14,189 |
|
|
|
14,769 |
|
|
|
6,246 |
|
|
|
7,943 |
|
|
|
8,693 |
|
|
|
8,469 |
|
|
|
7,151 |
|
Preferred stock
dividends |
|
731 |
|
|
|
731 |
|
|
|
366 |
|
|
|
365 |
|
|
|
365 |
|
|
|
366 |
|
|
|
366 |
|
Net income available to
common shareholders |
$ |
13,458 |
|
|
$ |
14,038 |
|
|
$ |
5,880 |
|
|
$ |
7,578 |
|
|
$ |
8,328 |
|
|
$ |
8,103 |
|
|
$ |
6,785 |
|
FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
$ |
0.92 |
|
|
$ |
0.97 |
|
|
$ |
0.40 |
|
|
$ |
0.52 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.47 |
|
Earnings per share –
diluted |
$ |
0.92 |
|
|
$ |
0.97 |
|
|
$ |
0.40 |
|
|
$ |
0.52 |
|
|
$ |
0.57 |
|
|
$ |
0.56 |
|
|
$ |
0.47 |
|
Cash dividends declared
on common stock |
$ |
0.42 |
|
|
$ |
0.40 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
Common dividend payout
ratio |
|
45.65 |
% |
|
|
41.24 |
% |
|
|
52.50 |
% |
|
|
40.38 |
% |
|
|
36.21 |
% |
|
|
35.71 |
% |
|
|
42.55 |
% |
Dividend yield
(annualized) |
|
2.84 |
% |
|
|
3.09 |
% |
|
|
2.83 |
% |
|
|
2.58 |
% |
|
|
2.44 |
% |
|
|
2.93 |
% |
|
|
3.09 |
% |
Return on average
assets |
|
0.75 |
% |
|
|
0.86 |
% |
|
|
0.65 |
% |
|
|
0.86 |
% |
|
|
0.94 |
% |
|
|
0.94 |
% |
|
|
0.82 |
% |
Return on average
equity |
|
8.66 |
% |
|
|
9.48 |
% |
|
|
7.44 |
% |
|
|
9.94 |
% |
|
|
10.68 |
% |
|
|
10.34 |
% |
|
|
9.07 |
% |
Return on average
common equity |
|
8.67 |
% |
|
|
9.54 |
% |
|
|
7.38 |
% |
|
|
10.02 |
% |
|
|
10.81 |
% |
|
|
10.45 |
% |
|
|
9.10 |
% |
Return on average
tangible common equity (1) |
|
11.41 |
% |
|
|
12.86 |
% |
|
|
9.65 |
% |
|
|
13.30 |
% |
|
|
14.37 |
% |
|
|
13.87 |
% |
|
|
12.22 |
% |
Efficiency ratio
(2) |
|
61.66 |
% |
|
|
64.08 |
% |
|
|
64.10 |
% |
|
|
59.09 |
% |
|
|
56.99 |
% |
|
|
58.99 |
% |
|
|
66.00 |
% |
Effective tax rate |
|
29.4 |
% |
|
|
27.6 |
% |
|
|
30.5 |
% |
|
|
28.5 |
% |
|
|
25.9 |
% |
|
|
29.5 |
% |
|
|
28.8 |
% |
________(1) See Appendix A –
Reconciliation to Non-GAAP Financial Measures for the computation
of this Non-GAAP measure.(2) The efficiency ratio is
calculated by dividing noninterest expense by net revenue, i.e.,
the sum of net interest income (fully taxable equivalent) and
noninterest income before net gains on investment securities. This
is a banking industry measure not required by GAAP.
FINANCIAL INSTITUTIONS, INC.Selected
Financial Information
(Unaudited) (Amounts in
thousands)
|
Six months ended |
|
2017 |
|
2016 |
|
June 30, |
|
Second |
|
First |
|
Fourth |
|
Third |
|
Second |
|
2017 |
|
2016 |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
SELECTED
AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
interest-earning deposits |
$ |
13,377 |
|
|
$ |
193 |
|
|
$ |
16,639 |
|
|
$ |
10,078 |
|
|
$ |
12,011 |
|
|
$ |
1 |
|
|
$ |
316 |
|
Investment securities
(1) |
|
1,087,854 |
|
|
|
1,051,411 |
|
|
|
1,085,670 |
|
|
|
1,090,063 |
|
|
|
1,080,941 |
|
|
|
1,068,866 |
|
|
|
1,075,220 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
374,715 |
|
|
|
323,022 |
|
|
|
385,938 |
|
|
|
363,367 |
|
|
|
347,496 |
|
|
|
352,696 |
|
|
|
329,901 |
|
Commercial mortgage |
|
689,370 |
|
|
|
594,251 |
|
|
|
700,010 |
|
|
|
678,613 |
|
|
|
659,713 |
|
|
|
625,003 |
|
|
|
606,360 |
|
Residential real estate loans |
|
429,993 |
|
|
|
386,952 |
|
|
|
430,237 |
|
|
|
429,746 |
|
|
|
425,687 |
|
|
|
417,854 |
|
|
|
391,826 |
|
Residential real estate lines |
|
120,457 |
|
|
|
126,264 |
|
|
|
119,333 |
|
|
|
121,594 |
|
|
|
122,734 |
|
|
|
123,312 |
|
|
|
125,212 |
|
Consumer
indirect |
|
785,228 |
|
|
|
680,927 |
|
|
|
802,379 |
|
|
|
767,887 |
|
|
|
741,598 |
|
|
|
711,948 |
|
|
|
683,722 |
|
Other
consumer |
|
16,818 |
|
|
|
17,744 |
|
|
|
16,680 |
|
|
|
16,956 |
|
|
|
17,448 |
|
|
|
17,548 |
|
|
|
17,562 |
|
Total
loans |
|
2,416,581 |
|
|
|
2,129,160 |
|
|
|
2,454,577 |
|
|
|
2,378,163 |
|
|
|
2,314,676 |
|
|
|
2,248,361 |
|
|
|
2,154,583 |
|
Total interest-earning
assets |
|
3,517,812 |
|
|
|
3,180,764 |
|
|
|
3,556,886 |
|
|
|
3,478,304 |
|
|
|
3,407,628 |
|
|
|
3,317,228 |
|
|
|
3,230,119 |
|
Goodwill and other
intangible assets, net |
|
75,230 |
|
|
|
76,380 |
|
|
|
74,954 |
|
|
|
75,508 |
|
|
|
75,807 |
|
|
|
76,116 |
|
|
|
76,437 |
|
Total assets |
|
3,801,059 |
|
|
|
3,456,605 |
|
|
|
3,847,137 |
|
|
|
3,754,470 |
|
|
|
3,679,569 |
|
|
|
3,593,672 |
|
|
|
3,507,760 |
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
642,861 |
|
|
|
575,960 |
|
|
|
651,485 |
|
|
|
634,141 |
|
|
|
604,717 |
|
|
|
547,545 |
|
|
|
579,497 |
|
Savings
and money market |
|
1,042,748 |
|
|
|
991,770 |
|
|
|
1,054,997 |
|
|
|
1,030,363 |
|
|
|
1,076,884 |
|
|
|
981,207 |
|
|
|
1,017,911 |
|
Time
deposits |
|
742,254 |
|
|
|
678,521 |
|
|
|
762,874 |
|
|
|
721,404 |
|
|
|
711,061 |
|
|
|
722,098 |
|
|
|
698,505 |
|
Short-term borrowings |
|
325,368 |
|
|
|
217,576 |
|
|
|
323,562 |
|
|
|
327,195 |
|
|
|
244,796 |
|
|
|
315,122 |
|
|
|
213,826 |
|
Long-term
borrowings, net |
|
39,076 |
|
|
|
39,006 |
|
|
|
39,085 |
|
|
|
39,067 |
|
|
|
39,050 |
|
|
|
39,032 |
|
|
|
39,015 |
|
Total
interest-bearing liabilities |
|
2,792,307 |
|
|
|
2,502,833 |
|
|
|
2,832,003 |
|
|
|
2,752,170 |
|
|
|
2,676,508 |
|
|
|
2,605,004 |
|
|
|
2,548,754 |
|
Noninterest-bearing
demand deposits |
|
658,063 |
|
|
|
619,751 |
|
|
|
658,926 |
|
|
|
657,190 |
|
|
|
655,445 |
|
|
|
638,417 |
|
|
|
621,912 |
|
Total deposits |
|
3,085,926 |
|
|
|
2,866,002 |
|
|
|
3,128,282 |
|
|
|
3,043,098 |
|
|
|
3,048,107 |
|
|
|
2,889,267 |
|
|
|
2,917,825 |
|
Total liabilities |
|
3,470,677 |
|
|
|
3,143,426 |
|
|
|
3,510,410 |
|
|
|
3,430,504 |
|
|
|
3,355,894 |
|
|
|
3,267,808 |
|
|
|
3,190,589 |
|
Shareholders’
equity |
|
330,382 |
|
|
|
313,179 |
|
|
|
336,727 |
|
|
|
323,966 |
|
|
|
323,675 |
|
|
|
325,864 |
|
|
|
317,171 |
|
Common equity |
|
313,042 |
|
|
|
295,839 |
|
|
|
319,387 |
|
|
|
306,626 |
|
|
|
306,335 |
|
|
|
308,524 |
|
|
|
299,831 |
|
Tangible common equity
(2) |
$ |
237,812 |
|
|
$ |
219,459 |
|
|
$ |
244,433 |
|
|
$ |
231,118 |
|
|
$ |
230,528 |
|
|
$ |
232,408 |
|
|
$ |
223,394 |
|
Common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
14,572 |
|
|
|
14,415 |
|
|
|
14,664 |
|
|
|
14,479 |
|
|
|
14,459 |
|
|
|
14,456 |
|
|
|
14,434 |
|
Diluted |
|
14,615 |
|
|
|
14,477 |
|
|
|
14,702 |
|
|
|
14,528 |
|
|
|
14,511 |
|
|
|
14,500 |
|
|
|
14,489 |
|
SELECTED
AVERAGE YIELDS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Tax equivalent
basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities |
|
2.47 |
% |
|
|
2.48 |
% |
|
|
2.47 |
% |
|
2.46 |
% |
|
2.41 |
% |
|
|
2.44 |
% |
|
2.48 |
% |
Loans |
|
4.17 |
% |
|
|
4.19 |
% |
|
|
4.16 |
% |
|
4.19 |
% |
|
4.17 |
% |
|
|
4.18 |
% |
|
4.17 |
% |
Total interest-earning
assets |
|
3.63 |
% |
|
|
3.63 |
% |
|
|
3.63 |
% |
|
3.64 |
% |
|
3.60 |
% |
|
|
3.62 |
% |
|
3.61 |
% |
Interest-bearing
demand |
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
0.14 |
% |
|
0.14 |
% |
|
|
0.15 |
% |
|
0.14 |
% |
Savings and money
market |
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
0.13 |
% |
|
0.13 |
% |
|
|
0.14 |
% |
|
0.13 |
% |
Time deposits |
|
0.98 |
% |
|
|
0.88 |
% |
|
|
1.01 |
% |
|
0.95 |
% |
|
0.93 |
% |
|
|
0.91 |
% |
|
0.89 |
% |
Short-term
borrowings |
|
0.97 |
% |
|
|
0.63 |
% |
|
|
1.08 |
% |
|
0.86 |
% |
|
0.70 |
% |
|
|
0.63 |
% |
|
0.65 |
% |
Long-term borrowings,
net |
|
6.32 |
% |
|
|
6.33 |
% |
|
|
6.32 |
% |
|
6.32 |
% |
|
6.33 |
% |
|
|
6.33 |
% |
|
6.33 |
% |
Total interest-bearing
liabilities |
|
0.54 |
% |
|
|
0.48 |
% |
|
|
0.56 |
% |
|
0.52 |
% |
|
0.49 |
% |
|
|
0.51 |
% |
|
0.48 |
% |
Net interest rate
spread |
|
3.09 |
% |
|
|
3.15 |
% |
|
|
3.07 |
% |
|
3.12 |
% |
|
3.11 |
% |
|
|
3.11 |
% |
|
3.13 |
% |
Net interest rate
margin |
|
3.20 |
% |
|
|
3.25 |
% |
|
|
3.18 |
% |
|
3.23 |
% |
|
3.22 |
% |
|
|
3.23 |
% |
|
3.23 |
% |
________(1) Includes investment
securities at adjusted amortized cost.(2) See Appendix A
– Reconciliation to Non-GAAP Financial Measures for the computation
of this Non-GAAP measure.
FINANCIAL INSTITUTIONS, INC.Selected
Financial Information (Unaudited)(Amounts in
thousands)
|
Six months ended |
|
2017 |
|
2016 |
|
June 30, |
|
Second |
|
First |
|
Fourth |
|
Third |
|
Second |
|
2017 |
|
2016 |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
ASSET QUALITY
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
30,934 |
|
|
$ |
27,085 |
|
|
$ |
31,081 |
|
|
$ |
30,934 |
|
|
$ |
29,350 |
|
|
$ |
28,525 |
|
|
$ |
27,568 |
|
Net loan charge-offs
(recoveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
1,532 |
|
|
|
475 |
|
|
|
568 |
|
|
|
964 |
|
|
|
52 |
|
|
|
(31 |
) |
|
|
(27 |
) |
Commercial mortgage |
|
(242 |
) |
|
|
1 |
|
|
|
(38 |
) |
|
|
(204 |
) |
|
|
212 |
|
|
|
127 |
|
|
|
2 |
|
Residential real estate loans |
|
52 |
|
|
|
55 |
|
|
|
78 |
|
|
|
(26 |
) |
|
|
(1 |
) |
|
|
61 |
|
|
|
34 |
|
Residential real estate lines |
|
(13 |
) |
|
|
44 |
|
|
|
(46 |
) |
|
|
33 |
|
|
|
41 |
|
|
|
4 |
|
|
|
44 |
|
Consumer
indirect |
|
2,840 |
|
|
|
2,232 |
|
|
|
1,082 |
|
|
|
1,758 |
|
|
|
1,361 |
|
|
|
896 |
|
|
|
904 |
|
Other
consumer |
|
219 |
|
|
|
73 |
|
|
|
110 |
|
|
|
109 |
|
|
|
108 |
|
|
|
79 |
|
|
|
38 |
|
Total net
charge-offs |
|
4,388 |
|
|
|
2,880 |
|
|
|
1,754 |
|
|
|
2,634 |
|
|
|
1,773 |
|
|
|
1,136 |
|
|
|
995 |
|
Provision for loan
losses |
|
6,613 |
|
|
|
4,320 |
|
|
|
3,832 |
|
|
|
2,781 |
|
|
|
3,357 |
|
|
|
1,961 |
|
|
|
1,952 |
|
Ending balance |
$ |
33,159 |
|
|
$ |
28,525 |
|
|
$ |
33,159 |
|
|
$ |
31,081 |
|
|
$ |
30,934 |
|
|
$ |
29,350 |
|
|
$ |
28,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) |
|
|
|
|
|
|
|
|
|
|
|
|
|
to
average loans (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
0.82 |
% |
|
|
0.30 |
% |
|
|
0.59 |
% |
|
|
1.08 |
% |
|
|
0.06 |
% |
|
|
-0.03 |
% |
|
|
-0.03 |
% |
Commercial mortgage |
|
-0.07 |
% |
|
|
0.00 |
% |
|
|
-0.02 |
% |
|
|
-0.12 |
% |
|
|
0.13 |
% |
|
|
0.08 |
% |
|
|
0.00 |
% |
Residential real estate loans |
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
|
-0.02 |
% |
|
|
-0.00 |
% |
|
|
0.06 |
% |
|
|
0.03 |
% |
Residential real estate lines |
|
-0.02 |
% |
|
|
0.07 |
% |
|
|
-0.15 |
% |
|
|
0.11 |
% |
|
|
0.13 |
% |
|
|
0.01 |
% |
|
|
0.14 |
% |
Consumer
indirect |
|
0.73 |
% |
|
|
0.66 |
% |
|
|
0.54 |
% |
|
|
0.93 |
% |
|
|
0.73 |
% |
|
|
0.50 |
% |
|
|
0.53 |
% |
Other
consumer |
|
2.63 |
% |
|
|
0.82 |
% |
|
|
2.65 |
% |
|
|
2.61 |
% |
|
|
2.46 |
% |
|
|
1.79 |
% |
|
|
0.87 |
% |
Total
loans |
|
0.37 |
% |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
0.45 |
% |
|
|
0.30 |
% |
|
|
0.20 |
% |
|
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
$ |
7,312 |
|
|
$ |
2,312 |
|
|
$ |
7,312 |
|
|
$ |
3,753 |
|
|
$ |
2,151 |
|
|
$ |
2,157 |
|
|
$ |
2,312 |
|
Commercial mortgage |
|
2,189 |
|
|
|
1,547 |
|
|
|
2,189 |
|
|
|
1,267 |
|
|
|
1,025 |
|
|
|
1,345 |
|
|
|
1,547 |
|
Residential real estate loans |
|
1,579 |
|
|
|
1,485 |
|
|
|
1,579 |
|
|
|
1,601 |
|
|
|
1,236 |
|
|
|
1,239 |
|
|
|
1,485 |
|
Residential real estate lines |
|
379 |
|
|
|
182 |
|
|
|
379 |
|
|
|
336 |
|
|
|
372 |
|
|
|
274 |
|
|
|
182 |
|
Consumer
indirect |
|
1,149 |
|
|
|
1,015 |
|
|
|
1,149 |
|
|
|
1,040 |
|
|
|
1,526 |
|
|
|
1,077 |
|
|
1,015 |
|
Other
consumer |
|
22 |
|
|
|
15 |
|
|
|
22 |
|
|
|
23 |
|
|
|
16 |
|
|
|
9 |
|
|
15 |
|
Total
non-performing loans |
|
12,630 |
|
|
|
6,556 |
|
|
|
12,630 |
|
|
|
8,020 |
|
|
|
6,326 |
|
|
|
6,101 |
|
|
6,556 |
|
Foreclosed assets |
|
154 |
|
|
|
281 |
|
|
|
154 |
|
|
|
58 |
|
|
|
107 |
|
|
|
294 |
|
|
281 |
|
Total
non-performing assets |
$ |
12,784 |
|
|
$ |
6,837 |
|
|
$ |
12,784 |
|
|
$ |
8,078 |
|
|
$ |
6,433 |
|
|
$ |
6,395 |
|
$ |
6,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans to total loans |
|
0.50 |
% |
|
|
0.30 |
% |
|
|
0.50 |
% |
|
|
0.33 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
|
0.30 |
% |
Total non-performing
assets to total assets |
|
0.33 |
% |
|
|
0.19 |
% |
|
|
0.33 |
% |
|
|
0.21 |
% |
|
|
0.17 |
% |
|
|
0.17 |
% |
|
0.19 |
% |
Allowance for loan
losses to total loans |
|
1.32 |
% |
|
|
1.29 |
% |
|
|
1.32 |
% |
|
|
1.29 |
% |
|
|
1.32 |
% |
|
|
1.29 |
% |
|
1.29 |
% |
Allowance for loan
losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
to
non-performing loans |
|
263 |
% |
|
|
435 |
% |
|
|
263 |
% |
|
|
388 |
% |
|
|
489 |
% |
|
|
481 |
% |
|
435 |
% |
________(1) At period end.
FINANCIAL INSTITUTIONS, INC.Appendix A
- Reconciliation to Non-GAAP Financial Measures
(Unaudited)(In thousands, except per share amounts)
|
|
Six months ended |
|
2017 |
2016 |
|
|
June 30, |
|
Second |
|
First |
|
Fourth |
|
Third |
|
Second |
|
|
2017 |
|
2016 |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
Ending tangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
$ |
3,891,538 |
|
|
$ |
3,859,865 |
|
|
$ |
3,710,340 |
|
|
$ |
3,687,365 |
|
|
$ |
3,585,589 |
|
Less: Goodwill and
other intangible assets, net |
|
|
|
|
|
|
73,477 |
|
|
|
75,343 |
|
|
|
75,640 |
|
|
|
75,943 |
|
|
|
76,252 |
|
Tangible assets |
|
|
|
|
|
$ |
3,818,061 |
|
|
$ |
3,784,522 |
|
|
$ |
3,634,700 |
|
|
$ |
3,611,422 |
|
|
$ |
3,509,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending tangible
common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders’
equity |
|
|
|
|
|
$ |
330,301 |
|
|
$ |
308,348 |
|
|
$ |
302,714 |
|
|
$ |
308,931 |
|
|
$ |
304,836 |
|
Less: Goodwill and
other intangible assets, net |
|
|
|
|
|
|
73,477 |
|
|
|
75,343 |
|
|
|
75,640 |
|
|
|
75,943 |
|
|
|
76,252 |
|
Tangible common
equity |
|
|
|
|
|
$ |
256,824 |
|
|
$ |
233,005 |
|
|
$ |
227,074 |
|
|
$ |
232,988 |
|
|
$ |
228,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible |
|
|
|
|
|
|
6.73 |
% |
|
|
6.16 |
% |
|
|
6.25 |
% |
|
|
6.45 |
% |
|
|
6.51 |
% |
assets (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
|
|
|
|
|
15,127 |
|
|
|
14,536 |
|
|
|
14,538 |
|
|
|
14,528 |
|
|
|
14,528 |
|
Tangible common book
value per share (2) |
|
|
|
|
|
$ |
16.98 |
|
|
$ |
16.03 |
|
|
$ |
15.62 |
|
|
$ |
16.04 |
|
|
$ |
15.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
3,801,059 |
|
|
$ |
3,456,605 |
|
|
$ |
3,847,137 |
|
|
$ |
3,754,470 |
|
|
$ |
3,679,569 |
|
|
$ |
3,593,672 |
|
|
$ |
3,507,760 |
|
Less: Average goodwill
and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
intangible assets,
net |
|
|
75,230 |
|
|
|
76,380 |
|
|
|
74,954 |
|
|
|
75,508 |
|
|
|
75,807 |
|
|
|
76,116 |
|
|
|
76,437 |
|
Average tangible
assets |
|
$ |
3,725,829 |
|
|
$ |
3,380,225 |
|
|
$ |
3,772,183 |
|
|
$ |
3,678,962 |
|
|
$ |
3,603,762 |
|
|
$ |
3,517,556 |
|
|
$ |
3,431,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
equity |
|
$ |
313,042 |
|
|
$ |
295,839 |
|
|
$ |
319,387 |
|
|
$ |
306,626 |
|
|
$ |
306,335 |
|
|
$ |
308,524 |
|
|
$ |
299,831 |
|
Less: Average goodwill
and other intangible assets, net |
|
|
75,230 |
|
|
|
76,380 |
|
|
|
74,954 |
|
|
|
75,508 |
|
|
|
75,807 |
|
|
|
76,116 |
|
|
|
76,437 |
|
Average tangible common
equity |
|
$ |
237,812 |
|
|
$ |
219,459 |
|
|
$ |
244,433 |
|
|
$ |
231,118 |
|
|
$ |
230,528 |
|
|
$ |
232,408 |
|
|
$ |
223,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders |
|
$ |
13,458 |
|
|
$ |
14,038 |
|
|
$ |
5,880 |
|
|
$ |
7,578 |
|
|
$ |
8,328 |
|
|
$ |
8,103 |
|
|
$ |
6,785 |
|
Return on average
tangible common equity (3) |
|
|
11.41 |
% |
|
|
12.86 |
% |
|
|
9.65 |
% |
|
|
13.30 |
% |
|
|
14.37 |
% |
|
|
13.87 |
% |
|
|
12.22 |
% |
________(1) Tangible common equity
divided by tangible assets.(2) Tangible common equity
divided by common shares outstanding.(3) Net income
available to common shareholders (annualized) divided by average
tangible common equity.
For additional information contact:
Kevin B. Klotzbach
Chief Financial Officer & Treasurer
Phone: 585.786.1130
Email: KBKlotzbach@five-starbank.com
Shelly J. Doran
Director − Investor & External Relations
Phone: 585.627.1362
Email: SJDoran@five-starbank.com
Financial Institutions (NASDAQ:FISI)
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から 7 2023 まで 7 2024