Financial Institutions, Inc. Announces Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Financial Institutions, Inc. (NASDAQ: FISI) reported a Q4 2024 net loss of $65.7 million, compared to net income of $13.5 million in Q3 2024 and $9.8 million in Q4 2023. The loss primarily resulted from a strategic balance sheet restructuring involving the sale of $653.5 million in securities at a pre-tax loss of $100.2 million.
Key Q4 2024 metrics include: net interest margin of 2.91%, total loans of $4.48 billion (up 1.7% quarterly), and total deposits of $5.10 billion. The company completed an equity offering raising approximately $108.5 million through the sale of 4,600,000 common shares.
For full year 2024, FISI reported a net loss of $24.5 million compared to net income of $50.3 million in 2023. The company maintained stable credit quality with annual net charge-offs to average loans of 0.20% for both 2024 and 2023.
Positive
- Successful completion of $108.5 million equity offering
- Net interest margin improved to 2.91% in Q4, up from 2.89% in Q3
- Commercial mortgage loans increased 9.7% year-over-year to $2.20 billion
- Tangible common equity ratio improved to 8.40%, up 240 basis points from year-end 2023
Negative
- Q4 2024 net loss of $65.7 million compared to Q3 profit of $13.5 million
- Full year 2024 net loss of $24.5 million versus $50.3 million profit in 2023
- Pre-tax loss of $100.2 million from securities restructuring
- Total deposits decreased 2.1% year-over-year to $5.10 billion
- Consumer indirect loans declined 10.9% year-over-year
News Market Reaction
On the day this news was published, FISI declined 2.91%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WARSAW, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the fourth quarter and year ended December 31, 2024.
These results reflect the Company's previously disclosed balance sheet restructuring plan, which was executed in December following its successful and oversubscribed underwritten public common stock offering. As part of the restructuring, the Bank sold
The Company reported a net loss of
The Company reported a full year 2024 net loss of
Fourth Quarter and Full Year 2024 Key Results:
- Net interest margin was up to
2.91% for the fourth quarter, up two basis points from the linked quarter and up 13 basis points from the year-ago quarter. Full year net interest margin of2.86% compares to2.94% in 2023. - Net interest income of
$41.6 million in the fourth quarter of 2024 increased$952 thousand , or2.3% , and$1.7 million , or4.4% , from the linked and year-ago quarters, respectively. Full year net interest income of$163.6 million was down$2.1 million , or1.3% , from 2023. - Total loans were
$4.48 billion at December 31, 2024, reflecting an increase of$76.2 million , or1.7% , during the quarter and an increase of$17.1 million , or0.4% , during the year. Commercial loans totaled$2.86 billion at December 31, 2024, reflecting an increase of$104.8 million , or3.8% , during the quarter and an increase of$123.9 million , or4.5% , during the year. - Total deposits were
$5.10 billion at December 31, 2024, down$201.9 million , or3.8% , from September 30, 2024, primarily due to seasonal public deposit outflows, and down$108.2 million , or2.1% , from the prior year end, driven by a reduction in brokered deposits. - Provision for credit losses of
$6.5 million in the current quarter was driven by a combination of factors, including the impact of loan growth during the period, an increase in net charge-offs relative to the linked quarter, and higher qualitative factors overall. - Allowance for credit losses on loans to total loans was
1.07% at year-end 2024, compared to1.01% at September 30, 2024 and1.14% one year prior. - The Company reported stable credit quality metrics, as measured by annual net charge-offs to average loans of
0.20% for both 2024 and 2023.
"Our Company navigated an incredibly dynamic 2024, rising above challenges to execute strategic initiatives that position us well not only heading into 2025, but for years to come. Our successful equity offering in the fourth quarter enabled us to undertake a balance sheet restructuring that is expected to contribute meaningfully to earnings, net interest margin, efficiency ratio, return on average assets and the quality of capital moving forward,” said President and Chief Executive Officer Martin K. Birmingham. “We believe these measures will allow us to accelerate operating performance with minimal downside risk, supporting our plans for continued organic growth.”
"While loan growth was modest in 2024, in part reflecting the intentional reduction of our consumer indirect balances that partially offset commercial growth of
Chief Financial Officer and Treasurer W. Jack Plants II added, "As a result of our strategic actions through the course of the year, from the sale of our insurance subsidiary in April, to our successful and oversubscribed equity offering in December, our regulatory and tangible capital positions improved meaningfully and core operations have strong momentum to start 2025. We reported a common equity tier 1 ratio of
Capital Raise and Subsequent Balance Sheet Restructuring
As previously disclosed, the Company completed an underwritten common stock offering on December 13, 2024. Through the public offering, the Company sold 4,600,000 shares of common stock, 600,000 shares of which were sold pursuant to the exercise of the underwriters' overallotment option. Net proceeds from the capital raise were approximately
As expected, a portion of the proceeds was used to fund losses associated with a strategic investment securities restructuring. In late December, the Company completed its previously disclosed balance sheet restructuring plan, through which the Bank sold
Net Interest Income and Net Interest Margin
Net interest income was
Average interest-earning assets for the current quarter were
Average interest-bearing liabilities for the current quarter were
Net interest margin was
Net interest income was
Noninterest (Loss) Income
The Company reported a loss for noninterest income of
- A net loss on investment securities of
$100.1 million was recognized in the fourth quarter of 2024 compared to a net loss of$3.6 million in the fourth quarter of 2023, due to previously disclosed securities portfolio restructurings in both periods. - Investment advisory income of
$2.6 million was$242 thousand lower than the third quarter of 2024 and$114 thousand lower than the fourth quarter of 2023. - Given the previously disclosed insurance subsidiary asset sale on April 1, 2024, the Company recorded insurance income of
$3 thousand in both the current and linked quarters, and$1.6 million in the year-ago quarter. - Income from company owned life insurance of
$1.4 million was flat with the third quarter of 2024 and$7.7 million lower than the fourth quarter of 2023, due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023. - Income from investments in limited partnerships of
$837 thousand was$437 thousand higher than the third quarter of 2024 and$165 thousand higher than the fourth quarter of 2023. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.
The Company recorded a loss for noninterest income of
- A net loss on investment securities of
$100.1 million was recognized in 2024, compared to a net loss of$3.6 million in 2023, due to the previously disclosed securities portfolio restructurings in both years. - The Company's sale of the assets of its insurance subsidiary generated a
$13.7 million gain in 2024. The$4.6 million decline in insurance income year-over-year was also attributable to the transaction. - Income from company owned life insurance of
$5.5 million was$6.6 million lower than in 2023 due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.
Noninterest Expense
Noninterest expense was
- Salaries and employee benefits expense of
$17.2 million was$1.3 million higher than the third quarter of 2024 and$683 thousand lower than the fourth quarter of 2023. The increase from the linked quarter was primarily due to a$1.3 million nonrecurring settlement accounting adjustment in the Company's pension plan. The year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale and the Company's previously disclosed fourth quarter 2023 organizational changes. - Computer and data processing expense of
$6.6 million was$1.3 million higher than the third quarter of 2024 and$1.0 million higher than the fourth quarter of 2023, due to nonrecurring project related expenses. - FDIC assessments expense of
$1.6 million was$459 thousand higher than the linked quarter and$235 thousand higher than the year-ago quarter, primarily due to an increase in the FDIC assessment rate due to the securities loss recognized in the fourth quarter of 2024. - Other expense of
$4.2 million was up$837 thousand and$519 thousand from the linked and year-ago quarters, respectively. The increases from both the linked and year-ago periods were due in part to New York State capital base tax, while the timing of charitable contributions also contributed to the linked quarter variance.
Noninterest expense was
- Salaries and employee benefits expense of
$66.1 million decreased$5.8 million from the prior year, reflective of both the timing of the insurance subsidiary asset sale and previously disclosed fourth quarter 2023 organizational changes. - Computer and data processing expense of
$22.7 million was$2.6 million higher than 2023, primarily due to the Company’s investments in data efficiency and marketing technology. - Professional services expense of
$7.7 million was$2.4 million higher than 2023, primarily attributable to legal expenses associated with the Company's previously disclosed fraud event. - Deposit-related charged off items totaled
$20.3 million in 2024, up$19.1 million from the prior year, as a result of the previously disclosed fraud matter. - Other expense of
$15.3 million was up$1.0 million from 2023, primarily due to the previously mentioned New York State capital base tax.
Income Taxes
Income tax benefit was
The effective tax rate was -
Balance Sheet and Capital Management
Total assets were
Investment securities were
Total loans were
- Commercial business loans totaled
$665.3 million , up$10.8 million , or1.7% , from September 30, 2024, and down$70.4 million , or9.6% , from December 31, 2023. - Commercial mortgage loans totaled
$2.20 billion , up$94.0 million , or4.5% , from September 30, 2024, and up$194.3 million , or9.7% , from December 31, 2023. - Residential real estate loans totaled
$650.2 million , up$2.0 million , or0.3% , from September 30, 2024, and up$384 thousand , or0.1% , from December 31, 2023. - Consumer indirect loans totaled
$845.8 million , down$28.9 million , or3.3% , from September 30, 2024, and down$103.1 million , or10.9% , from December 31, 2023.
Total deposits were
Short-term borrowings were
Shareholders' equity was
Common book value per share was
During the fourth quarter of 2024, the Company declared a common stock dividend of
The Company's regulatory capital ratios at December 31, 2024 improved in comparison to the prior quarter and prior year due in part to the fourth quarter capital raise. All ratios continued to exceed all regulatory capital requirements to be considered well capitalized.
- Leverage Ratio was
9.43% compared to8.98% and8.18% at September 30, 2024, and December 31, 2023, respectively. - Common Equity Tier 1 Capital Ratio was
10.88% compared to10.28% and9.43% at September 30, 2024, and December 31, 2023, respectively. - Tier 1 Capital Ratio was
11.21% compared to10.62% and9.76% at September 30, 2024, and December 31, 2023, respectively. - Total Risk-Based Capital Ratio was
13.60% compared to12.95% and12.13% at September 30, 2024, and December 31, 2023, respectively.
Credit Quality
Non-performing loans were
At December 31, 2024, the allowance for credit losses on loans to total loans ratio was
Provision for credit losses was
The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was
Subsequent Events
The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2024, in its Annual Report on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2024, and will adjust amounts preliminarily reported, if necessary.
Conference Call
The Company will host an earnings conference call and audio webcast on January 31, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 393817. The webcast replay will be available on the Company’s website for at least 30 days.
About Financial Institutions, Inc.
Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately
Non-GAAP Financial Information
In addition to results presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.
The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
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. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "believe," "anticipate," "continue," "estimate," "expect," "focus," "forecast," "intend," "may," "plan," "preliminary," "should," "target" or "will." Statements herein are based on certain assumptions and analyses by the Company and 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: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; 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; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; 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; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included 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.
(1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
For additional information contact:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com
| FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts) | ||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| SELECTED BALANCE SHEET DATA: | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| Cash and cash equivalents | $ | 87,321 | $ | 249,569 | $ | 146,347 | $ | 237,038 | $ | 124,442 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Available for sale | 911,105 | 886,816 | 871,635 | 923,761 | 887,730 | |||||||||||||||
| Held-to-maturity, net | 116,001 | 121,279 | 128,271 | 143,714 | 148,156 | |||||||||||||||
| Total investment securities | 1,027,106 | 1,008,095 | 999,906 | 1,067,475 | 1,035,886 | |||||||||||||||
| Loans held for sale | 2,280 | 2,495 | 2,099 | 504 | 1,370 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial business | 665,321 | 654,519 | 713,947 | 707,564 | 735,700 | |||||||||||||||
| Commercial mortgage–construction | 582,619 | 533,506 | 518,013 | 528,694 | 493,003 | |||||||||||||||
| Commercial mortgage–multifamily | 470,954 | 467,527 | 463,171 | 453,027 | 452,155 | |||||||||||||||
| Commercial mortgage–non-owner occupied | 857,987 | 814,392 | 814,953 | 798,637 | 788,515 | |||||||||||||||
| Commercial mortgage–owner occupied | 288,036 | 290,216 | 289,733 | 264,698 | 271,646 | |||||||||||||||
| Residential real estate loans | 650,206 | 648,241 | 647,675 | 648,160 | 649,822 | |||||||||||||||
| Residential real estate lines | 75,552 | 76,203 | 75,510 | 75,668 | 77,367 | |||||||||||||||
| Consumer indirect | 845,772 | 874,651 | 894,596 | 920,428 | 948,831 | |||||||||||||||
| Other consumer | 42,757 | 43,734 | 43,870 | 45,170 | 45,100 | |||||||||||||||
| Total loans | 4,479,204 | 4,402,989 | 4,461,468 | 4,442,046 | 4,462,139 | |||||||||||||||
| Allowance for credit losses–loans | 48,041 | 44,678 | 43,952 | 43,075 | 51,082 | |||||||||||||||
| Total loans, net | 4,431,163 | 4,358,311 | 4,417,516 | 4,398,971 | 4,411,057 | |||||||||||||||
| Total interest-earning assets | 5,602,570 | 5,666,972 | 5,709,148 | 5,857,616 | 5,702,904 | |||||||||||||||
| Goodwill and other intangible assets, net | 60,758 | 60,867 | 60,979 | 72,287 | 72,504 | |||||||||||||||
| Total assets | 6,111,187 | 6,156,317 | 6,131,772 | 6,298,598 | 6,160,881 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | 950,351 | 978,660 | 939,346 | 972,801 | 1,010,614 | |||||||||||||||
| Interest-bearing demand | 705,195 | 793,996 | 711,580 | 798,831 | 713,158 | |||||||||||||||
| Savings and money market | 1,904,013 | 2,027,181 | 2,007,256 | 2,064,539 | 2,084,444 | |||||||||||||||
| Time deposits | 1,545,172 | 1,506,764 | 1,475,139 | 1,560,586 | 1,404,696 | |||||||||||||||
| Total deposits | 5,104,731 | 5,306,601 | 5,133,321 | 5,396,757 | 5,212,912 | |||||||||||||||
| Short-term borrowings | 99,000 | 55,000 | 202,000 | 133,000 | 185,000 | |||||||||||||||
| Long-term borrowings, net | 124,842 | 124,765 | 124,687 | 124,610 | 124,532 | |||||||||||||||
| Total interest-bearing liabilities | 4,405,912 | 4,507,706 | 4,520,662 | 4,681,566 | 4,511,830 | |||||||||||||||
| Shareholders’ equity | 586,108 | 500,342 | 467,667 | 445,734 | 454,796 | |||||||||||||||
| Common shareholders’ equity | 568,823 | 483,050 | 450,375 | 428,442 | 437,504 | |||||||||||||||
| Tangible common equity (1) | 508,065 | 422,183 | 389,396 | 356,155 | 365,000 | |||||||||||||||
| Accumulated other comprehensive loss | $ | (52,604 | ) | $ | (102,029 | ) | $ | (125,774 | ) | $ | (126,264 | ) | $ | (119,941 | ) | |||||
| Common shares outstanding | 20,077 | 15,474 | 15,472 | 15,447 | 15,407 | |||||||||||||||
| Treasury shares | 623 | 625 | 627 | 653 | 692 | |||||||||||||||
| CAPITAL RATIOS AND PER SHARE DATA: | ||||||||||||||||||||
| Leverage ratio | 9.43 | % | 8.98 | % | 8.61 | % | 8.03 | % | 8.18 | % | ||||||||||
| Common equity Tier 1 capital ratio | 10.88 | % | 10.28 | % | 10.03 | % | 9.43 | % | 9.43 | % | ||||||||||
| Tier 1 capital ratio | 11.21 | % | 10.62 | % | 10.36 | % | 9.76 | % | 9.76 | % | ||||||||||
| Total risk-based capital ratio | 13.60 | % | 12.95 | % | 12.65 | % | 12.04 | % | 12.13 | % | ||||||||||
| Common equity to assets | 9.31 | % | 7.85 | % | 7.34 | % | 6.80 | % | 7.10 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 8.40 | % | 6.93 | % | 6.41 | % | 5.72 | % | 6.00 | % | ||||||||||
| Common book value per share | $ | 28.33 | $ | 31.22 | $ | 29.11 | $ | 27.74 | $ | 28.40 | ||||||||||
| Tangible common book value per share (1) | $ | 25.31 | $ | 27.28 | $ | 25.17 | $ | 23.06 | $ | 23.69 | ||||||||||
| 1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. | ||||||||||||||||||||
| FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Year Ended | 2024 | 2023 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| SELECTED INCOME STATEMENT DATA: | 2024 | 2023 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Interest income | $ | 313,231 | $ | 286,133 | $ | 78,119 | $ | 77,911 | $ | 78,788 | $ | 78,413 | $ | 76,547 | ||||||||||||||
| Interest expense | 149,642 | 120,418 | 36,486 | 37,230 | 37,595 | 38,331 | 36,661 | |||||||||||||||||||||
| Net interest income | 163,589 | 165,715 | 41,633 | 40,681 | 41,193 | 40,082 | 39,886 | |||||||||||||||||||||
| Provision (benefit) for credit losses | 6,150 | 13,681 | 6,461 | 3,104 | 2,041 | (5,456 | ) | 5,271 | ||||||||||||||||||||
| Net interest income after provision (benefit) for credit losses | 157,439 | 152,034 | 35,172 | 37,577 | 39,152 | 45,538 | 34,615 | |||||||||||||||||||||
| Noninterest (loss) income: | ||||||||||||||||||||||||||||
| Service charges on deposits | 4,233 | 4,625 | 1,074 | 1,103 | 979 | 1,077 | 1,168 | |||||||||||||||||||||
| Insurance income | 2,144 | 6,708 | 3 | 3 | 4 | 2,134 | 1,615 | |||||||||||||||||||||
| Card interchange income | 7,855 | 8,220 | 2,045 | 1,900 | 2,008 | 1,902 | 2,080 | |||||||||||||||||||||
| Investment advisory | 10,713 | 10,955 | 2,555 | 2,797 | 2,779 | 2,582 | 2,669 | |||||||||||||||||||||
| Company owned life insurance | 5,487 | 12,106 | 1,425 | 1,404 | 1,360 | 1,298 | 9,132 | |||||||||||||||||||||
| Investments in limited partnerships | 2,382 | 1,783 | 837 | 400 | 803 | 342 | 672 | |||||||||||||||||||||
| Loan servicing | 716 | 479 | 295 | 88 | 158 | 175 | 84 | |||||||||||||||||||||
| Income (loss) from derivative instruments, net | 726 | 1,350 | (37 | ) | 212 | 377 | 174 | (68 | ) | |||||||||||||||||||
| Net gain on sale of loans held for sale | 618 | 566 | 186 | 220 | 124 | 88 | 217 | |||||||||||||||||||||
| Net loss on investment securities | (100,055 | ) | (3,576 | ) | (100,055 | ) | - | - | - | (3,576 | ) | |||||||||||||||||
| Net gain (loss) on other assets | 13,614 | (6 | ) | (19 | ) | 138 | 13,508 | (13 | ) | (37 | ) | |||||||||||||||||
| Net (loss) gain on tax credit investments | (775 | ) | (252 | ) | (636 | ) | (170 | ) | 406 | (375 | ) | (207 | ) | |||||||||||||||
| Other | 5,661 | 5,286 | 1,291 | 1,345 | 1,508 | 1,517 | 1,619 | |||||||||||||||||||||
| Total noninterest (loss) income | (46,681 | ) | 48,244 | (91,036 | ) | 9,440 | 24,014 | 10,901 | 15,368 | |||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 66,126 | 71,889 | 17,159 | 15,879 | 15,748 | 17,340 | 17,842 | |||||||||||||||||||||
| Occupancy and equipment | 14,361 | 14,798 | 3,791 | 3,370 | 3,448 | 3,752 | 3,739 | |||||||||||||||||||||
| Professional services | 7,702 | 5,259 | 1,571 | 1,965 | 1,794 | 2,372 | 1,415 | |||||||||||||||||||||
| Computer and data processing | 22,689 | 20,110 | 6,608 | 5,353 | 5,342 | 5,386 | 5,562 | |||||||||||||||||||||
| Supplies and postage | 1,935 | 1,873 | 504 | 519 | 437 | 475 | 455 | |||||||||||||||||||||
| FDIC assessments | 5,284 | 4,902 | 1,551 | 1,092 | 1,346 | 1,295 | 1,316 | |||||||||||||||||||||
| Advertising and promotions | 1,573 | 1,926 | 465 | 371 | 440 | 297 | 370 | |||||||||||||||||||||
| Amortization of intangibles | 552 | 910 | 109 | 112 | 114 | 217 | 221 | |||||||||||||||||||||
| Deposit-related charged-off items | 20,341 | 1,201 | 354 | 410 | 398 | 19,179 | 223 | |||||||||||||||||||||
| Restructuring charges | 35 | 114 | 35 | - | - | - | 188 | |||||||||||||||||||||
| Other | 15,286 | 14,243 | 4,235 | 3,398 | 3,953 | 3,700 | 3,716 | |||||||||||||||||||||
| Total noninterest expense | 155,884 | 137,225 | 36,382 | 32,469 | 33,020 | 54,013 | 35,047 | |||||||||||||||||||||
| (Loss) income before income taxes | (45,126 | ) | 63,053 | (92,246 | ) | 14,548 | 30,146 | 2,426 | 14,936 | |||||||||||||||||||
| Income tax (benefit) expense | (20,604 | ) | 12,789 | (26,559 | ) | 1,082 | 4,517 | 356 | 5,156 | |||||||||||||||||||
| Net (loss) income | (24,522 | ) | 50,264 | (65,687 | ) | 13,466 | 25,629 | 2,070 | 9,780 | |||||||||||||||||||
| Preferred stock dividends | 1,459 | 1,459 | 365 | 365 | 364 | 365 | 365 | |||||||||||||||||||||
| Net (loss) income available to common shareholders | $ | (25,981 | ) | $ | 48,805 | $ | (66,052 | ) | $ | 13,101 | $ | 25,265 | $ | 1,705 | $ | 9,415 | ||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||||||||||
| Earnings (loss) per share–basic | $ | (1.66 | ) | $ | 3.17 | $ | (4.02 | ) | $ | 0.85 | $ | 1.64 | $ | 0.11 | $ | 0.61 | ||||||||||||
| Earnings (loss) per share–diluted | $ | (1.66 | ) | $ | 3.15 | $ | (4.02 | ) | $ | 0.84 | $ | 1.62 | $ | 0.11 | $ | 0.61 | ||||||||||||
| Cash dividends declared on common stock | $ | 1.20 | $ | 1.20 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | ||||||||||||||
| Common dividend payout ratio | -72.29 | % | 37.85 | % | -7.46 | % | 35.29 | % | 18.29 | % | 272.73 | % | 49.18 | % | ||||||||||||||
| Dividend yield (annualized) | 4.40 | % | 5.63 | % | 4.37 | % | 4.69 | % | 6.25 | % | 6.41 | % | 5.59 | % | ||||||||||||||
| Return on average assets (annualized) | -0.40 | % | 0.83 | % | -4.27 | % | 0.89 | % | 1.68 | % | 0.13 | % | 0.63 | % | ||||||||||||||
| Return on average equity (annualized) | -5.15 | % | 11.86 | % | -50.51 | % | 11.08 | % | 22.93 | % | 1.83 | % | 9.28 | % | ||||||||||||||
| Return on average common equity (annualized) | -5.66 | % | 12.01 | % | -52.54 | % | 11.18 | % | 23.51 | % | 1.57 | % | 9.31 | % | ||||||||||||||
| Return on average tangible common equity (annualized) (1) | -6.58 | % | 14.64 | % | -59.82 | % | 12.87 | % | 27.51 | % | 1.88 | % | 11.37 | % | ||||||||||||||
| Efficiency ratio (2) | 71.75 | % | 62.96 | % | 71.74 | % | 64.70 | % | 50.58 | % | 105.77 | % | 59.48 | % | ||||||||||||||
| Effective tax rate | -45.7 | % | 20.3 | % | -28.8 | % | 7.4 | % | 15.0 | % | 18.7 | % | 34.5 | % | ||||||||||||||
| 1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial 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) | ||||||||||||||||||||||||||||
| Year Ended | 2024 | 2023 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| SELECTED AVERAGE BALANCES: | 2024 | 2023 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Federal funds sold and interest-earning deposits | $ | 115,635 | $ | 80,415 | $ | 121,530 | $ | 49,476 | $ | 134,123 | $ | 158,075 | $ | 102,487 | ||||||||||||||
| Investment securities (1) | 1,171,083 | 1,249,928 | 1,159,863 | 1,147,052 | 1,194,808 | 1,182,993 | 1,199,766 | |||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||
| Commercial business | 689,585 | 698,861 | 658,038 | 673,830 | 704,272 | 722,720 | 702,222 | |||||||||||||||||||||
| Commercial mortgage–construction | 509,461 | 364,967 | 558,200 | 513,768 | 495,177 | 470,115 | 438,768 | |||||||||||||||||||||
| Commercial mortgage–multifamily | 465,244 | 461,954 | 458,691 | 467,801 | 466,501 | 468,028 | 467,226 | |||||||||||||||||||||
| Commercial mortgage–non-owner occupied | 837,495 | 837,860 | 843,034 | 826,275 | 837,209 | 843,526 | 840,226 | |||||||||||||||||||||
| Commercial mortgage–owner occupied | 270,646 | 243,574 | 288,502 | 285,061 | 260,495 | 248,172 | 249,013 | |||||||||||||||||||||
| Residential real estate loans | 648,604 | 612,767 | 649,549 | 647,844 | 648,099 | 648,921 | 640,955 | |||||||||||||||||||||
| Residential real estate lines | 75,951 | 76,350 | 76,164 | 75,671 | 75,575 | 76,396 | 76,741 | |||||||||||||||||||||
| Consumer indirect | 894,720 | 997,538 | 858,854 | 881,133 | 905,056 | 934,380 | 965,571 | |||||||||||||||||||||
| Other consumer | 45,790 | 28,741 | 43,333 | 43,789 | 44,552 | 51,535 | 43,664 | |||||||||||||||||||||
| Total loans | 4,437,496 | 4,322,612 | 4,434,365 | 4,415,172 | 4,436,936 | 4,463,793 | 4,424,386 | |||||||||||||||||||||
| Total interest-earning assets | 5,724,214 | 5,652,955 | 5,715,758 | 5,611,700 | 5,765,867 | 5,804,861 | 5,726,639 | |||||||||||||||||||||
| Goodwill and other intangible assets, net | 64,247 | 72,965 | 60,824 | 60,936 | 62,893 | 72,409 | 72,628 | |||||||||||||||||||||
| Total assets | 6,129,414 | 6,025,383 | 6,121,385 | 6,018,390 | 6,153,429 | 6,225,760 | 6,127,190 | |||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Interest-bearing demand | 734,731 | 818,541 | 757,221 | 691,412 | 741,006 | 749,512 | 780,546 | |||||||||||||||||||||
| Savings and money market | 2,012,215 | 1,781,776 | 1,992,360 | 1,938,935 | 2,036,772 | 2,081,815 | 2,048,822 | |||||||||||||||||||||
| Time deposits | 1,511,507 | 1,477,596 | 1,545,071 | 1,515,745 | 1,505,665 | 1,479,133 | 1,455,867 | |||||||||||||||||||||
| Short-term borrowings | 126,192 | 186,910 | 56,513 | 129,130 | 140,110 | 179,747 | 84,587 | |||||||||||||||||||||
| Long-term borrowings, net | 124,679 | 121,903 | 124,795 | 124,717 | 124,640 | 124,562 | 124,484 | |||||||||||||||||||||
| Total interest-bearing liabilities | 4,509,324 | 4,386,726 | 4,475,960 | 4,399,939 | 4,548,193 | 4,614,769 | 4,494,306 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 953,341 | 1,030,648 | 947,127 | 952,970 | 950,819 | 962,522 | 1,006,465 | |||||||||||||||||||||
| Total deposits | 5,211,794 | 5,108,561 | 5,241,779 | 5,099,062 | 5,234,262 | 5,272,982 | 5,291,700 | |||||||||||||||||||||
| Total liabilities | 5,652,983 | 5,601,697 | 5,603,999 | 5,535,112 | 5,703,929 | 5,770,725 | 5,708,861 | |||||||||||||||||||||
| Shareholders’ equity | 476,431 | 423,686 | 517,386 | 483,278 | 449,500 | 455,035 | 418,329 | |||||||||||||||||||||
| Common equity | 459,139 | 406,394 | 500,096 | 465,986 | 432,208 | 437,743 | 401,037 | |||||||||||||||||||||
| Tangible common equity (2) | 394,892 | 333,429 | 439,272 | 405,050 | 369,315 | 365,334 | 328,409 | |||||||||||||||||||||
| Common shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 15,683 | 15,376 | 16,415 | 15,464 | 15,444 | 15,403 | 15,393 | |||||||||||||||||||||
| Diluted | 15,683 | 15,475 | 16,415 | 15,636 | 15,556 | 15,543 | 15,511 | |||||||||||||||||||||
| SELECTED AVERAGE YIELDS: (Tax equivalent basis) | ||||||||||||||||||||||||||||
| Investment securities (3) | 2.20 | % | 1.92 | % | 2.38 | % | 2.14 | % | 2.17 | % | 2.09 | % | 2.03 | % | ||||||||||||||
| Loans | 6.36 | % | 5.98 | % | 6.28 | % | 6.42 | % | 6.40 | % | 6.33 | % | 6.21 | % | ||||||||||||||
| Total interest-earning assets | 5.48 | % | 5.07 | % | 5.45 | % | 5.53 | % | 5.50 | % | 5.43 | % | 5.32 | % | ||||||||||||||
| Interest-bearing demand | 1.18 | % | 0.87 | % | 1.34 | % | 1.05 | % | 1.18 | % | 1.11 | % | 1.26 | % | ||||||||||||||
| Savings and money market | 3.03 | % | 2.32 | % | 2.94 | % | 3.07 | % | 3.01 | % | 3.08 | % | 3.01 | % | ||||||||||||||
| Time deposits | 4.66 | % | 3.98 | % | 4.53 | % | 4.72 | % | 4.72 | % | 4.68 | % | 4.57 | % | ||||||||||||||
| Short-term borrowings | 2.67 | % | 3.69 | % | 0.15 | % | 2.64 | % | 2.75 | % | 3.42 | % | 1.38 | % | ||||||||||||||
| Long-term borrowings, net | 5.03 | % | 5.06 | % | 5.03 | % | 5.03 | % | 5.02 | % | 5.02 | % | 5.05 | % | ||||||||||||||
| Total interest-bearing liabilities | 3.32 | % | 2.75 | % | 3.24 | % | 3.37 | % | 3.32 | % | 3.34 | % | 3.24 | % | ||||||||||||||
| Net interest rate spread | 2.16 | % | 2.32 | % | 2.21 | % | 2.16 | % | 2.18 | % | 2.09 | % | 2.08 | % | ||||||||||||||
| Net interest margin | 2.86 | % | 2.94 | % | 2.91 | % | 2.89 | % | 2.87 | % | 2.78 | % | 2.78 | % | ||||||||||||||
| 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 financial measure. 3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of | ||||||||||||||||||||||||||||
| FINANCIAL INSTITUTIONS, INC. Selected Financial Information (Unaudited) (Amounts in thousands) | ||||||||||||||||||||||||||||
| Year Ended | 2024 | 2023 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| ASSET QUALITY DATA: | 2024 | 2023 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Allowance for Credit Losses – Loans | ||||||||||||||||||||||||||||
| Beginning balance | $ | 51,082 | $ | 45,413 | $ | 44,678 | $ | 43,952 | $ | 43,075 | $ | 51,082 | $ | 49,630 | ||||||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||||||||||
| Commercial business | 98 | (109 | ) | 131 | (3 | ) | 7 | (37 | ) | (50 | ) | |||||||||||||||||
| Commercial mortgage–construction | - | 980 | - | - | - | - | 980 | |||||||||||||||||||||
| Commercial mortgage–multifamily | 12 | - | - | 13 | - | - | - | |||||||||||||||||||||
| Commercial mortgage–non-owner occupied | (8 | ) | (875 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | 13 | |||||||||||||||
| Commercial mortgage–owner occupied | (4 | ) | (70 | ) | (1 | ) | (2 | ) | (2 | ) | - | - | ||||||||||||||||
| Residential real estate loans | 95 | 89 | (4 | ) | (1 | ) | 96 | 4 | 22 | |||||||||||||||||||
| Residential real estate lines | - | 41 | - | - | - | - | - | |||||||||||||||||||||
| Consumer indirect | 7,927 | 7,595 | 2,557 | 1,553 | 844 | 2,973 | 3,174 | |||||||||||||||||||||
| Other consumer | 566 | 893 | 100 | 106 | 178 | 182 | 82 | |||||||||||||||||||||
| Total net charge-offs (recoveries) | 8,686 | 8,544 | 2,778 | 1,665 | 1,122 | 3,121 | 4,221 | |||||||||||||||||||||
| Provision for credit losses – loans | 5,645 | 14,213 | 6,141 | 2,391 | 1,999 | (4,886 | ) | 5,673 | ||||||||||||||||||||
| Ending balance | $ | 48,041 | $ | 51,082 | $ | 48,041 | $ | 44,678 | $ | 43,952 | $ | 43,075 | $ | 51,082 | ||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized): | ||||||||||||||||||||||||||||
| Commercial business | 0.01 | % | -0.02 | % | 0.80 | % | 0.00 | % | 0.00 | % | -0.02 | % | -0.03 | % | ||||||||||||||
| Commercial mortgage–construction | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.20 | % | ||||||||||||||
| Commercial mortgage–multifamily | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Commercial mortgage–non-owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Commercial mortgage–owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Residential real estate loans | 0.01 | % | 0.01 | % | 0.00 | % | 0.00 | % | 0.06 | % | 0.00 | % | 0.01 | % | ||||||||||||||
| Residential real estate lines | 0.00 | % | 0.05 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Consumer indirect | 0.89 | % | 0.76 | % | 1.18 | % | 0.70 | % | 0.38 | % | 1.28 | % | 1.30 | % | ||||||||||||||
| Other consumer | 1.23 | % | 3.11 | % | 0.91 | % | 0.95 | % | 1.62 | % | 1.41 | % | 0.75 | % | ||||||||||||||
| Total loans | 0.20 | % | 0.20 | % | 0.25 | % | 0.15 | % | 0.10 | % | 0.28 | % | 0.38 | % | ||||||||||||||
| Supplemental information (1) | ||||||||||||||||||||||||||||
| Non-performing loans: | ||||||||||||||||||||||||||||
| Commercial business | $ | 5,609 | $ | 5,664 | $ | 5,609 | $ | 5,752 | $ | 5,680 | $ | 5,956 | $ | 5,664 | ||||||||||||||
| Commercial mortgage–construction | 20,280 | 5,320 | 20,280 | 20,280 | 4,970 | 5,320 | 5,320 | |||||||||||||||||||||
| Commercial mortgage–multifamily | - | 189 | - | 71 | 183 | 185 | 189 | |||||||||||||||||||||
| Commercial mortgage–non-owner occupied | 4,773 | 4,651 | 4,773 | 4,903 | 4,919 | 4,929 | 4,651 | |||||||||||||||||||||
| Commercial mortgage–owner occupied | 354 | 403 | 354 | 366 | 380 | 392 | 403 | |||||||||||||||||||||
| Residential real estate loans | 6,918 | 6,364 | 6,918 | 5,790 | 5,961 | 6,797 | 6,364 | |||||||||||||||||||||
| Residential real estate lines | 253 | 221 | 253 | 232 | 183 | 235 | 221 | |||||||||||||||||||||
| Consumer indirect | 3,157 | 3,814 | 3,157 | 3,291 | 2,897 | 2,880 | 3,814 | |||||||||||||||||||||
| Other consumer | 62 | 34 | 62 | 57 | 36 | 36 | 34 | |||||||||||||||||||||
| Total non-performing loans | 41,406 | 26,660 | 41,406 | 40,742 | 25,209 | 26,730 | 26,660 | |||||||||||||||||||||
| Foreclosed assets | 60 | 142 | 60 | 109 | 63 | 140 | 142 | |||||||||||||||||||||
| Total non-performing assets | $ | 41,466 | $ | 26,802 | $ | 41,466 | $ | 40,851 | $ | 25,272 | $ | 26,870 | $ | 26,802 | ||||||||||||||
| Total non-performing loans to total loans | 0.92 | % | 0.60 | % | 0.92 | % | 0.93 | % | 0.57 | % | 0.60 | % | 0.60 | % | ||||||||||||||
| Total non-performing assets to total assets | 0.68 | % | 0.44 | % | 0.68 | % | 0.66 | % | 0.41 | % | 0.43 | % | 0.44 | % | ||||||||||||||
| Allowance for credit losses–loans to total loans | 1.07 | % | 1.14 | % | 1.07 | % | 1.01 | % | 0.99 | % | 0.97 | % | 1.14 | % | ||||||||||||||
| Allowance for credit losses–loans to non-performing loans | 116 | % | 192 | % | 116 | % | 110 | % | 174 | % | 161 | % | 192 | % | ||||||||||||||
| 1. At period end. | ||||||||||||||||||||||||||||
| FINANCIAL INSTITUTIONS, INC. Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||||||||||
| Year Ended | 2024 | 2023 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| 2024 | 2023 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
| Ending tangible assets: | ||||||||||||||||||||||||||||
| Total assets | $ | 6,111,187 | $ | 6,156,317 | $ | 6,131,772 | $ | 6,298,598 | $ | 6,160,881 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 60,758 | 60,867 | 60,979 | 72,287 | 72,504 | |||||||||||||||||||||||
| Tangible assets | $ | 6,050,429 | $ | 6,095,450 | $ | 6,070,793 | $ | 6,226,311 | $ | 6,088,377 | ||||||||||||||||||
| Ending tangible common equity: | ||||||||||||||||||||||||||||
| Common shareholders’ equity | $ | 568,823 | $ | 483,050 | $ | 450,375 | $ | 428,442 | $ | 437,504 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 60,758 | 60,867 | 60,979 | 72,287 | 72,504 | |||||||||||||||||||||||
| Tangible common equity | $ | 508,065 | $ | 422,183 | $ | 389,396 | $ | 356,155 | $ | 365,000 | ||||||||||||||||||
| Tangible common equity to tangible assets (1) | 8.40 | % | 6.93 | % | 6.41 | % | 5.72 | % | 6.00 | % | ||||||||||||||||||
| Common shares outstanding | 20,077 | 15,474 | 15,472 | 15,447 | 15,407 | |||||||||||||||||||||||
| Tangible common book value per share (2) | $ | 25.31 | $ | 27.28 | $ | 25.17 | $ | 23.06 | $ | 23.69 | ||||||||||||||||||
| Average tangible assets: | ||||||||||||||||||||||||||||
| Average assets | $ | 6,129,414 | $ | 6,025,383 | $ | 6,121,385 | $ | 6,018,390 | $ | 6,153,429 | $ | 6,225,760 | $ | 6,127,190 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 64,247 | 72,965 | 60,824 | 60,936 | 62,893 | 72,409 | 72,628 | |||||||||||||||||||||
| Average tangible assets | $ | 6,065,167 | $ | 5,952,418 | $ | 6,060,561 | $ | 5,957,454 | $ | 6,090,536 | $ | 6,153,351 | $ | 6,054,562 | ||||||||||||||
| Average tangible common equity: | ||||||||||||||||||||||||||||
| Average common equity | $ | 459,139 | $ | 406,394 | $ | 500,096 | $ | 465,986 | $ | 432,208 | $ | 437,743 | $ | 401,037 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 64,247 | 72,965 | 60,824 | 60,936 | 62,893 | 72,409 | 72,628 | |||||||||||||||||||||
| Average tangible common equity | $ | 394,892 | $ | 333,429 | $ | 439,272 | $ | 405,050 | $ | 369,315 | $ | 365,334 | $ | 328,409 | ||||||||||||||
| Net (loss) income available to common shareholders | $ | (25,981 | ) | $ | 48,805 | $ | (66,052 | ) | $ | 13,101 | $ | 25,265 | $ | 1,705 | $ | 9,415 | ||||||||||||
| Return on average tangible common equity (3) | -6.58 | % | 14.64 | % | -59.82 | % | 12.87 | % | 27.51 | % | 1.88 | % | 11.37 | % | ||||||||||||||
| 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. | ||||||||||||||||||||||||||||
FAQ
What caused FISI's significant net loss in Q4 2024?
How much capital did FISI raise in its Q4 2024 equity offering?
What was FISI's net interest margin in Q4 2024?
How did FISI's loan portfolio perform in 2024?
What was FISI's deposit performance in Q4 2024?
