Financial Institutions, Inc. Announces Fourth Quarter and Full Year 2023 Results
- The company's total loans increased by 10.2% in 2023, driven by strong commercial loan growth.
- Noninterest income increased by 46.6% in the fourth quarter, with a significant portion from company owned life insurance revenue.
- The company's credit quality metrics remained strong, with net charge-offs to total loans of 0.20% and non-performing assets to total assets of 0.44% as of December 31, 2023.
- Net income decreased for the fourth quarter of 2023 compared to the previous year, with a provision for credit losses of $5.3 million.
- Total deposits decreased by 1.9% from the previous quarter.
- Net interest income decreased by 4.3% in the fourth quarter of 2023.
Insights
The reported earnings from Financial Institutions, Inc. indicate a decline in net income both on a quarterly and yearly basis, which is a critical factor for investors assessing the company's profitability trend. The decrease in net income from $14.0 million in Q3 2023 to $9.8 million in Q4 2023 and from $12.1 million in Q4 2022 to $9.8 million in Q4 2023, suggests a potential concern for short-term profitability. Additionally, the full year comparison shows a drop from $56.6 million in 2022 to $50.3 million in 2023. This declining trajectory could be indicative of increased funding costs due to a higher interest rate environment, which is noted as impacting the company's earnings.
The provision for credit losses is a significant metric that indicates the company's anticipation of potential credit losses. The increase to $5.3 million in the current quarter from $966 thousand in the prior quarter signals a more cautious stance on credit risk, possibly due to economic uncertainties or changes in the credit quality of the loan portfolio. This increased provision could affect investor sentiment regarding the risk profile of the company's lending activities.
From a balance sheet perspective, the growth in total loans, particularly in commercial lending, is a positive sign of business expansion. However, the net interest margin compression from 3.23% in Q4 2022 to 2.78% in Q4 2023 reflects the challenges posed by the higher interest rate environment. The margin compression is a trend that investors will closely monitor as it affects the core profitability of the bank.
The strategic actions taken by the company, including the repositioning of the investment securities portfolio and the surrender and redeployment of company owned life insurance (COLI), indicate a proactive approach to managing the balance sheet in a challenging interest rate environment. The decision to sell agency mortgage-backed securities and reinvest in higher yielding bonds, despite realizing a loss, is aimed at improving future earnings. This could be a strategic move to enhance yield in the long-term, but the immediate loss and the two-year earn-back period may raise concerns about near-term financial performance.
Furthermore, the significant increase in noninterest income, primarily due to COLI revenue, is noteworthy. This one-time event contributed to the quarter's performance but is not expected to be a recurring boost to earnings. Investors and analysts may question the sustainability of noninterest income growth without such transactions in the future.
The organizational restructuring and associated cost-cutting measures, aiming to remove approximately $6 million in annual noninterest expenses, reflect an emphasis on expense management. While this could improve efficiency ratios and profitability in the long run, the short-term impact of severance expenses and the potential disruption to operations could be areas of concern for stakeholders.
The reported financial results must be contextualized within the broader economic environment, particularly the higher interest rate landscape that has been prevalent. The increased funding costs that have pressured net interest income are consistent with central bank policies aiming to control inflation. Such economic conditions can lead to tighter net interest margins for financial institutions as the cost of borrowing rises.
Despite these pressures, the 10.2% annual growth in total loans is a robust indicator of the company's underlying business strength and its capacity to expand its lending activities. This growth, especially in commercial lending, suggests a healthy demand for credit, which is a positive sign for economic activity. However, the sustainability of this growth amidst rising interest rates will be a key factor to monitor, as it could affect borrowers' ability to service debt and, consequently, the bank's credit risk.
The company's liquidity position, with over $1.3 billion available and approximately $1.1 billion in anticipated cash flow over the next twelve months, provides a cushion against short-term market volatility and positions the company to take advantage of potential investment opportunities that may arise as the economic situation evolves.
WARSAW, N.Y., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank"), SDN Insurance Agency, LLC ("SDN") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the fourth quarter and year ended December 31, 2023.
Net income was
The Company reported full year 2023 net income of
Fourth Quarter and Full Year 2023 Key Results:
- Total deposits were
$5.21 billion at December 31, 2023, down$103.1 million , or1.9% , from September 30, 2023, and up$283.5 million , or5.8% , from the prior year end. The linked quarter decline is reflective of seasonal public deposit outflows, while the improvement over the prior year was driven by nonpublic deposit growth. - Total loans were
$4.46 billion at December 31, 2023, reflecting an increase of$31.0 million , or0.7% , from September 30, 2023 and an increase of$411.7 million , or10.2% , from December 31, 2022, with both quarterly and annual growth led by commercial lending. - As previously disclosed, the Company repositioned a portion of its investment securities portfolio, selling approximately
$54 million in available-for-sale agency mortgage-backed securities early in the fourth quarter at an after-tax loss of$2.8 million , reinvesting the proceeds into higher yielding bonds. The after-tax interest income benefit of$1.4 million annually translates to an earn-back of two years. - Net interest income of
$39.9 million in the fourth quarter of 2023 decreased$1.8 million , or4.3% , and$3.3 million , or7.6% , from the linked and year-ago quarters, respectively. Full year net interest income of$165.7 million was down$1.7 million , or1.0% , from 2022. Net interest income in 2023 has been impacted by the current higher interest rate environment that has driven funding costs higher. - Noninterest income was
$15.4 million in the fourth quarter of 2023, up$4.9 million , or46.6% , from the third quarter of 2023 and up$4.4 million , or40.5% , from the fourth quarter of 2022, while full year noninterest income totaled$48.2 million , reflecting an increase of$2.0 million , or4.3% , from 2022. - Contributing to fourth quarter 2023 noninterest income was
$9.1 million of company owned life insurance (“COLI”) revenue, approximately$8 million of which was generated by the surrender and redeploy of$53.9 million in cash surrender value of COLI during the quarter. The revenue from the transaction, which was partially offset by$5.4 million of related incremental income taxes, was based upon the crediting rate of the premium allocation to separate account investments, as supported by the performance of the underlying investment divisions. The cash surrender value of the separate account COLI and corresponding revenue is expected to stabilize in future periods. - Noninterest expense of
$35.0 million for the current quarter was up$312 thousand , or0.9% , from the third quarter of 2023 and up$1.5 million , or4.6% from the fourth quarter of 2022, while full year noninterest expense of$137.2 million reflects an increase of$7.9 million , or6.1% , over the prior year. - The Company continues to report strong credit quality metrics, including annual net charge-offs to total loans of
0.20% and non-performing assets to total assets of0.44% as of December 31, 2023.
"Amid unprecedented pressures on the banking industry throughout 2023, our Company responded by defending and growing deposits, strengthening liquidity and capital while deepening relationships with our customers and welcoming new ones to our diversified financial services company," said President and Chief Executive Officer Martin K. Birmingham. "We also took meaningful steps to position our Company for future success and growth. The strategic realignment announced in December 2023 strengthens our leadership team and streamlines our organizational structure in key areas while also supporting our continued focus on expense management.
"Loans grew
Chief Financial Officer and Treasurer W. Jack Plants II added, "During the fourth quarter, we took proactive measures to enhance our earnings generation potential amid the challenging operating environment that has created continued funding cost pressures for our industry. We repositioned a segment of our investment securities portfolio supporting near-term and future earnings generation in what we believe is a prudent use of capital. Heading into 2024, we have over
Leadership and Organizational Update
On December 8, 2023, the Company announced changes to its executive leadership team and an associated realignment to strengthen its ability to execute on its long-term strategy and risk functions. As previously disclosed, the realignment impacted approximately
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 Income
Noninterest income was
- Investment advisory income of
$2.7 million was$125 thousand higher than the third quarter of 2023 and$155 thousand lower than the fourth quarter of 2022. The linked quarter increase was due to the positive impact of new and increased client accounts in addition to market-driven increases in assets under management, while the year-over-year decline was primarily due to lower transaction-based fees on retail accounts in the most recent period. - Insurance income of
$1.6 million was$63 thousand lower than the third quarter of 2023 and$153 thousand higher than the fourth quarter of 2022, with the increase from the prior year period driven by higher premium renewal rates reflecting market conditions. - Income from company owned life insurance of
$9.1 million was$8.1 million higher than the third quarter of 2023 and$8.3 million higher than the fourth quarter of 2022, due to the higher crediting rate and associated impact to cash surrender value related to the previously mentioned surrender and redeploy strategy executed in the fourth quarter of 2023. - Income from investments in limited partnerships of
$672 thousand was$281 thousand higher than the third quarter of 2023 and$481 thousand higher than the fourth quarter of 2022. 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. - Income (loss) from derivative instruments, net was a loss of
$68 thousand in the current quarter,$287 thousand lower than the third quarter of 2023 and$724 thousand lower than in the fourth quarter of 2022. Income from derivative instruments, net is based on the number and value of interest rate swap transactions executed during the quarter combined with the impact of changes in the fair value of borrower-facing trades. - A net loss on investment securities of
$3.6 million was recognized in the current quarter, due to the previously disclosed securities portfolio restructuring. No such losses were recorded in the linked or year-ago periods.
Noninterest income was
- Income from company owned life insurance of
$12.1 million was$6.6 million higher than in 2022 due to income associated with the previously mentioned surrender and redeploy strategy executed in the fourth quarter of 2023. - Service charges on deposits of
$4.6 million in 2023 were down$1.3 million from 2022, due to a reduction in nonsufficient funds fees as a result of January 2023 changes in the Bank’s consumer overdraft program that align with trends in community banking. - A net loss on investment securities of
$3.6 million was recognized in 2023, compared to a net loss of$15 thousand in 2022, due to the previously disclosed fourth quarter 2023 securities portfolio restructuring.
Noninterest Expense
Noninterest expense was
- Salaries and employee benefits expense of
$17.8 million was$318 thousand lower than the third quarter of 2023 and$259 thousand lower than the fourth quarter of 2022. The decrease from the linked quarter was due to a variety of factors, including lower stock-based compensation expense in the fourth quarter this year driven by forfeitures, lower executive bonuses and incentive compensation reflecting adjustments for full year performance, coupled with lower benefits expenses due in part to the timing of medical and dental claim activity. These decreases were partially offset by higher severance expense associated with the Company's recent leadership and organizational changes and higher other bonuses reflecting earnout associated with SDN's 2021 acquisition of The Landmark Group. The decrease from the prior year quarter was primarily due to lower stock-based compensation expense and lower executive bonuses and incentive compensation in the current quarter. - Professional services expenses of
$1.4 million were$339 thousand higher than the third quarter of 2023 and relatively flat with the fourth quarter of 2022. The linked quarter increase was due in part to the timing of accounting and audit fees that are typically incurred in the fourth quarter. - Computer and data processing expense of
$5.6 million was$455 thousand higher than the third quarter of 2023 and$883 thousand higher than the fourth quarter of 2022 due in part to the Company's investments in data efficiency and marketing technology. - FDIC assessments expense of
$1.3 million was$84 thousand higher than the linked quarter and$661 thousand higher than the year-ago quarter, with the year-over-year increase due in part to the impact of an increase in base deposit insurance assessment rate schedules by two basis points. - Advertising and promotions expense of
$370 thousand was$374 thousand lower than the third quarter of 2023, during which the Company ran an advertising campaign related to its money market offering, and$206 thousand lower than the fourth quarter of 2022, when it refreshed elements of its visual brand. - The Company recognized restructuring charges totaling
$188 thousand and$350 thousand in the fourth quarters of 2023 and 2022, respectively, in connection with several branch locations that were closed in the second half of 2020. The charges related to the write-down of real estate assets to market value based upon current market conditions.
Noninterest expense was
- Salaries and employee benefits expense of
$71.9 million increased$2.3 million from the prior year, primarily due to annual merit increases, higher pension expenses and increased medical and dental claim activity, partially offset by lower stock-based compensation, executive bonuses and incentive compensation. - Computer and data processing expense of
$20.1 million was$2.5 million higher than 2022, as a result of the previously mentioned investments in data efficiency and marketing technology. - FDIC assessments expense of
$4.9 million was up$2.5 million from the prior year, due in part to the impact of the previously mentioned increase in base deposit insurance assessment rate schedules. - Restructuring charges related to the 2020 closing of several branches totaled
$114 thousand in 2023 as compared to$1.6 million in 2022 due to the previously described write-down of real estate assets.
Income Taxes
Income tax expense was
The effective tax rate was
Balance Sheet and Capital Management
Total assets were
Investment securities were
Total loans were
- Commercial business loans totaled
$735.7 million , up$24.2 million , or3.4% , from September 30, 2023, and up$71.5 million , or10.8% , from December 31, 2022. - Commercial mortgage loans totaled
$2.01 billion , up$20.0 million , or1.0% , from September 30, 2023, and up$325.5 million , or19.4% , from December 31, 2022. - Residential real estate loans totaled
$649.8 million , up$14.6 million , or2.3% , from September 30, 2023, and up$59.9 million , or10.1% , from December 31, 2022. - Consumer indirect loans totaled
$948.8 million , down$33.3 million , or3.4% , from September 30, 2023, and down$74.8 million , or7.3% , from December 31, 2022.
Total deposits were
Short-term borrowings were
Shareholders' equity was
Common book value per share was
During the fourth quarter of 2023, the Company declared a common stock dividend of
The Company's regulatory capital ratios at December 31, 2023 continued to exceed all regulatory capital requirements to be considered well capitalized.
- Leverage Ratio was
8.18% compared to8.20% and8.33% at September 30, 2023, and December 31, 2022, respectively. - Common Equity Tier 1 Capital Ratio was
9.34% compared to9.26% and9.42% at September 30, 2023, and December 31, 2022, respectively. - Tier 1 Capital Ratio was
9.67% compared to9.58% and9.78% at September 30, 2023, and December 31, 2022, respectively. - Total Risk-Based Capital Ratio was
12.02% compared to11.91% and12.13% at September 30, 2023, and December 31, 2022, respectively.
Credit Quality
Non-performing loans were
At December 31, 2023, 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, 2023, 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, 2023, and will adjust amounts preliminarily reported, if necessary.
Conference Call
The Company will host an earnings conference call and audio webcast on January 26, 2024 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 280151. 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 an innovative 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," "continue," "estimate," "expect," "forecast," "intend," "plan," "preliminary," "should," 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: 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 the impact of the COVID-19 pandemic or 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)
| 2023 | 2022 | |||||||||||||||||||
| SELECTED BALANCE SHEET DATA: | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| Cash and cash equivalents | $ | 124,442 | $ | 192,111 | $ | 180,248 | $ | 139,974 | $ | 130,466 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Available for sale | 887,730 | 854,215 | 912,122 | 945,442 | 954,371 | |||||||||||||||
| Held-to-maturity, net | 148,156 | 154,204 | 159,893 | 180,052 | 188,975 | |||||||||||||||
| Total investment securities | 1,035,886 | 1,008,419 | 1,072,015 | 1,125,494 | 1,143,346 | |||||||||||||||
| Loans held for sale | 1,370 | 1,873 | 805 | 682 | 550 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial business | 735,700 | 711,538 | 720,372 | 695,110 | 664,249 | |||||||||||||||
| Commercial mortgage | 2,005,319 | 1,985,279 | 1,961,220 | 1,841,481 | 1,679,840 | |||||||||||||||
| Residential real estate loans | 649,822 | 635,209 | 611,199 | 591,846 | 589,960 | |||||||||||||||
| Residential real estate lines | 77,367 | 76,722 | 75,971 | 76,086 | 77,670 | |||||||||||||||
| Consumer indirect | 948,831 | 982,137 | 1,000,982 | 1,022,202 | 1,023,620 | |||||||||||||||
| Other consumer | 45,100 | 40,281 | 28,065 | 16,607 | 15,110 | |||||||||||||||
| Total loans | 4,462,139 | 4,431,166 | 4,397,809 | 4,243,332 | 4,050,449 | |||||||||||||||
| Allowance for credit losses – loans | 51,082 | 49,630 | 49,836 | 47,528 | 45,413 | |||||||||||||||
| Total loans, net | 4,411,057 | 4,381,536 | 4,347,973 | 4,195,804 | 4,005,036 | |||||||||||||||
| Total interest-earning assets | 5,702,904 | 5,747,191 | 5,749,015 | 5,600,786 | 5,428,533 | |||||||||||||||
| Goodwill and other intangible assets, net | 72,504 | 72,725 | 72,950 | 73,180 | 73,414 | |||||||||||||||
| Total assets | 6,160,881 | 6,140,149 | 6,141,298 | 5,966,992 | 5,797,272 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | 1,010,614 | 1,035,350 | 1,022,788 | 1,067,011 | 1,139,214 | |||||||||||||||
| Interest-bearing demand | 713,158 | 827,842 | 823,983 | 901,251 | 863,822 | |||||||||||||||
| Savings and money market | 2,084,444 | 1,943,794 | 1,641,014 | 1,701,663 | 1,643,516 | |||||||||||||||
| Time deposits | 1,404,696 | 1,508,987 | 1,547,076 | 1,471,382 | 1,282,872 | |||||||||||||||
| Total deposits | 5,212,912 | 5,315,973 | 5,034,861 | 5,141,307 | 4,929,424 | |||||||||||||||
| Short-term borrowings | 185,000 | 70,000 | 374,000 | 116,000 | 205,000 | |||||||||||||||
| Long-term borrowings, net | 124,532 | 124,454 | 124,377 | 124,299 | 74,222 | |||||||||||||||
| Total interest-bearing liabilities | 4,511,830 | 4,475,077 | 4,510,450 | 4,314,595 | 4,069,432 | |||||||||||||||
| Shareholders’ equity | 454,796 | 408,716 | 425,873 | 422,823 | 405,605 | |||||||||||||||
| Common shareholders’ equity | 437,504 | 391,424 | 408,581 | 405,531 | 388,313 | |||||||||||||||
| Tangible common equity (1) | 365,000 | 318,699 | 335,631 | 332,351 | 314,899 | |||||||||||||||
| Accumulated other comprehensive loss | $ | (119,941 | ) | $ | (161,389 | ) | $ | (134,472 | ) | $ | (127,372 | ) | $ | (137,487 | ) | |||||
| Common shares outstanding | 15,407 | 15,402 | 15,402 | 15,375 | 15,340 | |||||||||||||||
| Treasury shares | 692 | 698 | 698 | 724 | 760 | |||||||||||||||
| CAPITAL RATIOS AND PER SHARE DATA: | ||||||||||||||||||||
| Leverage ratio | 8.18 | % | 8.20 | % | 8.08 | % | 8.19 | % | 8.33 | % | ||||||||||
| Common equity Tier 1 capital ratio | 9.34 | % | 9.26 | % | 9.10 | % | 9.21 | % | 9.42 | % | ||||||||||
| Tier 1 capital ratio | 9.67 | % | 9.58 | % | 9.43 | % | 9.55 | % | 9.78 | % | ||||||||||
| Total risk-based capital ratio | 12.02 | % | 11.91 | % | 11.77 | % | 11.93 | % | 12.13 | % | ||||||||||
| Common equity to assets | 7.10 | % | 6.37 | % | 6.65 | % | 6.80 | % | 6.70 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 6.00 | % | 5.25 | % | 5.53 | % | 5.64 | % | 5.50 | % | ||||||||||
| Common book value per share | $ | 28.40 | $ | 25.41 | $ | 26.53 | $ | 26.38 | $ | 25.31 | ||||||||||
| Tangible common book value per share (1) | $ | 23.69 | $ | 20.69 | $ | 21.79 | $ | 21.62 | $ | 20.53 | ||||||||||
(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)
| Twelve Months Ended | 2023 | 2022 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| SELECTED INCOME STATEMENT DATA: | 2023 | 2022 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Interest income | $ | 286,133 | $ | 196,107 | $ | 76,547 | $ | 74,700 | $ | 71,115 | $ | 63,771 | $ | 57,805 | ||||||||||||||
| Interest expense | 120,418 | 28,735 | 36,661 | 33,023 | 28,778 | 21,956 | 14,656 | |||||||||||||||||||||
| Net interest income | 165,715 | 167,372 | 39,886 | 41,677 | 42,337 | 41,815 | 43,149 | |||||||||||||||||||||
| Provision for credit losses | 13,681 | 13,311 | 5,271 | 966 | 3,230 | 4,214 | 6,115 | |||||||||||||||||||||
| Net interest income after provision for credit losses | 152,034 | 154,061 | 34,615 | 40,711 | 39,107 | 37,601 | 37,034 | |||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||
| Service charges on deposits | 4,625 | 5,889 | 1,168 | 1,207 | 1,223 | 1,027 | 1,486 | |||||||||||||||||||||
| Insurance income | 6,708 | 6,364 | 1,615 | 1,678 | 1,328 | 2,087 | 1,462 | |||||||||||||||||||||
| Card interchange income | 8,220 | 8,205 | 2,080 | 2,094 | 2,107 | 1,939 | 2,074 | |||||||||||||||||||||
| Investment advisory | 10,955 | 11,493 | 2,669 | 2,544 | 2,819 | 2,923 | 2,824 | |||||||||||||||||||||
| Company owned life insurance | 12,106 | 5,542 | 9,132 | 1,027 | 953 | 994 | 875 | |||||||||||||||||||||
| Investments in limited partnerships | 1,783 | 1,293 | 672 | 391 | 469 | 251 | 191 | |||||||||||||||||||||
| Loan servicing | 479 | 507 | 84 | 135 | 114 | 146 | 124 | |||||||||||||||||||||
| Income (loss) from derivative instruments, net | 1,350 | 1,919 | (68 | ) | 219 | 703 | 496 | 656 | ||||||||||||||||||||
| Net gain on sale of loans held for sale | 566 | 1,227 | 217 | 115 | 122 | 112 | 182 | |||||||||||||||||||||
| Net loss on investment securities | (3,576 | ) | (15 | ) | (3,576 | ) | - | - | - | - | ||||||||||||||||||
| Net (loss) gain on other assets | (6 | ) | (16 | ) | (37 | ) | (1 | ) | (7 | ) | 39 | (1 | ) | |||||||||||||||
| Net (loss) gain on tax credit investments | (252 | ) | (815 | ) | (207 | ) | (333 | ) | 489 | (201 | ) | (111 | ) | |||||||||||||||
| Other | 5,286 | 4,678 | 1,619 | 1,410 | 1,146 | 1,111 | 1,175 | |||||||||||||||||||||
| Total noninterest income | 48,244 | 46,271 | 15,368 | 10,486 | 11,466 | 10,924 | 10,937 | |||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 71,889 | 69,633 | 17,842 | 18,160 | 17,754 | 18,133 | 18,101 | |||||||||||||||||||||
| Occupancy and equipment | 14,798 | 15,103 | 3,739 | 3,791 | 3,538 | 3,730 | 3,539 | |||||||||||||||||||||
| Professional services | 5,259 | 5,592 | 1,415 | 1,076 | 1,273 | 1,495 | 1,420 | |||||||||||||||||||||
| Computer and data processing | 20,110 | 17,638 | 5,562 | 5,107 | 4,750 | 4,691 | 4,679 | |||||||||||||||||||||
| Supplies and postage | 1,873 | 1,943 | 455 | 455 | 473 | 490 | 493 | |||||||||||||||||||||
| FDIC assessments | 4,902 | 2,440 | 1,316 | 1,232 | 1,239 | 1,115 | 655 | |||||||||||||||||||||
| Advertising and promotions | 1,926 | 2,013 | 370 | 744 | 498 | 314 | 576 | |||||||||||||||||||||
| Amortization of intangibles | 910 | 986 | 221 | 225 | 230 | 234 | 239 | |||||||||||||||||||||
| Restructuring charges (recoveries) | 114 | 1,619 | 188 | (55 | ) | (19 | ) | - | 350 | |||||||||||||||||||
| Other | 15,444 | 12,395 | 3,939 | 4,000 | 4,046 | 3,459 | 3,461 | |||||||||||||||||||||
| Total noninterest expense | 137,225 | 129,362 | 35,047 | 34,735 | 33,782 | 33,661 | 33,513 | |||||||||||||||||||||
| Income before income taxes | 63,053 | 70,970 | 14,936 | 16,462 | 16,791 | 14,864 | 14,458 | |||||||||||||||||||||
| Income tax expense | 12,789 | 14,397 | 5,156 | 2,440 | 2,418 | 2,775 | 2,370 | |||||||||||||||||||||
| Net income | 50,264 | 56,573 | 9,780 | 14,022 | 14,373 | 12,089 | 12,088 | |||||||||||||||||||||
| Preferred stock dividends | 1,459 | 1,459 | 365 | 365 | 364 | 365 | 364 | |||||||||||||||||||||
| Net income available to common shareholders | $ | 48,805 | $ | 55,114 | $ | 9,415 | $ | 13,657 | $ | 14,009 | $ | 11,724 | $ | 11,724 | ||||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||||||||||
| Earnings per share – basic | $ | 3.17 | $ | 3.58 | $ | 0.61 | $ | 0.89 | $ | 0.91 | $ | 0.76 | $ | 0.76 | ||||||||||||||
| Earnings per share – diluted | $ | 3.15 | $ | 3.56 | $ | 0.61 | $ | 0.88 | $ | 0.91 | $ | 0.76 | $ | 0.76 | ||||||||||||||
| Cash dividends declared on common stock | $ | 1.20 | $ | 1.16 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.29 | ||||||||||||||
| Common dividend payout ratio | 37.85 | % | 32.40 | % | 49.18 | % | 33.71 | % | 32.97 | % | 39.47 | % | 38.16 | % | ||||||||||||||
| Dividend yield (annualized) | 5.63 | % | 4.76 | % | 5.59 | % | 7.07 | % | 7.64 | % | 6.31 | % | 4.72 | % | ||||||||||||||
| Return on average assets (annualized) | 0.83 | % | 1.01 | % | 0.63 | % | 0.92 | % | 0.95 | % | 0.84 | % | 0.85 | % | ||||||||||||||
| Return on average equity (annualized) | 11.86 | % | 12.81 | % | 9.28 | % | 12.96 | % | 13.43 | % | 11.73 | % | 11.92 | % | ||||||||||||||
| Return on average common equity (annualized) | 12.01 | % | 12.99 | % | 9.31 | % | 13.15 | % | 13.64 | % | 11.87 | % | 12.08 | % | ||||||||||||||
| Return on average tangible common equity (annualized) (1) | 14.64 | % | 15.72 | % | 11.37 | % | 15.98 | % | 16.58 | % | 14.53 | % | 14.94 | % | ||||||||||||||
| Efficiency ratio (2) | 62.96 | % | 60.39 | % | 59.48 | % | 66.47 | % | 62.66 | % | 63.68 | % | 61.82 | % | ||||||||||||||
| Effective tax rate | 20.3 | % | 20.3 | % | 34.5 | % | 14.8 | % | 14.4 | % | 18.7 | % | 16.4 | % | ||||||||||||||
(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)
| Twelve Months Ended | 2023 | 2022 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| SELECTED AVERAGE BALANCES: | 2023 | 2022 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Federal funds sold and interest-earning deposits | $ | 80,415 | $ | 49,055 | $ | 102,487 | $ | 62,673 | $ | 92,954 | $ | 63,311 | $ | 49,073 | ||||||||||||||
| Investment securities (1) | 1,249,928 | 1,384,208 | 1,199,766 | 1,230,590 | 1,269,181 | 1,301,506 | 1,332,776 | |||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||
| Commercial business | 698,861 | 628,729 | 702,222 | 712,224 | 710,145 | 670,354 | 636,470 | |||||||||||||||||||||
| Commercial mortgage | 1,908,355 | 1,502,904 | 1,995,233 | 1,977,978 | 1,911,729 | 1,744,963 | 1,633,298 | |||||||||||||||||||||
| Residential real estate loans | 612,767 | 579,362 | 640,955 | 621,074 | 598,638 | 589,747 | 582,352 | |||||||||||||||||||||
| Residential real estate lines | 76,350 | 77,132 | 76,741 | 75,847 | 76,191 | 76,627 | 77,342 | |||||||||||||||||||||
| Consumer indirect | 997,538 | 1,008,026 | 965,571 | 989,614 | 1,011,338 | 1,024,362 | 1,003,728 | |||||||||||||||||||||
| Other consumer | 28,741 | 14,636 | 43,664 | 34,086 | 21,686 | 15,156 | 15,175 | |||||||||||||||||||||
| Total loans | 4,322,612 | 3,810,789 | 4,424,386 | 4,410,823 | 4,329,727 | 4,121,209 | 3,948,365 | |||||||||||||||||||||
| Total interest-earning assets | 5,652,955 | 5,244,052 | 5,726,639 | 5,704,086 | 5,691,862 | 5,486,026 | 5,330,214 | |||||||||||||||||||||
| Goodwill and other intangible assets, net | 73,055 | 73,913 | 72,628 | 72,851 | 73,079 | 73,312 | 73,547 | |||||||||||||||||||||
| Total assets | 6,025,378 | 5,606,733 | 6,127,171 | 6,073,653 | 6,053,258 | 5,843,786 | 5,667,331 | |||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Interest-bearing demand | 818,541 | 909,799 | 780,546 | 766,636 | 848,552 | 880,093 | 923,374 | |||||||||||||||||||||
| Savings and money market | 1,781,776 | 1,852,571 | 2,048,822 | 1,749,202 | 1,660,148 | 1,665,075 | 1,764,230 | |||||||||||||||||||||
| Time deposits | 1,477,596 | 1,008,092 | 1,455,867 | 1,564,035 | 1,506,592 | 1,382,131 | 1,116,135 | |||||||||||||||||||||
| Short-term borrowings | 186,910 | 86,139 | 84,587 | 222,871 | 294,923 | 145,533 | 87,783 | |||||||||||||||||||||
| Long-term borrowings, net | 121,903 | 74,059 | 124,484 | 124,407 | 124,329 | 114,251 | 74,175 | |||||||||||||||||||||
| Total interest-bearing liabilities | 4,386,726 | 3,930,660 | 4,494,306 | 4,427,151 | 4,434,544 | 4,187,083 | 3,965,697 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,030,648 | 1,105,281 | 1,006,465 | 1,022,423 | 1,029,681 | 1,064,754 | 1,123,223 | |||||||||||||||||||||
| Total deposits | 5,108,561 | 4,875,743 | 5,291,700 | 5,102,296 | 5,044,973 | 4,992,053 | 4,926,962 | |||||||||||||||||||||
| Total liabilities | 5,601,692 | 5,165,020 | 5,708,842 | 5,644,488 | 5,624,006 | 5,425,851 | 5,265,134 | |||||||||||||||||||||
| Shareholders’ equity | 423,686 | 441,713 | 418,329 | 429,165 | 429,252 | 417,935 | 402,197 | |||||||||||||||||||||
| Common equity | 406,394 | 424,421 | 401,037 | 411,873 | 411,960 | 400,643 | 384,905 | |||||||||||||||||||||
| Tangible common equity (2) | 333,339 | 350,508 | 328,409 | 339,022 | 338,881 | 327,331 | 311,358 | |||||||||||||||||||||
| Common shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 15,376 | 15,384 | 15,393 | 15,391 | 15,372 | 15,348 | 15,330 | |||||||||||||||||||||
| Diluted | 15,475 | 15,471 | 15,511 | 15,462 | 15,413 | 15,435 | 15,413 | |||||||||||||||||||||
| SELECTED AVERAGE YIELDS: (Tax equivalent basis) | ||||||||||||||||||||||||||||
| Investment securities | 1.92 | % | 1.81 | % | 2.03 | % | 1.88 | % | 1.89 | % | 1.90 | % | 1.88 | % | ||||||||||||||
| Loans | 5.98 | % | 4.48 | % | 6.21 | % | 6.15 | % | 5.93 | % | 5.61 | % | 5.15 | % | ||||||||||||||
| Total interest-earning assets | 5.07 | % | 3.75 | % | 5.32 | % | 5.21 | % | 5.02 | % | 4.71 | % | 4.32 | % | ||||||||||||||
| Interest-bearing demand | 0.87 | % | 0.24 | % | 1.26 | % | 0.83 | % | 0.77 | % | 0.64 | % | 0.52 | % | ||||||||||||||
| Savings and money market | 2.32 | % | 0.53 | % | 3.01 | % | 2.51 | % | 2.00 | % | 1.60 | % | 1.20 | % | ||||||||||||||
| Time deposits | 3.98 | % | 1.09 | % | 4.57 | % | 4.20 | % | 3.76 | % | 3.33 | % | 2.31 | % | ||||||||||||||
| Short-term borrowings | 3.69 | % | 1.74 | % | 1.38 | % | 3.98 | % | 4.30 | % | 3.35 | % | 2.48 | % | ||||||||||||||
| Long-term borrowings, net | 5.06 | % | 5.73 | % | 5.05 | % | 5.05 | % | 5.04 | % | 5.11 | % | 5.72 | % | ||||||||||||||
| Total interest-bearing liabilities | 2.75 | % | 0.73 | % | 3.24 | % | 2.96 | % | 2.60 | % | 2.12 | % | 1.47 | % | ||||||||||||||
| Net interest rate spread | 2.32 | % | 3.02 | % | 2.08 | % | 2.25 | % | 2.42 | % | 2.59 | % | 2.85 | % | ||||||||||||||
| Net interest margin | 2.94 | % | 3.20 | % | 2.78 | % | 2.91 | % | 2.99 | % | 3.09 | % | 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 financial measure.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| Twelve Months Ended | 2023 | 2022 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| ASSET QUALITY DATA: | 2023 | 2022 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Allowance for Credit Losses – Loans | ||||||||||||||||||||||||||||
| Beginning balance | $ | 45,413 | $ | 39,676 | $ | 49,630 | $ | 49,836 | $ | 47,528 | $ | 45,413 | $ | 44,106 | ||||||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||||||||||
| Commercial business | (109 | ) | (64 | ) | (50 | ) | 32 | 33 | (124 | ) | (21 | ) | ||||||||||||||||
| Commercial mortgage | 35 | (853 | ) | 993 | (972 | ) | 16 | (2 | ) | 1,167 | ||||||||||||||||||
| Residential real estate loans | 89 | 279 | 22 | (4 | ) | 13 | 58 | 242 | ||||||||||||||||||||
| Residential real estate lines | 41 | (1 | ) | - | - | 25 | 16 | (19 | ) | |||||||||||||||||||
| Consumer indirect | 7,595 | 4,538 | 3,174 | 2,283 | 300 | 1,838 | 1,451 | |||||||||||||||||||||
| Other consumer | 893 | 1,339 | 82 | 259 | 249 | 303 | 518 | |||||||||||||||||||||
| Total net charge-offs (recoveries) | 8,544 | 5,238 | 4,221 | 1,598 | 636 | 2,089 | 3,338 | |||||||||||||||||||||
| Provision for credit losses – loans | 14,213 | 10,975 | 5,673 | 1,392 | 2,944 | 4,204 | 4,645 | |||||||||||||||||||||
| Ending balance | $ | 51,082 | $ | 45,413 | $ | 51,082 | $ | 49,630 | $ | 49,836 | $ | 47,528 | $ | 45,413 | ||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized): | ||||||||||||||||||||||||||||
| Commercial business | -0.02 | % | -0.01 | % | -0.03 | % | 0.02 | % | 0.02 | % | -0.08 | % | -0.01 | % | ||||||||||||||
| Commercial mortgage | 0.00 | % | -0.06 | % | 0.20 | % | -0.19 | % | 0.00 | % | 0.00 | % | 0.28 | % | ||||||||||||||
| Residential real estate loans | 0.01 | % | 0.05 | % | 0.01 | % | 0.00 | % | 0.01 | % | 0.04 | % | 0.16 | % | ||||||||||||||
| Residential real estate lines | 0.05 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.13 | % | 0.09 | % | -0.10 | % | ||||||||||||||
| Consumer indirect | 0.76 | % | 0.45 | % | 1.30 | % | 0.92 | % | 0.12 | % | 0.73 | % | 0.57 | % | ||||||||||||||
| Other consumer | 3.11 | % | 9.15 | % | 0.75 | % | 3.00 | % | 4.62 | % | 8.10 | % | 13.57 | % | ||||||||||||||
| Total loans | 0.20 | % | 0.14 | % | 0.38 | % | 0.14 | % | 0.06 | % | 0.21 | % | 0.34 | % | ||||||||||||||
| Supplemental information (1) | ||||||||||||||||||||||||||||
| Non-performing loans: | ||||||||||||||||||||||||||||
| Commercial business | $ | 5,664 | $ | 340 | $ | 5,664 | $ | 254 | $ | 415 | $ | 334 | $ | 340 | ||||||||||||||
| Commercial mortgage | 10,563 | 2,564 | 10,563 | 686 | 2,477 | 2,550 | 2,564 | |||||||||||||||||||||
| Residential real estate loans | 6,364 | 4,071 | 6,364 | 4,992 | 3,820 | 3,267 | 4,071 | |||||||||||||||||||||
| Residential real estate lines | 221 | 142 | 221 | 201 | 208 | 159 | 142 | |||||||||||||||||||||
| Consumer indirect | 3,814 | 3,079 | 3,814 | 3,382 | 2,982 | 2,487 | 3,079 | |||||||||||||||||||||
| Other consumer | 34 | 2 | 34 | 6 | 5 | 4 | 2 | |||||||||||||||||||||
| Total non-performing loans | 26,660 | 10,198 | 26,660 | 9,521 | 9,907 | 8,801 | 10,198 | |||||||||||||||||||||
| Foreclosed assets | 142 | 19 | 142 | 162 | 163 | 101 | 19 | |||||||||||||||||||||
| Total non-performing assets | $ | 26,802 | $ | 10,217 | $ | 26,802 | $ | 9,683 | $ | 10,070 | $ | 8,902 | $ | 10,217 | ||||||||||||||
| Total non-performing loans to total loans | 0.60 | % | 0.25 | % | 0.60 | % | 0.21 | % | 0.23 | % | 0.21 | % | 0.25 | % | ||||||||||||||
| Total non-performing assets to total assets | 0.44 | % | 0.18 | % | 0.44 | % | 0.16 | % | 0.16 | % | 0.15 | % | 0.18 | % | ||||||||||||||
| Allowance for credit losses – loans to total loans | 1.14 | % | 1.12 | % | 1.14 | % | 1.12 | % | 1.13 | % | 1.12 | % | 1.12 | % | ||||||||||||||
| Allowance for credit losses – loans to non-performing loans | 192 | % | 445 | % | 192 | % | 521 | % | 503 | % | 540 | % | 445 | % | ||||||||||||||
(1) At period end.
FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)
| Twelve Months Ended | 2023 | 2022 | ||||||||||||||||||||||||||
| December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
| 2023 | 2022 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
| Ending tangible assets: | ||||||||||||||||||||||||||||
| Total assets | $ | 6,160,881 | $ | 6,140,149 | $ | 6,141,298 | $ | 5,966,992 | $ | 5,797,272 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 72,504 | 72,725 | 72,950 | 73,180 | 73,414 | |||||||||||||||||||||||
| Tangible assets | $ | 6,088,377 | $ | 6,067,424 | $ | 6,068,348 | $ | 5,893,812 | $ | 5,723,858 | ||||||||||||||||||
| Ending tangible common equity: | ||||||||||||||||||||||||||||
| Common shareholders’ equity | $ | 437,504 | $ | 391,424 | $ | 408,581 | $ | 405,531 | $ | 388,313 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 72,504 | 72,725 | 72,950 | 73,180 | 73,414 | |||||||||||||||||||||||
| Tangible common equity | $ | 365,000 | $ | 318,699 | $ | 335,631 | $ | 332,351 | $ | 314,899 | ||||||||||||||||||
| Tangible common equity to tangible assets (1) | 6.00 | % | 5.25 | % | 5.53 | % | 5.64 | % | 5.50 | % | ||||||||||||||||||
| Common shares outstanding | 15,407 | 15,402 | 15,402 | 15,375 | 15,340 | |||||||||||||||||||||||
| Tangible common book value per share (2) | $ | 23.69 | $ | 20.69 | $ | 21.79 | $ | 21.62 | $ | 20.53 | ||||||||||||||||||
| Average tangible assets: | ||||||||||||||||||||||||||||
| Average assets | $ | 6,025,378 | $ | 5,606,733 | $ | 6,127,171 | $ | 6,073,653 | $ | 6,053,258 | $ | 5,843,786 | $ | 5,667,331 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 73,055 | 73,913 | 72,628 | 72,851 | 73,079 | 73,312 | 73,547 | |||||||||||||||||||||
| Average tangible assets | $ | 5,952,323 | $ | 5,532,820 | $ | 6,054,543 | $ | 6,000,802 | $ | 5,980,179 | $ | 5,770,474 | $ | 5,593,784 | ||||||||||||||
| Average tangible common equity: | ||||||||||||||||||||||||||||
| Average common equity | $ | 406,394 | $ | 424,421 | $ | 401,037 | $ | 411,873 | $ | 411,960 | $ | 400,643 | $ | 384,905 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 73,055 | 73,913 | 72,628 | 72,851 | 73,079 | 73,312 | 73,547 | |||||||||||||||||||||
| Average tangible common equity | $ | 333,339 | $ | 350,508 | $ | 328,409 | $ | 339,022 | $ | 338,881 | $ | 327,331 | $ | 311,358 | ||||||||||||||
| Net income available to common shareholders | $ | 48,805 | $ | 55,114 | $ | 9,415 | $ | 13,657 | $ | 14,009 | $ | 11,724 | $ | 11,724 | ||||||||||||||
| Return on average tangible common equity (3) | 14.64 | % | 15.72 | % | 11.37 | % | 15.98 | % | 16.58 | % | 14.53 | % | 14.94 | % | ||||||||||||||
| Pre-tax pre-provision income: | ||||||||||||||||||||||||||||
| Net income | $ | 50,264 | $ | 56,573 | $ | 9,780 | $ | 14,022 | $ | 14,373 | $ | 12,089 | $ | 12,088 | ||||||||||||||
| Add: Income tax expense | 12,789 | 14,397 | 5,156 | 2,440 | 2,418 | 2,775 | 2,370 | |||||||||||||||||||||
| Add: Provision for credit losses | 13,681 | 13,311 | 5,271 | 966 | 3,230 | 4,214 | 6,115 | |||||||||||||||||||||
| Pre-tax pre-provision income | $ | 76,734 | $ | 84,281 | $ | 20,207 | $ | 17,428 | $ | 20,021 | $ | 19,078 | $ | 20,573 | ||||||||||||||
(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 is the net income for Financial Institutions, Inc. (FISI) in the fourth quarter of 2023?
What was the provision for credit losses in the fourth quarter of 2023?
How did total deposits change in the fourth quarter of 2023?
What was the change in total loans in the fourth quarter of 2023?
What was the change in net interest income in the fourth quarter of 2023?
What was the change in noninterest income in the fourth quarter of 2023?
What were the total assets at the end of December 31, 2023?
What was the change in investment securities at the end of December 31, 2023?
What was the change in total loans at the end of December 31, 2023?
What were the total deposits at the end of December 31, 2023?
