Financial Institutions, Inc. (NASDAQ:FISI), today reported
financial results for the third quarter ended September 30, 2016.
Financial Institutions, Inc. (the “Company”) is the parent company
of Five Star Bank, Scott Danahy Naylon Insurance, LLC (“Scott
Danahy Naylon”) and Courier Capital, LLC (“Courier Capital”). The
Company’s financial results since January 5, 2016, include the
results of operations of Courier Capital, our wealth management
subsidiary acquired on that date.
Net income for the quarter was $8.5 million
compared to $7.2 million for the second quarter of 2016 and $8.3
million for the third quarter of 2015. After preferred dividends,
net income available to common shareholders was $8.1 million, or
$0.56 per diluted share, compared to $6.8 million, or $0.47 per
diluted share, for the second quarter of 2016 and $8.0 million, or
$0.56 per diluted share, for the third quarter of 2015.
The Company’s President and Chief Executive
Officer Martin K. Birmingham stated, “Our core bank franchise is
delivering strong results as demonstrated by continued growth in
loans and deposits, resulting in higher revenue and net income. Our
non-bank subsidiaries are also performing well and we are
experiencing synergies between our banking, insurance and wealth
management platforms. I am very proud of our team and their
commitment to our strategy.
“We are actively investing in our footprint and
are committed to continuing to grow our market share. Our third
financial solution center is expected to open mid-December in the
newly renamed Five Star Bank Plaza located in downtown Rochester.
In addition, we recently received regulatory approval for our
fourth financial solution center. This branch will be located in
the City of Buffalo at 40-50 Fountain Plaza and is expected to open
in the first quarter of 2017.
“Our investment in the region has also resulted
in strengthened leadership. We recently hired Ted Oexle as Buffalo
Regional President of Five Star Bank. Ted is a highly-respected
banker with more than 25 years of commercial banking experience in
Buffalo. He will lead our effort to grow Five Star’s commercial
banking business by delivering comprehensive financial solutions to
borrowers of all sizes.”
Third Quarter 2016
Highlights:
- Diluted earnings per share (“EPS”) of $0.56 was $0.09 higher
than the second quarter of 2016
- Net interest income of $26.1 million increased $851 thousand,
or 3.4%, as compared to the second quarter of 2016
- Noninterest income of $8.5 million was $377 thousand, or 4.2%,
lower than the second quarter of 2016
- Excluding the net gain on investment securities, noninterest
income was $8.1 million, 7.8% higher than the second quarter of
2016, primarily as a result of higher deposit service charges and
insurance income
- Return on average common equity was 10.45%
- Return on average tangible common equity was 13.87%
(computation of this non-GAAP measure provided in Appendix A)
- Net interest margin was 3.23%, unchanged from the previous
quarter
- Total interest-earning assets, assets, loans and deposits all
increased to record-high levels in the third quarter:
- Total interest-earning assets increased $65 million to $3.4
billion
- Total assets increased $102 million to $3.7 billion
- Total loans increased $72 million to $2.3 billion
- Total deposits increased $205 million to $3.1 billion
- Quarterly cash dividend of $0.20 per common share represented a
2.93% dividend yield as of September 30, 2016, and a return of 36%
of third quarter net income to common shareholders
- Total risk-based capital was 12.98% at quarter-end,
representing a strong capital position to support future
growth
- Credit quality remains strong with total non-performing loans
to total loans of 0.27% at quarter-end
Kevin B. Klotzbach, the Company’s Chief
Financial Officer noted that, “We delivered strong earnings through
base revenue growth and ongoing, disciplined expense
management. There were no significant non-recurring items in
the third quarter to detract from our results.
“A strong credit culture is a key component of
our long-term strategy as we balance volume and risk. Our asset
quality exceeds that of many of our peers as illustrated by our
ratio of non-performing assets to total assets of 0.17% at
quarter-end.”
Net Interest Income and Net Interest
Margin
- Net interest income was $26.1 million for the third quarter of
2016, $851 thousand higher than the second quarter of 2016 and $1.9
million higher than the third quarter of 2015.
- Average interest-earning assets for the quarter were $3.3
billion, $87.1 million higher than the second quarter of 2016 and
$224.6 million higher than the third quarter of 2015.
- The primary driver of the increase was loans, which were $93.8
million higher in the third quarter of 2016 than the second quarter
of 2016 and $223.6 million higher than the third quarter of
2015.
- Third quarter 2016 net interest margin was 3.23%, unchanged
from the second quarter of 2016 and three basis points higher than
the third quarter of 2015.
Noninterest Income
Noninterest income was $8.5 million for the
third quarter of 2016 as compared to $8.9 million in the second
quarter of 2016 and $7.0 million in the third quarter of
2015.
- Excluding the net gain on investment securities from all
periods, noninterest income was $8.1 million in the third quarter
of 2016, $584 thousand higher than $7.5 million in the second
quarter of 2016, and $1.4 million higher than $6.7 million in the
third quarter of 2015.
- For the third quarter of 2016 as compared to the second quarter
of 2016, insurance income increased by $224 thousand due to the
timing of customer renewals; service charges on deposits, which
historically are higher in the third quarter, increased by $158
thousand; and income from the Company’s investments in limited
partnerships, which fluctuates based on the performance of the
underlying investments, increased by $125 thousand.
- Higher noninterest income in the third quarter of 2016 as
compared to the third quarter of 2015 was primarily the result of
an $803 thousand increase in investment advisory income, reflecting
the contribution from Courier Capital, and amortization of a
historic tax investment in a community-based project that reduced
noninterest income by $390 thousand in the third quarter of
2015.
Noninterest Expense
Noninterest expense was $20.6 million for the
third quarter of 2016 as compared to $22.1 million in the second
quarter of 2016 and $19.3 million in the third quarter of 2015.
- Salaries and employee benefits for the third quarter of 2016
includes a one-time cash bonus of $323 thousand. The bonus is
payable to all employees during the fourth quarter in recognition
of their contributions to the Company’s revenue growth and expense
control in 2016.
- The decrease in noninterest expense as compared to the second
quarter of 2016 was primarily the result of $1.7 million of
professional services in the second quarter associated with the
Company’s successful proxy contest defense.
The increase in noninterest expense as compared
to the third quarter of 2015 was primarily the result of higher
salaries and employee benefits and occupancy and equipment
expenses. The higher year-over-year operating expenses are largely
the result of the Courier Capital acquisition and organic growth
initiatives.
Income Taxes
Income tax expense was $3.5 million for the
third quarter of 2016 as compared to $2.9 million in the second
quarter of 2016 and $2.7 million in the third quarter of 2015. The
effective tax rate was 29.5% for the third quarter of 2016, 28.8%
in the second quarter of 2016, and 24.8% in the third quarter of
2015. The lower effective tax rate in the third quarter of 2015 was
a result of historic tax credits, as discussed in the noninterest
income section above.
Balance Sheet and Capital
Management
Total assets were $3.7 billion at September 30,
2016, up $101.8 million from $3.6 billion at June 30, 2016, and up
$329.8 million from $3.4 billion at September 30, 2015. The
increases were largely the result of loan growth.
Total loans were $2.3 billion at September 30,
2016, up $72.2 million, or 3.3%, from June 30, 2016, and up $247.8
million, or 12.2%, from September 30, 2015.
- Commercial business loans totaled $350.6 million, up $1.2
million, or 0.3%, from June 30, 2016, and up $52.7 million, or
17.7%, from September 30, 2015.
- Commercial mortgage loans totaled $636.3 million, up $22.2
million, or 3.6%, from June 30, 2016, and up $87.8 million, or
16.0%, from September 30, 2015.
- Residential real estate loans totaled $425.9 million, up $17.5
million, or 4.3%, from June 30, 2016, and up $49.3 million, or
13.1%, from September 30, 2015.
- Consumer indirect loans totaled $729.6 million, up $32.7
million, or 4.7%, from June 30, 2016, and up $63.9 million, or
9.6%, from September 30, 2015.
Total deposits were $3.1 billion at September
30, 2016, an increase of $205.4 million from June 30, 2016, and an
increase of $309.9 million from September 30, 2015. The increase
from June 30, 2016, was primarily due to public deposit
seasonality. The increase from September 30, 2015, was primarily
the result of successful business development efforts in both
municipal and retail banking. Public deposit balances represented
29% of total deposits at September 30, 2016, compared to 27% at
June 30, 2016 and 27% at September 30, 2015.
Short-term borrowings were $230.2 million at
September 30, 2016, down $108.1 million from June 30, 2016, and
down $11.2 million from September 30, 2015. Short-term borrowings
are typically utilized to manage the seasonality of public
deposits.
Shareholders’ equity was $326.3 million at
September 30, 2016, compared to $322.2 million at June 30, 2016,
and $295.4 million at September 30, 2015. Common book value per
share was $21.26 at September 30, 2016, an increase of $0.28 or
1.3% from $20.98 at June 30, 2016, and an increase of $1.66 or 8.5%
from $19.60 at September 30, 2015. The increases in shareholders’
equity and common book value per share as compared to September 30,
2015, are attributable to net income, stock issued for the
acquisition of Courier Capital, and higher net unrealized gains on
securities available for sale, a component of accumulated other
comprehensive loss.
During the third quarter 2016, the Company
declared a common stock dividend of $0.20 per common share. The
third quarter 2016 dividend returned 36% of third quarter net
income to common shareholders.
Regulatory capital ratios at September 30, 2016,
remained steady with slight downward pressure a result of strong
loan growth and higher asset levels associated with seasonal public
deposits:
- Leverage Ratio was 7.39%, unchanged from June 30, 2016, and up
ten basis points from 7.29% at September 30, 2015.
- Common Equity Tier 1 Ratio was 9.58%, compared to 9.63% and
9.74% at June 30, 2016, and September 30, 2015, respectively.
- Tier 1 Risk-Based Capital was 10.27%, compared to 10.33% and
10.49% at June 30, 2016, and September 30, 2015, respectively.
- Total Risk-Based Capital was 12.98%, compared to 13.08% and
13.37% at June 30, 2016, and September 30, 2015, respectively.
Credit Quality
Non-performing loans were $6.1 million at
September 30, 2016, compared to $6.6 million at June 30, 2016, and
$8.5 million at September 30, 2015. The $2.4 million decrease from
September 30, 2015, was due to lower commercial non-performing
loans resulting from pay-downs on two relationships totaling $1.8
million during the second quarter of 2016, as well as improvements
in the residential real estate loan and consumer loan
portfolios.
- The ratio of non-performing loans to total loans was 0.27% at
September 30, 2016, compared to 0.30% at June 30, 2016, and 0.42%
at September 30, 2015.
The provision for loans losses for the third
quarter of 2016 was $2.0 million, relatively unchanged from the
prior quarter and an increase of $1.2 million from the third
quarter 2015.
- Net charge-offs were $1.1 million during the third quarter of
2016, a $141 thousand increase compared to the prior quarter and a
$663 thousand decrease from the third quarter of 2015.
- The ratio of annualized net charge-offs to total average loans
was 0.20% in the current quarter, compared to 0.19% in the prior
quarter and 0.35% in the third quarter of 2015.
- The ratio of allowance for loans losses to total loans was
1.29% at both September 30, and June 30, 2016, and 1.30% at
September 30, 2015.
- The ratio of allowance for loan losses to non-performing loans
was 481% at September 30, 2016, 435% at June 30, 2016, and 311% at
September 30, 2015.
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 services
to individuals, municipalities and businesses through a network of
over 50 offices and more than 60 ATMs throughout Western and
Central New York State. Scott Danahy Naylon provides a broad
range of insurance services to personal and business clients across
44 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 700 individuals. The Company’s stock is listed
on the Nasdaq Global Select Market under the symbol FISI and is a
member of the NASDAQ OMX ABA Community Bank Index. Additional
information is available at the Company’s website:
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) |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
SELECTED
BALANCE SHEET DATA: |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
110,721 |
|
|
$ |
67,624 |
|
|
$ |
110,944 |
|
|
$ |
60,121 |
|
|
$ |
51,334 |
|
Investment
securities: |
|
|
|
|
|
|
|
|
|
|
Available for sale |
|
|
559,495 |
|
|
|
619,719 |
|
|
|
610,013 |
|
|
|
544,395 |
|
|
|
577,509 |
|
Held-to-maturity |
|
|
528,708 |
|
|
|
478,549 |
|
|
|
476,283 |
|
|
|
485,717 |
|
|
|
490,638 |
|
Total investment securities |
|
|
1,088,203 |
|
|
|
1,098,268 |
|
|
|
1,086,296 |
|
|
|
1,030,112 |
|
|
|
1,068,147 |
|
Loans held for
sale |
|
|
844 |
|
|
|
209 |
|
|
|
609 |
|
|
|
1,430 |
|
|
|
1,568 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
350,588 |
|
|
|
349,432 |
|
|
|
317,776 |
|
|
|
313,758 |
|
|
|
297,876 |
|
Commercial mortgage |
|
|
636,338 |
|
|
|
614,141 |
|
|
|
590,316 |
|
|
|
566,101 |
|
|
|
548,529 |
|
Residential real estate loans |
|
|
425,882 |
|
|
|
408,367 |
|
|
|
382,504 |
|
|
|
381,074 |
|
|
|
376,552 |
|
Residential real estate lines |
|
|
123,663 |
|
|
|
125,054 |
|
|
|
126,526 |
|
|
|
127,347 |
|
|
|
128,361 |
|
Consumer indirect |
|
|
729,644 |
|
|
|
696,908 |
|
|
|
679,846 |
|
|
|
676,940 |
|
|
|
665,714 |
|
Other consumer |
|
|
17,879 |
|
|
|
17,929 |
|
|
|
18,066 |
|
|
|
18,542 |
|
|
|
19,204 |
|
Total loans |
|
|
2,283,994 |
|
|
|
2,211,831 |
|
|
|
2,115,034 |
|
|
|
2,083,762 |
|
|
|
2,036,236 |
|
Allowance for loan losses |
|
|
29,350 |
|
|
|
28,525 |
|
|
|
27,568 |
|
|
|
27,085 |
|
|
|
26,455 |
|
Total loans, net |
|
|
2,254,644 |
|
|
|
2,183,306 |
|
|
|
2,087,466 |
|
|
|
2,056,677 |
|
|
|
2,009,781 |
|
Total interest-earning
assets |
|
|
3,357,609 |
|
|
|
3,292,528 |
|
|
|
3,189,582 |
|
|
|
3,114,530 |
|
|
|
3,097,315 |
|
Goodwill and other
intangible assets, net |
|
|
75,943 |
|
|
|
76,252 |
|
|
|
76,567 |
|
|
|
66,946 |
|
|
|
67,925 |
|
Total assets |
|
|
3,687,365 |
|
|
|
3,585,589 |
|
|
|
3,516,572 |
|
|
|
3,381,024 |
|
|
|
3,357,608 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
|
657,624 |
|
|
|
626,240 |
|
|
|
617,394 |
|
|
|
641,972 |
|
|
|
623,296 |
|
Interest-bearing demand |
|
|
629,413 |
|
|
|
560,284 |
|
|
|
622,443 |
|
|
|
523,366 |
|
|
|
563,731 |
|
Savings and money market |
|
|
1,052,224 |
|
|
|
960,325 |
|
|
|
1,042,910 |
|
|
|
928,175 |
|
|
|
942,673 |
|
Time deposits |
|
|
724,096 |
|
|
|
711,156 |
|
|
|
677,430 |
|
|
|
637,018 |
|
|
|
623,800 |
|
Total deposits |
|
|
3,063,357 |
|
|
|
2,858,005 |
|
|
|
2,960,177 |
|
|
|
2,730,531 |
|
|
|
2,753,500 |
|
Short-term
borrowings |
|
|
230,200 |
|
|
|
338,300 |
|
|
|
179,200 |
|
|
|
293,100 |
|
|
|
241,400 |
|
Long-term borrowings,
net |
|
|
39,043 |
|
|
|
39,025 |
|
|
|
39,008 |
|
|
|
38,990 |
|
|
|
38,972 |
|
Total interest-bearing
liabilities |
|
|
2,674,976 |
|
|
|
2,609,090 |
|
|
|
2,560,991 |
|
|
|
2,420,649 |
|
|
|
2,410,576 |
|
Shareholders’
equity |
|
|
326,271 |
|
|
|
322,176 |
|
|
|
313,953 |
|
|
|
293,844 |
|
|
|
295,434 |
|
Common shareholders’
equity |
|
|
308,931 |
|
|
|
304,836 |
|
|
|
296,613 |
|
|
|
276,504 |
|
|
|
278,094 |
|
Tangible common equity
(1) |
|
|
232,988 |
|
|
|
228,584 |
|
|
|
220,046 |
|
|
|
209,558 |
|
|
|
210,169 |
|
Unrealized gain on
investment securities, net of tax |
|
$ |
9,444 |
|
|
$ |
10,886 |
|
|
$ |
7,555 |
|
|
$ |
443 |
|
|
$ |
5,270 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
|
14,528 |
|
|
|
14,528 |
|
|
|
14,495 |
|
|
|
14,191 |
|
|
|
14,189 |
|
Treasury shares |
|
|
164 |
|
|
|
164 |
|
|
|
197 |
|
|
|
207 |
|
|
|
209 |
|
CAPITAL RATIOS
AND PER SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
|
7.39 |
% |
|
|
7.39 |
% |
|
|
7.46 |
% |
|
|
7.41 |
% |
|
|
|
|
|
|
7.29 |
% |
Common equity Tier 1
ratio |
|
|
9.58 |
% |
|
|
9.63 |
% |
|
|
9.83 |
% |
|
|
9.77 |
% |
|
|
|
|
|
|
9.74 |
% |
Tier 1 risk-based
capital |
|
|
10.27 |
% |
|
|
10.33 |
% |
|
|
10.56 |
% |
|
|
10.50 |
% |
|
|
|
|
|
|
10.49 |
% |
Total risk-based
capital |
|
|
12.98 |
% |
|
|
13.08 |
% |
|
|
13.39 |
% |
|
|
13.35 |
% |
|
|
|
|
|
|
13.37 |
% |
Common equity to
assets |
|
|
8.38 |
% |
|
|
8.50 |
% |
|
|
8.43 |
% |
|
|
8.18 |
% |
|
|
|
|
|
|
8.28 |
% |
Tangible common equity
to tangible assets (1) |
|
|
6.45 |
% |
|
|
6.51 |
% |
|
|
6.40 |
% |
|
|
6.32 |
% |
|
|
|
|
|
|
6.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
Common book value per
share |
|
$ |
21.26 |
|
|
$ |
20.98 |
|
|
$ |
20.46 |
|
|
$ |
19.49 |
|
|
|
|
|
|
$ |
19.60 |
|
Tangible common book
value per share (1) |
|
$ |
16.04 |
|
|
$ |
15.73 |
|
|
$ |
15.18 |
|
|
$ |
14.77 |
|
|
|
|
|
|
$ |
14.81 |
|
Stock price (Nasdaq:
FISI): |
|
|
|
|
|
|
|
|
|
|
High |
|
$ |
27.63 |
|
|
$ |
29.49 |
|
|
$ |
29.53 |
|
|
$ |
29.04 |
|
|
|
|
|
|
$ |
25.21 |
|
Low |
|
$ |
25.16 |
|
|
$ |
24.56 |
|
|
$ |
25.38 |
|
|
$ |
24.05 |
|
|
|
|
|
|
$ |
23.54 |
|
Close |
|
$ |
27.11 |
|
|
$ |
26.07 |
|
|
$ |
29.07 |
|
|
$ |
28.00 |
|
|
|
|
|
|
$ |
24.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________(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) |
|
|
|
Nine months ended |
|
2016 |
|
|
2015 |
|
|
September 30, |
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
|
|
2016 |
|
|
|
2015 |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
SELECTED INCOME
STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
85,241 |
|
|
$ |
77,963 |
|
|
$ |
29,360 |
|
|
$ |
28,246 |
|
|
$ |
27,635 |
|
|
$ |
27,487 |
|
|
$ |
27,007 |
|
Interest expense |
|
|
9,273 |
|
|
|
7,281 |
|
|
|
3,310 |
|
|
|
3,047 |
|
|
|
2,916 |
|
|
|
2,856 |
|
|
|
2,876 |
|
Net interest income |
|
|
75,968 |
|
|
|
70,682 |
|
|
|
26,050 |
|
|
|
25,199 |
|
|
|
24,719 |
|
|
|
24,631 |
|
|
|
24,131 |
|
Provision for loan
losses |
|
|
6,281 |
|
|
|
4,783 |
|
|
|
1,961 |
|
|
|
1,952 |
|
|
|
2,368 |
|
|
|
2,598 |
|
|
|
754 |
|
Net interest income after provision
for loan losses |
|
|
69,687 |
|
|
|
65,899 |
|
|
|
24,089 |
|
|
|
23,247 |
|
|
|
22,351 |
|
|
|
22,033 |
|
|
|
23,377 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
5,392 |
|
|
|
5,880 |
|
|
|
1,913 |
|
|
|
1,755 |
|
|
|
1,724 |
|
|
|
1,862 |
|
|
|
2,037 |
|
Insurance income |
|
|
4,262 |
|
|
|
3,930 |
|
|
|
1,407 |
|
|
|
1,183 |
|
|
|
1,672 |
|
|
|
1,236 |
|
|
|
1,265 |
|
ATM and debit card |
|
|
4,187 |
|
|
|
3,773 |
|
|
|
1,441 |
|
|
|
1,421 |
|
|
|
1,325 |
|
|
|
1,311 |
|
|
|
1,297 |
|
Investment advisory |
|
|
3,934 |
|
|
|
1,551 |
|
|
|
1,326 |
|
|
|
1,365 |
|
|
|
1,243 |
|
|
|
642 |
|
|
|
523 |
|
Company owned life insurance |
|
|
2,340 |
|
|
|
1,448 |
|
|
|
486 |
|
|
|
486 |
|
|
|
1,368 |
|
|
|
514 |
|
|
|
488 |
|
Investments in limited
partnerships |
|
|
253 |
|
|
|
865 |
|
|
|
161 |
|
|
|
36 |
|
|
|
56 |
|
|
|
30 |
|
|
|
336 |
|
Loan servicing |
|
|
332 |
|
|
|
416 |
|
|
|
104 |
|
|
|
112 |
|
|
|
116 |
|
|
|
87 |
|
|
|
153 |
|
Net gain on sale of loans held for
sale |
|
|
202 |
|
|
|
161 |
|
|
|
46 |
|
|
|
78 |
|
|
|
78 |
|
|
|
88 |
|
|
|
53 |
|
Net gain on investment
securities |
|
|
2,426 |
|
|
|
1,348 |
|
|
|
426 |
|
|
|
1,387 |
|
|
|
613 |
|
|
|
640 |
|
|
|
286 |
|
Net gain on other assets |
|
|
285 |
|
|
|
20 |
|
|
|
199 |
|
|
|
82 |
|
|
|
4 |
|
|
|
7 |
|
|
|
- |
|
Amortization of tax credit
investment |
|
|
- |
|
|
|
(390 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(390 |
) |
Other |
|
|
3,059 |
|
|
|
2,755 |
|
|
|
1,030 |
|
|
|
1,011 |
|
|
|
1,018 |
|
|
|
2,163 |
|
|
|
957 |
|
Total noninterest income |
|
|
26,672 |
|
|
|
21,757 |
|
|
|
8,539 |
|
|
|
8,916 |
|
|
|
9,217 |
|
|
|
8,580 |
|
|
|
7,005 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
33,757 |
|
|
|
31,107 |
|
|
|
11,325 |
|
|
|
10,818 |
|
|
|
11,614 |
|
|
|
11,332 |
|
|
|
10,278 |
|
Occupancy and equipment |
|
|
10,906 |
|
|
|
10,491 |
|
|
|
3,617 |
|
|
|
3,664 |
|
|
|
3,625 |
|
|
|
3,365 |
|
|
|
3,417 |
|
Professional services |
|
|
5,236 |
|
|
|
2,898 |
|
|
|
956 |
|
|
|
2,833 |
|
|
|
1,447 |
|
|
|
1,604 |
|
|
|
1,064 |
|
Computer and data processing |
|
|
2,549 |
|
|
|
2,291 |
|
|
|
832 |
|
|
|
913 |
|
|
|
804 |
|
|
|
895 |
|
|
|
779 |
|
Supplies and postage |
|
|
1,548 |
|
|
|
1,611 |
|
|
|
490 |
|
|
|
464 |
|
|
|
594 |
|
|
|
544 |
|
|
|
540 |
|
FDIC assessments |
|
|
1,283 |
|
|
|
1,277 |
|
|
|
406 |
|
|
|
441 |
|
|
|
436 |
|
|
|
442 |
|
|
|
444 |
|
Advertising and promotions |
|
|
938 |
|
|
|
789 |
|
|
|
214 |
|
|
|
347 |
|
|
|
377 |
|
|
|
331 |
|
|
|
312 |
|
Goodwill impairment charge |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
751 |
|
|
|
- |
|
Other |
|
|
7,739 |
|
|
|
7,101 |
|
|
|
2,778 |
|
|
|
2,640 |
|
|
|
2,321 |
|
|
|
2,564 |
|
|
|
2,484 |
|
Total noninterest expense |
|
|
63,956 |
|
|
|
57,565 |
|
|
|
20,618 |
|
|
|
22,120 |
|
|
|
21,218 |
|
|
|
21,828 |
|
|
|
19,318 |
|
Income before income taxes |
|
|
32,403 |
|
|
|
30,091 |
|
|
|
12,010 |
|
|
|
10,043 |
|
|
|
10,350 |
|
|
|
8,785 |
|
|
|
11,064 |
|
Income tax expense |
|
|
9,165 |
|
|
|
8,389 |
|
|
|
3,541 |
|
|
|
2,892 |
|
|
|
2,732 |
|
|
|
2,150 |
|
|
|
2,748 |
|
Net income |
|
|
23,238 |
|
|
|
21,702 |
|
|
|
8,469 |
|
|
|
7,151 |
|
|
|
7,618 |
|
|
|
6,635 |
|
|
|
8,316 |
|
Preferred stock
dividends |
|
|
1,097 |
|
|
|
1,097 |
|
|
|
366 |
|
|
|
366 |
|
|
|
365 |
|
|
|
365 |
|
|
|
366 |
|
Net income available to
common shareholders |
|
$ |
22,141 |
|
|
$ |
20,605 |
|
|
$ |
8,103 |
|
|
$ |
6,785 |
|
|
$ |
7,253 |
|
|
$ |
6,270 |
|
|
$ |
7,950 |
|
FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
|
$ |
1.53 |
|
|
$ |
1.46 |
|
|
$ |
0.56 |
|
|
$ |
0.47 |
|
|
$ |
0.50 |
|
|
$ |
0.44 |
|
|
$ |
0.56 |
|
Earnings per share –
diluted |
|
$ |
1.53 |
|
|
$ |
1.46 |
|
|
$ |
0.56 |
|
|
$ |
0.47 |
|
|
$ |
0.50 |
|
|
$ |
0.44 |
|
|
$ |
0.56 |
|
Cash dividends declared
on common stock |
|
$ |
0.60 |
|
|
$ |
0.60 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
Common dividend payout
ratio |
|
|
39.22 |
% |
|
|
41.10 |
% |
|
|
35.71 |
% |
|
|
42.55 |
% |
|
|
40.00 |
% |
|
|
45.45 |
% |
|
|
35.71 |
% |
Dividend yield
(annualized) |
|
|
2.96 |
% |
|
|
3.24 |
% |
|
|
2.93 |
% |
|
|
3.09 |
% |
|
|
2.77 |
% |
|
|
2.83 |
% |
|
|
3.20 |
% |
Return on average
assets |
|
|
0.89 |
% |
|
|
0.90 |
% |
|
|
0.94 |
% |
|
|
0.82 |
% |
|
|
0.90 |
% |
|
|
0.78 |
% |
|
|
0.99 |
% |
Return on average
equity |
|
|
9.78 |
% |
|
|
10.10 |
% |
|
|
10.34 |
% |
|
|
9.07 |
% |
|
|
9.91 |
% |
|
|
8.86 |
% |
|
|
11.41 |
% |
Return on average
common equity |
|
|
9.86 |
% |
|
|
10.21 |
% |
|
|
10.45 |
% |
|
|
9.10 |
% |
|
|
10.00 |
% |
|
|
8.89 |
% |
|
|
11.60 |
% |
Return on average
tangible common equity (1) |
|
|
13.21 |
% |
|
|
13.67 |
% |
|
|
13.87 |
% |
|
|
12.22 |
% |
|
|
13.54 |
% |
|
|
11.73 |
% |
|
|
15.47 |
% |
Efficiency ratio
(2) |
|
|
61.94 |
% |
|
|
60.56 |
% |
|
|
58.05 |
% |
|
|
65.03 |
% |
|
|
62.90 |
% |
|
|
64.55 |
% |
|
|
59.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________(1) See Appendix A –
Reconciliation to Non-GAAP Financial Measures for the computation
of this Non-GAAP measure.(2) Efficiency ratio equals
noninterest expense less other real estate expense and amortization
and impairment of goodwill and other intangible assets as a
percentage of net revenue, defined as the sum of tax-equivalent net
interest income and noninterest income before net gains on
investment securities, proceeds from company owned life insurance,
adjustments to contingent liabilities and amortizations of tax
credit investment.
FINANCIAL INSTITUTIONS, INC. |
Selected Financial Information (Unaudited) |
(Amounts
in thousands) |
|
|
|
Nine months ended |
|
2016 |
|
2015 |
|
|
September 30, |
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
|
|
2016 |
|
|
|
2015 |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
SELECTED
AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
interest-earning deposits |
|
$ |
129 |
|
|
$ |
50 |
|
|
$ |
1 |
|
|
$ |
316 |
|
|
$ |
70 |
|
|
$ |
- |
|
|
$ |
- |
|
Investment securities
(1) |
|
|
1,057,272 |
|
|
|
1,002,361 |
|
|
|
1,068,866 |
|
|
|
1,075,220 |
|
|
|
1,027,602 |
|
|
|
1,049,217 |
|
|
|
1,067,815 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
332,985 |
|
|
|
282,307 |
|
|
|
352,696 |
|
|
|
329,901 |
|
|
|
316,143 |
|
|
|
297,033 |
|
|
|
297,216 |
|
Commercial mortgage |
|
|
604,577 |
|
|
|
511,545 |
|
|
|
625,003 |
|
|
|
606,360 |
|
|
|
582,142 |
|
|
|
554,327 |
|
|
|
545,875 |
|
Residential real estate loans |
|
|
397,327 |
|
|
|
361,598 |
|
|
|
417,854 |
|
|
|
391,826 |
|
|
|
382,077 |
|
|
|
379,189 |
|
|
|
371,318 |
|
Residential real estate lines |
|
|
125,273 |
|
|
|
128,807 |
|
|
|
123,312 |
|
|
|
125,212 |
|
|
|
127,317 |
|
|
|
127,688 |
|
|
|
127,826 |
|
Consumer indirect |
|
|
691,343 |
|
|
|
663,286 |
|
|
|
711,948 |
|
|
|
683,722 |
|
|
|
678,133 |
|
|
|
671,888 |
|
|
|
663,884 |
|
Other consumer |
|
|
17,678 |
|
|
|
19,084 |
|
|
|
17,548 |
|
|
|
17,562 |
|
|
|
17,926 |
|
|
|
18,626 |
|
|
|
18,680 |
|
Total loans |
|
|
2,169,183 |
|
|
|
1,966,627 |
|
|
|
2,248,361 |
|
|
|
2,154,583 |
|
|
|
2,103,738 |
|
|
|
2,048,751 |
|
|
|
2,024,799 |
|
Total interest-earning
assets |
|
|
3,226,584 |
|
|
|
2,969,038 |
|
|
|
3,317,228 |
|
|
|
3,230,119 |
|
|
|
3,131,410 |
|
|
|
3,097,968 |
|
|
|
3,092,614 |
|
Goodwill and other
intangible assets, net |
|
|
76,291 |
|
|
|
68,288 |
|
|
|
76,116 |
|
|
|
76,437 |
|
|
|
76,324 |
|
|
|
67,692 |
|
|
|
68,050 |
|
Total assets |
|
|
3,502,628 |
|
|
|
3,241,646 |
|
|
|
3,593,672 |
|
|
|
3,507,760 |
|
|
|
3,405,451 |
|
|
|
3,353,702 |
|
|
|
3,343,802 |
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
566,419 |
|
|
|
543,045 |
|
|
|
547,545 |
|
|
|
579,497 |
|
|
|
572,424 |
|
|
|
545,602 |
|
|
|
516,448 |
|
Savings and money market |
|
|
988,224 |
|
|
|
891,039 |
|
|
|
981,207 |
|
|
|
1,017,911 |
|
|
|
965,629 |
|
|
|
960,768 |
|
|
|
903,491 |
|
Time deposits |
|
|
693,153 |
|
|
|
612,637 |
|
|
|
722,098 |
|
|
|
698,505 |
|
|
|
658,537 |
|
|
|
628,944 |
|
|
|
619,459 |
|
Short-term borrowings |
|
|
250,329 |
|
|
|
269,415 |
|
|
|
315,122 |
|
|
|
213,826 |
|
|
|
221,326 |
|
|
|
241,957 |
|
|
|
329,050 |
|
Long-term borrowings, net |
|
|
39,015 |
|
|
|
24,148 |
|
|
|
39,032 |
|
|
|
39,015 |
|
|
|
38,997 |
|
|
|
38,979 |
|
|
|
38,962 |
|
Total interest-bearing
liabilities |
|
|
2,537,140 |
|
|
|
2,340,284 |
|
|
|
2,605,004 |
|
|
|
2,548,754 |
|
|
|
2,456,913 |
|
|
|
2,416,250 |
|
|
|
2,407,410 |
|
Noninterest-bearing
demand deposits |
|
|
626,018 |
|
|
|
592,564 |
|
|
|
638,417 |
|
|
|
621,912 |
|
|
|
617,590 |
|
|
|
619,423 |
|
|
|
625,131 |
|
Total deposits |
|
|
2,873,814 |
|
|
|
2,639,285 |
|
|
|
2,889,267 |
|
|
|
2,917,825 |
|
|
|
2,814,180 |
|
|
|
2,754,737 |
|
|
|
2,664,529 |
|
Total liabilities |
|
|
3,185,190 |
|
|
|
2,954,451 |
|
|
|
3,267,808 |
|
|
|
3,190,589 |
|
|
|
3,096,263 |
|
|
|
3,056,541 |
|
|
|
3,054,573 |
|
Shareholders’
equity |
|
|
317,438 |
|
|
|
287,195 |
|
|
|
325,864 |
|
|
|
317,171 |
|
|
|
309,188 |
|
|
|
297,161 |
|
|
|
289,229 |
|
Common equity |
|
|
300,098 |
|
|
|
269,855 |
|
|
|
308,524 |
|
|
|
299,831 |
|
|
|
291,848 |
|
|
|
279,821 |
|
|
|
271,889 |
|
Tangible common equity
(2) |
|
$ |
223,807 |
|
|
$ |
201,567 |
|
|
$ |
232,408 |
|
|
$ |
223,394 |
|
|
$ |
215,524 |
|
|
$ |
212,129 |
|
|
$ |
203,839 |
|
Common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
14,429 |
|
|
|
14,076 |
|
|
|
14,456 |
|
|
|
14,434 |
|
|
|
14,395 |
|
|
|
14,095 |
|
|
|
14,087 |
|
Diluted |
|
|
14,485 |
|
|
|
14,124 |
|
|
|
14,500 |
|
|
|
14,489 |
|
|
|
14,465 |
|
|
|
14,163 |
|
|
|
14,139 |
|
SELECTED
AVERAGE YIELDS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Tax equivalent
basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities |
|
|
2.47 |
% |
|
|
2.46 |
% |
|
|
2.44 |
% |
|
|
2.48 |
% |
|
|
2.48 |
% |
|
|
2.47 |
% |
|
|
2.46 |
% |
Loans |
|
|
4.19 |
% |
|
|
4.20 |
% |
|
|
4.18 |
% |
|
|
4.17 |
% |
|
|
4.21 |
% |
|
|
4.22 |
% |
|
|
4.16 |
% |
Total interest-earning
assets |
|
|
3.62 |
% |
|
|
3.61 |
% |
|
|
3.62 |
% |
|
|
3.61 |
% |
|
|
3.64 |
% |
|
|
3.63 |
% |
|
|
3.57 |
% |
Interest-bearing
demand |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Savings and money
market |
|
|
0.13 |
% |
|
|
0.12 |
% |
|
|
0.14 |
% |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
Time deposits |
|
|
0.89 |
% |
|
|
0.87 |
% |
|
|
0.91 |
% |
|
|
0.89 |
% |
|
|
0.88 |
% |
|
|
0.88 |
% |
|
|
0.89 |
% |
Short-term
borrowings |
|
|
0.63 |
% |
|
|
0.39 |
% |
|
|
0.63 |
% |
|
|
0.65 |
% |
|
|
0.62 |
% |
|
|
0.49 |
% |
|
|
0.41 |
% |
Long-term borrowings,
net |
|
|
6.33 |
% |
|
|
6.25 |
% |
|
|
6.33 |
% |
|
|
6.33 |
% |
|
|
6.34 |
% |
|
|
6.34 |
% |
|
|
6.34 |
% |
Total interest-bearing
liabilities |
|
|
0.49 |
% |
|
|
0.42 |
% |
|
|
0.51 |
% |
|
|
0.48 |
% |
|
|
0.48 |
% |
|
|
0.47 |
% |
|
|
0.47 |
% |
Net interest rate
spread |
|
|
3.13 |
% |
|
|
3.19 |
% |
|
|
3.11 |
% |
|
|
3.13 |
% |
|
|
3.16 |
% |
|
|
3.16 |
% |
|
|
3.10 |
% |
Net interest rate
margin |
|
|
3.24 |
% |
|
|
3.28 |
% |
|
|
3.23 |
% |
|
|
3.23 |
% |
|
|
3.27 |
% |
|
|
3.26 |
% |
|
|
3.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________(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) |
|
|
|
2016 |
|
2015 |
|
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
ASSET QUALITY
DATA: |
|
|
|
|
|
|
|
|
|
|
Allowance for
Loan Losses |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
28,525 |
|
|
$ |
27,568 |
|
|
$ |
27,085 |
|
|
$ |
26,455 |
|
|
$ |
27,500 |
|
Net loan charge-offs
(recoveries): |
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
(31 |
) |
|
|
(27 |
) |
|
|
502 |
|
|
|
133 |
|
|
|
68 |
|
Commercial mortgage |
|
|
127 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
23 |
|
|
|
12 |
|
Residential real estate loans |
|
|
61 |
|
|
|
34 |
|
|
|
21 |
|
|
|
110 |
|
|
|
37 |
|
Residential real estate lines |
|
|
4 |
|
|
|
44 |
|
|
|
- |
|
|
|
24 |
|
|
|
30 |
|
Consumer indirect |
|
|
896 |
|
|
|
904 |
|
|
|
1,328 |
|
|
|
1,519 |
|
|
|
1,475 |
|
Other consumer |
|
|
79 |
|
|
|
38 |
|
|
|
35 |
|
|
|
159 |
|
|
|
177 |
|
Total net charge-offs |
|
|
1,136 |
|
|
|
995 |
|
|
|
1,885 |
|
|
|
1,968 |
|
|
|
1,799 |
|
Provision for loan
losses |
|
|
1,961 |
|
|
|
1,952 |
|
|
|
2,368 |
|
|
|
2,598 |
|
|
|
754 |
|
Ending balance |
|
$ |
29,350 |
|
|
$ |
28,525 |
|
|
$ |
27,568 |
|
|
$ |
27,085 |
|
|
$ |
26,455 |
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans (annualized): |
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
-0.03 |
% |
|
|
-0.03 |
% |
|
|
0.64 |
% |
|
|
0.18 |
% |
|
|
0.09 |
% |
Commercial mortgage |
|
|
0.08 |
% |
|
|
0.00 |
% |
|
|
-0.00 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
Residential real estate loans |
|
|
0.06 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.12 |
% |
|
|
0.04 |
% |
Residential real estate lines |
|
|
0.01 |
% |
|
|
0.14 |
% |
|
|
0.00 |
% |
|
|
0.07 |
% |
|
|
0.09 |
% |
Consumer indirect |
|
|
0.50 |
% |
|
|
0.53 |
% |
|
|
0.79 |
% |
|
|
0.90 |
% |
|
|
0.88 |
% |
Other consumer |
|
|
1.79 |
% |
|
|
0.87 |
% |
|
|
0.79 |
% |
|
|
3.39 |
% |
|
|
3.76 |
% |
Total loans |
|
|
0.20 |
% |
|
|
0.19 |
% |
|
|
0.36 |
% |
|
|
0.38 |
% |
|
|
0.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information (1) |
|
|
|
|
|
|
|
|
|
|
Non-performing
loans: |
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
2,157 |
|
|
$ |
2,312 |
|
|
$ |
4,056 |
|
|
$ |
3,922 |
|
|
$ |
3,064 |
|
Commercial mortgage |
|
|
1,345 |
|
|
|
1,547 |
|
|
|
1,781 |
|
|
|
947 |
|
|
|
1,802 |
|
Residential real estate loans |
|
|
1,239 |
|
|
|
1,485 |
|
|
|
1,601 |
|
|
|
1,848 |
|
|
|
2,092 |
|
Residential real estate lines |
|
|
274 |
|
|
|
182 |
|
|
|
165 |
|
|
|
235 |
|
|
|
223 |
|
Consumer indirect |
|
|
1,077 |
|
|
|
1,015 |
|
|
|
943 |
|
|
|
1,467 |
|
|
|
1,292 |
|
Other consumer |
|
|
9 |
|
|
|
15 |
|
|
|
21 |
|
|
|
21 |
|
|
|
20 |
|
Total non-performing loans |
|
|
6,101 |
|
|
|
6,556 |
|
|
|
8,567 |
|
|
|
8,440 |
|
|
|
8,493 |
|
Foreclosed assets |
|
|
294 |
|
|
|
281 |
|
|
|
187 |
|
|
|
163 |
|
|
|
286 |
|
Total non-performing assets |
|
$ |
6,395 |
|
|
$ |
6,837 |
|
|
$ |
8,754 |
|
|
$ |
8,603 |
|
|
$ |
8,779 |
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans to total loans |
|
|
0.27 |
% |
|
|
0.30 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
Total non-performing
assets to total assets |
|
|
0.17 |
% |
|
|
0.19 |
% |
|
|
0.25 |
% |
|
|
0.25 |
% |
|
|
0.26 |
% |
Allowance for loan
losses to total loans |
|
|
1.29 |
% |
|
|
1.29 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
Allowance for loan
losses to non-performing loans |
|
|
481 |
% |
|
|
435 |
% |
|
|
322 |
% |
|
|
321 |
% |
|
|
311 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________(1)
At period end.
FINANCIAL INSTITUTIONS, INC. |
Appendix A - Reconciliation to Non-GAAP Financial Measures
(Unaudited) |
(In
thousands, except per share amounts) |
|
|
|
Nine months ended |
|
|
2016 |
|
|
2015 |
|
|
September 30, |
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
|
|
2016 |
|
|
|
2015 |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
Ending tangible
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
$ |
3,687,365 |
|
|
$ |
3,585,589 |
|
|
$ |
3,516,572 |
|
|
$ |
3,381,024 |
|
|
$ |
3,357,608 |
|
Less: Goodwill and
other intangible assets, net |
|
|
|
|
|
|
75,943 |
|
|
|
76,252 |
|
|
|
76,567 |
|
|
|
66,946 |
|
|
|
67,925 |
|
Tangible assets |
|
|
|
|
|
$ |
3,611,422 |
|
|
$ |
3,509,337 |
|
|
$ |
3,440,005 |
|
|
$ |
3,314,078 |
|
|
$ |
3,289,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending tangible
common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders’
equity |
|
|
|
|
|
$ |
308,931 |
|
|
$ |
304,836 |
|
|
$ |
296,613 |
|
|
$ |
276,504 |
|
|
$ |
278,094 |
|
Less: Goodwill and
other intangible assets, net |
|
|
|
|
|
|
75,943 |
|
|
|
76,252 |
|
|
|
76,567 |
|
|
|
66,946 |
|
|
|
67,925 |
|
Tangible common
equity |
|
|
|
|
|
$ |
232,988 |
|
|
$ |
228,584 |
|
|
$ |
220,046 |
|
|
$ |
209,558 |
|
|
$ |
210,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets (1) |
|
|
|
|
|
|
6.45 |
% |
|
|
6.51 |
% |
|
|
6.40 |
% |
|
|
6.32 |
% |
|
|
6.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
|
|
|
|
|
14,528 |
|
|
|
14,528 |
|
|
|
14,495 |
|
|
|
14,191 |
|
|
|
14,189 |
|
Tangible common book
value per share (2) |
|
|
|
|
|
$ |
16.04 |
|
|
$ |
15.73 |
|
|
$ |
15.18 |
|
|
$ |
14.77 |
|
|
$ |
14.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
3,502,628 |
|
|
$ |
3,241,646 |
|
|
$ |
3,593,672 |
|
|
$ |
3,507,760 |
|
|
$ |
3,405,451 |
|
|
$ |
3,353,702 |
|
|
$ |
3,343,802 |
|
Less: Average goodwill
and other intangible assets, net |
|
|
76,291 |
|
|
|
68,288 |
|
|
|
76,116 |
|
|
|
76,437 |
|
|
|
76,324 |
|
|
|
67,692 |
|
|
|
68,050 |
|
Average tangible
assets |
|
$ |
3,426,337 |
|
|
$ |
3,173,358 |
|
|
$ |
3,517,556 |
|
|
$ |
3,431,323 |
|
|
$ |
3,329,127 |
|
|
$ |
3,286,010 |
|
|
$ |
3,275,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
equity |
|
$ |
300,098 |
|
|
$ |
269,855 |
|
|
$ |
308,524 |
|
|
$ |
299,831 |
|
|
$ |
291,848 |
|
|
$ |
279,821 |
|
|
$ |
271,889 |
|
Less: Average goodwill
and other intangible assets, net |
|
|
76,291 |
|
|
|
68,288 |
|
|
|
76,116 |
|
|
|
76,437 |
|
|
|
76,324 |
|
|
|
67,692 |
|
|
|
68,050 |
|
Average tangible common
equity |
|
$ |
223,807 |
|
|
$ |
201,567 |
|
|
$ |
232,408 |
|
|
$ |
223,394 |
|
|
$ |
215,524 |
|
|
$ |
212,129 |
|
|
$ |
203,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders |
|
$ |
22,141 |
|
|
$ |
20,605 |
|
|
$ |
8,103 |
|
|
$ |
6,785 |
|
|
$ |
7,253 |
|
|
$ |
6,270 |
|
|
$ |
7,950 |
|
Return on average
tangible common equity (3) |
|
|
13.21 |
% |
|
|
13.67 |
% |
|
|
13.87 |
% |
|
|
12.22 |
% |
|
|
13.54 |
% |
|
|
11.73 |
% |
|
|
15.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________(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
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