For Additional Information: |
Ronald A. Miller |
Executive VP & CFO |
Phone: 585.786.1102 |
Email: ramiller@fiiwarsaw.com |
Financial Institutions, Inc. Announces Second Quarter Earnings
WARSAW, N.Y., July 23, 2009 — Financial Institutions, Inc. (Nasdaq: FISI) (the “Company”), the parent company of Five Star Bank, today announced financial results for the second quarter ended June 30, 2009. Net income for the Company was $2.6 million or $0.16 per diluted share for the second quarter of 2009, compared with $1.6 million or $0.12 per diluted share for the second quarter of 2008. For the first six months of 2009 net income was $5.6 million or $0.35 per diluted share, compared with $5.4 million or $0.43 per diluted share for the same period last year.
Highlights:
• | Net interest income for the second quarter of 2009 was $17.6 million, an increase of $1.5 million or 9% over second quarter of 2008. For the first six months of 2009 net interest income was $35.0 million, an increase of $3.7 million or 12% over the first six months of 2008. The increase is reflective of growth in the loan portfolio coupled with higher net interest margin. |
• | Total loans were $1.219 billion at June 30, 2009, an increase of $207.8 million or 21% from June 30, 2008. |
• | Commercial loans were $523.7 million at June 30, 2009, an increase of $86.8 million or 20% from one year ago, and an increase of $40.4 million or 8% since March 31, 2009. |
• | Consumer loans were $694.9 million at June 30, 2009, an increase of $121.0 million or 21% from one year ago, and an increase of $20.2 million or 3% since March 31, 2009. |
• | Net interest margin was 4.01% for the second quarter of 2009, an increase of 7 basis points from the second quarter of 2008. For the six months ended June 30, 2009 net interest margin was 4.05%, an increase of 22 basis points from the same period last year. |
• | “Well capitalized” position maintained with total shareholders’ equity of $192.5 million, a leverage capital ratio of 7.84% and a total risk-based capital ratio of 11.94%. |
• | Provision for loan losses for the second quarter of 2009 was $2.1 million and net charge-offs were $1.1 million. Provision for loan losses of $4.0 million for the first six months of 2009 exceeded net charge-offs of $2.1 million resulting in a $1.9 million increase in the allowance for loan losses to $20.6 million or 1.69% of total loans. |
• | The second quarter of 2009 includes other-than-temporary impairment charges of $1.7 million on selected investment securities that were partially offset by $1.2 million in net gain on investment securities. |
• | The second quarter of 2009 includes a $923 thousand FDIC insurance special assessment charge. |
“We continue to build momentum in our core community banking business and have followed-up on our strong start to 2009 with a solid second quarter,” said Peter G. Humphrey, President and Chief Executive Officer of the Company. “Our business development success has been outstanding as both commercial and consumer loans are up approximately 20% from a year ago. These results are particularly gratifying in light of the current economic environment. As loans and deposits have increased over the past several quarters, our capital, liquidity and asset quality have remained strong. These factors, along with higher revenues and our discipline in containing the costs that we can control have positively impacted our core operations.”
Net Interest Income
Net interest income for the second quarter of 2009 was $17.6 million, an increase of $1.5 million or 9% over the second quarter of 2008. For the first six months of 2009 net interest income was $35.0 million, an increase of $3.7 million or 12% over the first six months of 2008. Net interest margin was 4.01% for the second quarter of 2009, an increase of 7 basis points from the second quarter of 2008. For the six months ended June 30, 2009 net interest margin was 4.05%, an increase of 22 basis points from the same period last year. An improved mix of earning assets, primarily driven by growth in the loan portfolio, coupled with a significant decline in funding costs were the primary factors driving the increase in net interest income and margin.
Noninterest Income
Noninterest income for the second quarter of 2009 was $4.5 million, compared with $932 thousand for the second quarter of 2008. For the first six months of 2009 noninterest income was $9.2 million, an increase of $3.5 million over the first six months of 2008. Other-than-temporary impairment charges included in noninterest income amounted to $1.7 million on privately issued whole loan collateralized mortgage obligations (“CMOs”) in the second quarter of 2009 and $3.8 million on privately issued whole loan CMOs and pooled trust preferred securities in the second quarter of 2008. The second quarter of 2009 also reflects a $1.2 million net gain on sale of investment securities, comprised of $2.6 million in gross gains on securities issued by U.S. government sponsored agencies and $1.4 million in gross losses on privately issued whole loan CMOs.
Noninterest Expense
Noninterest expense for the second quarter of 2009 was $16.4 million, an increase of $2.1 million from the second quarter of 2008. For the first six months of 2009 noninterest expense was $32.5 million, an increase of $3.9 million over the first six months of 2008. The most significant cause for the increase was a $2.1 million increase in FDIC insurance expense, including a $923 thousand special assessment incurred during the second quarter of 2009, a result of changes in FDIC deposit insurance coverage and changes in premiums mandated by the FDIC to replenish deposit insurance reserves. Noninterest expense for 2009 also reflects higher incentive compensation and pension benefit costs, increases in occupancy and equipment costs associated with the opening of two new branches in the suburban Rochester area during 2008, and increases in professional services expense.
Balance Sheet
Total assets at June 30, 2009 were $1.997 billion, up $101.3 million from $1.895 billion at June 30, 2008. Total loans were $1.219 billion at June 30, 2009, an increase of $207.8 million from $1.011 billion at June 30, 2008. Total deposits increased $104.5 million to $1.700 billion at June 30, 2009, versus $1.596 billion at June 30, 2008. The majority of the increase in deposits was attributed to an increase in nonpublic certificates of deposit.
Asset Quality and Capital Ratios
Net charge-offs increased by $262 thousand from the second quarter of 2008 to $1.1 million, or 0.38% of average loans and non-performing loans totaled $9.5 million, or 0.78% of total loans. For the six months ended June 30, 2009 net charge-offs increased in comparison to the same period last year by $572 thousand to $2.1 million, or 0.37% of average loans. The provision for loan losses was $2.1 million for the quarter, compared with $1.4 million in the same quarter a year ago. For the six months ended June 30, 2009 the provision for loan losses totaled $4.0 million, compared with $2.1 million in the same period last year. The allowance for loan losses was $20.6 million or 1.69% of total loans at June 30, 2009, compared with $16.0 million or 1.59% of total loans at June 30, 2008. At June 30, 2009 non-performing assets totaled $13.7 million, which included $3.2 million in non-performing investment securities on which interest payments are being deferred.
At June 30, 2009, all of the Company’s regulatory capital ratios exceeded the guidelines required to be considered a “well capitalized” institution as established by the Company’s primary banking regulators. Well capitalized levels are considered to be at least 5.00% for the leverage ratio and 10.00% for the total risk-based capital ratio. At June 30, 2009, the Company’s leverage ratio was 7.84% and the total risk-based capital ratio was 11.94%.
About Financial Institutions, Inc.
With approximately $2.0 billion in assets, Financial Institutions, Inc. provides diversified financial services through its subsidiaries, Five Star Bank and Five Star Investment Services, Inc. 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 70 ATMs in Western and Central New York State. Five Star Investment Services provides brokerage and insurance products and services within the same New York State markets. The consolidated entity employs over 600 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI. Additional information is available at the Company’s website:www.fiiwarsaw.com.
Safe Harbor Statement
This press release may contain forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current beliefs or projections. There are a number of important factors that could affect the Company’s forward-looking statements which include its ability to implement its strategic plan, its ability to redeploy investment assets into loan assets, the attitudes and preferences of its customers, the competitive environment, fluctuations in the fair value of securities in the investment portfolio, and general economic and credit market conditions nationally and regionally, The Company undertakes no obligation to revise these statements following the date of this press release.
*****
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
2009 | 2008 | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 41,405 | 48,073 | 34,528 | 54,105 | 60,640 | ||||||||||||||
Federal funds sold and interest-bearing deposits | 39,910 | 74,616 | 20,659 | 22,599 | 2,409 | |||||||||||||||
Total cash and cash equivalents | 81,315 | 122,689 | 55,187 | 76,704 | 63,049 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale | 498,561 | 553,710 | 547,506 | 607,357 | 669,752 | |||||||||||||||
Held-to-maturity | 47,465 | 60,675 | 58,532 | 64,434 | 56,508 | |||||||||||||||
Total investment securities | 546,026 | 614,385 | 606,038 | 671,791 | 726,260 | |||||||||||||||
Loans held for sale | 3,005 | 2,290 | 1,013 | 1,008 | 926 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 198,608 | 174,505 | 158,543 | 156,809 | 140,745 | |||||||||||||||
Commercial real estate | 282,048 | 266,176 | 262,234 | 248,267 | 250,872 | |||||||||||||||
Agriculture | 42,997 | 42,524 | 44,706 | 46,490 | 45,231 | |||||||||||||||
Residential real estate | 149,926 | 170,834 | 177,683 | 173,893 | 172,396 | |||||||||||||||
Consumer indirect | 319,735 | 283,465 | 255,054 | 227,971 | 177,967 | |||||||||||||||
Consumer direct and home equity | 225,258 | 220,440 | 222,859 | 224,693 | 223,538 | |||||||||||||||
Total loans | 1,218,572 | 1,157,944 | 1,121,079 | 1,078,123 | 1,010,749 | |||||||||||||||
Allowance for loan losses | 20,614 | 19,657 | 18,749 | 17,420 | 16,038 | |||||||||||||||
Total loans, net | 1,197,958 | 1,138,287 | 1,102,330 | 1,060,703 | 994,711 | |||||||||||||||
Total interest-earning assets | 1,802,489 | 1,843,522 | 1,743,141 | 1,789,499 | 1,749,808 | |||||||||||||||
Goodwill | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | |||||||||||||||
Total assets | 1,996,724 | 2,030,429 | 1,916,919 | 1,945,819 | 1,895,448 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | 292,825 | 279,284 | 292,586 | 293,027 | 288,258 | |||||||||||||||
Interest-bearing demand | 357,443 | 392,353 | 344,616 | 376,098 | 338,290 | |||||||||||||||
Savings and money market | 366,373 | 396,644 | 348,594 | 383,456 | 372,317 | |||||||||||||||
Certificates of deposit | 683,619 | 668,999 | 647,467 | 607,833 | 596,890 | |||||||||||||||
Total deposits | 1,700,260 | 1,737,280 | 1,633,263 | 1,660,414 | 1,595,755 | |||||||||||||||
Borrowings | 79,977 | 78,761 | 70,820 | 114,684 | 89,465 | |||||||||||||||
Total interest-bearing liabilities | 1,487,412 | 1,536,757 | 1,411,497 | 1,482,071 | 1,396,962 | |||||||||||||||
Shareholders’ equity | 192,455 | 191,676 | 190,300 | 152,770 | 188,998 | |||||||||||||||
Common shareholders’ equity (1) | 139,213 | 138,519 | 137,226 | 135,195 | 171,417 | |||||||||||||||
Tangible common shareholders’ equity (2) | 101,712 | 100,946 | 99,577 | 97,468 | 133,614 | |||||||||||||||
Securities available for sale – fair value adjustment | ||||||||||||||||||||
included in shareholders’ equity, net of tax | $ | 3,081 | 3,503 | 3,463 | (9,797 | ) | (5,803 | ) | ||||||||||||
Common shares outstanding | 10,821 | 10,805 | 10,798 | 10,806 | 10,913 | |||||||||||||||
Treasury shares | 527 | 543 | 550 | 542 | 435 | |||||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Leverage ratio | 7.84 | % | 7.96 | 8.05 | 7.37 | 9.17 | ||||||||||||||
Tier 1 risk-based capital | 10.69 | % | 11.23 | 11.83 | 11.10 | 14.58 | ||||||||||||||
Total risk based capital | 11.94 | % | 12.49 | 13.08 | 12.35 | 15.83 | ||||||||||||||
Common equity to assets | 6.97 | % | 6.82 | 7.16 | 6.95 | 9.04 | ||||||||||||||
Tangible common equity to tangible assets (2) | 5.19 | % | 5.07 | 5.30 | 5.11 | 7.19 | ||||||||||||||
Common book value per share | $ | 12.86 | 12.82 | 12.71 | 12.51 | 15.71 | ||||||||||||||
Tangible common book value per share (2) | $ | 9.40 | 9.34 | 9.22 | 9.02 | 12.24 |
1
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||
Six months ended | 2009 | 2008 | ||||||||||||||||||||||||||
June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
SELECTED INCOME STATEMENT DATA | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Interest income | $ | 46,395 | 49,808 | 23,302 | 23,093 | 24,582 | 24,558 | 24,536 | ||||||||||||||||||||
Interest expense | 11,423 | 18,536 | 5,657 | 5,766 | 7,269 | 7,812 | 8,349 | |||||||||||||||||||||
Net interest income | 34,972 | 31,272 | 17,645 | 17,327 | 17,313 | 16,746 | 16,187 | |||||||||||||||||||||
Provision for loan losses | 3,994 | 2,074 | 2,088 | 1,906 | 2,586 | 1,891 | 1,358 | |||||||||||||||||||||
Net interest income after provision | ||||||||||||||||||||||||||||
for loan losses | 30,978 | 29,198 | 15,557 | 15,421 | 14,727 | 14,855 | 14,829 | |||||||||||||||||||||
Noninterest income (loss): | ||||||||||||||||||||||||||||
Service charges on deposits | 4,837 | 5,018 | 2,517 | 2,320 | 2,685 | 2,794 | 2,518 | |||||||||||||||||||||
ATM and debit card | 1,719 | 1,608 | 908 | 811 | 853 | 852 | 856 | |||||||||||||||||||||
Loan servicing | 727 | 418 | 470 | 257 | 134 | 112 | 232 | |||||||||||||||||||||
Company owned life insurance | 535 | 46 | 275 | 260 | 294 | 223 | 27 | |||||||||||||||||||||
Broker-dealer fees and commissions | 503 | 860 | 234 | 269 | 235 | 363 | 401 | |||||||||||||||||||||
Net gain on sale of loans held for sale | 416 | 256 | 246 | 170 | 35 | 48 | 92 | |||||||||||||||||||||
Net gain on investment securities | 1,207 | 220 | 1,153 | 54 | 56 | 12 | 47 | |||||||||||||||||||||
Impairment charge on investment securities | (1,783 | ) | (3,791 | ) | (1,733 | ) | (50 | ) | (29,870 | ) | (34,554 | ) | (3,791 | ) | ||||||||||||||
Net gain on sale of other assets | 158 | 152 | — | 158 | 51 | 102 | 115 | |||||||||||||||||||||
Other | 887 | 889 | 445 | 442 | 421 | 700 | 435 | |||||||||||||||||||||
Total noninterest income (loss) | 9,206 | 5,676 | 4,515 | 4,691 | (25,106 | ) | (29,348 | ) | 932 | |||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 17,168 | 16,605 | 8,437 | 8,731 | 7,811 | 7,021 | 8,169 | |||||||||||||||||||||
Occupancy and equipment | 5,559 | 5,147 | 2,683 | 2,876 | 2,713 | 2,642 | 2,567 | |||||||||||||||||||||
FDIC assessments | 2,273 | 133 | 1,593 | 680 | 305 | 236 | 88 | |||||||||||||||||||||
Professional services | 1,440 | 1,037 | 591 | 849 | 637 | 467 | 480 | |||||||||||||||||||||
Computer and data processing | 1,179 | 1,161 | 562 | 617 | 669 | 603 | 580 | |||||||||||||||||||||
Supplies and postage | 941 | 878 | 476 | 465 | 447 | 475 | 437 | |||||||||||||||||||||
Advertising and promotions | 423 | 433 | 249 | 174 | 548 | 472 | 283 | |||||||||||||||||||||
Other | 3,535 | 3,264 | 1,849 | 1,686 | 2,264 | 1,493 | 1,781 | |||||||||||||||||||||
Total noninterest expense | 32,518 | 28,658 | 16,440 | 16,078 | 15,394 | 13,409 | 14,385 | |||||||||||||||||||||
Income (loss) before income taxes | 7,666 | 6,216 | 3,632 | 4,034 | (25,773 | ) | (27,902 | ) | 1,376 | |||||||||||||||||||
Income tax expense (benefit) | 2,071 | 806 | 1,004 | 1,067 | (22,631 | ) | 524 | (255 | ) | |||||||||||||||||||
Net income (loss) | $ | 5,595 | 5,410 | 2,628 | 2,967 | (3,142 | ) | (28,426 | ) | 1,631 | ||||||||||||||||||
Preferred stock dividends | 1,843 | 741 | 925 | 918 | 426 | 371 | 370 | |||||||||||||||||||||
Net income (loss) applicable to | ||||||||||||||||||||||||||||
common shareholders | $ | 3,752 | 4,669 | 1,703 | 2,049 | (3,568 | ) | (28,797 | ) | 1,261 | ||||||||||||||||||
STOCK AND RELATED PER SHARE DATA | ||||||||||||||||||||||||||||
Net income (loss) per share – basic | $ | 0.35 | 0.43 | 0.16 | 0.19 | (0.33 | ) | (2.68 | ) | 0.12 | ||||||||||||||||||
Net income (loss) per share – diluted | $ | 0.35 | 0.43 | 0.16 | 0.19 | (0.33 | ) | (2.68 | ) | 0.12 | ||||||||||||||||||
Cash dividends declared on common stock | $ | 0.20 | 0.29 | 0.10 | 0.10 | 0.10 | 0.15 | 0.15 | ||||||||||||||||||||
Common dividend payout ratio (3) | 57.14 | % | 67.44 | 62.50 | 52.63 | NA | NA | 125.00 | ||||||||||||||||||||
Dividend yield (annualized) | 2.95 | % | 3.63 | 2.94 | 5.32 | 2.77 | 2.98 | 3.76 | ||||||||||||||||||||
Stock price (Nasdaq: FISI): | ||||||||||||||||||||||||||||
High | $ | 15.99 | 20.78 | 15.99 | 14.95 | 20.27 | 22.50 | 20.00 | ||||||||||||||||||||
Low | $ | 3.27 | 15.10 | 6.98 | 3.27 | 10.06 | 14.82 | 15.25 | ||||||||||||||||||||
Close | $ | 13.66 | 16.06 | 13.66 | 7.62 | 14.35 | 20.01 | 16.06 |
2
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||||||
Six months ended | 2009 | 2008 | ||||||||||||||||||||||||||||||
June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
SELECTED AVERAGE BALANCES | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Federal funds sold and interest-bearing deposits | $ | 46,376 | 38,270 | 49,105 | 43,618 | 17,089 | 12,897 | 35,733 | ||||||||||||||||||||||||
Investment securities (4) | 597,449 | 749,236 | 593,740 | 601,199 | 666,917 | 721,419 | 744,648 | |||||||||||||||||||||||||
Loans (5): | ||||||||||||||||||||||||||||||||
Commercial | 174,761 | 145,360 | 183,733 | 165,688 | 155,814 | 147,350 | 146,778 | |||||||||||||||||||||||||
Commercial real estate | 272,030 | 244,960 | 275,275 | 268,749 | 255,882 | 249,769 | 248,290 | |||||||||||||||||||||||||
Agriculture | 42,528 | 44,938 | 42,368 | 42,690 | 44,299 | 45,965 | 44,504 | |||||||||||||||||||||||||
Residential real estate | 171,462 | 168,304 | 168,300 | 174,659 | 175,200 | 173,175 | 169,925 | |||||||||||||||||||||||||
Consumer indirect | 284,329 | 147,242 | 301,112 | 267,360 | 244,891 | 200,586 | 156,728 | |||||||||||||||||||||||||
Consumer direct and home equity | 221,576 | 226,470 | 222,122 | 221,024 | 222,235 | 222,241 | 223,906 | |||||||||||||||||||||||||
Total loans | 1,166,686 | 977,274 | 1,192,910 | 1,140,170 | 1,098,321 | 1,039,086 | 990,131 | |||||||||||||||||||||||||
Total interest-earning assets | 1,813,035 | 1,765,718 | 1,838,320 | 1,787,470 | 1,782,938 | 1,774,201 | 1,771,801 | |||||||||||||||||||||||||
Goodwill | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | |||||||||||||||||||||||||
Total assets | 1,988,185 | 1,894,194 | 2,012,337 | 1,963,764 | 1,924,174 | 1,908,577 | 1,897,514 | |||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing demand | 363,745 | 343,783 | 366,985 | 360,470 | 360,970 | 342,188 | 342,463 | |||||||||||||||||||||||||
Savings and money market | 382,104 | 370,112 | 392,355 | 371,738 | 373,034 | 366,449 | 378,799 | |||||||||||||||||||||||||
Certificates of deposit | 672,153 | 624,774 | 676,221 | 668,041 | 629,111 | 591,025 | 615,950 | |||||||||||||||||||||||||
Borrowings | 75,084 | 71,619 | 78,763 | 71,363 | 105,164 | 118,023 | 73,902 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 1,493,086 | 1,410,288 | 1,514,324 | 1,471,612 | 1,468,279 | 1,417,685 | 1,411,114 | |||||||||||||||||||||||||
Noninterest-bearing demand deposits | 283,935 | 271,446 | 286,155 | 281,690 | 284,643 | 294,136 | 275,570 | |||||||||||||||||||||||||
Total deposits | 1,701,937 | 1,610,115 | 1,721,716 | 1,681,939 | 1,647,758 | 1,593,798 | 1,612,782 | |||||||||||||||||||||||||
Total liabilities | 1,796,266 | 1,697,756 | 1,819,891 | 1,772,377 | 1,766,239 | 1,727,473 | 1,702,211 | |||||||||||||||||||||||||
Shareholders’ equity | 191,919 | 196,438 | 192,446 | 191,387 | 157,935 | 181,104 | 195,303 | |||||||||||||||||||||||||
Common equity (1) | 138,769 | 178,857 | 139,253 | 138,281 | 136,887 | 163,527 | 177,722 | |||||||||||||||||||||||||
Tangible common equity (2) | $ | 101,187 | 140,969 | 101,709 | 100,660 | 99,191 | 125,754 | 139,872 | ||||||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 10,720 | 10,909 | 10,723 | 10,716 | 10,717 | 10,738 | 10,879 | |||||||||||||||||||||||||
Diluted | 10,756 | 10,951 | 10,765 | 10,747 | 10,717 | 10,738 | 10,928 | |||||||||||||||||||||||||
SELECTED AVERAGE YIELDS/ | ||||||||||||||||||||||||||||||||
RATES AND RATIOS | ||||||||||||||||||||||||||||||||
(Tax equivalent basis) | ||||||||||||||||||||||||||||||||
Federal funds sold and interest-bearing deposits | 0.23 | % | 2.65 | 0.21 | 0.25 | 1.09 | 2.10 | 2.18 | ||||||||||||||||||||||||
Investment securities | 4.35 | % | 4.98 | 4.16 | 4.54 | 4.72 | 4.66 | 4.92 | ||||||||||||||||||||||||
Loans | 6.02 | % | 6.80 | 5.99 | 6.04 | 6.35 | 6.52 | 6.65 | ||||||||||||||||||||||||
Total interest-earning assets | 5.32 | % | 5.94 | 5.24 | 5.39 | 5.69 | 5.73 | 5.83 | ||||||||||||||||||||||||
Interest-bearing demand | 0.23 | % | 1.10 | 0.20 | 0.25 | 0.69 | 0.86 | 0.89 | ||||||||||||||||||||||||
Savings and money market | 0.27 | % | 1.24 | 0.27 | 0.27 | 0.68 | 0.93 | 1.02 | ||||||||||||||||||||||||
Certificates of deposit | 2.69 | % | 4.02 | 2.63 | 2.76 | 3.09 | 3.33 | 3.72 | ||||||||||||||||||||||||
Borrowings | 4.05 | % | 5.26 | 3.91 | 4.21 | 4.23 | 4.30 | 5.05 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 1.54 | % | 2.64 | 1.50 | 1.59 | 1.97 | 2.19 | 2.38 | ||||||||||||||||||||||||
Net interest rate spread | 3.78 | % | 3.30 | 3.74 | 3.80 | 3.72 | 3.54 | 3.45 | ||||||||||||||||||||||||
Net interest rate margin | 4.05 | % | 3.83 | 4.01 | 4.09 | 4.07 | 3.98 | 3.94 | ||||||||||||||||||||||||
Net income (loss) (annualized returns on): | ||||||||||||||||||||||||||||||||
Average assets | 0.57 | % | 0.57 | 0.52 | 0.61 | (0.65 | ) | (5.93 | ) | 0.35 | ||||||||||||||||||||||
Average equity | 5.88 | % | 5.54 | 5.48 | 6.29 | (7.91 | ) | (62.44 | ) | 3.36 | ||||||||||||||||||||||
Average common equity (6) | 5.45 | % | 4.35 | 4.91 | 6.01 | (10.37 | ) | (70.06 | ) | 2.85 | ||||||||||||||||||||||
Average tangible common equity (7) | 7.48 | % | 5.52 | 6.72 | 8.25 | (14.31 | ) | (91.10 | ) | 3.63 | ||||||||||||||||||||||
Efficiency ratio (8) | 69.60 | % | 65.88 | 69.49 | 69.72 | 66.65 | 58.10 | 64.21 |
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FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||
Six months ended | 2009 | 2008 | ||||||||||||||||||||||||||
June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 9,496 | 6,254 | 9,496 | 8,826 | 8,189 | 7,609 | 6,254 | ||||||||||||||||||||
Accruing loans past due 90 days or more | 2 | 1 | 2 | 301 | 7 | 32 | 1 | |||||||||||||||||||||
Total non-performing loans | 9,498 | 6,255 | 9,498 | 9,127 | 8,196 | 7,641 | 6,255 | |||||||||||||||||||||
Foreclosed assets | 1,046 | 1,235 | 1,046 | 877 | 1,007 | 1,009 | 1,235 | |||||||||||||||||||||
Non-performing investment securities | 3,175 | — | 3,175 | 3,396 | 49 | — | — | |||||||||||||||||||||
Total non-performing assets | $ | 13,719 | 7,490 | 13,719 | 13,400 | 9,252 | 8,650 | 7,490 | ||||||||||||||||||||
Net loan charge-offs | $ | 2,129 | 1,557 | 1,131 | 998 | 1,257 | 509 | 869 | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.37 | % | 0.32 | 0.38 | 0.35 | 0.46 | 0.20 | 0.35 | ||||||||||||||||||||
Total non-performing loans to total loans | 0.78 | % | 0.62 | 0.78 | �� | 0.79 | 0.73 | 0.71 | 0.62 | |||||||||||||||||||
Total non-performing assets to total assets | 0.69 | % | 0.40 | 0.69 | 0.66 | 0.48 | 0.44 | 0.40 | ||||||||||||||||||||
Allowance for loan losses to total loans | 1.69 | % | 1.59 | 1.69 | 1.70 | 1.67 | 1.62 | 1.59 | ||||||||||||||||||||
Allowance for loan losses to | ||||||||||||||||||||||||||||
non-performing loans | 217 | % | 256 | 217 | 215 | 229 | 228 | 256 |
(1) Excludes preferred shareholders’ equity.
(2) Excludes preferred shareholders’ equity, goodwill and other intangible assets.
(3) Common dividend payout ratio equals dividends declared during the period divided by earnings per share for the equivalent period. There is no ratio shown for periods where the Company both declares a dividend and incurs a loss during the period because the ratio would result in a negative payout since the dividend declared (paid out) will always be greater than 100% of earnings. |
(4) Average investment securities shown at adjusted amortized cost.
(5) Includes nonaccrual loans. |
(6) Net income available to common shareholders divided by average common equity. |
(7) Net income available to common shareholders divided by average tangible equity. |
(8) Efficiency ratio equals noninterest expense less other real estate expense and amortization of intangible assets as a percentage of net revenue, defined as the sum of tax-equivalent net interest income and noninterest income before net gains and impairment charges on investment securities. |
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