NEWS RELEASE | 220 Liberty Street Warsaw, NY 14569 |
For Additional Information: |
Karl F. Krebs |
Executive VP & CFO |
Phone: 585.786.1125 |
Email: KFKrebs@fiiwarsaw.com |
Financial Institutions, Inc. Earns $14.4 Million in 2009;
A Strong $5.4 Million Fourth Quarter
WARSAW, N.Y., January 28, 2010 — Financial Institutions, Inc. (Nasdaq: FISI) (the “Company”), the parent company of Five Star Bank, today announced financial results for the fourth quarter and year ended December 31, 2009. For the fourth quarter of 2009, the Company’s net income was $5.4 million or $0.42 per diluted share, compared with net income of $3.4 million or $0.23 per diluted share for the third quarter of 2009 and a net loss of $3.1 million or ($0.33) per diluted share for the fourth quarter of 2008. For the twelve months of 2009, net income was $14.4 million or $0.99 per diluted share, compared with a loss of $26.2 million or ($2.54) per diluted share for the twelve months of 2008.
Highlights:
• | Net interest income for the fourth quarter of 2009 was $19.2 million, an increase of $1.9 million or 11% over the fourth quarter of 2008. For 2009, net interest income was $72.3 million, an increase of $6.9 million or 11% over 2008. The year-over-year increase is reflective of lower deposit costs as well as a solid 13% growth in the loan portfolio. |
• | Net interest margin increased 11 basis points to 4.04% for the twelve months of 2009 in comparison to the same period a year ago. |
• | Maintained our “well capitalized” regulatory capital position, increasing our total risk-based capital ratio to 13.21% and achieving a leverage capital ratio of 7.96% at December 31, 2009, far exceeding regulatory minimums. |
• | Total deposits were $1.743 billion at December 31, 2009, an increase of $109.7 million or 7% from December 31, 2008, the majority of which was attributable to an increase in core deposits. |
• | Total loans were $1.264 billion at December 31, 2009, an increase of $142.9 million or 13% from December 31, 2008, with increases in commercial, consumer and indirect loan categories. |
• | As of December 31, 2009, non-performing loans were $8.7 million compared to $8.2 million in the previous year, representing only 0.69% of total loans compared to 0.73% the previous year. |
• | Provision for loan losses and net charge-offs for the fourth quarter of 2009 were each $1.1 million. Provision for loan losses of $7.7 million for 2009 exceeded net charge-offs of $5.7 million resulting in a $2.0 million increase in the allowance for loan losses to $20.7 million or 1.64% of total loans. |
• | 2009 results include FDIC assessments totaling $3.7 million, a $3.0 million increase from 2008 due to higher premiums mandated by the FDIC to replenish deposit insurance reserves. |
“Our community banking model has continued to gain momentum this year. Our balance sheet has shown solid year over year growth in deposits and loans. We have maintained our disciplined underwriting standards, as demonstrated in our measures of asset quality,” said Peter G. Humphrey, President and Chief Executive Officer of the Company. “In 2009, we restructured our investment portfolio with a focus on reducing credit risk and improving capital. Through a series of security sales and write-downs, we have significantly reduced our “at-risk” positions with impairment exposure. Our commitment to quality is demonstrated not just in our measures of asset quality or the solutions we provide our customers, but also in the way we treat our customers. At Five Star, we continually strive to make banking easier and more enjoyable for our customers by offering a broad spectrum of products and services, delivered through an experienced and knowledgeable workforce.”
Net Interest Income
Net interest income for the fourth quarter of 2009 was $19.2 million, an increase of $1.9 million or 11% over the fourth quarter of 2008. For the year, net interest income was $72.3 million, an increase of $6.9 million or 11% over 2008. Net interest margin was 4.06% for the fourth quarter of 2009, a decrease of 1 basis point from the fourth quarter of 2008. For the year ended December 31, 2009, net interest margin was 4.04%, an increase of 11 basis points from 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 performance of net interest income and margin.
Noninterest Income (Loss)
Noninterest income for the quarter and year ended December 31, 2009 was $5.2 million and $18.8 million, respectively, compared with noninterest losses of $25.1 million and $48.8 million for respective period in 2008. Other-than-temporary impairment charges (“OTTI”) on investment securities included in noninterest income amounted to $565 thousand during the fourth quarter of 2009. The fourth quarter charge brought total OTTI to $4.7 million for the year, down substantially from the $68.2 million charged to earnings during 2008. Absent the OTTI charges and net gains from security sales, noninterest income increased 11% and 5% for the quarterly and annual periods ended December 31, 2009, respectively, from the same periods in 2008.
Noninterest Expense
Noninterest expense for the fourth quarter of 2009 was $15.1 million, a decrease of $277 thousand from the fourth quarter of 2008. For the year, 2009 noninterest expense was $62.8 million, an increase of $5.3 million over 2008. The most significant cause for the increase was higher FDIC assessments, which included a $923 thousand special assessment incurred during the second quarter of 2009, coupled with increases in FDIC deposit insurance coverage and 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 the latter part of 2008, and an increase in professional services expense.
Balance Sheet
Total assets at December 31, 2009 were $2.062 billion, up $145.5 million from $1.917 billion at December 31, 2008. Total loans were $1.264 billion and represented 61% of total assets at December 31, 2009, compared to $1.121 billion and 58% of total assets at December 31, 2008. Total deposits increased $109.7 million to $1.743 billion at December 31, 2009, versus $1.633 billion at December 31, 2008. The majority of the increase in deposits was attributable to an increase in core deposits. Total investment securities were $620.1 million at December 31, 2009, up $14.1 million from $606.0 million at December 31, 2008.
Asset Quality and Capital Ratios
Net charge-offs decreased by $128 thousand from the fourth quarter of 2008 to $1.1 million, or 0.35% of average loans. For the year ended December 31, 2009 net charge-offs increased in comparison to last year by $2.4 million to $5.7 million, or 0.47% of average loans, primarily due to charge-offs totaling $1.8 million for one commercial loan relationship during the second and third quarters. The provision for loan losses was $1.1 million for the quarter, compared with $2.6 million in the same quarter a year ago. For the year ended December 31, 2009 the provision for loan losses totaled $7.7 million, compared with $6.6 million in the same period last year. At December 31, 2009, non-performing loans totaled $8.7 million, or 0.69% of total loans, an increase of $2.9 million from the third quarter. Included in non-performing loans at December 31, 2009 is one commercial relationship totaling $1.9 million which is past due in excess of 90 days but continues to accrue interest. The Company received a payment of principal and interest of approximately $1.7 million during January 2010 and expects to receive the remaining principal and interest before the end of the first quarter of 2010. At December 31, 2009 non-performing assets totaled $10.4 million, which included $1.0 million in non-performing investment securities on which interest payments are no longer being accrued and any payments received are being applied to principal.
At December 31, 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 December 31, 2009, the Company’s leverage ratio was 7.96% and the total risk-based capital ratio was 13.21%.
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 | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
SELECTED BALANCE SHEET DATA | �� | |||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 42,874 | 48,721 | 41,405 | 48,073 | 34,528 | ||||||||||||||
Federal funds sold and interest-bearing deposits | 85 | 11,385 | 39,910 | 74,616 | 20,659 | |||||||||||||||
Total cash and cash equivalents | 42,959 | 60,106 | 81,315 | 122,689 | 55,187 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale | 580,501 | 625,744 | 498,561 | 553,710 | 547,506 | |||||||||||||||
Held-to-maturity | 39,573 | 45,056 | 47,465 | 60,675 | 58,532 | |||||||||||||||
Total investment securities | 620,074 | 670,800 | 546,026 | 614,385 | 606,038 | |||||||||||||||
Loans held for sale | 421 | 1,032 | 3,005 | 2,290 | 1,013 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | 186,386 | 197,404 | 198,608 | 174,505 | 158,543 | |||||||||||||||
Commercial real estate | 308,873 | 296,648 | 282,048 | 266,176 | 262,234 | |||||||||||||||
Agriculture | 41,872 | 42,545 | 42,997 | 42,524 | 44,706 | |||||||||||||||
Residential real estate | 144,215 | 147,447 | 149,926 | 170,834 | 177,683 | |||||||||||||||
Consumer indirect | 352,611 | 345,448 | 319,735 | 283,465 | 255,054 | |||||||||||||||
Consumer direct and home equity | 230,049 | 229,870 | 225,258 | 220,440 | 222,859 | |||||||||||||||
Total loans | 1,264,006 | 1,259,362 | 1,218,572 | 1,157,944 | 1,121,079 | |||||||||||||||
Allowance for loan losses | 20,741 | 20,782 | 20,614 | 19,657 | 18,749 | |||||||||||||||
Total loans, net | 1,243,265 | 1,238,580 | 1,197,958 | 1,138,287 | 1,102,330 | |||||||||||||||
Total interest-earning assets (1) (2) | 1,881,887 | 1,934,786 | 1,802,489 | 1,843,522 | 1,743,141 | |||||||||||||||
Goodwill | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | |||||||||||||||
Total assets | 2,062,389 | 2,138,205 | 1,996,724 | 2,030,429 | 1,916,919 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | 324,303 | 298,972 | 292,825 | 279,284 | 292,586 | |||||||||||||||
Interest-bearing demand | 363,698 | 383,982 | 357,443 | 392,353 | 344,616 | |||||||||||||||
Savings and money market | 368,603 | 402,042 | 366,373 | 396,644 | 348,594 | |||||||||||||||
Certificates of deposit | 686,351 | 712,182 | 683,619 | 668,999 | 647,467 | |||||||||||||||
Total deposits | 1,742,955 | 1,797,178 | 1,700,260 | 1,737,280 | 1,633,263 | |||||||||||||||
Borrowings | 106,390 | 120,113 | 79,977 | 78,761 | 70,820 | |||||||||||||||
Total interest-bearing liabilities | 1,525,042 | 1,618,319 | 1,487,412 | 1,536,757 | 1,411,497 | |||||||||||||||
Shareholders’ equity | 198,294 | 195,935 | 192,455 | 191,676 | 190,300 | |||||||||||||||
Common shareholders’ equity (3) | 144,876 | 142,605 | 139,213 | 138,519 | 137,226 | |||||||||||||||
Tangible common shareholders’ equity (4) | 107,507 | 105,176 | 101,712 | 100,946 | 99,577 | |||||||||||||||
Securities available for sale – fair value adjustment | ||||||||||||||||||||
included in shareholders’ equity, net of tax | $ | 1,655 | 4,778 | 3,081 | 3,503 | 3,463 | ||||||||||||||
Common shares outstanding | 10,820 | 10,818 | 10,821 | 10,805 | 10,798 | |||||||||||||||
Treasury shares | 528 | 530 | 527 | 543 | 550 | |||||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Leverage ratio | 7.96 | % | 7.89 | 7.84 | 7.96 | 8.05 | ||||||||||||||
Tier 1 risk-based capital | 11.95 | % | 10.73 | 10.69 | 11.23 | 11.83 | ||||||||||||||
Total risk based capital | 13.21 | % | 11.98 | 11.94 | 12.49 | 13.08 | ||||||||||||||
Common equity to assets | 7.02 | % | 6.67 | 6.97 | 6.82 | 7.16 | ||||||||||||||
Tangible common equity to tangible assets (4) | 5.31 | % | 5.01 | 5.19 | 5.07 | 5.30 | ||||||||||||||
Common book value per share | $ | 13.39 | 13.18 | 12.86 | 12.82 | 12.71 | ||||||||||||||
Tangible common book value per share (4) | $ | 9.94 | 9.72 | 9.40 | 9.34 | 9.22 |
1
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||
Years ended | 2009 | 2008 | ||||||||||||||||||||||||||
December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
SELECTED INCOME STATEMENT DATA | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Interest income | $ | 94,482 | 98,948 | 24,390 | 23,697 | 23,302 | 23,093 | 24,582 | ||||||||||||||||||||
Interest expense | 22,217 | 33,617 | 5,175 | 5,619 | 5,657 | 5,766 | 7,269 | |||||||||||||||||||||
Net interest income | 72,265 | 65,331 | 19,215 | 18,078 | 17,645 | 17,327 | 17,313 | |||||||||||||||||||||
Provision for loan losses | 7,702 | 6,551 | 1,088 | 2,620 | 2,088 | 1,906 | 2,586 | |||||||||||||||||||||
Net interest income after provision | ||||||||||||||||||||||||||||
for loan losses | 64,563 | 58,780 | 18,127 | 15,458 | 15,557 | 15,421 | 14,727 | |||||||||||||||||||||
Noninterest income (loss): | ||||||||||||||||||||||||||||
Service charges on deposits | 10,065 | 10,497 | 2,585 | 2,643 | 2,517 | 2,320 | 2,685 | |||||||||||||||||||||
ATM and debit card | 3,610 | 3,313 | 971 | 920 | 908 | 811 | 853 | |||||||||||||||||||||
Loan servicing | 1,308 | 664 | 277 | 304 | 470 | 257 | 134 | |||||||||||||||||||||
Company owned life insurance | 1,096 | 563 | 290 | 271 | 275 | 260 | 294 | |||||||||||||||||||||
Broker-dealer fees and commissions | 1,022 | 1,458 | 281 | 238 | 234 | 269 | 235 | |||||||||||||||||||||
Net gain on sale of loans held for sale | 699 | 339 | 154 | 129 | 246 | 170 | 35 | |||||||||||||||||||||
Net gain on investment securities | 3,429 | 288 | 501 | 1,721 | 1,153 | 54 | 56 | |||||||||||||||||||||
Impairment charge on investment securities | (4,666 | ) | (68,215 | ) | (565 | ) | (2,318 | ) | (1,733 | ) | (50 | ) | (29,870 | ) | ||||||||||||||
Net gain on sale of other assets | 180 | 305 | 3 | 19 | — | 158 | 51 | |||||||||||||||||||||
Other | 2,052 | 2,010 | 686 | 479 | 445 | 442 | 421 | |||||||||||||||||||||
Total noninterest income (loss) | 18,795 | (48,778 | ) | 5,183 | 4,406 | 4,515 | 4,691 | (25,106 | ) | |||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 33,634 | 31,437 | 8,213 | 8,253 | 8,437 | 8,731 | 7,811 | |||||||||||||||||||||
Occupancy and equipment | 11,062 | 10,502 | 2,773 | 2,730 | 2,683 | 2,876 | 2,713 | |||||||||||||||||||||
FDIC assessments | 3,651 | 674 | 625 | 753 | 1,593 | 680 | 305 | |||||||||||||||||||||
Professional services | 2,524 | 2,141 | 552 | 532 | 591 | 849 | 637 | |||||||||||||||||||||
Computer and data processing | 2,340 | 2,433 | 583 | 578 | 562 | 617 | 669 | |||||||||||||||||||||
Supplies and postage | 1,846 | 1,800 | 432 | 473 | 476 | 465 | 447 | |||||||||||||||||||||
Advertising and promotions | 949 | 1,453 | 299 | 227 | 249 | 174 | 548 | |||||||||||||||||||||
Other | 6,771 | 7,021 | 1,640 | 1,596 | 1,849 | 1,686 | 2,264 | |||||||||||||||||||||
Total noninterest expense | 62,777 | 57,461 | 15,117 | 15,142 | 16,440 | 16,078 | 15,394 | |||||||||||||||||||||
Income (loss) before income taxes | 20,581 | (47,459 | ) | 8,193 | 4,722 | 3,632 | 4,034 | (25,773 | ) | |||||||||||||||||||
Income tax expense (benefit) | 6,140 | (21,301 | ) | 2,756 | 1,313 | 1,004 | 1,067 | (22,631 | ) | |||||||||||||||||||
Net income (loss) | $ | 14,441 | (26,158 | ) | 5,437 | 3,409 | 2,628 | 2,967 | (3,142 | ) | ||||||||||||||||||
Preferred stock dividends | 3,697 | 1,538 | 927 | 927 | 925 | 918 | 426 | |||||||||||||||||||||
Net income (loss) applicable to | ||||||||||||||||||||||||||||
common shareholders | $ | 10,744 | (27,696 | ) | 4,510 | 2,482 | 1,703 | 2,049 | (3,568 | ) | ||||||||||||||||||
STOCK AND RELATED PER SHARE DATA | ||||||||||||||||||||||||||||
Net income (loss) per share – basic | $ | 0.99 | (2.54 | ) | 0.42 | 0.23 | 0.16 | 0.19 | (0.33 | ) | ||||||||||||||||||
Net income (loss) per share – diluted | $ | 0.99 | (2.54 | ) | 0.42 | 0.23 | 0.16 | 0.19 | (0.33 | ) | ||||||||||||||||||
Cash dividends declared on common stock | $ | 0.40 | 0.54 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | ||||||||||||||||||||
Common dividend payout ratio (5) | 40.40 | % | NA | 23.81 | 43.48 | 62.50 | 52.63 | NA | ||||||||||||||||||||
Dividend yield (annualized) | 3.40 | % | 3.76 | 3.37 | 3.98 | 2.94 | 5.32 | 2.77 | ||||||||||||||||||||
Stock price (Nasdaq: FISI): | ||||||||||||||||||||||||||||
High | $ | 15.99 | 22.50 | 12.25 | 15.00 | 15.99 | 14.95 | 20.27 | ||||||||||||||||||||
Low | $ | 3.27 | 10.06 | 9.71 | 9.90 | 6.98 | 3.27 | 10.06 | ||||||||||||||||||||
Close | $ | 11.78 | 14.35 | 11.78 | 9.97 | 13.66 | 7.62 | 14.35 |
2
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||||||
Years ended | 2009 | 2008 | ||||||||||||||||||||||||||||||
December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
SELECTED AVERAGE BALANCES | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
Federal funds sold and interest-bearing deposits | $ | 37,214 | 26,568 | 16,457 | 39,945 | 49,105 | 43,618 | 17,089 | ||||||||||||||||||||||||
Investment securities (1) | 609,606 | 721,551 | 657,299 | 585,830 | 593,740 | 601,199 | 666,917 | |||||||||||||||||||||||||
Loans (2): | ||||||||||||||||||||||||||||||||
Commercial | 184,269 | 147,015 | 192,442 | 194,803 | 183,733 | 165,688 | 155,814 | |||||||||||||||||||||||||
Commercial real estate | 284,603 | 250,387 | 305,287 | 288,658 | 275,275 | 268,749 | 255,882 | |||||||||||||||||||||||||
Agriculture | 42,126 | 45,035 | 40,210 | 43,250 | 42,368 | 42,690 | 44,299 | |||||||||||||||||||||||||
Residential real estate | 159,156 | 171,262 | 145,776 | 148,325 | 168,300 | 174,659 | 175,200 | |||||||||||||||||||||||||
Consumer indirect | 313,239 | 185,197 | 349,231 | 334,123 | 301,112 | 267,360 | 244,891 | |||||||||||||||||||||||||
Consumer direct and home equity | 224,720 | 224,343 | 229,270 | 226,355 | 222,122 | 221,024 | 222,235 | |||||||||||||||||||||||||
Total loans | 1,208,113 | 1,023,239 | 1,262,216 | 1,235,514 | 1,192,910 | 1,140,170 | 1,098,321 | |||||||||||||||||||||||||
Total interest-earning assets | 1,856,832 | 1,772,179 | 1,937,049 | 1,862,779 | 1,838,320 | 1,787,470 | 1,782,938 | |||||||||||||||||||||||||
Goodwill | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | 37,369 | |||||||||||||||||||||||||
Total assets | 2,033,916 | 1,905,345 | 2,117,775 | 2,040,030 | 2,012,337 | 1,963,764 | 1,924,174 | |||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing demand | 365,873 | 347,702 | 374,787 | 361,147 | 366,985 | 360,470 | 360,970 | |||||||||||||||||||||||||
Savings and money market | 383,697 | 369,926 | 400,966 | 369,562 | 392,355 | 371,738 | 373,034 | |||||||||||||||||||||||||
Certificates of deposit | 685,259 | 617,381 | 697,292 | 699,011 | 676,221 | 668,041 | 629,111 | |||||||||||||||||||||||||
Borrowings | 90,005 | 91,715 | 114,721 | 94,642 | 78,763 | 71,363 | 105,164 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 1,524,834 | 1,426,724 | 1,587,766 | 1,524,362 | 1,514,324 | 1,471,612 | 1,468,279 | |||||||||||||||||||||||||
Noninterest-bearing demand deposits | 293,852 | 280,467 | 308,491 | 298,723 | 286,155 | 281,690 | 284,643 | |||||||||||||||||||||||||
Total deposits | 1,728,681 | 1,615,476 | 1,781,536 | 1,728,443 | 1,721,716 | 1,681,939 | 1,647,758 | |||||||||||||||||||||||||
Total liabilities | 1,839,576 | 1,722,440 | 1,919,352 | 1,845,010 | 1,819,891 | 1,772,377 | 1,766,239 | |||||||||||||||||||||||||
Shareholders’ equity | 194,340 | 182,905 | 198,423 | 195,020 | 192,446 | 191,387 | 157,935 | |||||||||||||||||||||||||
Common equity (3) | 141,102 | 164,454 | 145,055 | 141,741 | 139,253 | 138,281 | 136,887 | |||||||||||||||||||||||||
Tangible common equity (4) | $ | 103,593 | 126,643 | 107,654 | 104,269 | 101,709 | 100,660 | 99,191 | ||||||||||||||||||||||||
Common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 10,730 | 10,818 | 10,742 | 10,738 | 10,723 | 10,716 | 10,717 | |||||||||||||||||||||||||
Diluted | 10,769 | 10,818 | 10,785 | 10,779 | 10,765 | 10,747 | 10,717 | |||||||||||||||||||||||||
SELECTED AVERAGE YIELDS/ | ||||||||||||||||||||||||||||||||
RATES AND RATIOS | ||||||||||||||||||||||||||||||||
(Tax equivalent basis) | ||||||||||||||||||||||||||||||||
Federal funds sold and interest-bearing deposits | 0.22 | % | 2.33 | 0.22 | 0.20 | 0.21 | 0.25 | 1.09 | ||||||||||||||||||||||||
Investment securities | 4.00 | % | 4.84 | 3.55 | 3.79 | 4.16 | 4.54 | 4.72 | ||||||||||||||||||||||||
Loans | 6.01 | % | 6.61 | 6.00 | 6.01 | 5.99 | 6.04 | 6.35 | ||||||||||||||||||||||||
Total interest-earning assets | 5.23 | % | 5.83 | 5.12 | 5.19 | 5.24 | 5.39 | 5.69 | ||||||||||||||||||||||||
Interest-bearing demand | 0.21 | % | 0.93 | 0.20 | 0.19 | 0.20 | 0.25 | 0.69 | ||||||||||||||||||||||||
Savings and money market | 0.28 | % | 1.02 | 0.30 | 0.29 | 0.27 | 0.27 | 0.68 | ||||||||||||||||||||||||
Certificates of deposit | 2.51 | % | 3.62 | 2.20 | 2.49 | 2.63 | 2.76 | 3.09 | ||||||||||||||||||||||||
Borrowings | 3.47 | % | 4.65 | 2.84 | 3.35 | 3.91 | 4.21 | 4.23 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 1.46 | % | 2.36 | 1.29 | 1.46 | 1.50 | 1.59 | 1.97 | ||||||||||||||||||||||||
Net interest rate spread | 3.77 | % | 3.47 | 3.83 | 3.73 | 3.74 | 3.80 | 3.72 | ||||||||||||||||||||||||
Net interest rate margin | 4.04 | % | 3.93 | 4.06 | 3.99 | 4.01 | 4.09 | 4.07 | ||||||||||||||||||||||||
Net income (loss) (annualized returns on): | ||||||||||||||||||||||||||||||||
Average assets | 0.71 | % | (1.37 | ) | 1.02 | 0.66 | 0.52 | 0.61 | (0.65 | ) | ||||||||||||||||||||||
Average equity | 7.43 | % | (14.30 | ) | 10.87 | 6.93 | 5.48 | 6.29 | (7.91 | ) | ||||||||||||||||||||||
Average common equity (6) | 7.61 | % | (16.84 | ) | 12.33 | 6.95 | 4.91 | 6.01 | (10.37 | ) | ||||||||||||||||||||||
Average tangible common equity (7) | 10.37 | % | (21.87 | ) | 16.62 | 9.45 | 6.72 | 8.25 | (14.31 | ) | ||||||||||||||||||||||
Efficiency ratio (8) | 65.52 | % | 64.07 | 59.93 | 63.43 | 69.49 | 69.72 | 66.65 |
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FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Quarterly Trends | ||||||||||||||||||||||||||||
Years ended | 2009 | 2008 | ||||||||||||||||||||||||||
December 31, | Fourth | Third | Second | First | Fourth | |||||||||||||||||||||||
2009 | 2008 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
ASSET QUALITY DATA | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 6,822 | 8,189 | 6,822 | 5,816 | 9,496 | 8,826 | 8,189 | ||||||||||||||||||||
Accruing loans past due 90 days or more | 1,859 | 7 | 1,859 | 1 | 2 | 301 | 7 | |||||||||||||||||||||
Total non-performing loans | 8,681 | 8,196 | 8,681 | 5,817 | 9,498 | 9,127 | 8,196 | |||||||||||||||||||||
Foreclosed assets | 746 | 1,007 | 746 | 696 | 1,046 | 877 | 1,007 | |||||||||||||||||||||
Non-performing investment securities | 1,015 | 49 | 1,015 | 1,431 | 3,175 | 3,396 | 49 | |||||||||||||||||||||
Total non-performing assets | $ | 10,442 | 9,252 | 10,442 | 7,944 | 13,719 | 13,400 | 9,252 | ||||||||||||||||||||
Net loan charge-offs | $ | 5,710 | 3,323 | 1,129 | 2,452 | 1,131 | 998 | 1,257 | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.47 | % | 0.32 | 0.35 | 0.79 | 0.38 | 0.35 | 0.46 | ||||||||||||||||||||
Total non-performing loans to total loans | 0.69 | % | 0.73 | 0.69 | 0.46 | 0.78 | 0.79 | 0.73 | ||||||||||||||||||||
Total non-performing assets to total assets | 0.51 | % | 0.48 | 0.51 | 0.37 | 0.69 | 0.66 | 0.48 | ||||||||||||||||||||
Allowance for loan losses to total loans | 1.64 | % | 1.67 | 1.64 | 1.65 | 1.69 | 1.70 | 1.67 | ||||||||||||||||||||
Allowance for loan losses to | ||||||||||||||||||||||||||||
non-performing loans | 239 | % | 229 | 239 | 357 | 217 | 215 | 229 |
(1) Includes investment securities at adjusted amortized cost and non-performing investment securities.
(2) Includes nonaccrual loans. |
(3) Excludes preferred shareholders’ equity.
(4) Excludes preferred shareholders’ equity, goodwill and other intangible assets.
(5) 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. |
(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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