Financial Institutions, Inc. Announces First Quarter 2025 Results
Rhea-AI Summary
Financial Institutions reported strong Q1 2025 results with net income of $16.9 million, a significant improvement from Q4 2024's loss of $82.8 million and Q1 2024's income of $2.1 million. Earnings per share reached $0.81, compared to -$5.07 in Q4 2024.
Key highlights:
- Net interest margin expanded to 3.35%, up 44 basis points from previous quarter
- Total loans grew to $4.55 billion, increasing 1.7% during the quarter
- Total deposits reached $5.37 billion, up 5.3% from December 2024
- Board approved 3.3% increase in quarterly cash dividend to $0.31 per share
The company's improved performance reflects benefits from Q4 2024's investment portfolio restructuring and strong commercial lending growth. Credit quality metrics improved with quarterly net charge-offs at 0.21%. The company maintains a positive outlook for loan growth in first half 2025, while focusing on prudent expense management and sustainable profitable growth.
Positive
- Net income improved significantly to $16.9M in Q1 2025 vs net loss of $82.8M in Q4 2024
- Net interest margin expanded to 3.35%, up 44 basis points from previous quarter
- Net interest income increased 12.6% to $46.9M quarter-over-quarter
- Total loans grew by $74.1M (1.7%) during Q1 2025
- Total deposits increased by $268.2M (5.3%) from December 2024
- Credit quality metrics improved with lower quarterly net charge-offs
- Board approved 3.3% increase in quarterly cash dividend to $0.31 per share
- Efficiency ratio improved to below 60%
- Return on average assets reached 1.10%
- Return on average equity achieved 11.82%
Negative
- Noninterest income decreased year-over-year from $10.9M to $10.4M
- Average interest-earning assets decreased by $153.6M compared to Q1 2024
- Total deposits down 0.4% year-over-year
- Consumer indirect loans declined 7.3% year-over-year
- Loss of insurance subsidiary income stream following its sale
- Ongoing wind-down of Banking-as-a-Service (BaaS) offering affecting deposit levels
News Market Reaction
On the day this news was published, FISI gained 5.78%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
WARSAW, N.Y., April 28, 2025 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the first quarter ended March 31, 2025.
The Company reported net income of
First Quarter 2025 Key Results:
- Net interest margin and net interest income expanded meaningfully in the first quarter of 2025, primarily reflecting the impact of the investment portfolio restructuring that was executed at the end of 2024. Net interest margin of
3.35% for first quarter of 2025 was up 44 and 57 basis points from the linked and year-ago quarters, respectively, while net interest income of$46.9 million for first quarter of 2025 increased$5.2 million , or12.6% , and$6.8 million , or16.9% , from the linked and year-ago quarters, respectively. - Noninterest income was
$10.4 million in the first quarter of 2025, compared to noninterest loss of$91.0 million in the linked quarter, which reflected the previously disclosed investment securities loss, and noninterest income of$10.9 million in the year-ago quarter, when the Company's results included income from its former insurance subsidiary. First quarter 2025 noninterest income benefited from higher income from company owned life insurance ("COLI") as a result of a surrender and redeploy strategy initiated in January 2025, in addition to higher swap fees and investment advisory income relative to comparable prior periods. - Noninterest expense in the first quarter of 2025 totaled
$33.7 million , compared to noninterest expense including non-operating items in the linked and year-ago quarters of$59.4 million and$54.0 million , respectively. - Total loans were
$4.55 billion at March 31, 2025, reflecting an increase of$74.1 million , or1.7% , during the quarter, and an increase of$111.2 million , or2.5% , from one year prior, driven by both commercial business and commercial mortgage lending. - Total deposits were
$5.37 billion at March 31, 2025, up$268.2 million , or5.3% , from December 31, 2024, driven by seasonal public deposit inflows as well as an increase in brokered deposits, and down$23.8 million , or0.4% , from one year prior, due in part to lower reciprocal deposits and the previously announced wind-down of the Company's Banking-as-a-Service, or BaaS, offering. - The Company reported improved credit quality metrics, as measured by quarterly net charge-offs to average loans of
0.21% for the first quarter of 2025, down from both the linked and year-ago quarters. - In February, the Company's Board of Directors approved a
3.3% increase in its quarterly cash dividend to$0.31 per common share, a reflection of both its ongoing commitment to building shareholder value and its confidence in the Company’s long-term sustainable growth strategy.
"Our first quarter results were highlighted by improved earnings and profitability metrics, and reflected the full benefit of the strategic investment securities restructuring we undertook in December, as well as our team's ability to meet the banking, credit and investment advisory needs of our customers amid a challenging environment," said President and Chief Executive Officer Martin K. Birmingham. "Our focus on performance resulted in a more than
"Our pipelines carried momentum with credit-disciplined lending heading into 2025 and supported a
Chief Financial Officer and Treasurer W. Jack Plants II added, “Our successful fourth quarter public equity offering not only allowed us to restructure our investment securities portfolio to drive stronger earnings potential, evident in our first quarter results, but also provided additional dry powder that we have sought to thoughtfully deploy. To that end, earlier this month we called
Net Interest Income and Net Interest Margin
Net interest income was
Average interest-earning assets for the current quarter were
Average interest-bearing liabilities for the current quarter were
Net interest margin was
Noninterest Income (Loss)
The Company reported noninterest income of
- A net loss on investment securities of
$100.1 million was recognized in the fourth quarter of 2024 related to the previously disclosed securities portfolio restructuring. - Noninterest income no longer includes contributions from the Company's insurance agency, which generated first quarter 2024 insurance income of
$2.1 million prior to its sale on April 1, 2024. - Investment advisory income of
$2.7 million was$182 thousand higher than the fourth quarter of 2024 and up$155 thousand from the first quarter of 2024. - Income from COLI of
$2.8 million was$1.4 million higher than the fourth quarter of 2024 and$1.5 million higher than the first quarter of 2024, due to the previously mentioned surrender and redeploy strategy initiated in January 2025. - Income from investments in limited partnerships of
$415 thousand was$422 thousand lower than the fourth quarter of 2024 and$73 thousand higher than the first quarter of 2024. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments. - Income from derivative instruments, net was
$250 thousand in the current quarter, compared to a loss of$37 thousand in the fourth quarter of 2024, and income of$174 thousand in the first quarter of 2024. Income from derivative instruments, net is based on the number and value of interest rate swap transactions executed during the quarter combined with the impact of changes in the fair value of borrower-facing trades.
Noninterest Expense
Noninterest expense was
- Salaries and employee benefits expense of
$16.9 million was$261 thousand lower than the fourth quarter of 2024 and$442 thousand lower than the first quarter of 2024. The decrease from the linked quarter was primarily due to a$1.3 million nonrecurring settlement accounting adjustment in the Company's pension plan recorded in the fourth quarter of 2024, while the year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale. - Professional services expenses of
$1.7 million were$120 thousand higher than the fourth quarter of 2024 and$681 thousand lower than the first quarter of 2024, with the year-over-year variance primarily attributable to legal expenses incurred in the first quarter of 2024 related to the Company's previously disclosed deposit-related fraud event. - Computer and data processing expense of
$5.5 million was$1.1 million lower than the fourth quarter of 2024 and$101 thousand higher than the first quarter of 2024. The linked quarter variance was primarily due to nonrecurring project related expenses incurred in the fourth quarter of 2024. - As previously disclosed, the Company recorded a
$23.0 million provision for litigation settlement in its fourth quarter 2024 financial results related to a long-standing auto lending litigation. - The Company recorded deposit-related recoveries of
$294 thousand , primarily driven by insurance proceeds related to a past commercial deposit charged-off item, compared to charged-off items of$354 thousand in the fourth quarter of 2024 and$19.2 million in the first quarter of 2024, the majority of which related to the Company's previously disclosed deposit-related fraud event. - Other expense of
$3.8 million was down$484 thousand from the linked quarter, due in part to the timing of both New York State capital base tax and charitable contributions impacting the fourth quarter of 2024, while year-over-year other expense was relatively flat.
Income Taxes
Income tax expense was
The effective tax rate was
Balance Sheet and Capital Management
Total assets were
Investment securities were
Total loans were
- Commercial business loans totaled
$709.1 million , up$43.8 million , or6.6% , from December 31, 2024, and up$1.5 million , or0.2% , from March 31, 2024. - Commercial mortgage loans totaled
$2.23 billion , up$28.7 million , or1.3% , from December 31, 2024, and up$183.2 million , or9.0% , from March 31, 2024. - Residential real estate loans totaled
$644.0 million , down$6.2 million , or1.0% , from December 31, 2024, and down$4.2 million , or0.6% , from March 31, 2024. - Consumer indirect loans totaled
$853.2 million , up$7.4 million , or0.9% , from December 31, 2024, and down$67.3 million , or7.3% , from March 31, 2024.
Total deposits were
Short-term borrowings were
Shareholders' equity was
Common book value per share was
During the first quarter of 2025, the Company declared a common stock dividend of
The Company's regulatory capital ratios at March 31, 2025 continued to exceed all regulatory capital requirements to be considered well capitalized.
- Leverage Ratio was
9.24% compared to9.15% and8.03% at December 31, 2024, and March 31, 2024, respectively. - Common Equity Tier 1 Capital Ratio was
10.38% compared to10.54% and9.43% at December 31, 2024, and March 31, 2024, respectively. - Tier 1 Capital Ratio was
10.71% compared to10.87% and9.76% at December 31, 2024, and March 31, 2024, respectively. - Total Risk-Based Capital Ratio was
13.09% compared to13.25% and12.04% at December 31, 2024, and March 31, 2024, respectively.
In April 2025, the Company called
Credit Quality
Non-performing loans were
At March 31, 2025, the allowance for credit losses on loans to total loans ratio was
Provision for credit losses was
The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was
Subsequent Events
The Company is required, under generally accepted accounting principles ("GAAP"), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended March 31, 2025, on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2025, and will adjust amounts preliminarily reported, if necessary.
Conference Call
The Company will host an earnings conference call and audio webcast on April 29, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 737945. The webcast replay will be available on the Company’s website for at least 30 days.
About Financial Institutions, Inc.
Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately
Non-GAAP Financial Information
In addition to results presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.
The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Safe Harbor Statement
This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "anticipate," "believe," "continue," "estimate," "expect," "focus," "forecast," "intend," "may," "plan," "preliminary," "should," "target" or "will." Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; tariffs; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company's customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company's compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.
(1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
For additional information contact:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
| 2025 | 2024 | |||||||||||||||||||
| SELECTED BALANCE SHEET DATA: | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| Cash and cash equivalents | $ | 167,352 | $ | 87,321 | $ | 249,569 | $ | 146,347 | $ | 237,038 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Available for sale | 926,992 | 911,105 | 886,816 | 871,635 | 923,761 | |||||||||||||||
| Held-to-maturity, net | 113,105 | 116,001 | 121,279 | 128,271 | 143,714 | |||||||||||||||
| Total investment securities | 1,040,097 | 1,027,106 | 1,008,095 | 999,906 | 1,067,475 | |||||||||||||||
| Loans held for sale | 387 | 2,280 | 2,495 | 2,099 | 504 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial business | 709,101 | 665,321 | 654,519 | 713,947 | 707,564 | |||||||||||||||
| Commercial mortgage–construction | 566,359 | 582,619 | 533,506 | 518,013 | 528,694 | |||||||||||||||
| Commercial mortgage–multifamily | 475,867 | 470,954 | 467,527 | 463,171 | 453,027 | |||||||||||||||
| Commercial mortgage–non-owner occupied | 899,679 | 857,987 | 814,392 | 814,953 | 798,637 | |||||||||||||||
| Commercial mortgage–owner occupied | 286,391 | 288,036 | 290,216 | 289,733 | 264,698 | |||||||||||||||
| Residential real estate loans | 643,983 | 650,206 | 648,241 | 647,675 | 648,160 | |||||||||||||||
| Residential real estate lines | 74,769 | 75,552 | 76,203 | 75,510 | 75,668 | |||||||||||||||
| Consumer indirect | 853,176 | 845,772 | 874,651 | 894,596 | 920,428 | |||||||||||||||
| Other consumer | 43,953 | 42,757 | 43,734 | 43,870 | 45,170 | |||||||||||||||
| Total loans | 4,553,278 | 4,479,204 | 4,402,989 | 4,461,468 | 4,442,046 | |||||||||||||||
| Allowance for credit losses – loans | 48,964 | 48,041 | 44,678 | 43,952 | 43,075 | |||||||||||||||
| Total loans, net | 4,504,314 | 4,431,163 | 4,358,311 | 4,417,516 | 4,398,971 | |||||||||||||||
| Total interest-earning assets | 5,733,743 | 5,602,570 | 5,666,972 | 5,709,148 | 5,857,616 | |||||||||||||||
| Goodwill and other intangible assets, net | 60,651 | 60,758 | 60,867 | 60,979 | 72,287 | |||||||||||||||
| Total assets | 6,340,492 | 6,117,085 | 6,156,317 | 6,131,772 | 6,298,598 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | 945,182 | 950,351 | 978,660 | 939,346 | 972,801 | |||||||||||||||
| Interest-bearing demand | 773,475 | 705,195 | 793,996 | 711,580 | 798,831 | |||||||||||||||
| Savings and money market | 2,033,323 | 1,904,013 | 2,027,181 | 2,007,256 | 2,064,539 | |||||||||||||||
| Time deposits | 1,620,930 | 1,545,172 | 1,506,764 | 1,475,139 | 1,560,586 | |||||||||||||||
| Total deposits | 5,372,910 | 5,104,731 | 5,306,601 | 5,133,321 | 5,396,757 | |||||||||||||||
| Short-term borrowings | 55,000 | 99,000 | 55,000 | 202,000 | 133,000 | |||||||||||||||
| Long-term borrowings, net | 124,917 | 124,842 | 124,765 | 124,687 | 124,610 | |||||||||||||||
| Total interest-bearing liabilities | 4,607,645 | 4,405,912 | 4,507,706 | 4,520,662 | 4,681,566 | |||||||||||||||
| Shareholders’ equity | 589,928 | 568,984 | 500,342 | 467,667 | 445,734 | |||||||||||||||
| Common shareholders’ equity | 572,643 | 551,699 | 483,050 | 450,375 | 428,442 | |||||||||||||||
| Tangible common equity (1) | 511,992 | 490,941 | 422,183 | 389,396 | 356,155 | |||||||||||||||
| Accumulated other comprehensive loss | $ | (41,995 | ) | $ | (52,604 | ) | $ | (102,029 | ) | $ | (125,774 | ) | $ | (126,264 | ) | |||||
| Common shares outstanding | 20,110 | 20,077 | 15,474 | 15,472 | 15,447 | |||||||||||||||
| Treasury shares | 590 | 623 | 625 | 627 | 653 | |||||||||||||||
| CAPITAL RATIOS AND PER SHARE DATA: | ||||||||||||||||||||
| Leverage ratio | 9.24 | % | 9.15 | % | 8.98 | % | 8.61 | % | 8.03 | % | ||||||||||
| Common equity Tier 1 capital ratio | 10.38 | % | 10.54 | % | 10.28 | % | 10.03 | % | 9.43 | % | ||||||||||
| Tier 1 capital ratio | 10.71 | % | 10.87 | % | 10.62 | % | 10.36 | % | 9.76 | % | ||||||||||
| Total risk-based capital ratio | 13.09 | % | 13.25 | % | 12.95 | % | 12.65 | % | 12.04 | % | ||||||||||
| Common equity to assets | 9.03 | % | 9.02 | % | 7.85 | % | 7.34 | % | 6.80 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 8.15 | % | 8.11 | % | 6.93 | % | 6.41 | % | 5.72 | % | ||||||||||
| Common book value per share | $ | 28.48 | $ | 27.48 | $ | 31.22 | $ | 29.11 | $ | 27.74 | ||||||||||
| Tangible common book value per share (1) | $ | 25.46 | $ | 24.45 | $ | 27.28 | $ | 25.17 | $ | 23.06 | ||||||||||
1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
| 2025 | 2024 | |||||||||||||||||||
| First | Fourth | Third | Second | First | ||||||||||||||||
| SELECTED STATEMENT OF OPERATIONS DATA: | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
| Interest income | $ | 81,051 | $ | 78,119 | $ | 77,911 | $ | 78,788 | $ | 78,413 | ||||||||||
| Interest expense | 34,187 | 36,486 | 37,230 | 37,595 | 38,331 | |||||||||||||||
| Net interest income | 46,864 | 41,633 | 40,681 | 41,193 | 40,082 | |||||||||||||||
| Provision (benefit) for credit losses | 2,928 | 6,461 | 3,104 | 2,041 | (5,456 | ) | ||||||||||||||
| Net interest income after provision (benefit) for credit losses | 43,936 | 35,172 | 37,577 | 39,152 | 45,538 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges on deposits | 1,052 | 1,074 | 1,103 | 979 | 1,077 | |||||||||||||||
| Insurance income | 3 | 3 | 3 | 4 | 2,134 | |||||||||||||||
| Card interchange income | 1,840 | 2,045 | 1,900 | 2,008 | 1,902 | |||||||||||||||
| Investment advisory | 2,737 | 2,555 | 2,797 | 2,779 | 2,582 | |||||||||||||||
| Company owned life insurance | 2,777 | 1,425 | 1,404 | 1,360 | 1,298 | |||||||||||||||
| Investments in limited partnerships | 415 | 837 | 400 | 803 | 342 | |||||||||||||||
| Loan servicing | 123 | 295 | 88 | 158 | 175 | |||||||||||||||
| Income (loss) from derivative instruments, net | 250 | (37 | ) | 212 | 377 | 174 | ||||||||||||||
| Net gain on sale of loans held for sale | 117 | 186 | 220 | 124 | 88 | |||||||||||||||
| Net loss on investment securities | - | (100,055 | ) | - | - | - | ||||||||||||||
| Net (loss) gain on other assets | - | (19 | ) | 138 | 13,508 | (13 | ) | |||||||||||||
| Net (loss) gain on tax credit investments | (514 | ) | (636 | ) | (170 | ) | 406 | (375 | ) | |||||||||||
| Other | 1,573 | 1,291 | 1,345 | 1,508 | 1,517 | |||||||||||||||
| Total noninterest income (loss) | 10,373 | (91,036 | ) | 9,440 | 24,014 | 10,901 | ||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 16,898 | 17,159 | 15,879 | 15,748 | 17,340 | |||||||||||||||
| Occupancy and equipment | 3,590 | 3,791 | 3,370 | 3,448 | 3,752 | |||||||||||||||
| Professional services | 1,691 | 1,571 | 1,965 | 1,794 | 2,372 | |||||||||||||||
| Computer and data processing | 5,487 | 6,608 | 5,353 | 5,342 | 5,386 | |||||||||||||||
| Supplies and postage | 578 | 504 | 519 | 437 | 475 | |||||||||||||||
| FDIC assessments | 1,467 | 1,551 | 1,092 | 1,346 | 1,295 | |||||||||||||||
| Advertising and promotions | 342 | 465 | 371 | 440 | 297 | |||||||||||||||
| Amortization of intangibles | 107 | 109 | 112 | 114 | 217 | |||||||||||||||
| Provision for litigation settlement | - | 23,022 | - | - | - | |||||||||||||||
| Deposit-related charged-off items (recoveries) expense | (294 | ) | 354 | 410 | 398 | 19,179 | ||||||||||||||
| Restructuring charges | 68 | 35 | - | - | - | |||||||||||||||
| Other | 3,751 | 4,235 | 3,398 | 3,953 | 3,700 | |||||||||||||||
| Total noninterest expense | 33,685 | 59,404 | 32,469 | 33,020 | 54,013 | |||||||||||||||
| Income (loss) before income taxes | 20,624 | (115,268 | ) | 14,548 | 30,146 | 2,426 | ||||||||||||||
| Income tax expense (benefit) | 3,746 | (32,457 | ) | 1,082 | 4,517 | 356 | ||||||||||||||
| Net income (loss) | 16,878 | (82,811 | ) | 13,466 | 25,629 | 2,070 | ||||||||||||||
| Preferred stock dividends | 365 | 365 | 365 | 364 | 365 | |||||||||||||||
| Net income (loss) available to common shareholders | $ | 16,513 | $ | (83,176 | ) | $ | 13,101 | $ | 25,265 | $ | 1,705 | |||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||
| Earnings (loss) per share – basic | $ | 0.82 | $ | (5.07 | ) | $ | 0.85 | $ | 1.64 | $ | 0.11 | |||||||||
| Earnings (loss) per share – diluted | $ | 0.81 | $ | (5.07 | ) | $ | 0.84 | $ | 1.62 | $ | 0.11 | |||||||||
| Cash dividends declared on common stock | $ | 0.31 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | ||||||||||
| Common dividend payout ratio | 37.80 | % | -5.92 | % | 35.29 | % | 18.29 | % | 272.73 | % | ||||||||||
| Dividend yield (annualized) | 5.05 | % | 4.37 | % | 4.69 | % | 6.25 | % | 6.41 | % | ||||||||||
| Return on average assets (annualized) | 1.10 | % | -5.38 | % | 0.89 | % | 1.68 | % | 0.13 | % | ||||||||||
| Return on average equity (annualized) | 11.82 | % | -63.70 | % | 11.08 | % | 22.93 | % | 1.83 | % | ||||||||||
| Return on average common equity (annualized) | 11.92 | % | -66.19 | % | 11.18 | % | 23.51 | % | 1.57 | % | ||||||||||
| Return on average tangible common equity (annualized) (1) | 13.36 | % | -75.36 | % | 12.87 | % | 27.51 | % | 1.88 | % | ||||||||||
| Efficiency ratio (2) | 58.79 | % | 117.13 | % | 64.70 | % | 50.58 | % | 105.77 | % | ||||||||||
| Effective tax rate | 18.2 | % | -28.2 | % | 7.4 | % | 15.0 | % | 18.7 | % | ||||||||||
1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| 2025 | 2024 | |||||||||||||||||||
| First | Fourth | Third | Second | First | ||||||||||||||||
| SELECTED AVERAGE BALANCES: | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
| Federal funds sold and interest-earning deposits | $ | 71,767 | $ | 121,530 | $ | 49,476 | $ | 134,123 | $ | 158,075 | ||||||||||
| Investment securities(1) | 1,085,649 | 1,159,863 | 1,147,052 | 1,194,808 | 1,182,993 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial business | 677,700 | 658,038 | 673,830 | 704,272 | 722,720 | |||||||||||||||
| Commercial mortgage–construction | 562,724 | 558,200 | 513,768 | 495,177 | 470,115 | |||||||||||||||
| Commercial mortgage–multifamily | 475,262 | 458,691 | 467,801 | 466,501 | 468,028 | |||||||||||||||
| Commercial mortgage–non-owner occupied | 879,387 | 843,034 | 826,275 | 837,209 | 843,526 | |||||||||||||||
| Commercial mortgage–owner occupied | 286,526 | 288,502 | 285,061 | 260,495 | 248,172 | |||||||||||||||
| Residential real estate loans | 647,005 | 649,549 | 647,844 | 648,099 | 648,921 | |||||||||||||||
| Residential real estate lines | 74,709 | 76,164 | 75,671 | 75,575 | 76,396 | |||||||||||||||
| Consumer indirect | 848,282 | 858,854 | 881,133 | 905,056 | 934,380 | |||||||||||||||
| Other consumer | 42,230 | 43,333 | 43,789 | 44,552 | 51,535 | |||||||||||||||
| Total loans | 4,493,825 | 4,434,365 | 4,415,172 | 4,436,936 | 4,463,793 | |||||||||||||||
| Total interest-earning assets | 5,651,241 | 5,715,758 | 5,611,700 | 5,765,867 | 5,804,861 | |||||||||||||||
| Goodwill and other intangible assets, net | 60,717 | 60,824 | 60,936 | 62,893 | 72,409 | |||||||||||||||
| Total assets | 6,220,187 | 6,121,449 | 6,018,390 | 6,153,429 | 6,225,760 | |||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing demand | 745,210 | 757,221 | 691,412 | 741,006 | 749,512 | |||||||||||||||
| Savings and money market | 1,976,483 | 1,992,059 | 1,938,935 | 2,036,772 | 2,081,815 | |||||||||||||||
| Time deposits | 1,564,987 | 1,545,071 | 1,515,745 | 1,505,665 | 1,479,133 | |||||||||||||||
| Short-term borrowings | 95,223 | 56,513 | 129,130 | 140,110 | 179,747 | |||||||||||||||
| Long-term borrowings, net | 124,871 | 124,795 | 124,717 | 124,640 | 124,562 | |||||||||||||||
| Total interest-bearing liabilities | 4,506,774 | 4,475,659 | 4,399,939 | 4,548,193 | 4,614,769 | |||||||||||||||
| Noninterest-bearing demand deposits | 926,696 | 947,428 | 952,970 | 950,819 | 962,522 | |||||||||||||||
| Total deposits | 5,213,376 | 5,241,779 | 5,099,062 | 5,234,262 | 5,272,982 | |||||||||||||||
| Total liabilities | 5,640,981 | 5,604,249 | 5,535,112 | 5,703,929 | 5,770,725 | |||||||||||||||
| Shareholders’ equity | 579,206 | 517,200 | 483,278 | 449,500 | 455,035 | |||||||||||||||
| Common equity | 561,921 | 499,910 | 465,986 | 432,208 | 437,743 | |||||||||||||||
| Tangible common equity(2) | 501,204 | 439,086 | 405,050 | 369,315 | 365,334 | |||||||||||||||
| Common shares outstanding: | ||||||||||||||||||||
| Basic | 20,073 | 16,415 | 15,464 | 15,444 | 15,403 | |||||||||||||||
| Diluted | 20,285 | 16,415 | 15,636 | 15,556 | 15,543 | |||||||||||||||
| SELECTED AVERAGE YIELDS: (Tax equivalent basis) | ||||||||||||||||||||
| Investment securities | 4.25 | % | 2.38 | % | 2.14 | % | 2.17 | % | 2.09 | % | ||||||||||
| Loans | 6.20 | % | 6.28 | % | 6.42 | % | 6.40 | % | 6.33 | % | ||||||||||
| Total interest-earning assets | 5.80 | % | 5.45 | % | 5.53 | % | 5.50 | % | 5.43 | % | ||||||||||
| Interest-bearing demand | 1.15 | % | 1.34 | % | 1.05 | % | 1.18 | % | 1.11 | % | ||||||||||
| Savings and money market | 2.75 | % | 2.94 | % | 3.07 | % | 3.01 | % | 3.08 | % | ||||||||||
| Time deposits | 4.31 | % | 4.53 | % | 4.72 | % | 4.72 | % | 4.68 | % | ||||||||||
| Short-term borrowings | 2.09 | % | 0.15 | % | 2.64 | % | 2.75 | % | 3.42 | % | ||||||||||
| Long-term borrowings, net | 5.00 | % | 5.03 | % | 5.03 | % | 5.02 | % | 5.02 | % | ||||||||||
| Total interest-bearing liabilities | 3.07 | % | 3.24 | % | 3.37 | % | 3.32 | % | 3.34 | % | ||||||||||
| Net interest rate spread | 2.73 | % | 2.21 | % | 2.16 | % | 2.18 | % | 2.09 | % | ||||||||||
| Net interest margin | 3.35 | % | 2.91 | % | 2.89 | % | 2.87 | % | 2.78 | % | ||||||||||
1. Includes investment securities at adjusted amortized cost.
2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| 2025 | 2024 | |||||||||||||||||||
| First | Fourth | Third | Second | First | ||||||||||||||||
| ASSET QUALITY DATA: | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||
| Allowance for Credit Losses – Loans | ||||||||||||||||||||
| Beginning balance | $ | 48,041 | $ | 44,678 | $ | 43,952 | $ | 43,075 | $ | 51,082 | ||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||
| Commercial business | 57 | 131 | (3 | ) | 7 | (37 | ) | |||||||||||||
| Commercial mortgage–construction | - | - | - | - | - | |||||||||||||||
| Commercial mortgage–multifamily | - | - | 13 | - | - | |||||||||||||||
| Commercial mortgage–non-owner occupied | (1 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||
| Commercial mortgage–owner occupied | (1 | ) | (1 | ) | (2 | ) | (2 | ) | - | |||||||||||
| Residential real estate loans | 41 | (4 | ) | (1 | ) | 96 | 4 | |||||||||||||
| Residential real estate lines | - | - | - | - | - | |||||||||||||||
| Consumer indirect | 2,149 | 2,557 | 1,553 | 844 | 2,973 | |||||||||||||||
| Other consumer | 124 | 100 | 106 | 178 | 182 | |||||||||||||||
| Total net charge-offs (recoveries) | 2,369 | 2,778 | 1,665 | 1,122 | 3,121 | |||||||||||||||
| Provision (benefit) for credit losses – loans | 3,292 | 6,141 | 2,391 | 1,999 | (4,886 | ) | ||||||||||||||
| Ending balance | $ | 48,964 | $ | 48,041 | $ | 44,678 | $ | 43,952 | $ | 43,075 | ||||||||||
| Net charge-offs (recoveries) to average loans (annualized): | ||||||||||||||||||||
| Commercial business | 0.03 | % | 0.80 | % | 0.00 | % | 0.00 | % | -0.02 | % | ||||||||||
| Commercial mortgage–construction | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Commercial mortgage–multifamily | 0.00 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
| Commercial mortgage–non-owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Commercial mortgage–owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Residential real estate loans | 0.03 | % | 0.00 | % | 0.00 | % | 0.06 | % | 0.00 | % | ||||||||||
| Residential real estate lines | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Consumer indirect | 1.03 | % | 1.18 | % | 0.70 | % | 0.38 | % | 1.28 | % | ||||||||||
| Other consumer | 1.19 | % | 0.91 | % | 0.95 | % | 1.62 | % | 1.41 | % | ||||||||||
| Total loans | 0.21 | % | 0.25 | % | 0.15 | % | 0.10 | % | 0.28 | % | ||||||||||
| Supplemental information(1) | ||||||||||||||||||||
| Non-performing loans: | ||||||||||||||||||||
| Commercial business | $ | 5,672 | $ | 5,609 | $ | 5,752 | $ | 5,680 | $ | 5,956 | ||||||||||
| Commercial mortgage–construction | 19,684 | 20,280 | 20,280 | 4,970 | 5,320 | |||||||||||||||
| Commercial mortgage–multifamily | - | - | 71 | 183 | 185 | |||||||||||||||
| Commercial mortgage–non-owner occupied | 4,766 | 4,773 | 4,903 | 4,919 | 4,929 | |||||||||||||||
| Commercial mortgage–owner occupied | 349 | 354 | 366 | 380 | 392 | |||||||||||||||
| Residential real estate loans | 6,035 | 6,918 | 5,790 | 5,961 | 6,797 | |||||||||||||||
| Residential real estate lines | 316 | 253 | 232 | 183 | 235 | |||||||||||||||
| Consumer indirect | 2,917 | 3,157 | 3,291 | 2,897 | 2,880 | |||||||||||||||
| Other consumer | 279 | 62 | 57 | 36 | 36 | |||||||||||||||
| Total non-performing loans | 40,018 | 41,406 | 40,742 | 25,209 | 26,730 | |||||||||||||||
| Foreclosed assets | 196 | 60 | 109 | 63 | 140 | |||||||||||||||
| Total non-performing assets | $ | 40,214 | $ | 41,466 | $ | 40,851 | $ | 25,272 | $ | 26,870 | ||||||||||
| Total non-performing loans to total loans | 0.88 | % | 0.92 | % | 0.93 | % | 0.57 | % | 0.60 | % | ||||||||||
| Total non-performing assets to total assets | 0.63 | % | 0.68 | % | 0.66 | % | 0.41 | % | 0.43 | % | ||||||||||
| Allowance for credit losses – loans to total loans | 1.08 | % | 1.07 | % | 1.01 | % | 0.99 | % | 0.97 | % | ||||||||||
| Allowance for credit losses – loans to non-performing loans | 122 | % | 116 | % | 110 | % | 174 | % | 161 | % | ||||||||||
1. At period end.
FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)
| 2025 | 2024 | |||||||||||||||||||
| First | Fourth | Third | Second | First | ||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
| Ending tangible assets: | ||||||||||||||||||||
| Total assets | $ | 6,340,492 | $ | 6,117,085 | $ | 6,156,317 | $ | 6,131,772 | $ | 6,298,598 | ||||||||||
| Less: Goodwill and other intangible assets, net | 60,651 | 60,758 | 60,867 | 60,979 | 72,287 | |||||||||||||||
| Tangible assets | $ | 6,279,841 | $ | 6,056,327 | $ | 6,095,450 | $ | 6,070,793 | $ | 6,226,311 | ||||||||||
| Ending tangible common equity: | ||||||||||||||||||||
| Common shareholders’ equity | $ | 572,643 | $ | 551,699 | $ | 483,050 | $ | 450,375 | $ | 428,442 | ||||||||||
| Less: Goodwill and other intangible assets, net | 60,651 | 60,758 | 60,867 | 60,979 | 72,287 | |||||||||||||||
| Tangible common equity | $ | 511,992 | $ | 490,941 | $ | 422,183 | $ | 389,396 | $ | 356,155 | ||||||||||
| Tangible common equity to tangible assets (1) | 8.15 | % | 8.11 | % | 6.93 | % | 6.41 | % | 5.72 | % | ||||||||||
| Common shares outstanding | 20,110 | 20,077 | 15,474 | 15,472 | 15,447 | |||||||||||||||
| Tangible common book value per share (2) | $ | 25.46 | $ | 24.45 | $ | 27.28 | $ | 25.17 | $ | 23.06 | ||||||||||
| Average tangible assets: | ||||||||||||||||||||
| Average assets | $ | 6,220,187 | $ | 6,121,449 | $ | 6,018,390 | $ | 6,153,429 | $ | 6,225,760 | ||||||||||
| Less: Average goodwill and other intangible assets, net | 60,717 | 60,824 | 60,936 | 62,893 | 72,409 | |||||||||||||||
| Average tangible assets | $ | 6,159,470 | $ | 6,060,625 | $ | 5,957,454 | $ | 6,090,536 | $ | 6,153,351 | ||||||||||
| Average tangible common equity: | ||||||||||||||||||||
| Average common equity | $ | 561,921 | $ | 499,910 | $ | 465,986 | $ | 432,208 | $ | 437,743 | ||||||||||
| Less: Average goodwill and other intangible assets, net | 60,717 | 60,824 | 60,936 | 62,893 | 72,409 | |||||||||||||||
| Average tangible common equity | $ | 501,204 | $ | 439,086 | $ | 405,050 | $ | 369,315 | $ | 365,334 | ||||||||||
| Net income (loss) available to common shareholders | $ | 16,513 | $ | (83,176 | ) | $ | 13,101 | $ | 25,265 | $ | 1,705 | |||||||||
| Return on average tangible common equity (3) | 13.36 | % | -75.36 | % | 12.87 | % | 27.51 | % | 1.88 | % | ||||||||||
1. Tangible common equity divided by tangible assets.
2. Tangible common equity divided by common shares outstanding.
3. Net income available to common shareholders (annualized) divided by average tangible common equity.
FAQ
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How did FISI's net interest margin perform in Q1 2025?
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How much did FISI's deposits grow in Q1 2025 compared to Q4 2024?
