WARSAW, N.Y., Oct. 22, 2009 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (Nasdaq:FISI) (the "Company"), the parent company of Five Star Bank, today announced financial results for the third quarter ended September 30, 2009. Net income for the Company was $3.4 million or $0.23 per diluted share for the third quarter of 2009, compared with a net loss of $28.4 million or $2.66 per diluted share for the third quarter of 2008. For the first nine months of 2009, net income was $9.0 million or $0.57 per diluted share, compared with a net loss of $23.0 million or $2.21 per diluted share for the same period last year.
Highlights:
-- Net interest income for the third quarter of 2009 was $18.1
million, an increase of $1.3 million or 8% over the third
quarter of 2008. For the first nine months of 2009, net
interest income was $53.1 million, an increase of $5.0 million
or 10% over the first nine months of 2008. The increase is
reflective of higher earning asset volume and an improved mix
of earnings assets, primarily driven by growth in the loan
portfolio.
-- Net interest margin was 3.99% for the third quarter of 2009, up
1 basis point from the third quarter of 2008. For the nine
months ended September 30, 2009, net interest margin was 4.03%,
an increase of 15 basis points from the same period last year.
-- Total loans were $1.259 billion at September 30, 2009, an
increase of $181.2 million or 17% from September 30, 2008.
- Commercial loans were $536.6 million at September 30, 2009,
an increase of $85.0 million or 19% from one year ago, and
an increase of $12.9 million or 2% since June 30, 2009.
- Consumer loans were $722.8 million at September 30, 2009, an
increase of $96.2 million or 15% from one year ago, and an
increase of $27.8 million or 4% since June 30, 2009.
-- Total deposits were $1.797 billion at September 30, 2009, an
increase of $136.8 million or 8% from September 30, 2008, the
majority of which was attributable to an increase in nonpublic
certificates of deposit.
-- The "well capitalized" position was maintained, with total
shareholders' equity of $195.9 million, a leverage capital
ratio of 7.89% and a total risk-based capital ratio of 11.98%.
-- Nonaccrual loans totaled $5.8 million at September 30, 2009,
down $1.8 million or 24% from a year ago, and down $3.7 million
or 39% from the prior quarter. Foreclosed assets totaled $696
thousand, down $313 thousand or 31% from a year ago, and down
$350 thousand or 33% from the prior quarter.
-- Provision for loan losses for the third quarter of 2009 was
$2.6 million and net charge-offs were $2.5 million. Provision
for loan losses of $6.6 million for the first nine months of
2009 exceeded net charge-offs of $4.6 million, resulting in a
$2.0 million increase in the allowance for loan losses to $20.8
million or 1.65% of total loans.
-- The third quarter of 2009 includes FDIC assessments totaling
$753 thousand, a $517 thousand increase from the third quarter
of 2008, due to higher premiums mandated by the FDIC to
replenish deposit insurance reserves.
-- The third quarter of 2009 includes other-than-temporary
impairment charges of $2.3 million on selected investment
securities that were partially offset by $1.7 million in net
gain on investment securities.
"Our core community banking business model continues to produce positive results in 2009," said Peter G. Humphrey, President and Chief Executive Officer of the Company. "We've had outstanding business development as both commercial and consumer loans reflect double digit percentage growth from a year ago, while maintaining our disciplined underwriting standards. As loans and deposits have grown over the past several quarters, our capital, liquidity and asset quality have remained strong. These factors, along with higher revenues and a command on controllable costs continue to positively impact our core operations."
Net Interest Income
Net interest income for the third quarter of 2009 was $18.1 million, an increase of $1.3 million or 8% over the third quarter of 2008. For the first nine months of 2009, net interest income was $53.1 million, an increase of $5.0 million or 10% over the first nine months of 2008. Net interest margin was 3.99% for the third quarter of 2009, an increase of 1 basis point from the third quarter of 2008. For the nine months ended September 30, 2009, net interest margin was 4.03%, an increase of 15 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 performance of net interest income and margin.
Noninterest Income (Loss)
Noninterest income for the third quarter of 2009 was $4.4 million, compared with a noninterest loss of $29.3 million for the third quarter of 2008. For the first nine months of 2009, noninterest income was $13.6 million, compared with a noninterest loss of $23.7 million for the first nine months of 2008. Other-than-temporary impairment charges ("OTTI") on a privately issued whole loan collateralized mortgage obligation and pooled trust preferred securities included in noninterest income amounted to $2.3 million during the third quarter of 2009. The noninterest loss for the third quarter of 2008 included OTTI of $34.6 million related to auction rate preferred equity securities and pooled trust preferred securities. The third quarter of 2009 also reflects a $1.7 million net gain on sale of investment securities, comprised of $1.9 million in gross gains, primarily from securities issued by U.S. government sponsored agencies, and $141 thousand in gross losses on privately issued whole loan collateralized mortgage obligations.
Noninterest Expense
Noninterest expense for the third quarter of 2009 was $15.1 million, an increase of $1.7 million from the third quarter of 2008. For the first nine months of 2009 noninterest expense was $47.7 million, an increase of $5.6 million over the first nine months of 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 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 an increase in professional services expense.
Balance Sheet
Total assets at September 30, 2009 were $2.138 billion, up $192.4 million from $1.946 billion at September 30, 2008. Total loans were $1.259 billion at September 30, 2009, an increase of $181.2 million from $1.078 billion at September 30, 2008. Total deposits increased $136.8 million to $1.797 billion at September 30, 2009, versus $1.660 billion at September 30, 2008. The majority of the increase in deposits was attributable to an increase in nonpublic certificates of deposit.
Total investment securities were $670.8 million at September 30, 2009, down slightly from $671.8 million at September 30, 2008. The Company previously identified three groups of securities from its available for sale portfolio that contained high levels of risk. Those securities consisted of auction rate preferred equity securities, privately issued whole loan collateralized mortgage obligations and pooled trust preferred securities. At September 30, 2009 there were no auction rate preferred equity securities, $1.4 million in pooled trust preferred securities and $8.8 million of privately issued whole loan collateralized mortgage obligations included in available for sale investment securities. This group of securities totaled $10.2 million at September 30, 2009, a reduction of $70.7 million from $80.9 million at September 30, 2008. The fair value of those securities at September 30, 2009 was $10.7 million resulting in an unrealized gain of $469 thousand over the adjusted book value of $10.2 million. The reduction in this group of securities has resulted from sales, amortization and recognition of other than temporary impairment charges.
Asset Quality and Capital Ratios
Net charge-offs increased by $1.9 million from the third quarter of 2008 to $2.5 million, or 0.79% of average loans, primarily due to a $1.4 million charge-off of one commercial loan relationship. For the nine months ended September 30, 2009 net charge-offs increased in comparison to the same period last year by $2.5 million to $4.6 million, or 0.51% of average loans. The provision for loan losses was $2.6 million for the quarter, compared with $1.9 million in the same quarter a year ago. For the nine months ended September 30, 2009 the provision for loan losses totaled $6.6 million, compared with $4.0 million in the same period last year. The allowance for loan losses was $20.8 million or 1.65% of total loans at September 30, 2009, compared with $17.4 million or 1.62% of total loans at September 30, 2008. At September 30, 2009, non-performing loans totaled $5.8 million, or 0.46% of total loans, down $1.8 million or 24% from a year ago, and down $3.7 million or 39% from prior quarter. At September 30, 2009, foreclosed assets totaled $696 thousand, down $313 thousand or 31% from a year ago, and down $350 thousand or 33% from prior quarter. The reduction in nonperforming loans of $3.7 million during the third quarter of 2009 was principally attributable to one commercial loan relationship of $3.1 million on which the Company recorded a charge-off of $1.4 million together with a cash settlement of the remaining $1.7 million. At September 30, 2009 non-performing assets totaled $7.9 million, which included $1.4 million in non-performing investment securities on which interest payments are being deferred.
At September 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 September 30, 2009, the Company's leverage ratio was 7.89% and the total risk-based capital ratio was 11.98%.
About Financial Institutions, Inc.
With approximately $2.1 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
----------------------------- -------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
--------- --------- --------- --------- ---------
SELECTED BALANCE
SHEET DATA
(Amounts in
thousands)
Cash and cash
equivalents:
Cash and due
from banks $ 48,721 41,405 48,073 34,528 54,105
Federal funds
sold and
interest-
bearing
deposits 11,385 39,910 74,616 20,659 22,599
--------- --------- --------- --------- ---------
Total cash
and cash
equivalents 60,106 81,315 122,689 55,187 76,704
Investment
securities:
Available
for sale 625,744 498,561 553,710 547,506 607,357
Held-to-
maturity 45,056 47,465 60,675 58,532 64,434
--------- --------- --------- --------- ---------
Total
investment
securities 670,800 546,026 614,385 606,038 671,791
Loans held
for sale 1,032 3,005 2,290 1,013 1,008
Loans:
Commercial 197,404 198,608 174,505 158,543 156,809
Commercial
real estate 296,648 282,048 266,176 262,234 248,267
Agriculture 42,545 42,997 42,524 44,706 46,490
Residential
real estate 147,447 149,926 170,834 177,683 173,893
Consumer
indirect 345,448 319,735 283,465 255,054 227,971
Consumer
direct and
home equity 229,870 225,258 220,440 222,859 224,693
--------- --------- --------- --------- ---------
Total
loans 1,259,362 1,218,572 1,157,944 1,121,079 1,078,123
Allowance
for loan
losses 20,782 20,614 19,657 18,749 17,420
--------- --------- --------- --------- ---------
Total
loans,
net 1,238,580 1,197,958 1,138,287 1,102,330 1,060,703
Total
interest-
earning
assets(1)(2) 1,934,786 1,802,489 1,843,522 1,743,141 1,789,499
Goodwill 37,369 37,369 37,369 37,369 37,369
Total assets 2,138,205 1,996,724 2,030,429 1,916,919 1,945,819
Deposits:
Noninterest-
bearing
demand 298,972 292,825 279,284 292,586 293,027
Interest-
bearing
demand 383,982 357,443 392,353 344,616 376,098
Savings and
money market 402,042 366,373 396,644 348,594 383,456
Certificates
of deposit 712,182 683,619 668,999 647,467 607,833
--------- --------- --------- --------- ---------
Total
deposits 1,797,178 1,700,260 1,737,280 1,633,263 1,660,414
Borrowings 120,113 79,977 78,761 70,820 114,684
Total
interest-
bearing
liabilities 1,618,319 1,487,412 1,536,757 1,411,497 1,482,071
Shareholders'
equity 195,935 192,455 191,676 190,300 152,770
Common
shareholders'
equity (3) 142,605 139,213 138,519 137,226 135,195
Tangible
common
shareholders'
equity (4) 105,176 101,712 100,946 99,577 97,468
Securities
available
for sale -
fair value
adjustment
included in
shareholders'
equity, net
of tax $ 4,778 3,081 3,503 3,463 (9,797)
Common
shares
outstanding 10,818 10,821 10,805 10,798 10,806
Treasury
shares 530 527 543 550 542
CAPITAL
RATIOS
Leverage
ratio 7.89% 7.84 7.96 8.05 7.37
Tier 1
risk-based
capital 10.73% 10.69 11.23 11.83 11.10
Total risk
based
capital 11.98% 11.94 12.49 13.08 12.35
Common
equity
to assets 6.67% 6.97 6.82 7.16 6.95
Tangible
common
equity
to
tangible
assets (4) 5.01% 5.19 5.07 5.30 5.11
Common
book value
per share $ 13.18 12.86 12.82 12.71 12.51
Tangible
common book
value per
share (4) $ 9.72 9.40 9.34 9.22 9.02
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Nine months ended
September 30,
-------------------
2009 2008
--------- ---------
SELECTED INCOME STATEMENT DATA
(Dollar amounts in thousands)
Interest income $ 70,092 74,366
Interest expense 17,042 26,348
--------- ---------
Net interest income 53,050 48,018
Provision for loan losses 6,614 3,965
--------- ---------
Net interest income after provision
for loan losses 46,436 44,053
--------- ---------
Noninterest income (loss):
Service charges on deposits 7,480 7,812
ATM and debit card 2,639 2,460
Loan servicing 1,031 530
Company owned life insurance 806 269
Broker-dealer fees and commissions 741 1,223
Net gain on sale of loans held for sale 545 304
Net gain on investment securities 2,928 232
Impairment charge on investment securities (4,101) (38,345)
Net gain on sale of other assets 177 254
Other 1,366 1,589
--------- ---------
Total noninterest income (loss) 13,612 (23,672)
--------- ---------
Noninterest expense:
Salaries and employee benefits 25,421 23,626
Occupancy and equipment 8,289 7,789
FDIC assessments 3,026 369
Professional services 1,972 1,504
Computer and data processing 1,757 1,764
Supplies and postage 1,414 1,353
Advertising and promotions 650 905
Other 5,131 4,757
--------- ---------
Total noninterest expense 47,660 42,067
--------- ---------
Income (loss) before income taxes 12,388 (21,686)
Income tax expense (benefit) 3,384 1,330
--------- ---------
Net income (loss) $ 9,004 (23,016)
========= =========
Preferred stock dividends 2,770 1,112
--------- ---------
Net income (loss) applicable to
common shareholders $ 6,234 (24,128)
========= =========
STOCK AND RELATED PER SHARE DATA
Net income (loss) per share - basic $ 0.58 (2.21)
Net income (loss) per share - diluted $ 0.57 (2.21)
Cash dividends declared on common stock $ 0.30 0.44
Common dividend payout ratio (5) 51.72% NA
Dividend yield (annualized) 4.02% 2.94
Stock price (Nasdaq: FISI):
High $ 15.99 22.50
Low $ 3.27 14.82
Close $ 9.97 20.01
Quarterly Trends
----------------------------------------
2009 2008
------------------------ ---------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
-------- ------- ------- ------- -------
SELECTED INCOME STATEMENT DATA
(Dollar amounts in thousands)
Interest income $ 23,697 23,302 23,093 24,582 24,558
Interest expense 5,619 5,657 5,766 7,269 7,812
-------- ------- ------- ------- -------
Net interest income 18,078 17,645 17,327 17,313 16,746
Provision for loan losses 2,620 2,088 1,906 2,586 1,891
-------- ------- ------- ------- -------
Net interest income
after provision
for loan losses 15,458 15,557 15,421 14,727 14,855
-------- ------- ------- ------- -------
Noninterest income (loss):
Service charges on
deposits 2,643 2,517 2,320 2,685 2,794
ATM and debit card 920 908 811 853 852
Loan servicing 304 470 257 134 112
Company owned life
insurance 271 275 260 294 223
Broker-dealer fees and
commissions 238 234 269 235 363
Net gain on sale of loans
held for sale 129 246 170 35 48
Net gain on investment
securities 1,721 1,153 54 56 12
Impairment charge on
investment securities (2,318) (1,733) (50)(29,870)(34,554)
Net gain on sale of
other assets 19 -- 158 51 102
Other 479 445 442 421 700
-------- ------- ------- ------- -------
Total noninterest
income (loss) 4,406 4,515 4,691 (25,106)(29,348)
-------- ------- ------- ------- -------
Noninterest expense:
Salaries and employee
benefits 8,253 8,437 8,731 7,811 7,021
Occupancy and equipment 2,730 2,683 2,876 2,713 2,642
FDIC assessments 753 1,593 680 305 236
Professional services 532 591 849 637 467
Computer and data
processing 578 562 617 669 603
Supplies and postage 473 476 465 447 475
Advertising and promotions 227 249 174 548 472
Other 1,596 1,849 1,686 2,264 1,493
-------- ------- ------- ------- -------
Total noninterest
expense 15,142 16,440 16,078 15,394 13,409
-------- ------- ------- ------- -------
Income (loss) before
income taxes 4,722 3,632 4,034 (25,773)(27,902)
Income tax expense (benefit) 1,313 1,004 1,067 (22,631) 524
-------- ------- ------- ------- -------
Net income (loss) $ 3,409 2,628 2,967 (3,142)(28,426)
======== ======= ======= ======= =======
Preferred stock dividends 927 925 918 426 371
-------- ------- ------- ------- -------
Net income (loss)
applicable to
common shareholders $ 2,482 1,703 2,049 (3,568)(28,797)
======== ======= ======= ======= =======
STOCK AND RELATED PER SHARE DATA
Net income (loss)
per share - basic $ 0.23 0.16 0.19 (0.33) (2.66)
Net income (loss)
per share - diluted $ 0.23 0.16 0.19 (0.33) (2.66)
Cash dividends declared
on common stock $ 0.10 0.10 0.10 0.10 0.15
Common dividend payout
ratio (5) 43.48 62.50 52.63 NA NA
Dividend yield
(annualized) 3.98 2.94 5.32 2.77 2.98
Stock price (Nasdaq: FISI):
High $ 15.00 15.99 14.95 20.27 22.50
Low $ 9.90 6.98 3.27 10.06 14.82
Close $ 9.97 13.66 7.62 14.35 20.01
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Nine months ended
September 30,
----------------------
2009 2008
---------- ----------
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Federal funds sold and interest-bearing
deposits $ 44,209 29,751
Investment securities (1) 593,533 739,896
Loans (2):
Commercial 181,515 144,060
Commercial real estate 277,633 248,544
Agriculture 42,771 45,283
Residential real estate 163,665 169,939
Consumer indirect 301,110 165,153
Consumer direct and home equity 223,187 225,050
---------- ----------
Total loans 1,189,881 998,029
Total interest-earning assets 1,829,799 1,768,567
Goodwill 37,369 37,369
Total assets 2,005,656 1,899,023
Interest-bearing liabilities:
Interest-bearing demand 362,870 343,247
Savings and money market 377,877 368,882
Certificates of deposit 681,204 613,443
Borrowings 81,675 87,200
---------- ----------
Total interest-bearing liabilities 1,503,626 1,412,772
Noninterest-bearing demand deposits 288,918 279,064
Total deposits 1,710,869 1,604,636
Total liabilities 1,812,692 1,707,733
Shareholders' equity 192,964 191,290
Common equity (3) 139,771 173,710
Tangible common equity (4) $ 102,226 135,861
Common shares outstanding:
Basic 10,726 10,852
Diluted 10,764 10,852
SELECTED AVERAGE YIELDS/
RATES AND RATIOS
(Tax equivalent basis)
Federal funds sold and interest-
bearing deposits 0.22% 2.57
Investment securities 4.17% 4.87
Loans 6.01% 6.70
Total interest-earning assets 5.27% 5.87
Interest-bearing demand 0.22% 1.02
Savings and money market 0.28% 1.13
Certificates of deposit 2.62% 3.80
Borrowings 3.78% 4.83
Total interest-bearing liabilities 1.51% 2.49
Net interest rate spread 3.76% 3.38
Net interest rate margin 4.03% 3.88
Net income (loss) (annualized
returns on):
Average assets 0.60% (1.62)
Average equity 6.24% (16.07)
Average common equity (6) 5.96% (18.55)
Average tangible common equity (7) 8.15% (23.72)
Efficiency ratio (8) 67.51% 63.17
Quarterly Trends
2009 2008
----------------------------- -------------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
--------- --------- --------- --------- ---------
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Federal funds sold
and interest-
bearing deposits $ 39,945 49,105 43,618 17,089 12,897
Investment
securities (1) 585,830 593,740 601,199 666,917 721,419
Loans (2):
Commercial 194,803 183,733 165,688 155,814 147,350
Commercial
real estate 288,658 275,275 268,749 255,882 249,769
Agriculture 43,250 42,368 42,690 44,299 45,965
Residential
real estate 148,325 168,300 174,659 175,200 173,175
Consumer indirect 334,123 301,112 267,360 244,891 200,586
Consumer direct
and home equity 226,355 222,122 221,024 222,235 222,241
--------- --------- --------- --------- ---------
Total loans 1,235,514 1,192,910 1,140,170 1,098,321 1,039,086
Total interest-
earning assets 1,862,779 1,838,320 1,787,470 1,782,938 1,774,201
Goodwill 37,369 37,369 37,369 37,369 37,369
Total assets 2,040,030 2,012,337 1,963,764 1,924,174 1,908,577
Interest-bearing
liabilities:
Interest-bearing
demand 361,147 366,985 360,470 360,970 342,188
Savings and money
market 369,562 392,355 371,738 373,034 366,449
Certificates
of deposit 699,011 676,221 668,041 629,111 591,025
Borrowings 94,642 78,763 71,363 105,164 118,023
--------- --------- --------- --------- ---------
Total interest-
bearing
liabilities 1,524,362 1,514,324 1,471,612 1,468,279 1,417,685
Noninterest-bearing
demand deposits 298,723 286,155 281,690 284,643 294,136
Total deposits 1,728,443 1,721,716 1,681,939 1,647,758 1,593,798
Total liabilities 1,845,010 1,819,891 1,772,377 1,766,239 1,727,473
Shareholders' equity 195,020 192,446 191,387 157,935 181,104
Common equity (3) 141,741 139,253 138,281 136,887 163,527
Tangible common
equity (4) $ 104,269 101,709 100,660 99,191 125,754
Common shares
outstanding:
Basic 10,738 10,723 10,716 10,717 10,738
Diluted 10,779 10,765 10,747 10,717 10,738
SELECTED AVERAGE
YIELDS/ RATES
AND RATIOS
(Tax equivalent basis)
Federal funds sold
and interest-
bearing deposits 0.20 0.21 0.25 1.09 2.10
Investment securities 3.79 4.16 4.54 4.72 4.66
Loans 6.01 5.99 6.04 6.35 6.52
Total interest-
earning assets 5.19 5.24 5.39 5.69 5.73
Interest-bearing
demand 0.19 0.20 0.25 0.69 0.86
Savings and money
market 0.29 0.27 0.27 0.68 0.93
Certificates
of deposit 2.49 2.63 2.76 3.09 3.33
Borrowings 3.35 3.91 4.21 4.23 4.30
Total interest-
bearing liabilities 1.46 1.50 1.59 1.97 2.19
Net interest
rate spread 3.73 3.74 3.80 3.72 3.54
Net interest
rate margin 3.99 4.01 4.09 4.07 3.98
Net income (loss)
(annualized
returns on):
Average assets 0.66 0.52 0.61 (0.65) (5.93)
Average equity 6.93 5.48 6.29 (7.91) (62.44)
Average common
equity (6) 6.95 4.91 6.01 (10.37) (70.06)
Average tangible
common equity(7) 9.45 6.72 8.25 (14.31) (91.10)
Efficiency ratio(8) 63.43 69.49 69.72 66.65 58.10
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Nine months ended
September 30,
-------- --------
2009 2008
-------- --------
ASSET QUALITY DATA
(Dollar amounts in thousands)
Nonaccrual loans $ 5,816 7,609
Accruing loans past due 90 days or more 1 32
-------- --------
Total non-performing loans 5,817 7,641
Foreclosed assets 696 1,009
Non-performing investment securities 1,431 --
-------- --------
Total non-performing assets $ 7,944 8,650
======== ========
Net loan charge-offs $ 4,581 2,066
Net charge-offs to average loans (annualized) 0.51% 0.28
Total non-performing loans to total loans 0.46% 0.71
Total non-performing assets to total assets 0.37% 0.44
Allowance for loan losses to total loans 1.65% 1.62
Allowance for loan losses to
non-performing loans 357% 228
Quarterly Trends
-------------------------------------------
2009 2008
------------------------- ----------------
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
ASSET QUALITY DATA
(Dollar amounts in thousands)
Nonaccrual loans $ 5,816 9,496 8,826 8,189 7,609
Accruing loans past
due 90 days or more 1 2 301 7 32
------- ------- ------- ------- -------
Total non-performing
loans 5,817 9,498 9,127 8,196 7,641
Foreclosed assets 696 1,046 877 1,007 1,009
Non-performing
investment securities 1,431 3,175 3,396 49 --
------- ------- ------- ------- -------
Total non-performing
assets $ 7,944 13,719 13,400 9,252 8,650
======= ======= ======= ======= =======
Net loan charge-offs $ 2,452 1,131 998 1,257 509
Net charge-offs to
average loans
(annualized) 0.79 0.38 0.35 0.46 0.20
Total non-performing
loans to total loans 0.46 0.78 0.79 0.73 0.71
Total non-performing
assets to total assets 0.37 0.69 0.66 0.48 0.44
Allowance for loan
losses to total loans 1.65 1.69 1.70 1.67 1.62
Allowance for loan
losses to
non-performing loans 357 217 215 229 228
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(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.