WARSAW, N.Y., Jan. 28, 2009 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (Nasdaq:FISI) (the "Company"), the parent company of Five Star Bank, today reported a net loss of $3.1 million (or $0.33 loss per share) for the quarter ended December 31, 2008, compared to net income of $4.1 million (or $0.34 earnings per diluted share) for the 2007 fourth quarter. For the year ended December 31, 2008, the Company's net loss totaled $26.2 million (or $2.56 loss per share), compared to net income of $16.4 million (or $1.33 diluted earnings per share) in 2007.
Highlights for the fourth quarter of 2008 include:
* Core business operations absent the other-than-temporary
impairment ("OTTI") charge continued to improve, driven by net
interest income of $17.3 million for the fourth quarter, which
increased $567 thousand from the third quarter of 2008 and $2.1
million from the fourth quarter of last year. On a year-to-date
basis net interest income increased to $65.3 million in 2008, a
$7.3 million or 12% increase compared to 2007. The increases
reflect improved net interest margin and growth of the loan
portfolio.
* Incurred a pre-tax non-cash charge of $29.9 million during the
fourth quarter and $68.2 million for the year ended
December 31, 2008 for OTTI on certain investment securities.
* Retained a "well-capitalized" equity position with total equity
capital of $190.3 million, which includes $37.5 million in
preferred equity issued in December 2008 under the U.S. Treasury
Department's Capital Purchase Program. As of December 31, 2008,
the leverage capital ratio was 8.05% and total risk-based capital
ratio was 13.08%.
* During the fourth quarter, loans increased $43.0 million to
$1.121 billion at December 31, 2008 compared with $1.078 billion
at September 30, 2008. Consumer indirect auto loans accounted for
$27.1 million and commercial-related loans accounted for $13.9
million of the fourth quarter increase in loans. Total loans
increased $156.9 million or 16% for the one year period ending
December 31, 2008. Indirect auto loans increased $120.1 million
or 89%, and commercial-related increased $35.5 million or 8%
during that same one year period.
* Net interest margin increased 9 basis points, to 4.07% for the
fourth quarter of 2008, compared with 3.98% for the third quarter
of 2008. For the year ended December 31, 2008, net interest
margin improved to 3.93%, 40 basis points higher than the
comparable prior year period. The improved net interest margin
resulted principally from lower funding costs and the benefits
associated with a higher percentage of earning assets being
deployed in higher yielding loan assets.
* The provision for loan losses for the fourth quarter was
$2.6 million, or $1.3 million more than fourth quarter net
charge offs of $1.3 million, which represented 0.46% (annualized)
of average loans. For the year ended December 31, 2008, the
provision for loan losses was $6.6 million and net charge offs
were $3.3 million or 0.32% of average loans. The allowance for
loan losses at December 31, 2008 was $18.7 million or 1.67%
of total loans, as compared to 1.61% of total loans at
December 31, 2007.
Peter G. Humphrey, President and CEO of FII, commented, "Our fourth quarter results are reflective of the challenges presented by the disruption in the financial and capital markets. The other-than-temporary impairment charge reflects our recognition of the deterioration of specific securities in our investment portfolio. We are obviously disappointed in our annual results, but remain confident in the strength of our community banking franchise and our opportunities that lie ahead. Our core operations continue to perform well, driven by an expanding net interest margin, solid loan portfolio quality and effective cost controls. We are well positioned to weather this difficult period due to our core banking franchise and core earnings capacity that is built on a foundation of diversified and prudent lending, stable core deposits, and a strong capital position. The Company remains "well capitalized," and has utilized the U.S. Treasury Department's Capital Purchase Program as an attractive source of capital to support our marketplace opportunities."
Included in the fourth quarter 2008 results is a pre-tax non-cash OTTI charge on certain investment securities of $29.9 million, comprised principally of pooled trust preferred securities, and to a lesser extent, privately issued whole loan collateralized mortgage obligations and charges on auction rate preferred equity securities collateralized by preferred stock of Fannie Mae and Freddie Mac. For the year ended December 31, 2008, OTTI charges totaled $68.2 million.
In the third quarter, a tax benefit recognized on the OTTI charge was based on the treatment of a substantial portion of the charge being classified as a capital loss for tax purposes, which significantly limited the tax benefit. Subsequently, on October 3, 2008, the Emergency Economic Stabilization Act was enacted, which included a provision permitting banks, under certain circumstances, to recognize losses relating to Fannie Mae and Freddie Mac preferred stock as an ordinary loss, therefore the fourth quarter results reflect the recognition of a $12.0 million tax benefit associated with the third quarter OTTI charge.
Net Interest Income
Net interest income was $17.3 million for the fourth quarter of 2008, up $567 thousand or 3% from the third quarter of 2008 and $2.1 million or 14% compared with the fourth quarter of 2007. Net interest margin improved to 4.07% in the fourth quarter of 2008, compared with 3.98% in the third quarter of 2008 and 3.75% in the fourth quarter of 2007. For the year ended 2008, net interest income was $65.3 million, compared with $58.1 million for the same period in 2007. Net interest margin improved to 3.93% versus 3.53% on a year to date comparative basis. The improved net interest income and net interest margin resulted principally from lower funding costs and the benefits associated with a higher percentage of earning assets being deployed in higher yielding loan assets.
Noninterest Income (Loss)
Noninterest income (loss) for the fourth quarter of 2008 was $(25.1) million, compared with $(29.3) million and $5.0 million in the third quarter of 2008 and the fourth quarter of 2007, respectively. For the year ended December 31, 2008, noninterest income (loss) was $(48.8) million, compared with $20.7 million for the same period in 2007. The 2008 periods reflect OTTI charges on investment securities totaling $29.9 million for the fourth quarter and $68.2 million for the year ended December 31, 2008. Absent the OTTI charges in 2008, noninterest income would have been $4.8 million in the fourth quarter versus $5.2 million in the third quarter of 2008 and $5.0 million in the fourth quarter of 2007. The decrease, exclusive of OTTI charges, is primarily the result of lower service charges on deposits and broker-dealer fees and commissions offset by higher income from company owned life insurance due to a $20.0 million purchase of company owned life insurance made during the third quarter of 2008. For the full year 2008 noninterest income exclusive of OTTI charges was $19.4 million, compared with $20.7 million for full year 2007. The decrease is attributable to lower service charges on deposit accounts and 2007 including proceeds from corporate owned life insurance.
Noninterest Expense
Noninterest expense for the fourth quarter of 2008 was $15.4 million, compared with $14.5 million in the fourth quarter of 2007, respectively. The fourth quarter of 2008 results include a $557 thousand prepayment charge on the early repayment of borrowed funds and also a $259 thousand increase in FDIC insurance expense compared with the fourth quarter of last year. For the year ended December 31, 2008, noninterest expense was $57.5 million compared with $57.4 million for the same period in 2007. Total salaries and benefits cost declined $1.7 million for the full year 2008 compared with 2007, and was offset by a $599 thousand increase in occupancy and equipment expense, a $385 thousand increase in FDIC insurance cost, and the $557 thousand prepayment charge on borrowed finds.
Balance Sheet
Total assets at December 31, 2008 were $1.917 billion, up $59.0 million from $1.858 billion at December 31, 2007. Total loans were $1.121 billion at December 31, 2008, an increase of $156.9 million from $964.2 million at December 31, 2007, principally from a $120.1 million increase in indirect auto loans. Total deposits increased $57.3 million to $1.633 billion at December 31, 2008, versus $1.576 billion at December 31, 2007. Total borrowings, including junior subordinated debentures, increased $2.6 million to $70.8 million at December 31, 2008, up from $68.2 million at December 31, 2007. Total shareholders' equity at December 31, 2008 was $190.3 million, compared with $195.3 million at December 31, 2007. The Company's leverage ratio was 8.05% and total risk-based capital ratio was 13.08% at December 31, 2008, which is within the regulatory standard to be deemed a well-capitalized institution.
Asset Quality
The Company recorded a provision for loan losses of $2.6 million for the fourth quarter of 2008, compared with $351 thousand in the fourth quarter of 2007. The increase in the provision for loan losses is primarily due to growth in the loan portfolio and the changing mix of the loan portfolio together with higher net charge offs. Net charge offs of $1.3 million for the fourth quarter of 2008 represented 46 basis points (annualized) of average loans. For the year ended December 31, 2008, net charge-offs were $3.3 million, or 32 basis points of average loans, compared with $1.6 million, or 18 basis points of average loans, for the year ended December 31, 2007. The increase in net charge-offs in 2008 related principally to the commercial mortgage and consumer indirect loan portfolios.
The allowance for loan losses was $18.7 million at December 31, 2008, compared with $15.5 million at December 31, 2007. Non-performing loans were $8.2 million at December 31, 2008, compared with $7.6 million and $8.1 million at September 30, 2008 and December 31, 2007, respectively. The ratio of allowance for loan losses to non-performing loans improved to 229% at December 31, 2008 versus 192% at December 31, 2007.
About Financial Institutions, Inc.
With $1.9 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 includes approximately 670 employees. 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)
2008 2007
---------------------------------------- ---------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
---------- --------- --------- --------- ---------
SELECTED BALANCE
SHEET DATA
(Amounts in
thousands)
Cash and cash
equivalents $ 55,187 76,704 63,049 102,999 46,673
Investment
securities:
Available for
sale 547,506 607,357 669,752 688,504 695,241
Held-to-maturity 58,532 64,434 56,508 57,631 59,479
---------- --------- --------- --------- ---------
Total
investment
securities 606,038 671,791 726,260 746,135 754,720
Loans held for
sale 1,013 1,008 926 1,099 906
Loans:
Commercial 158,543 156,809 140,745 144,976 136,780
Commercial real
estate 262,234 248,267 250,872 245,148 245,797
Agriculture 44,706 46,490 45,231 44,162 47,367
Residential real
estate 177,683 173,893 172,396 168,738 166,863
Consumer
indirect 255,054 227,971 177,967 142,565 134,977
Consumer direct
and home
equity 222,859 224,693 223,538 226,855 232,389
---------- --------- --------- --------- ---------
Total loans 1,121,079 1,078,123 1,010,749 972,444 964,173
Allowance for
loan losses 18,749 17,420 16,038 15,549 15,521
---------- --------- --------- --------- ---------
Total loans,
net 1,102,330 1,060,703 994,711 956,895 948,652
Total assets 1,916,919 1,945,819 1,895,448 1,912,652 1,857,876
Total interest-
earning assets 1,743,141 1,789,499 1,749,808 1,771,676 1,722,122
Deposits:
Noninterest-
bearing demand 292,586 293,027 288,258 268,419 286,362
Interest-bearing
demand 344,616 376,098 338,290 356,758 335,314
Savings and
money market 348,594 383,456 372,317 380,167 346,639
Certificates of
deposit 647,467 607,833 596,890 622,628 607,656
---------- --------- --------- --------- ---------
Total deposits 1,633,263 1,660,414 1,595,755 1,627,972 1,575,971
Borrowings 70,820 114,684 89,465 70,336 68,210
Total interest-
bearing
liabilities 1,411,497 1,482,071 1,396,962 1,429,889 1,357,819
Net interest-
earning assets 331,644 307,428 352,846 341,787 364,303
Shareholders'
equity 190,300 152,770 188,998 197,364 195,322
Common
shareholders'
equity (1) 137,226 135,195 171,417 179,783 177,741
Tangible common
shareholders'
equity (2) 99,577 97,468 133,614 141,903 139,786
Securities
available for
sale - fair
value
adjustment
included in
shareholders'
equity, net of
tax $ 3,463 (9,797) (5,803) 944 (500)
Common shares
outstanding 10,798 10,806 10,913 10,992 11,011
Treasury shares 550 542 435 356 337
CAPITAL RATIOS
Leverage ratio 8.05% 7.37 9.17 9.38 9.35
Tier 1 risk-based
capital 11.83% 11.10 14.58 15.34 15.74
Total risk based
capital 13.08% 12.35 15.83 16.59 16.99
Common equity to
assets 7.16% 6.95 9.04 9.40 9.57
Tangible common
equity to
tangible assets
(2) 5.30% 5.11 7.19 7.57 7.68
Common book value
per share $ 12.71 12.51 15.71 16.36 16.14
Tangible common
book value per
share (2) $ 9.22 9.02 12.24 12.91 12.69
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Years ended
December 31,
---------------------
2008 2007
-------- --------
SELECTED INCOME STATEMENT DATA
(Dollar amounts in thousands)
Interest income $ 98,948 105,212
Interest expense 33,617 47,139
-------- --------
Net interest income 65,331 58,073
Provision for loan losses 6,551 116
-------- --------
Net interest income after provision for
loan losses 58,780 57,957
-------- --------
Noninterest income (loss):
Service charges on deposits 10,497 10,932
ATM and debit card 3,313 2,883
Broker-dealer fees and commissions 1,458 1,396
Loan servicing 664 928
Company owned life insurance 563 1,255
Net gain on sale of loans held for sale 339 779
Net gain (loss) on sale of other assets 305 102
Net gain on investment securities 288 207
Impairment charge on investment
securities (68,215) --
Other 2,010 2,198
-------- --------
Total noninterest income (loss) (48,778) 20,680
-------- --------
Noninterest expense:
Salaries and employee benefits 31,437 33,175
Occupancy and equipment 10,502 9,903
Computer and data processing 2,433 2,126
Professional services 2,141 2,080
Supplies and postage 1,800 1,662
Advertising and promotions 1,453 1,402
Other 7,695 7,080
-------- --------
Total noninterest expense 57,461 57,428
-------- --------
(Loss) income before income taxes (47,459) 21,209
Income tax expense (benefit) (21,301) 4,800
-------- --------
Net (loss) income $(26,158) 16,409
======== ========
Preferred stock dividends 1,538 1,483
Net (loss) income applicable to
common shareholders $(27,696) 14,926
======== ========
STOCK AND RELATED PER SHARE DATA
Net (loss) income per share - basic $ (2.56) 1.34
Net (loss) income per share - diluted $ (2.56) 1.33
Cash dividends declared $ 0.54 0.46
Common dividend payout ratio (3) NA% 34.33
Dividend yield (annualized) 3.76% 2.58
Stock price (Nasdaq:FISI):
High $ 22.50 23.71
Low $ 10.06 16.18
Close $ 14.35 17.82
Quarterly Trends
------------------------------------------------
2008 2007
-------------------------------------- --------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
-------- -------- -------- -------- --------
SELECTED INCOME
STATEMENT DATA
(Dollar amounts in
thousands)
Interest income $ 24,582 24,558 24,536 25,272 26,397
Interest expense 7,269 7,812 8,349 10,187 11,192
-------- -------- -------- -------- --------
Net interest
income 17,313 16,746 16,187 15,085 15,205
Provision for loan
losses 2,586 1,891 1,358 716 351
-------- -------- -------- -------- --------
Net interest
income after
provision
for loan losses 14,727 14,855 14,829 14,369 14,854
-------- -------- -------- -------- --------
Noninterest income
(loss):
Service charges on
deposits 2,685 2,794 2,518 2,500 2,818
ATM and debit card 853 852 856 752 805
Broker-dealer fees
and
commissions 235 363 401 459 343
Loan servicing 134 112 232 186 221
Company owned life
insurance 294 223 27 19 116
Net gain on sale
of loans held for
sale 35 48 92 164 190
Net gain (loss) on
sale of other
assets 51 102 115 37 (58)
Net gain on
investment
securities 56 12 47 173 88
Impairment charge
on investment
securities (29,870) (34,554) (3,791) -- --
Other 421 700 435 454 479
-------- -------- -------- -------- --------
Total noninterest
income (loss) (25,106) (29,348) 932 4,744 5,002
-------- -------- -------- -------- --------
Noninterest expense:
Salaries and
employee benefits 7,811 7,021 8,169 8,436 8,240
Occupancy and
equipment 2,713 2,642 2,567 2,580 2,582
Computer and data
processing 669 603 580 581 533
Professional
services 637 467 480 557 533
Supplies and
postage 447 475 437 441 379
Advertising and
promotions 548 472 283 150 396
Other 2,569 1,729 1,869 1,528 1,880
-------- -------- -------- -------- --------
Total noninterest
expense 15,394 13,409 14,385 14,273 14,543
-------- -------- -------- -------- --------
(Loss) income
before income
taxes (25,773) (27,902) 1,376 4,840 5,313
Income tax expense
(benefit) (22,631) 524 (255) 1,061 1,215
-------- -------- -------- -------- --------
Net (loss) income $ (3,142) (28,426) 1,631 3,779 4,098
======== ======== ======== ======== ========
Preferred stock
dividends 426 371 370 371 370
Net (loss) income
applicable to
common
shareholders $ (3,568) (28,797) 1,261 3,408 3,728
======== ======== ======== ======== ========
STOCK AND RELATED PER
SHARE DATA
Net (loss) income
per share - basic $ (0.33) (2.68) 0.12 0.31 0.34
Net (loss) income
per share -
diluted $ (0.33) (2.68) 0.12 0.31 0.34
Cash dividends
declared $ 0.10 0.15 0.15 0.14 0.13
Common dividend
payout ratio (3) NA% NA 125.00 45.16 38.24
Dividend yield
(annualized) 2.77% 2.98 3.76 2.97 2.89
Stock price
(Nasdaq:FISI):
High $ 20.27 22.50 20.00 20.78 19.80
Low $ 10.06 14.82 15.25 15.10 16.42
Close $ 14.35 20.01 16.06 18.95 17.82
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Years ended
December 31,
------------------------
2008 2007
---------- ----------
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Investment securities (4) $ 721,551 811,118
Loans (5):
Commercial 149,927 119,823
Commercial real estate 247,475 244,357
Agriculture 45,035 53,356
Residential real estate 171,262 165,226
Consumer indirect 185,197 118,152
Consumer direct and home equity 224,343 236,910
---------- ----------
Total loans 1,023,239 937,824
Total interest-earning assets 1,772,179 1,781,468
Total assets 1,905,345 1,907,037
Interest-bearing liabilities:
Interest-bearing demand 347,702 338,326
Savings and money market 369,926 346,131
Certificates of deposit 617,381 672,239
Borrowings 91,715 80,609
---------- ----------
Total interest-bearing liabilities 1,426,724 1,437,305
Noninterest-bearing demand deposits 280,467 266,239
Total deposits 1,615,476 1,622,935
Total liabilities 1,722,440 1,721,510
Net earning assets 345,455 344,163
Shareholders' equity 182,905 185,527
Common equity (1) 164,454 167,935
Tangible common equity (2) $ 126,643 129,818
Common shares outstanding:
Basic 10,818 11,154
Diluted 10,818 11,184
SELECTED AVERAGE YIELDS/
RATES AND RATIOS
(Tax equivalent basis)
Investment securities 4.84% 4.90
Loans 6.61% 7.30
Total interest-earning assets 5.83% 6.17
Interest-bearing demand 0.93% 1.70
Savings and money market 1.02% 1.69
Certificates of deposit 3.62% 4.63
Borrowings 4.65% 5.49
Total interest-bearing liabilities 2.36% 3.28
Net interest rate spread 3.47% 2.89
Net interest rate margin 3.93% 3.53
Net (loss) income (annualized returns on):
Average assets -1.37% 0.86
Average equity -14.30% 8.84
Average common equity (6) -16.84% 8.89
Average tangible common equity (7) -21.87% 11.50
Efficiency ratio (8) 64.07% 71.57
Equity to assets 9.60% 9.73
Common equity to assets (6) 8.63% 8.81
Tangible common equity to tangible assets
(7) 6.78% 6.95
Quarterly Trends
------------------------------------------------------
2008 2007
------------------------------------------- ----------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
---------- ---------- ---------- ---------- ----------
SELECTED
AVERAGE
BALANCES
(Amounts in
thousands)
Investment
securities
(4) $ 666,917 721,419 744,648 753,823 786,343
Loans (5):
Commercial 158,517 150,373 150,380 140,340 129,438
Commercial
real estate 253,179 246,746 244,688 245,232 242,336
Agriculture 44,299 45,965 44,504 45,373 50,448
Residential
real estate 175,200 173,175 169,925 166,682 167,551
Consumer
indirect 244,891 200,586 156,728 137,756 132,372
Consumer
direct and
home equity 222,235 222,241 223,906 229,035 232,228
---------- ---------- ---------- ---------- ----------
Total loans 1,098,321 1,039,086 990,131 964,418 954,373
Total
interest
-earning
assets 1,782,938 1,774,201 1,771,801 1,759,635 1,756,169
Total assets 1,924,174 1,908,577 1,897,514 1,890,874 1,884,712
Interest-
bearing
liabilities:
Interest-
bearing
demand 360,970 342,188 342,463 345,102 337,179
Savings and
money
market 373,034 366,449 378,799 361,425 358,198
Certificates
of deposit 629,111 591,025 615,950 633,599 635,825
Borrowings 105,164 118,023 73,902 69,335 71,092
---------- ---------- ---------- ---------- ----------
Total
interest-
bearing
liabilities 1,468,279 1,417,685 1,411,114 1,409,461 1,402,294
Noninterest-
bearing
demand
deposits 284,643 294,136 275,570 267,322 276,535
Total
deposits 1,647,758 1,593,798 1,612,782 1,607,448 1,607,737
Total
liabilities 1,766,239 1,727,473 1,702,211 1,693,300 1,694,297
Net earning
assets 314,659 356,516 360,687 350,174 353,875
Shareholders'
equity 157,935 181,104 195,303 197,574 190,415
Common equity
(1) 136,887 163,527 177,722 179,993 172,834
Tangible
common
equity (2) $ 99,191 125,754 139,872 142,067 134,832
Common shares
outstanding:
Basic 10,717 10,738 10,879 10,938 11,022
Diluted 10,717 10,738 10,928 10,975 11,043
SELECTED
AVERAGE
YIELDS/
RATES AND
RATIOS
(Tax
equivalent
basis)
Investment
securities 4.72% 4.66 4.92 5.05 5.13
Loans 6.35% 6.52 6.65 6.97 7.25
Total interest
-earning
assets 5.69% 5.73 5.83 6.05 6.28
Interest-
bearing
demand 0.69% 0.86 0.89 1.30 1.61
Savings and
money market 0.68% 0.93 1.02 1.47 1.70
Certificates
of deposit 3.09% 3.33 3.72 4.31 4.54
Borrowings 4.23% 4.30 5.05 5.51 5.63
Total interest
-bearing
liabilities 1.97% 2.19 2.38 2.91 3.17
Net interest
rate spread 3.72% 3.54 3.45 3.14 3.11
Net interest
rate margin 4.07% 3.98 3.94 3.73 3.75
Net (loss)
income
(annualized
returns on):
Average
assets -0.65% -5.93 0.35 0.80 0.86
Average
equity -7.91% -62.44 3.36 7.69 8.54
Average
common
equity (6) -10.37% -70.06 2.85 7.62 8.56
Average
tangible
common
equity (7) -14.31% -91.10 3.63 9.65 10.97
Efficiency
ratio (8) 66.65% 58.10 64.21 67.64 66.84
Equity to
assets 8.21% 9.49 10.29 10.45 10.10
Common equity
to assets (6) 7.11% 8.57 9.37 9.52 9.17
Tangible
common equity
to tangible
assets (7) 5.26% 6.72 7.52 7.67 7.30
FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)
Years ended
December 31,
--------------------
2008 2007
-------- --------
ASSET QUALITY DATA
(Dollar amounts in thousands)
Nonaccrual loans $ 8,189 8,075
Accruing loans past due 90 days or more 7 2
-------- --------
Total non-performing loans 8,196 8,077
Foreclosed assets 1,007 1,421
Non-performing investment securities 49 --
-------- --------
Total non-performing assets 9,252 9,498
======== ========
Net loan charge-offs $ 3,323 1,643
Net charge-offs to average loans (annualized) 0.32% 0.18
Total non-performing loans to total loans 0.73% 0.84
Total non-performing assets to total assets 0.48% 0.51
Allowance for loan losses to total loans 1.67% 1.61
Allowance for loan losses to
non-performing loans 229% 192
Quarterly Trends
---------------------------------------
2008 2007
------------------------------- -------
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- -------
ASSET QUALITY DATA
(Dollar amounts in
thousands)
Nonaccrual loans $ 8,189 7,609 6,254 7,353 8,075
Accruing loans past due 90
days or more 7 32 1 2 2
------- ------- ------- ------- -------
Total non-performing loans 8,196 7,641 6,255 7,355 8,077
Foreclosed assets 1,007 1,009 1,235 1,257 1,421
Non-performing investment
securities 49 -- -- -- --
------- ------- ------- ------- -------
Total non-performing
assets 9,252 8,650 7,490 8,612 9,498
======= ======= ======= ======= =======
Net loan charge-offs $ 1,257 509 869 687 441
Net charge-offs to average
loans (annualized) 0.46% 0.20 0.35 0.29 0.18
Total non-performing loans
to total loans 0.73% 0.71 0.62 0.76 0.84
Total non-performing assets
to total assets 0.48% 0.44 0.40 0.45 0.51
Allowance for loan losses
to total loans 1.67% 1.62 1.59 1.60 1.61
Allowance for loan losses
to non-performing loans 229% 228 256 211 192
(1) Excludes preferred shareholders' equity.
(2) Excludes preferred shareholders' equity, goodwill and other
intangible assets.
(3) Common dividend payout ratio equals dividends declared during
the period divided by earnings per share for the equivalent
period. There is no ratio shown for periods where the Company
both declares a dividend and incurs a loss during the period
because the ratio would result in a negative payout since the
dividend declared (paid out) will always be greater than 100%
of earnings.
(4) Average investment securities shown at amortized cost.
(5) Includes nonaccrual loans.
(6) Net income available to common shareholders divided by average
common equity.
(7) Net income available to common shareholders divided by average
tangible equity.
(8) Efficiency ratio equals noninterest expense less other real
estate expense and amortization of intangible assets as a
percentage of net revenue, defined as the sum of tax-
equivalent net interest income and noninterest income before
net gains and impairment charges on investment securities,
proceeds from company owned life insurance included in income
and net gain on sale of trust relationships.