UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of Earliest Event Reported):
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April 22, 2015
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Financial Institutions, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
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New York
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0-26481
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16-0816610
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_____________________
(State or other jurisdiction
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_____________
(Commission
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______________
(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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220 Liberty Street, Warsaw, New York
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14569
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_________________________________
(Address of principal executive offices)
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___________
(Zip Code)
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Registrants telephone number, including area code:
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585-786-1100
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Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On April 22, 2015, Financial Institutions, Inc. issued a press release to report financial results for the first quarter ended March 31, 2015. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit 99.1 Press Release issued April 22, 2015
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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Financial Institutions, Inc.
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April 22, 2015
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By:
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/s/ Kevin B. Klotzbach
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Name: Kevin B. Klotzbach
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Title: Executive Vice President, Chief Financial Officer and Treasurer
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Exhibit Index
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Exhibit No.
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Description
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99.1
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Press Release issued April 22, 2015
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NEWS RELEASE |
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220 Liberty Street |
For Immediate Release |
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Warsaw, NY 14569 |
FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER EARNINGS
WARSAW, N.Y., April 22, 2015 Financial Institutions, Inc. (the Company) (Nasdaq: FISI), the
parent company of Five Star Bank, today reported financial results for the quarter ended March 31,
2015. The Companys financial results for the first quarter of 2015 include the results of
operations from the acquisition of Scott Danahy Naylon (SDN), an insurance agency the Company
acquired in August 2014.
Net income for the first quarter 2015 was $6.8 million, compared to $7.9 million for the fourth
quarter 2014, and $7.2 million for the first quarter 2014. After preferred dividends, first
quarter 2015 net income available to common shareholders was $6.4 million or $0.46 per diluted
share, compared with $7.6 million or $0.54 per share for the fourth quarter 2014, and $6.9 million
or $0.50 per share for the first quarter 2014.
The Companys President and Chief Executive Officer Martin K. Birmingham stated, We are
very pleased that our strategy for revenue growth and diversification to enhance long term
profitability has been making meaningful progress. The 30% increase in quarterly noninterest
income as compared with the prior years first quarter, a primary objective of our growth strategy,
has among other benefits had an offsetting effect on the net interest margin pressures that have
impacted the industry for some time. We are encouraged by the loan opportunities that developed as
the quarter progressed, which ultimately led to the majority of our loan growth and a strong
pipeline.
In the first quarter, we grew our loans and deposits at or above the levels achieved in 2014.
This growth suggests successful initial execution of our organic growth initiatives, which includes
developing the opportunity rich markets of Rochester and Buffalo. Average earnings assets in the
first quarter increased by 1% from the fourth quarter of 2014 and 3% from the first quarter of
2014. Among other achievements in the quarter, total deposits reached the highest level in Company
history, growing by 10% to $2.7 billion at the end of the first quarter from $2.5 billion at
December 31, 2014.
First Quarter 2015 Highlights and Recent Developments:
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Growth strategy drives increase in fee-based services income and market penetration,
leading to record level of earnings assets and deposits |
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Noninterest income in first quarter 2015 increased by 30% from prior year |
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Grew total loans $74.1 million or 4% from a year ago |
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Increased total deposits by $171.3 million or 7% from a year ago |
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Total assets increased $181.5 million or 6% from a year ago |
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Provision for loan losses increased due to the recognition of a commercial downgrade |
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Strengthened financial position through recently completed $40 million subordinated
notes offering |
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Quarterly cash dividend of $0.20 per common share represented a 3.54% dividend yield as
of March 31, 2015 and a return of 43% of first quarter net income to common shareholders |
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Common and tangible common book value per share increased to $19.01 and $14.18,
respectively, at March 31, 2015 |
On April 15, 2015, the Company successfully completed the sale of $40 million in aggregate
principal amount of its 6.00% fixed to floating rate subordinated notes due 2030 (the Notes).
The Company intends to treat the Notes as Tier 2 regulatory capital and use the net proceeds of the
offering for general corporate purposes, including but not limited to, contributing capital to Five
Star Bank, its wholly-owned subsidiary, organic growth initiatives, and potential acquisitions to
expand its banking and other complementary non-banking businesses should accretive opportunities
arise.
Kevin B. Klotzbach, the Companys Executive Vice President and Chief Financial Officer commented,
We are gratified that the progress made last year to position Financial Institutions for growth in
its top line and the continued execution of our plan in the first quarter resulted in the strong
demand for our recently completed Notes offering. Due to institutional investor interest in the
Company, we increased the aggregate offering amount of the Notes to $40 million from the initially
intended amount of $35 million. We have further bolstered our capital position, which provided a
measure of financial flexibility to capitalize on potential growth opportunities.
Net Interest Income and Net Interest Margin
Net interest income was $23.1 million in the first quarter 2015 compared to $24.1 million in the
fourth quarter 2014 and $23.3 million in the first quarter 2014. When comparing the first quarter
2015 to the fourth quarter 2014, average earning assets increased $36.6 million, including
increases of $5.5 million and $30.9 million in loans and investment securities, respectively.
Average earning assets were up $69.1 million, led by a $65.9 million increase in loans in the first
quarter of 2015 compared to the same quarter in 2014. The growth in earning assets was offset by
decreases in net interest margin. First quarter 2015 net interest margin was 3.43%, a decrease of
13 basis points from 3.56% for the fourth quarter of 2014 and a 9 basis point decrease from 3.52%
for the first quarter of 2014. The receipt of non-recurring loan prepayment income resulted in
higher net interest income and a larger net interest margin during the fourth quarter of 2014.
Noninterest Income
Noninterest income was $8.3 million for the first quarter 2015 compared to $5.2 million for the
fourth quarter 2014 and $6.4 million in the first quarter 2014. Included in these totals are gains
realized from the sale of investment securities. Exclusive of those gains, noninterest income was
$7.2 million in the first quarter 2015, $4.9 million in the fourth quarter 2014 and $6.0 million in
the first quarter 2014. The fourth quarter 2014 reflects $2.3 million of amortization of an
historic tax credit investment in a community-based project. These types of investments are
amortized in the first year the project is placed in service and the Company recognized the
amortization as contra-income, included in noninterest income, with an offsetting tax benefit that
reduced income tax expense. The higher noninterest income in the first quarter 2015 compared to
the first quarter 2014 is primarily a result of a $1.6 million increase in insurance income,
reflecting the contributions from SDN, which was acquired during the third quarter 2014 as part of
the Companys strategy to diversify its business lines and increase noninterest income through
additional fee-based services.
Noninterest Expense
Noninterest expense was $19.0 million for the first quarter 2015 compared to $19.4 million for the
fourth quarter 2014 and $17.2 million in the first quarter 2014. Salaries and employee benefits
expense increased $967 thousand from the first quarter 2014, reflecting higher pension costs,
additional personnel as a result of the SDN acquisition and the hiring of additional personnel
associated with the Companys expansion initiatives. Other noninterest expense for the first
quarter 2015 included an increase of $153 thousand in intangible asset amortization attributable to
the SDN acquisition.
Income Tax Expense
Income tax expense was $2.9 million in the first quarter 2015, compared to $84 thousand in the
fourth quarter 2014 and $3.1 million in the first quarter 2014. Lower income tax expense during
the fourth quarter 2014 was primarily driven by the favorable impact of $3.0 million in Federal and
New York State historic tax credits realized in the fourth quarter 2014, as discussed above. As a
result of the historic tax credits, the fourth quarter 2014 effective tax rate was 1.0%, compared
with an effective tax rate of 29.8% for the first quarter 2015 and 30.0% in the first quarter 2014.
Balance Sheet and Capital Management
Total assets were $3.20 billion at March 31, 2015, up $107.6 million from $3.09 billion at December
31, 2014 and up $181.5 million from $3.02 billion at March 31, 2014.
Cash and cash equivalents were $136.0 million at March 31, 2015, up $77.8 million from December 31,
2014 and up $63.6 million from March 31, 2014. The higher cash and cash equivalents balance
resulted from strong public deposit inflows at the end of the first quarter of 2015.
Total loans were $1.92 billion at March 31, 2015, up $11.0 million from December 31, 2014 and up
$74.1 million from March 31, 2014. The year-to-date increase in loans is primarily attributable to
organic commercial loan growth. The increase in loans from the prior year is primarily
attributable to growth in commercial, home equity and consumer indirect loans. Total investment
securities were $945.5 million at March 31, 2015, up $28.6 million or 3% from the end of the prior
quarter and up $17.3 million or 2% compared with the March 31, 2014.
Total deposits were $2.70 billion at March 31, 2015, an increase of $254.2 million from December
31, 2014 and an increase of $171.3 million from March 31, 2014. The increase during the first
quarter of 2015 was mainly due to seasonal inflows of municipal deposits, while the year-over-year
increase was due to higher municipal deposits as well as successful business development efforts.
Public deposit balances represented 30% of total deposits at March 31, 2015, compared to 25% at
December 31, 2014 and 28% at March 31, 2014.
Short-term borrowings were $175.6 million at March 31, 2015, down $159.2 million from December 31,
2014 and down $21.2 million from March 31, 2014. Short-term borrowings are often utilized to
manage the seasonal outflows of municipal deposits.
Shareholders equity was $286.7 million at March 31, 2015, compared with $279.5 million at December
31, 2014 and $262.9 million at March 31, 2014. Common book value per share was $19.01 at March 31,
2015, an increase of $0.44 from $18.57 at December 31, 2014 and $1.29 from $17.72 at March 31,
2014. Tangible common book value per share was $14.18 at March 31, 2015, compared to $13.71 at
December 31, 2014 and $14.12 at March 31, 2014.
During the first quarter of 2015, the Company declared a common stock dividend of $0.20 per common
share, consistent with the prior quarter and up by 5%, or $0.01 per share, from the first quarter
of 2014. The first quarter 2015 dividend returned 43% of the quarters net income to common
shareholders.
The Companys leverage ratio was 7.53% at March 31, 2015, compared to 7.35% at December 31, 2014
and 7.51% at March 31, 2014. Goodwill and intangible assets recorded during the third quarter 2014
in conjunction with the addition of SDN resulted in a reduction in capital ratios upon acquisition.
Such goodwill and intangible assets are excluded from regulatory capital under regulatory
accounting practices.
Credit Quality
Non-performing loans at March 31, 2015 increased $919 thousand compared with December 31, 2014,
primarily due to a $690 thousand increase in non-performing commercial loans. Included in
non-performing loans at March 31, 2015 is one $2.6 million commercial credit relationship which we
placed on nonaccrual status during the first quarter 2015. This downgrade resulted in an increase
in our provision and allowance for losses of approximately $800 thousand. The loans comprising this
credit relationship are performing in accordance with their contractual terms as of March 31, 2015
and the Company continues to monitor this relationship closely. The ratio of non-performing loans
to total loans was 0.58% at March 31, 2015 compared with 0.53% at December 31, 2014 and 0.88% at
March 31, 2014.
The provision for loans losses for the first quarter 2015 was $2.7 million, an increase of $831
thousand from the prior quarter and $635 thousand from the first quarter 2014. The increase in the
provision for loan losses in the first quarter 2015 was primarily related to the credit
relationship placed on nonaccrual status referenced above. Net charge-offs were $3.2 million
during the first quarter 2015, a $1.7 million increase compared to the prior quarter and $1.5
million from the first quarter 2014. The increase in net charge-offs was primarily driven by the
first quarter 2015 charge-off of two commercial loan relationships totaling $1.7 million that had
been previously reserved by the Company. The ratio of annualized net charge-offs to total average
loans was 0.68% during the current quarter, compared to 0.32% during the prior quarter and 0.37%
during the first quarter 2014.
The ratio of allowance for loans losses to total loans was 1.41% at March 31, 2015, compared with
1.45% at December 31, 2014 and 1.47% at March 31, 2014. The ratio of allowance for loans losses to
non-performing loans was 246% at March 31, 2015, compared with 272% at December 31, 2014 and 167%
at March 31, 2014.
About Financial Institutions, Inc.
Financial Institutions, Inc. provides diversified financial services through its subsidiaries, Five
Star Bank and Scott Danahy Naylon. 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 60 ATMs throughout Western and Central New York State. Scott Danahy Naylon provides
a broad range of insurance services to personal and business clients across 44 states. Financial
Institutions, Inc. and its subsidiaries employ approximately 650 individuals. The Companys stock
is listed on the Nasdaq Global Select Market under the symbol FISI and is a member of the NASDAQ
OMX ABA Community Bank Index. Additional information is available at the Companys website:
www.fiiwarsaw.com.
Non-GAAP Financial Information
This news release contains financial information, such as tangible common equity, determined by
methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The
Company believes that non-GAAP financial measures provide a meaningful comparison of the underlying
operational performance of the Company, and facilitate investors assessments of its business and
performance trends. In addition, the Company believes the exclusion of these non-operating items
enables management to perform a more effective evaluation and comparison of the Companys results
and to assess performance in relation to the companys ongoing operations. These disclosures should
not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that may be presented by other
companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial
measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in
Appendix A to this document.
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 Companys
forward-looking statements, which include its ability to implement its strategic plan, its ability
to redeploy investment assets into loan assets, whether it experiences greater credit losses than
expected, breaches of its third party information systems, the attitudes and preferences of its
customers, its ability to successfully integrate and profitably operate acquired businesses, the
competitive environment, fluctuations in the fair value of securities in its investment portfolio,
changes in the regulatory environment and general economic and credit market conditions nationally
and regionally. For more information about these factors and other factors that could affect the
Companys forward-looking statements, please see the Companys Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q on file with the SEC. All of these factors should be carefully
reviewed, and readers should not place undue reliance on these forward-looking statements. Except
as required by law, the Company undertakes no obligation to revise these statements following the
date of this press release.
*****
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For additional information contact:
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Kevin B. Klotzbach
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Jordan Darrow |
Chief Financial Officer & Treasurer
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Darrow Associates |
Phone: 585.786.1130
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Phone: 631.367.1866 |
Email: KBKlotzbach@five-starbank.com
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Email: jdarrow@darrowir.com |
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1
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
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2015 |
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2014 |
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March 31, |
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December 31, |
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September 30, |
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June 30, |
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March 31, |
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SELECTED BALANCE SHEET DATA: |
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Cash and cash equivalents |
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$ |
135,972 |
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58,151 |
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87,582 |
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64,832 |
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72,401 |
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Investment securities: |
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Available for sale |
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639,275 |
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622,494 |
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585,479 |
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601,903 |
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674,650 |
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Held-to-maturity |
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306,255 |
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294,438 |
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285,967 |
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262,057 |
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253,576 |
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Total investment securities |
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945,530 |
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916,932 |
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871,446 |
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863,960 |
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928,226 |
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Loans held for sale |
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656 |
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755 |
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1,029 |
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201 |
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900 |
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Loans: |
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Commercial business |
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277,464 |
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267,409 |
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275,107 |
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277,685 |
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268,352 |
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Commercial mortgage |
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479,226 |
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475,092 |
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469,485 |
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469,055 |
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468,763 |
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Residential mortgage |
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97,717 |
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100,101 |
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103,044 |
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106,206 |
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110,164 |
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Home equity |
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386,961 |
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386,615 |
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382,703 |
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369,578 |
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332,348 |
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Consumer indirect |
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662,213 |
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661,673 |
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656,215 |
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652,748 |
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647,546 |
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Other consumer |
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19,373 |
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21,112 |
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21,291 |
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21,392 |
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21,667 |
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Total loans |
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1,922,954 |
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1,912,002 |
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1,907,845 |
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1,896,664 |
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1,848,840 |
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Allowance for loan losses |
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27,191 |
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27,637 |
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27,244 |
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27,166 |
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27,152 |
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Total loans, net |
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1,895,763 |
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1,884,365 |
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1,880,601 |
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1,869,498 |
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1,821,688 |
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Total interest-earning assets (1) (2) |
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2,860,605 |
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2,826,488 |
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2,780,940 |
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2,758,779 |
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2,780,489 |
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Goodwill and other intangible assets, net |
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68,396 |
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68,639 |
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68,887 |
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49,826 |
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49,913 |
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Total assets |
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3,197,077 |
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3,089,521 |
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3,055,304 |
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2,993,264 |
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3,015,619 |
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Deposits: |
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Noninterest-bearing demand |
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559,646 |
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571,260 |
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571,549 |
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551,229 |
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532,914 |
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Interest-bearing demand |
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611,104 |
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490,190 |
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530,783 |
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507,083 |
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541,660 |
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Savings and money market |
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922,093 |
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795,835 |
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805,522 |
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766,594 |
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|
812,734 |
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Certificates of deposit |
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611,852 |
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593,242 |
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630,970 |
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625,172 |
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|
|
646,112 |
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Total deposits |
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2,704,695 |
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2,450,527 |
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|
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2,538,824 |
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|
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2,450,078 |
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2,533,420 |
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Borrowings |
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175,573 |
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334,804 |
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|
215,967 |
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|
|
254,683 |
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|
196,746 |
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Total interest-bearing liabilities |
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2,320,622 |
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2,214,071 |
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2,183,242 |
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2,153,532 |
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|
|
2,197,252 |
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Shareholders equity |
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286,689 |
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|
279,532 |
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|
|
277,758 |
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|
|
269,827 |
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|
|
262,865 |
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Common shareholders equity (3) |
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269,349 |
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|
262,192 |
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|
|
260,418 |
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|
252,487 |
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|
245,523 |
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Tangible common equity (5) |
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|
200,953 |
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|
|
193,553 |
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|
|
191,531 |
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|
|
202,661 |
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|
|
195,610 |
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Unrealized gain (loss) on investment securities,
net of tax |
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$ |
5,241 |
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|
1,933 |
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(374 |
) |
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1,292 |
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|
|
(1,467 |
) |
Common shares outstanding |
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|
14,167 |
|
|
|
14,118 |
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|
|
14,094 |
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|
|
13,863 |
|
|
|
13,853 |
|
Treasury shares |
|
|
231 |
|
|
|
280 |
|
|
|
304 |
|
|
|
299 |
|
|
|
309 |
|
CAPITAL RATIOS AND PER SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio (4) |
|
|
7.53 |
% |
|
|
7.35 |
|
|
|
7.34 |
|
|
|
7.64 |
|
|
|
7.51 |
|
Common equity Tier 1 ratio (4) |
|
|
9.66 |
% |
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
n/a |
|
Tier 1 risk-based capital (4) |
|
|
10.45 |
% |
|
|
10.47 |
|
|
|
10.44 |
|
|
|
10.95 |
|
|
|
10.89 |
|
Total risk-based capital (4) |
|
|
11.69 |
% |
|
|
11.72 |
|
|
|
11.69 |
|
|
|
12.20 |
|
|
|
12.14 |
|
Common equity to assets |
|
|
8.42 |
% |
|
|
8.49 |
|
|
|
8.52 |
|
|
|
8.44 |
|
|
|
8.14 |
|
Tangible common equity to tangible assets (5) |
|
|
6.42 |
% |
|
|
6.41 |
|
|
|
6.41 |
|
|
|
6.89 |
|
|
|
6.60 |
|
Common book value per share |
|
$ |
19.01 |
|
|
|
18.57 |
|
|
|
18.48 |
|
|
|
18.21 |
|
|
|
17.72 |
|
Tangible common book value per share (5) |
|
|
14.18 |
|
|
|
13.71 |
|
|
|
13.59 |
|
|
|
14.62 |
|
|
|
14.12 |
|
|
|
(1) Includes investment securities at adjusted amortized cost and non-performing
investment securities. |
|
|
(2) Includes nonaccrual loans. |
|
|
(3) Excludes preferred shareholders equity. |
|
|
(4) March 31, 2015 calculated under Basel III rules, which became effective January 1,
2015. |
|
|
(5) See Appendix A Non-GAAP to GAAP Reconciliation for the computation of this
Non-GAAP measure. |
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
|
First |
|
Year ended |
|
Fourth |
|
Third |
|
Second |
|
First |
|
|
Quarter |
|
December 31, |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
24,997 |
|
|
|
101,055 |
|
|
|
25,984 |
|
|
|
25,129 |
|
|
|
24,883 |
|
|
|
25,059 |
|
Interest expense |
|
|
1,850 |
|
|
|
7,281 |
|
|
|
1,846 |
|
|
|
1,871 |
|
|
|
1,780 |
|
|
|
1,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
23,147 |
|
|
|
93,774 |
|
|
|
24,138 |
|
|
|
23,258 |
|
|
|
23,103 |
|
|
|
23,275 |
|
Provision for loan losses |
|
|
2,741 |
|
|
|
7,789 |
|
|
|
1,910 |
|
|
|
2,015 |
|
|
|
1,758 |
|
|
|
2,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for loan losses |
|
|
20,406 |
|
|
|
85,985 |
|
|
|
22,228 |
|
|
|
21,243 |
|
|
|
21,345 |
|
|
|
21,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
|
|
1,879 |
|
|
|
8,954 |
|
|
|
2,186 |
|
|
|
2,277 |
|
|
|
2,241 |
|
|
|
2,250 |
|
Insurance income |
|
|
1,608 |
|
|
|
2,399 |
|
|
|
1,420 |
|
|
|
922 |
|
|
|
16 |
|
|
|
41 |
|
ATM and debit card |
|
|
1,193 |
|
|
|
4,963 |
|
|
|
1,269 |
|
|
|
1,263 |
|
|
|
1,257 |
|
|
|
1,174 |
|
Investment advisory |
|
|
487 |
|
|
|
2,138 |
|
|
|
491 |
|
|
|
524 |
|
|
|
561 |
|
|
|
562 |
|
Investments in limited partnerships |
|
|
474 |
|
|
|
1,103 |
|
|
|
209 |
|
|
|
187 |
|
|
|
81 |
|
|
|
626 |
|
Company owned life insurance |
|
|
467 |
|
|
|
1,753 |
|
|
|
504 |
|
|
|
421 |
|
|
|
425 |
|
|
|
403 |
|
Loan servicing |
|
|
167 |
|
|
|
568 |
|
|
|
118 |
|
|
|
120 |
|
|
|
176 |
|
|
|
154 |
|
Net gain on sale of loans held for sale |
|
|
69 |
|
|
|
313 |
|
|
|
82 |
|
|
|
76 |
|
|
|
50 |
|
|
|
105 |
|
Net gain on investment securities |
|
|
1,062 |
|
|
|
2,041 |
|
|
|
264 |
|
|
|
515 |
|
|
|
949 |
|
|
|
313 |
|
Net gain (loss) on sale of other assets |
|
|
4 |
|
|
|
69 |
|
|
|
8 |
|
|
|
72 |
|
|
|
24 |
|
|
|
(35 |
) |
Amortization of tax credit investment |
|
|
|
|
|
|
(2,323 |
) |
|
|
(2,323 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
887 |
|
|
|
3,372 |
|
|
|
927 |
|
|
|
884 |
|
|
|
797 |
|
|
|
764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
|
8,297 |
|
|
|
25,350 |
|
|
|
5,155 |
|
|
|
7,261 |
|
|
|
6,577 |
|
|
|
6,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
10,223 |
|
|
|
38,595 |
|
|
|
10,551 |
|
|
|
9,725 |
|
|
|
9,063 |
|
|
|
9,256 |
|
Occupancy and equipment |
|
|
3,699 |
|
|
|
12,829 |
|
|
|
3,324 |
|
|
|
3,131 |
|
|
|
3,139 |
|
|
|
3,235 |
|
Professional services |
|
|
968 |
|
|
|
4,760 |
|
|
|
1,428 |
|
|
|
976 |
|
|
|
1,384 |
|
|
|
972 |
|
Computer and data processing |
|
|
702 |
|
|
|
3,016 |
|
|
|
791 |
|
|
|
725 |
|
|
|
777 |
|
|
|
723 |
|
Supplies and postage |
|
|
563 |
|
|
|
2,053 |
|
|
|
499 |
|
|
|
507 |
|
|
|
535 |
|
|
|
512 |
|
FDIC assessments |
|
|
418 |
|
|
|
1,592 |
|
|
|
392 |
|
|
|
390 |
|
|
|
388 |
|
|
|
422 |
|
Advertising and promotions |
|
|
239 |
|
|
|
805 |
|
|
|
196 |
|
|
|
216 |
|
|
|
214 |
|
|
|
179 |
|
Other |
|
|
2,199 |
|
|
|
8,705 |
|
|
|
2,198 |
|
|
|
2,285 |
|
|
|
2,308 |
|
|
|
1,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
19,011 |
|
|
|
72,355 |
|
|
|
19,379 |
|
|
|
17,955 |
|
|
|
17,808 |
|
|
|
17,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
9,692 |
|
|
|
38,980 |
|
|
|
8,004 |
|
|
|
10,549 |
|
|
|
10,114 |
|
|
|
10,313 |
|
Income tax expense |
|
|
2,891 |
|
|
|
9,625 |
|
|
|
84 |
|
|
|
3,365 |
|
|
|
3,082 |
|
|
|
3,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
6,801 |
|
|
|
29,355 |
|
|
|
7,920 |
|
|
|
7,184 |
|
|
|
7,032 |
|
|
|
7,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
365 |
|
|
|
1,462 |
|
|
|
365 |
|
|
|
366 |
|
|
|
365 |
|
|
|
366 |
|
Net income available to common shareholders |
|
$ |
6,436 |
|
|
|
27,893 |
|
|
|
7,555 |
|
|
|
6,818 |
|
|
|
6,667 |
|
|
|
6,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS AND STOCK DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic |
|
$ |
0.46 |
|
|
|
2.01 |
|
|
|
0.54 |
|
|
|
0.49 |
|
|
|
0.48 |
|
|
|
0.50 |
|
Earnings per share diluted |
|
$ |
0.46 |
|
|
|
2.00 |
|
|
|
0.54 |
|
|
|
0.49 |
|
|
|
0.48 |
|
|
|
0.50 |
|
Cash dividends declared on common stock |
|
$ |
0.20 |
|
|
|
0.77 |
|
|
|
0.20 |
|
|
|
0.19 |
|
|
|
0.19 |
|
|
|
0.19 |
|
Common dividend payout ratio (1) |
|
|
43.48 |
% |
|
|
38.31 |
|
|
|
37.04 |
|
|
|
38.78 |
|
|
|
39.58 |
|
|
|
38.00 |
|
Dividend yield (annualized) |
|
|
3.54 |
% |
|
|
3.06 |
|
|
|
3.15 |
|
|
|
3.35 |
|
|
|
3.25 |
|
|
|
3.35 |
|
Return on average assets |
|
|
0.89 |
% |
|
|
0.98 |
|
|
|
1.03 |
|
|
|
0.95 |
|
|
|
0.95 |
|
|
|
0.99 |
|
Return on average equity |
|
|
9.68 |
% |
|
|
10.80 |
|
|
|
11.07 |
|
|
|
10.41 |
|
|
|
10.52 |
|
|
|
11.19 |
|
Return on average common equity (2) |
|
|
9.75 |
% |
|
|
10.96 |
|
|
|
11.25 |
|
|
|
10.55 |
|
|
|
10.66 |
|
|
|
11.38 |
|
Efficiency ratio (3) |
|
|
60.27 |
% |
|
|
58.59 |
|
|
|
59.58 |
|
|
|
57.65 |
|
|
|
60.15 |
|
|
|
56.96 |
|
Stock price (Nasdaq: FISI): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High |
|
$ |
25.38 |
|
|
|
27.02 |
|
|
|
27.02 |
|
|
|
24.94 |
|
|
|
24.88 |
|
|
|
25.69 |
|
Low |
|
$ |
21.67 |
|
|
|
19.72 |
|
|
|
22.45 |
|
|
|
21.71 |
|
|
|
22.17 |
|
|
|
19.72 |
|
Close |
|
$ |
22.93 |
|
|
|
25.15 |
|
|
|
25.15 |
|
|
|
22.48 |
|
|
|
23.42 |
|
|
|
23.02 |
|
|
|
(1) Common dividend payout ratio equals dividends declared during the period divided
by earnings per share for the equivalent period. |
|
|
(2) Annualized net income available to common shareholders divided by average common
equity. |
|
|
(3) 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 on investment
securities and amortization of tax credit investment. |
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
|
First |
|
Year ended |
|
Fourth |
|
Third |
|
Second |
|
First |
|
|
Quarter |
|
December 31, |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
SELECTED AVERAGE BALANCES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest-earning deposits |
|
$ |
124 |
|
|
|
114 |
|
|
|
|
|
|
|
|
|
|
|
51 |
|
|
|
|
|
|
|
94 |
|
|
|
316 |
|
Investment securities (1) |
|
|
907,871 |
|
|
|
877,673 |
|
|
876,932 |
|
|
854,030 |
|
|
875,855 |
|
|
904,437 |
|
Loans (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
264,814 |
|
|
|
269,877 |
|
|
265,979 |
|
|
273,239 |
|
|
275,105 |
|
|
265,137 |
|
Commercial mortgage |
|
|
478,705 |
|
|
|
473,372 |
|
|
473,694 |
|
|
473,168 |
|
|
473,883 |
|
|
472,733 |
|
Residential mortgage |
|
|
99,264 |
|
|
|
107,254 |
|
|
101,982 |
|
|
105,255 |
|
|
108,535 |
|
|
113,390 |
|
Home equity |
|
|
386,046 |
|
|
|
359,511 |
|
|
384,138 |
|
|
377,360 |
|
|
346,911 |
|
|
328,833 |
|
Consumer indirect |
|
|
661,727 |
|
|
|
651,279 |
|
|
658,337 |
|
|
653,192 |
|
|
651,150 |
|
|
642,241 |
|
Other consumer |
|
|
19,736 |
|
|
|
21,094 |
|
|
20,630 |
|
|
20,847 |
|
|
20,855 |
|
|
22,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
1,910,292 |
|
|
|
1,882,387 |
|
|
1,904,760 |
|
|
1,903,061 |
|
|
1,876,439 |
|
|
1,844,396 |
|
Total interest-earning assets |
|
|
2,818,287 |
|
|
|
2,760,174 |
|
|
2,781,692 |
|
|
2,757,142 |
|
|
2,752,388 |
|
|
2,749,149 |
|
Goodwill and other intangible assets, net |
|
|
68,527 |
|
|
|
57,039 |
|
|
68,771 |
|
|
59,306 |
|
|
49,879 |
|
|
49,968 |
|
Total assets |
|
|
3,115,516 |
|
|
|
2,994,604 |
|
|
3,052,499 |
|
|
2,985,920 |
|
|
2,973,735 |
|
|
2,965,400 |
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
551,503 |
|
|
|
504,584 |
|
|
511,749 |
|
|
486,311 |
|
|
509,398 |
|
|
511,073 |
|
Savings and money market |
|
|
839,218 |
|
|
|
783,784 |
|
|
824,661 |
|
|
758,306 |
|
|
789,956 |
|
|
761,799 |
|
Certificates of deposit |
|
|
602,115 |
|
|
|
624,299 |
|
|
614,654 |
|
|
634,400 |
|
|
629,945 |
|
|
618,126 |
|
Borrowings |
|
|
251,768 |
|
|
|
247,956 |
|
|
232,935 |
|
|
259,995 |
|
|
224,801 |
|
|
274,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
2,244,604 |
|
|
|
2,160,623 |
|
|
2,183,999 |
|
|
2,139,012 |
|
|
2,154,100 |
|
|
2,165,412 |
|
Noninterest-bearing demand deposits |
|
|
564,500 |
|
|
|
545,904 |
|
|
564,336 |
|
|
556,485 |
|
|
537,895 |
|
|
524,346 |
|
Total deposits |
|
|
2,557,336 |
|
|
|
2,458,571 |
|
|
2,515,400 |
|
|
2,435,502 |
|
|
2,467,194 |
|
|
2,415,344 |
|
Total liabilities |
|
|
2,830,557 |
|
|
|
2,722,730 |
|
|
2,768,693 |
|
|
2,712,274 |
|
|
2,705,578 |
|
|
2,703,777 |
|
Shareholders equity |
|
|
284,959 |
|
|
|
271,874 |
|
|
283,806 |
|
|
273,646 |
|
|
268,157 |
|
|
261,623 |
|
Common equity (3) |
|
|
267,619 |
|
|
|
254,533 |
|
|
266,466 |
|
|
256,306 |
|
|
250,815 |
|
|
244,281 |
|
Tangible common equity (4) |
|
$ |
199,092 |
|
|
|
197,494 |
|
|
197,695 |
|
|
197,000 |
|
|
200,936 |
|
|
194,313 |
|
Common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
14,063 |
|
|
|
13,893 |
|
|
14,049 |
|
|
13,953 |
|
|
13,791 |
|
|
13,773 |
|
Diluted |
|
|
14,113 |
|
|
|
13,946 |
|
|
14,112 |
|
|
14,007 |
|
|
13,838 |
|
|
13,824 |
|
SELECTED AVERAGE YIELDS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Tax equivalent basis) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest-earning deposits |
|
|
0.19 |
% |
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
0.28 |
|
|
|
|
|
|
|
0.07 |
|
|
|
0.08 |
|
Investment securities |
|
|
2.47 |
% |
|
|
2.44 |
|
|
|
|
|
|
|
2.48 |
|
|
|
2.43 |
|
|
|
|
|
|
|
2.45 |
|
|
|
2.43 |
|
Loans |
|
|
4.27 |
% |
|
|
4.38 |
|
|
|
|
|
|
|
4.44 |
|
|
|
4.31 |
|
|
|
|
|
|
|
4.32 |
|
|
|
4.45 |
|
Total interest-earning assets |
|
|
3.69 |
% |
|
|
3.76 |
|
|
|
|
|
|
|
3.82 |
|
|
|
3.73 |
|
|
|
|
|
|
|
3.73 |
|
|
|
3.79 |
|
Interest-bearing demand |
|
|
0.11 |
% |
|
|
0.12 |
|
|
|
|
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
|
|
|
|
0.12 |
|
|
|
0.13 |
|
Savings and money market |
|
|
0.10 |
% |
|
|
0.12 |
|
|
|
|
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
|
|
|
|
0.12 |
|
|
|
0.13 |
|
Certificates of deposit |
|
|
0.84 |
% |
|
|
0.78 |
|
|
|
|
|
|
|
0.82 |
|
|
|
0.78 |
|
|
|
|
|
|
|
0.76 |
|
|
|
0.74 |
|
Borrowings |
|
|
0.37 |
% |
|
|
0.37 |
|
|
|
|
|
|
|
0.36 |
|
|
|
0.37 |
|
|
|
|
|
|
|
0.36 |
|
|
|
0.38 |
|
Total interest-bearing liabilities |
|
|
0.33 |
% |
|
|
0.34 |
|
|
|
|
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
|
|
|
|
0.33 |
|
|
|
0.33 |
|
Net interest rate spread |
|
|
3.36 |
% |
|
|
3.42 |
|
|
|
|
|
|
|
3.48 |
|
|
|
3.38 |
|
|
|
|
|
|
|
3.40 |
|
|
|
3.46 |
|
Net interest rate margin |
|
|
3.43 |
% |
|
|
3.50 |
|
|
|
|
|
|
|
3.56 |
|
|
|
3.46 |
|
|
|
|
|
|
|
3.47 |
|
|
|
3.52 |
|
|
|
(1) Includes investment securities at adjusted amortized cost and non-performing
investment securities. |
|
|
(2) Includes nonaccrual loans. |
|
|
(3) Excludes preferred shareholders equity. |
|
|
(4) See Appendix A Non-GAAP to GAAP Reconciliation for the computation of this
Non-GAAP measure. |
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
|
First |
|
Fourth |
|
Third |
|
Second |
|
First |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
27,637 |
|
|
|
27,244 |
|
|
|
27,166 |
|
|
|
27,152 |
|
|
|
26,736 |
|
Net loan charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
1,093 |
|
|
|
(15 |
) |
|
|
44 |
|
|
|
(65 |
) |
|
|
39 |
|
Commercial mortgage |
|
|
520 |
|
|
|
(57 |
) |
|
|
66 |
|
|
|
159 |
|
|
|
(7 |
) |
Residential mortgage |
|
|
22 |
|
|
|
22 |
|
|
|
11 |
|
|
|
61 |
|
|
|
57 |
|
Home equity |
|
|
74 |
|
|
|
(4 |
) |
|
|
66 |
|
|
|
127 |
|
|
|
95 |
|
Consumer indirect |
|
|
1,317 |
|
|
|
1,420 |
|
|
|
1,577 |
|
|
|
1,336 |
|
|
|
1,350 |
|
Other consumer |
|
|
161 |
|
|
|
151 |
|
|
|
173 |
|
|
|
126 |
|
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs |
|
|
3,187 |
|
|
|
1,517 |
|
|
|
1,937 |
|
|
|
1,744 |
|
|
|
1,690 |
|
Provision for loan losses |
|
|
2,741 |
|
|
|
1,910 |
|
|
|
2,015 |
|
|
|
1,758 |
|
|
|
2,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
$ |
27,191 |
|
|
|
27,637 |
|
|
|
27,244 |
|
|
|
27,166 |
|
|
|
27,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) to average loans (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
1.67 |
% |
|
|
-0.02 |
|
|
|
0.06 |
|
|
|
-0.09 |
|
|
|
0.06 |
|
Commercial mortgage |
|
|
0.44 |
% |
|
|
-0.05 |
|
|
|
0.06 |
|
|
|
0.13 |
|
|
|
-0.01 |
|
Residential mortgage |
|
|
0.09 |
% |
|
|
0.09 |
|
|
|
0.04 |
|
|
|
0.23 |
|
|
|
0.21 |
|
Home equity |
|
|
0.08 |
% |
|
|
0.00 |
|
|
|
0.07 |
|
|
|
0.15 |
|
|
|
0.12 |
|
Consumer indirect |
|
|
0.81 |
% |
|
|
0.86 |
|
|
|
0.96 |
|
|
|
0.82 |
|
|
|
0.85 |
|
Other consumer |
|
|
3.31 |
% |
|
|
2.90 |
|
|
|
3.29 |
|
|
|
2.42 |
|
|
|
2.87 |
|
Total loans |
|
|
0.68 |
% |
|
|
0.32 |
|
|
|
0.40 |
|
|
|
0.37 |
|
|
|
0.37 |
|
Supplemental information (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
4,587 |
|
|
|
4,288 |
|
|
|
3,258 |
|
|
|
3,589 |
|
|
|
3,706 |
|
Commercial mortgage |
|
|
3,411 |
|
|
|
3,020 |
|
|
|
2,460 |
|
|
|
2,734 |
|
|
|
9,545 |
|
Residential mortgage |
|
|
1,361 |
|
|
|
1,194 |
|
|
|
656 |
|
|
|
758 |
|
|
|
760 |
|
Home equity |
|
|
672 |
|
|
|
463 |
|
|
|
464 |
|
|
|
371 |
|
|
|
826 |
|
Consumer indirect |
|
|
994 |
|
|
|
1,169 |
|
|
|
1,300 |
|
|
|
1,427 |
|
|
|
1,387 |
|
Other consumer |
|
|
47 |
|
|
|
19 |
|
|
|
46 |
|
|
|
12 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing loans |
|
|
11,072 |
|
|
|
10,153 |
|
|
|
8,184 |
|
|
|
8,891 |
|
|
|
16,270 |
|
Foreclosed assets |
|
|
139 |
|
|
|
194 |
|
|
|
509 |
|
|
|
554 |
|
|
|
412 |
|
Non-performing investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
11,211 |
|
|
|
10,347 |
|
|
|
8,693 |
|
|
|
9,445 |
|
|
|
16,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing loans to total loans |
|
|
0.58 |
% |
|
|
0.53 |
|
|
|
0.43 |
|
|
|
0.47 |
|
|
|
0.88 |
|
Total non-performing assets to total assets |
|
|
0.35 |
% |
|
|
0.33 |
|
|
|
0.28 |
|
|
|
0.32 |
|
|
|
0.56 |
|
Allowance for loan losses to total loans |
|
|
1.41 |
% |
|
|
1.45 |
|
|
|
1.43 |
|
|
|
1.43 |
|
|
|
1.47 |
|
Allowance for loan losses to non-performing loans |
|
|
246 |
% |
|
|
272 |
|
|
|
333 |
|
|
|
306 |
|
|
|
167 |
|
2
FINANCIAL INSTITUTIONS, INC.
Appendix A Non-GAAP to GAAP Reconciliation (Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
|
First |
|
|
|
|
|
Year ended |
|
Fourth |
|
Third |
|
Second |
|
First |
|
|
Quarter |
|
|
|
|
|
December 31, |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
$ |
3,197,077 |
|
|
|
|
|
|
|
|
|
|
3,089,521 |
|
3,055,304 |
|
2,993,264 |
|
3,015,619 |
Less: Goodwill and other intangible assets, net |
|
|
|
|
|
|
68,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68,639 |
|
|
|
|
|
|
|
68,887 |
|
|
|
|
|
|
|
49,826 |
|
|
|
|
|
|
|
49,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets (non-GAAP) |
|
|
|
|
|
$ |
3,128,681 |
|
|
|
|
|
|
|
|
|
|
3,020,882 |
|
2,986,417 |
|
2,943,438 |
|
2,965,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders equity |
|
|
|
|
|
$ |
269,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
262,192 |
|
|
|
|
|
|
|
260,418 |
|
|
|
|
|
|
|
252,487 |
|
|
|
|
|
|
|
245,523 |
|
Less: Goodwill and other intangible assets, net |
|
|
|
|
|
|
68,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68,639 |
|
|
|
|
|
|
|
68,887 |
|
|
|
|
|
|
|
49,826 |
|
|
|
|
|
|
|
49,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity (non-GAAP) |
|
|
|
|
|
$ |
200,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
193,553 |
|
|
|
|
|
|
|
191,531 |
|
|
|
|
|
|
|
202,661 |
|
|
|
|
|
|
|
195,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets
(non-GAAP) (1) |
|
|
|
|
|
|
6.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.41 |
|
|
|
|
|
|
|
6.41 |
|
|
|
|
|
|
|
6.89 |
|
|
|
|
|
|
|
6.60 |
|
Common shares outstanding |
|
|
|
|
|
|
14,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,118 |
|
|
|
|
|
|
|
14,094 |
|
|
|
|
|
|
|
13,863 |
|
|
|
|
|
|
|
13,853 |
|
Tangible common book value per share
(non-GAAP) (2) |
|
|
|
|
|
$ |
14.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.71 |
|
|
|
|
|
|
|
13.59 |
|
|
|
|
|
|
|
14.62 |
|
|
|
|
|
|
|
14.12 |
|
Average tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common equity |
|
|
|
|
|
$ |
267,619 |
|
|
|
|
|
|
|
254,533 |
|
|
|
|
|
|
|
266,466 |
|
|
|
|
|
|
|
256,306 |
|
|
|
|
|
|
|
250,815 |
|
|
|
|
|
|
|
244,281 |
|
Average goodwill and other intangible assets, net |
|
|
|
|
|
|
68,527 |
|
|
|
|
|
|
|
57,039 |
|
|
|
|
|
|
|
68,771 |
|
|
|
|
|
|
|
59,306 |
|
|
|
|
|
|
|
49,879 |
|
|
|
|
|
|
|
49,968 |
|
Average tangible common equity (non-GAAP) |
|
|
|
|
|
$ |
199,092 |
|
|
|
|
|
|
|
197,494 |
|
|
|
|
|
|
|
197,695 |
|
|
|
|
|
|
|
197,000 |
|
|
|
|
|
|
|
200,936 |
|
|
|
|
|
|
|
194,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible common equity divided by tangible assets. |
|
|
(2) Tangible common equity divided by common shares outstanding. |
3
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