Press release
Financial Institutions, Inc. Announces Second Quarter Results
WARSAW, N.Y., July 28, 2022 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ:FISI) (the “Company” “we” or “us”), parent company of Five Star Bank (the
About this update from Financial Institutions, Inc.
[{"type":"text","content":"WARSAW, N.Y., July 28, 2022 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ:FISI) (the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the second quarter ended June 30, 2022. Net income for the quarter was $15.6 million compared to $20.2 million in the second quarter of 2021. After preferred dividends, net income available to common shareholders was $15.3 million, or $0.99 per diluted share, compared to $19.8 million, or $1.25 per diluted share, in the second quarter of 2021. Primary drivers of the decrease in net income were: A $563 thousand provision for credit losses was recognized in the current quarter compared to a benefit of $4.6 million in the second quarter of 2021. Loan loss provision has returned to a more normalized level in 2022, excluding a $2.0 million commercial loan recovery recognized in the second quarter. The second quarter 2021 benefit was the result of improvement in the national unemployment forecast, positive trends in qualitative factors and lower net charge-offs that resulted in a release of credit loss reserves and corresponding benefit for credit losses.Salaries and employee benefits expense was $2.4 million higher in the current quarter, primarily driven by investments in personnel, higher stock-based compensation expense, and annual merit increases.The Company recorded $1.3 million of non-recurring restructuring charges in the current quarter related to the 2020 closure of five locations. Pre-tax pre-provision income(1) for the quarter was $20.1 million, a decrease of $908 thousand from the second quarter of 2021. Excluding non-recurring restructuring charges, adjusted pre-tax pre-provision income(1) was $21.3 million, an increase of $361 thousand from the prior year quarter. “We are pleased to report net income of $15.6 million, return on average common equity of 14.6% and return on average tangible common equity of 17.8%(1) for the second quarter of 2022,” said President and Chief Executive Officer Martin K. Birmingham. “We continued to execute on our strategic initiatives to grow across all lines of business with investments in people and technology to better serve our customers. Excluding a non-recu...