Press release
Financial Institutions, Inc. Announces Third Quarter Results
WARSAW, N.Y., Oct. 28, 2021 (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., Oct. 28, 2021 (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 third quarter ended September 30, 2021. Net income for the quarter was $17.2 million compared to $12.3 million in the third quarter of 2020. After preferred dividends, net income available to common shareholders was $16.8 million, or $1.05 per diluted share, compared to $11.9 million, or $0.74 per diluted share, in the third quarter of 2020. Reflected in the increase in quarterly net income was a $541 thousand benefit for credit losses in the current quarter as compared to a provision of $4.0 million in the third quarter of 2020. Ongoing improvement in the national unemployment forecast, positive trends in qualitative factors and lower net charge-offs resulted in a release of credit loss reserves and a corresponding benefit for credit losses. Pre-tax pre-provision income(1) for the quarter was $21.2 million, an increase of $1.9 million from the third quarter of 2020. “We reported strong results grounded in positive economic trends and sustained incremental organic growth across our businesses,” said President and Chief Executive Officer Martin K. Birmingham. “Continued improvement in the economy resulted in a third consecutive quarterly release of credit loss reserves, and loan charge-offs remained exceptionally low. Excluding the impact of Paycheck Protection Program loans, we grew the total loan portfolio by 2.2% from June 30th and our loan pipelines remain healthy. Net interest income increased, and we remain focused on the optimal investment of excess liquidity. While expenses did go up in the quarter, we also generated strong noninterest income driven by our insurance and wealth subsidiaries and investments in limited partnerships, resulting in an efficiency ratio of 58%. “Five Star Bank relocated its City of Elmira branch in the quarter, investing in an area undergoing revitalization while reducing annual operating costs associated with more favorable lease terms and significantly reduced space. Our SDN insurance subsidiary completed a bolt-on transaction in August, acquiring an employee be...