Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Sterne Agee Financial Institutions Investor Conference 2014
25 slides from Financial Institutions's conference presentation, Feb 13, 2014
Slide 1: Delivering On Our Promise
Exhibit 99.1 Delivering On Our NASDAQ: FISI Promise Sterne Agee Financial Institutions Investor Conference February 12-14, 2014
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. and its subsidiaries constitute “forward looking statements” within the meaning of the Private Securities Litigation Refor
Slide 3: Key Investment Considerations
Key Investment Considerations Positioned to Achieve Long Term Growth… Experienced leadership Investments in people and infrastructure Sustainable, scalable business model Solid capital structure Low cost and streamlined operating emphasis Effective enterprise risk management Consistent, strong opera
Slide 4: Martin K. Birmingham, President & CEO; Kevin B. Klotzbach, EVP, CFO & Treasurer
Martin K. Birmingham President & CEO Kevin B. Klotzbach EVP, CFO & Treasurer
Slide 5: Who We Are
Who We Are Corporate Overview Key Corporate Statistics Regional community bank headquartered in Assets: $2.93 billion Warsaw, NY with $2.9 billion in assets Loans: $1.83 billion 10,000 square-mile operating footprint with 50 banking locations in 15 contiguous counties Deposits: $2.32 billion concent
Slide 6: Management Team
Management Team Years with Years in Name Title FISI Banking Martin K. Birmingham President & CEO 8 24 Richard J. Harrison EVP, Chief Operating Officer 10 44 Jeffrey P. Kenefick EVP, Commercial Banking 7 24 Kevin B. Klotzbach EVP, Chief Financial Officer 12 30 R. Mitchell McLaughlin EVP, Chief Inform
Slide 7: Our Strategy and Approach
Our Strategy and Approach Sound Risk Maintain our Smart Growth Focus on Value Management Culture Balance between volume Continue to capitalize on Attract, retain and cultivate Principled, growth oriented and risk; maintain our banking dislocation in our top talent approach guided by our credit disci
Slide 8: Our Strategic Initiatives have Driven Growth and Performance
Our Strategic Initiatives have Driven Growth and Performance Initiatives Outcomes Optimization and consolidation of Consistent, strong operating results branches offices Meaningful organic loan growth Investment in asset classes which offer excellent risk adjusted returns and Increased positive oper
Slide 9: A Dominant, Established Franchise…
A Dominant, Established Franchise… Deposit Market Share: Counties of Operation Key Highlights Deposits Market 10,000 square-mile operating Branches in Market Share footprint RankInstitution 2013 ($MM) (%) 1 Manufacturers and Traders Trust Co. 116 19,562 32.1% 50 banking offices in 15 contiguous 2 Fi
Slide 10: …Uniquely Positioned For Future Growth
…Uniquely Positioned For Future Growth Capitalizing on banking dislocation due to larger Market Footprint institutions divesting in our markets Acquired 4 former First Niagara Offices on June 22, 2012 $129.6 million in deposits Entered Orleans County Strengthened presence in Genesee and Seneca Count
Slide 11: Balance Sheet Growth
Balance Sheet Growth Balance Sheet Growth 11
Slide 12: Loan Growth
Loan Growth Loan Portfolio Composition Lending Strategy Emphasis on driving quality loan growth by balancing between volume and risk along with maintaining a diversified portfolio Our largest concentration, indirect auto at 35% of total loans, is an excellent asset class as it offers low duration (a
Slide 13: Indirect Lending as a Core Business
Indirect Lending as a Core Business Market Dynamics Our Team Large and fragmented market Most key personnel have auto finance experience from Charter One Auto Finance (originated over $2 Favorable competitive conditions and risk- Bln /year in 21 states and had a serviced portfolio in adjusted return
Slide 14: Deposit Portfolio
Deposit Portfolio Deposit Composition Deposit Strategy Consistent emphasis on growing core (non- time) deposits, which equated to 74% of the total deposit portfolio at 12/31/13 Strong growth in our non-interest bearing deposits, currently at 23% of our deposit base or $535 million (growth in excess
Slide 15: Revenue Growth
Revenue Growth Net Interest Income and Noninterest Income Note: All periods exclude OTTI & Securities Gains 15
Slide 16: Operating Leverage by Successful Growth Strategies and Effective Expense Management
Operating Leverage by Successful Growth Strategies and Effective Expense Management Growing Net Interest Income Improving Efficiency Increasing Fee Income Revenue and Expenses Noninterest Income Revenue grew by 25% since 2009 while expenses increased by only 11% Source: SNL Financial Note: Peers inc
Slide 17: Asset Quality Overview
Asset Quality Overview Key Highlights Nonperforming Assets Trends Asset quality remains a top priority Disciplined oversight of risk in lending portfolio Asset quality metrics continue to outperform peer levels Source: SNL Financial Note: Peers include all US Banks and Thrifts in the Mid-Atlantic re
Slide 18: Investment Portfolio
Investment Portfolio Low Risk Security Portfolio Data as of December 31,2013 Low risk security portfolio High percentage of the portfolio consists of securities backed by the U.S. government and agencies Approximately $850 million in total securities and the majority are utilized for various pledgin
Slide 19: Capital Management
Capital Management Capital Ratios 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 Tang. Common Equity / Tang. Assets8.01% 7.93% 7.64% 7.20% 7.05% 6.86% 6.74% 6.49% 6.40% 6.51% Tier 1 Leverage 8.67% 8.63% 8.80% 8.27% 7.67% 7.71% 7.46% 7.59% 7.68% 7.63% Tier 1 Risk-Based Capital
Slide 20: Planning and Investing For the Future
Planning and Investing For the Future We are constantly investing and adapting our scalable infrastructure to strengthen our competitive position Our infrastructure’s strength is in state of the art technology and motivated human resources - Smart investments in technology have enabled us to be comp
Slide 21: How Do We Compare?
How Do We Compare? Price/ MRQ EPS Price/ TTM EPS Dividend Yield Note: Market data as of 1/22/2014. Peer data as of 9/30/13 and reflects median values for the component companies within each respective index. 21
Slide 22: Total Shareholder Return
Total Shareholder Return 5-Year Total Shareholder Return Note: Market data as of 1/22/2014. Peer data reflects median values for the component companies within each respective index 22
Slide 23: Diversified Shareholder Base
Diversified Shareholder Base Shareholder Composition Top 20 Institutional Investors Shares Market Value Shares # Holder Held ($mm) Out (%) 1 Wellington Management Co. LLP 1,034,658 23,321,191 7.49 2 BlackRock Fund Advisors 844,868 19,043,325 6.12 3 Bryn Mawr Capital Management Inc 632,825 14,263,876
Slide 24: Key Investment Considerations
Key Investment Considerations Positioned to Achieve Long-Term Growth… Experienced leadership Investments in people and infrastructure Sustainable, scalable business model Solid capital structure Low cost and streamlined operating emphasis Effective enterprise risk management Consistent, strong opera
Slide 25: Delivering On Our Promise
Delivering On Our NASDAQ: FISI Promise Sterne Agee Financial Institutions Investor Conference February 12-14, 2014
Financial Institutions — Sterne Agee Financial Institutions Investor Conference 2014 on 6ix