Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Shareholder Meeting (May 2011)
42 slides from Financial Institutions's shareholder meeting presentation, May 5, 2011
Slide 1: 2010 Annual Shareholder's Meeting
COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 2010 Annual Shareholder's Meeting
Slide 2: Jack E. Benjamin, Chairman
Jack E. Benjamin Chairman COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 3: Agenda
COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 2010 Annual Shareholder's Meeting Introductions Call Meeting to Order Director Nominations & Election Non-Binding Approval of Executive Compensation Management Presentation Voting Results Closing Remarks Agenda
Slide 4: Management Presentation – Peter G. Humphrey
Peter G. Humphrey President & Chief Executive Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Management Presentation
Slide 5: Forward-looking statements
2010 Annual Shareholder's Meeting 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 Litigatio
Slide 6: Investor Highlights
Investor Highlights NASDAQ FISI Market capitalization $228.7 mil. Shares outstanding 13.8 mil. Recent price* $ 16.58 52-week range $ 14.14 - $ 20.74 Annual dividend rate $ 0.40 Dividend yield 2.35% * Pricing as of May 3, 2011 2010 Annual Shareholder's Meeting COMPETITIVE ADVANTAGE : SKILLFUL NAVIGAT
Slide 7: Peter G. Humphrey, President & CEO – Management Presentation
Peter G. Humphrey President & Chief Executive Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Management Presentation
Slide 8: Investment Highlights
2010 Annual Shareholder's Meeting Investment Highlights Solid and sustainable earnings Net Income of 21,287,000 or an increase of 47.4% EPS of 1.61 or 62.6 % Emphasis on core deposits and relationship banking, cost of deposits at 0.80% for 2010 Diligent expense control Paid dividend every quarter si
Slide 9: Investment Highlights
2010 Annual Shareholder's Meeting Investment Highlights Stable regional economy Controlled organic growth with continued opportunity to expand Potential long term benefit from Marcellus Shale development Low risk balance sheet Diversified credit portfolio with pristine asset quality Disciplined cred
Slide 10: 2010 & 1Q 2011 Financial Highlights
2008 2009 2010 Q1, 2011 EPS - Diluted $ (2.54) $ .99 $1.61 $.33 Net Income (Loss) $ (26,158) $14,441 $21,287 $5,820 COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment Highlights 2010 & 1Q 2011 financial Highlights COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 11: Management Team
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment Highlights Management Team Name Title Age Years at FISI Peter G. Humphrey President & CEO 56 34 Karl F. Krebs EVP, CFO 55 2 Martin K. Birmingham EVP, Commercial Banking 44 6 George D. Hagi EVP, Chief Risk Officer 58 5 Richard J. Harrison EVP, Sr.
Slide 12: Extensive Footprint
Extensive Footprint 14 Contiguous Counties 50 Branches Over 70 ATMs Investment Highlights COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 13: Low Risk Balance Sheet
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Diversified Loan Portfolio with Pristine Quality Disciplined Credit Culture - No Subprime lending Conservative Investment Portfolio Stable Core Deposit Base Low Loan / Deposit Ratio - Strong Liquidity Strong Capital Structure Investment Highlights Low Risk B
Slide 14: Financial Overview – Karl F. Krebs
Karl F. Krebs Executive Vice President & Chief Financial Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Financial Overview
Slide 15: Financial Highlights: Key Statistics
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL Highlights 2010 %Changevs. 2009 BALANCE SHEET BALANCE SHEET BALANCE SHEET Loans $ 1,346,000 6.5% Deposits $ 1,883,000 8.0% INCOME STATEMENT INCOME STATEMENT INCOME STATEMENT Net Interest Income $ 78,800 9.0% Non-Interest Income $ 19,500 3.5% Pre-Ta
Slide 16: Net Interest vs Non-Interest Income
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION 2010 & 1Q,2011- income Net Interest vs non interest (CHART) CAGR ('07-'10) 7.9% * All years exclude OTTI & Securities Gains COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 17: Strong Net Interest Margin
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL Highlights Strong Net Interest Margin (CHART) COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 18: Expense Management – Efficiency Ratio
(CHART) Financial Highlights Expense Management-Efficiency Ratio Expense as a Percent of Revenue * Peer group average as defined in the FSIS Proxy statement. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 19: Low Risk Security Portfolio
(CHART) Other Securities .30% US Gov't Agencies & GSE 20.3% financial Highlights Low Risk Security Portfolio COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 20: Loan growth chart
(CHART) CAGR ('4Q, 07- 4Q, 2010) 12% $ 964 $1,121 $1,264 $1,346 $1,353 COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 21: Loan Quality
$ Millions 2009 2010 Q1 - 2011 2010 Peer Group* Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Balances $8.7 $7.6 $7.3 Percent .69% .56% .54% 1.89% Net Loan Charge Offs Net Loan Charge Offs Net Loan Charge Offs Net Loan Charge Offs Net Loan C
Slide 22: Cost of Deposits
(CHART) Cost of Deposits ..68% (CHART) COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 23: 2011 & Beyond – Peter G. Humphrey
Peter G. Humphrey President & Chief Executive Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 2011 & Beyond
Slide 24: 2011 and Beyond Summary
Strategic Plan Regulatory Outlook Industry Outlook 2011 and Beyond summary COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 25: 2011 and Beyond Strategic Plan
Continue to Build on Our Brand of Community Banking Organic and Acquisition Growth - Maintain Dominant Market Position in Legacy Markets - Aggressively Take Advantage of Growth Opportunities Expand Fee Income - Build-out Our Wealth Management Program - Look to Expand Other Fee Income LOB Maintain Di
Slide 26: Strategic Plan Highlights – Market Potential
Strategic plan Highlights- Market potential $ 10.3 Billion $ 33 Billion $ 1.1 Billion COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 27: Market Potential: Branches, Deposits, Market Share
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic plan Highlights- market Potential Number of Branches Deposit in Market($millions) Market Share* Market Rank TOTAL 50 $1,837 3.62% 6 * Weighted average +$250,000,000 in Deposits for every +1/2% in Market Share !
Slide 28: Market Potential: Population and Household Income
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic plan highlights- market potential 2010Population( in 000's) Projected Pop. '10 - '15 % Median Household Income 2010 ($000's)* Projected % Household Income '10 - '15 TOTAL 2,508 - 1.1 $ 49.4 14.8 * Weighted average Every 1% increase in FSB Household
Slide 29: Market Potential: Disposable Income
Increased disposable income plays well for core deposit performance as well as loan activity. * Source: SNL June 30, 2010 COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic plan Highlights- Market potential
Slide 30: Market Place Environment
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Market Place Environment (CHART) Unemployment Rate (CHART) Consumer Confidence Strategic plan Highlights- potential
Slide 31: Strategic Plan Highlights: Fee Income
Fee Income Limit Impact of new regulations Enhance wealth management program Expand Merchant program Grow our loan servicing portfolio Strategic Plan highlights COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 32: Strategic Plan Highlights: Disciplined Lending
(CHART) (CHART) COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic Plan Highlights Disciplined Lending $ millions ------------ As of December 31 ------------- Loan Outstandings Non-Performing Loan Ratio 1.89% 2010 Peer Group* * Peer group average as defined in the FISI Proxy statement. COMPETITIVE
Slide 33: Strategic Plan Highlights: Expense Control
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic Plan Highlights Expense Control (CHART) COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 34: Attract, Retain, Develop the Best Talent
COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Strategic Plan Highlights Attract, Retain, Develop the Best Talent Hire a Strategic Director of Human Resources Create a formal Management Assessment, Development and Succession Program Create Five Star University Periodically Review Compensation and Benefit
Slide 35: Offering Highlights
OFFERING Highlights Simplify and Enhance the Capital Structure Exit the Treasury "TARP" Program Potentially redeem high coupon (10.20%) Trust Preferred Fortify TCE / TA Position the Company to capitalize on opportunities in the market Continued growth in key markets: Buffalo, Rochester, Elmira / Cor
Slide 36: Offering Highlights
OFFERING Highlights 2,800,000 Shares Offered - 367,000 Shares Over Allotment 13.8 million Shares Outstanding $16.35 Offering Price $43 Million, Net Raised COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 37: 2010 & 1Q 2011 Capital Management
2009 2010 Q1, 2011 Peer * Average (as of 12/31/2010) Tier I Risk-based Capital % 11.95 12.34 13.48 12.29 Total Risk Based Capital % 13.21 13.60 14.73 13.93 Leverage Ratio 7.96 8.31 9.11 8.58 Tangible Common Equity % 5.19 5.65 7.44 6.85 Book Value $ 13.39 14.48 14.88 15.13 Tangible Book Value $ 9.94
Slide 38: Industry Outlook: Regulatory Compliance
Regulatory Compliance Backlash from Financial Crisis Reg E Dodd/Frank Durbin Amendment CFPB Industry outlook COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 39: Jack E. Benjamin, Chairman
Jack E. Benjamin Chairman COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 40: Voting Results
2010 Annual Shareholder's Meeting Voting Results COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 41: Closing Remarks
2010 Annual Shareholder's Meeting Closing Remarks COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION
Slide 42: 2010 Annual Shareholder's Meeting
COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 2010 Annual Shareholder's Meeting
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