Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Shareholder Meeting (May 2013)
36 slides from Financial Institutions's shareholder meeting presentation, May 8, 2013
Slide 1: 2013 Annual Meeting
Financial + Institutions, Inc. 2013 ANNUAL MEETING May 8, 2013 EMPLOYEE EXPERIENCE CUSTOMER RELATIONSHIPS SHAREHOLDER VALUE
Slide 2: John E. Benjamin, Chairman
John E. Benjamin Chairman Financial + Institutions, Inc. 2013 ANNUAL MEETING EMPLOYEE EXPERIENCE CUSTOMER RELATIONSHIPS SHAREHOLDER VALUE
Slide 3: Agenda
Introductions Call Meeting to Order Director Nominations & Election Ratify the Appointment of KPMG, LLP as independent registered public accounting firm Non-Binding Vote on Executive Compensation Management Presentation Voting Results Closing Remarks Agenda
Slide 4: Call Meeting to Order
Call Meeting to Order Formal Meeting
Slide 5: Director Nominations & Election
Call Meeting to Order Director Nominations & Election Formal Meeting
Slide 6: Ratify Appointment of KPMG, LLP
Call Meeting to Order Director Nominations & Election Ratify the appointment of KPMG, LLP as independent registered public accounting firm Formal Meeting
Slide 7: Non-Binding Vote on Executive Compensation
Call Meeting to Order Director Nominations & Election Ratify the appointment of KPMG, LLP as independent registered public accounting firm Non-Binding Vote on Executive Compensation Formal Meeting
Slide 8: Formal Meeting
Call Meeting to Order Director Nominations & Election Ratify the appointment of KPMG, LLP as independent registered public accounting firm Non-Binding Vote on Executive Compensation Formal Meeting
Slide 9: Management Transition
Management Transition Peter Humphrey retired on August 28, 2012 35 years of loyal and dedicated service 18 years President & CEO Management Depth Martin Birmingham Named President & CEO in March 2013 Rick Harrison Named Chief Operating Officer in August 2012 Kevin Klotzbach Named Chief Financial Off
Slide 10: Martin K. Birmingham, Management Presentation
Martin K. Birmingham President and Chief Executive Officer Management Presentation
Slide 11: 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 Reform Act of 1995. These forwar
Slide 12: Our Promise
Our Promise Enhance Shareholder Value Customer Experience Employee Experience All strategic initiatives are focused on delivering on this promise Board & Management Accountability Measurement and Monitoring tools in place
Slide 13: Our Approach
Our Approach Sound Risk Management Disciplined Lending Organic growth Balance between volume and credit risk Operational Efficiency Responsible expense management Focus on revenue growth Opportunistic Acquisitions Building Management Depth Attract and retain talent Promote from within - Create caree
Slide 14: Successful Branch Acquisitions
Successful Branch Acquisitions
Slide 15: Successful Branch Acquisitions
Successful Branch Acquisitions Acquired 4 former First Niagara Offices on June 22, 2012 $129.6 Million in Deposits Entered Orleans County Strengthened presence in Genesee and Seneca Counties Acquired 4 former HSBC Offices on August 17, 2012 $157.2 Million in Deposits Gained Significant Market Share
Slide 16: Successful Branch Acquisitions: Solid Execution
Successful Branch Acquisitions Solid Execution Detailed planning Seamless integration Extended customer service hours Satisfied Customers Deposit Retention Levels Higher than Projected
Slide 17: Employee Development
Employee Development Created the Five Star Bank Experience Core Beliefs "We work as a team in an environment of trust, integrity and mutual respect where successes are recognized" "Every interaction is an opportunity to deliver a friendly, professional, relationship building experience" Developed Re
Slide 18: Employee Development
Employee Development Regular Employee & Customer Assessments Correlation between Employee Satisfaction and Customer Satisfaction Satisfied Employees = Satisfied Customers = Shareholder Value
Slide 19: Customer Experience
Customer Experience New Service Offerings Mobile Banking Enhanced Web Presence Online Account Opening Updated Online Banking & Bill Payor New Product Offerings Enhanced Retail Checking Products
Slide 20: Customer Experience
Customer Experience "Made For You" Philosophy Give the Customer the Power of Choice Robust Products State of the Art Technology Convenient Locations Outstanding Service
Slide 21: Growth Opportunities
Growth Opportunities $ 29.8 Billion $ 10.9 Billion $ 1.0 Billion * Source - SNL Financial
Slide 22: Shareholder Value
4/30/12 4/30/13 Market capitalization $233.7 mil. $263.9 mil. Shares outstanding 13.8 mil. 13.8 mil. Price $16.92 $19.13 52-week range $12.18 - $15.71 - $17.99 $20.83 Annualized Dividend Rate $ 0.52 $ 0.72 Dividend yield 3.07% 3.76% Shareholder Value
Slide 23: Share Price
Share Price (CHART) $13.64 $19.13
Slide 24: Total Shareholder Return
Total Shareholder Return (CHART)
Slide 25: Financial Overview
Financial Overview Kevin B. Klotzbach EVP and Chief Financial Officer/Treasurer
Slide 26: Financial Highlights
FINANCIAL Highlights 2012 %Change vs. 2011 BALANCE SHEET BALANCE SHEET BALANCE SHEET Loans $ 1,706,000 14.9% Deposits $ 2,262,000 17.1% INCOME STATEMENT INCOME STATEMENT INCOME STATEMENT Net Interest Income $ 88,500 8.1% Non-Interest Income $ 24,800 3.6% Net Income $ 23,400 2.9% GAAP EPS $ 1.60 7.4%
Slide 27: Net Interest Income and Noninterest Income
Net Interest incomE anD noninterest INCOME (CHART) CAGR ('09-'12) 6.3% * All years exclude OTTI & Securities Gains
Slide 28: Strong Net Interest Margin
FINANCIAL overview Strong Net Interest Margin (CHART)
Slide 29: Efficiency Ratio
(CHART) Financial overview Efficiency Ratio Expense as a Percent of Revenue * Peer group average is the SNL Bank $1B to $5B Index.
Slide 30: (CHART) CAGR ('4Q, 09- 4Q, 12) 10.5%
(CHART) CAGR ('4Q, 09- 4Q, 12) 10.5%
Slide 31: Credit Quality
$ Millions 2011 2012 Q1 - 2013 2012 Peer Group* Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Balances $7.1 $9.1 $11.8 Percent 0.48% 0.53% 0.69% 2.41% Net Loan Charge Offs Net Loan Charge Offs Net Loan Charge Offs Net Loan Charge Offs Net Lo
Slide 32: Low Risk Investment Portfolio
financial overview Low Risk Investment Portfolio (CHART)
Slide 33: Financial Overview
(CHART) (CHART) Financial OVERVIEW 1,883 1,932 2,262 2,409
Slide 34: Capital Management
2011 2012 Q1 '13 Leverage Ratio 8.63% 7.71% 7.46% Tier 1 Risk-Based Capital 12.20% 10.73% 10.84% Total Risk-Based Capital 13.45% 11.98% 12.09% Common Dividend Payout Ratio 31.33% 35.63% 42.86% Return on Average Tangible Common Equity 11.55% 11.74% 12.47% FINANCIAL OVERVIEW capital Management * Peer
Slide 35: Voting Results
Voting Results Financial + Institutions, Inc. 2013 ANNUAL MEETING EMPLOYEE EXPERIENCE CUSTOMER RELATIONSHIPS SHAREHOLDER VALUE
Slide 36: Closing Remarks
Closing Remarks Financial + Institutions, Inc. 2013 ANNUAL MEETING EMPLOYEE EXPERIENCE CUSTOMER RELATIONSHIPS SHAREHOLDER VALUE
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