Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Investor Presentation (July 2010)
30 slides from Financial Institutions's investor presentation, Jul 28, 2010
Slide 1: Unlocking Potential
Unlocking Potential ea Financial Institutions, Inc?
Slide 2: Unlocking Potential – Peter G. Humphrey, President & CEO
2 Unlocking Potential Peter G. Humphrey President & Chief Executive Officer
Slide 3: Forward-looking information
Forward-looking information 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 Refo
Slide 4: Financial Institutions, Inc. market snapshot
Financial Institutions, Inc.* 4 NASDAQ FISIMarket capitalization $194.3 mil. Recent price $17.7952-week range $ 9.71- $ 19.94Annual dividend rate $ 0.40Dividend yield 2.25%Shares outstanding 10.9 mil. * Pricing as of Mid-Day July 20, 2010 UNLOCKING POTENTIAL
Slide 5: Shares held by institutions and insiders
Financial Institutions, Inc.* 5 Shares held by: # of % of Holders Shares Institutions 70 49.5 Insiders 23 9.0 UNLOCKING POTENTIAL
Slide 6: Investor Highlights
Investor Highlights 6 Extensive Retail Delivery NetworkStable Regional EconomyInvestment Portfolio QualityLoan Portfolio QualityCapital & LiquiditySolid & Sustainable Core EarningsEffective Risk ManagementExperienced Management Team UNLOCKING POTENTIAL
Slide 7: Extensive Retail Delivery Network
Extensive Retail Delivery Network • 10,000 square-mile operating footprint 14 contiguous counties in Upstate NY Over 50 branches and over 70 ATMs Scale to Compete 7
Slide 8: Stable Upstate Regional Economy
Stable Upstate Regional Economy 8 Employment Levels Higher than the National Average. Non-Prime Loan activity is 60% less than the National Average. Housing Prices are trending More Positive than the National trend. UNLOCKING POTENTIAL
Slide 9: Improved Securities Portfolio Quality
Improved Securities Portfolio Quality (CHART) (CHART) 9 UNLOCKING POTENTIAL $678.9 million 2007 2010 $755.1 million Improved Risk Profile Sacrificed Yield for Quality December 31 June 30
Slide 10: Loan Quality
UNLOCKING POTENTIAL 10 Loan Quality $ millions 2008 2009 Q1-2010 Q2-2010 Non Performing Loans Non Performing Loans Non Performing Loans Non Performing Loans Non Performing Loans Balances $8.2 $8.7 $6.7 $11.4 * Percent .73% .69% .53% .88% Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs
Slide 11: Capital Highlights
UNLOCKING POTENTIAL 11 Capital Highlights As of 6/30/2010 Common Equity $ 157.9 million Preferred Equity $ 53.6 million Total Equity $ 211.5 million Leverage Ratio 8.45 % Total Risk Based Ratio 13.99 % Key Capital Ratios 2008 2009 Q2 - 2010 Leverage 8.05 % 7.96 % 8.45% Tier I Risk-based 11.83 % 11.9
Slide 12: Liquidity Self-Funding Capacity
Liquidity Self-Funding Capacity UNLOCKING POTENTIAL 12 70% Net Loan to Deposit ratio Over $ 200 million in liquidity to fund loan growthLittle Dependence on Wholesale Funding
Slide 13: Solid Core Earnings
Solid Core Earnings 13 Improved Net Income / EPSStrong Net Interest Income Slightly Asset Sensitive Low Cost Core DepositsDisciplined Expense ControlQuality Loan Growth - Balanced Loan Portfolio UNLOCKING POTENTIAL
Slide 14: Financial Highlights
UNLOCKING POTENTIAL 14 Financial Highlights Category 2008 2009 Q4, 2009 Q1, 2010 Q2, 2010 EPS - Diluted ($2.54) $.99 $.42 $.40 $.39 NET INCOME ($millions)(Loss in brackets) ($26.2) $14.4 $5.4 $5.3 $5.2 Net Interest Income (millions) $65.3 $72.3 $19.2 $19.3 $19.7 Net Interest Margin 3.93 % 4.04 % 4.0
Slide 15: Strong Net Interest Margin
Strong Net Interest Margin UNLOCKING POTENTIAL 15 (CHART)
Slide 16: Low Cost Core Deposits
Low Cost Core Deposits 16 UNLOCKING POTENTIAL (CHART) $1.8 billion Growth All deposit categories
Slide 17: Efficiency Ratio
Efficiency Ratio Expense as a Percent of Income UNLOCKING POTENTIAL 17 (CHART)
Slide 18: Loan Growth
Loan Growth Portfolio and Sold & Serviced UNLOCKING POTENTIAL 18 (CHART) 1,624
Slide 19: Balanced Loan Portfolio
Balanced Loan Portfolio 19 UNLOCKING POTENTIAL (CHART) Data as of 6/30/2010
Slide 20: Indirect Auto Loans
Indirect Auto Loans UNLOCKING POTENTIAL 20
Slide 21: Indirect Auto Loans
Indirect Auto Loans UNLOCKING POTENTIAL 21 Following consolidation, we decided to focus and expand our Indirect Lending activities in early 2006. Large Market Opportunity with a changing competitive landscape Retail loans naturally provide risk dispersion. Favorable Margins Availability of Local Exp
Slide 22: Indirect Auto Loans – Slow and Deliberate Approach
Indirect Auto Loans UNLOCKING POTENTIAL 22 Slow and Deliberate Approach In-Market Dealer Network We deal with franchise new car dealerships. Underwriting is consistent with our Retail Loan Underwriting practices.
Slide 23: Indirect Auto Loans New Loan Production
Indirect Auto Loans New Loan Production (CHART) UNLOCKING POTENTIAL 23 $ millions $199.7
Slide 24: Indirect Auto Loans Balances
Indirect Auto Loans Balances (CHART) UNLOCKING POTENTIAL 24 $ millions Indirect loans make up 29% of all loan balances.Portfolio increased 38% in 2009
Slide 25: Indirect Auto Loans Market Potential
Indirect Auto Loans Market Potential* UNLOCKING POTENTIAL 25 Category Category Market Potential New York State (excluding NYC) New York State (excluding NYC) $8 billion Share based upon filings: Share based upon filings: Market Share Upstate New York 277,000 filings 2.46% Buffalo 4.14% 4.14% Rochest
Slide 26: Indirect Auto Loans Loan Performance
Indirect Auto Loans Loan Performance UNLOCKING POTENTIAL 26 Category 2006 2007 2008 2009 YTD, 2010 Delinquency % 1.24% .87% .31% .42% .16% Non-Accrual % .16% .21% .18% .18% .13% TOTAL 1.40% 1.08% .49% .60% .29% Net Losses .32% .65% .80% .83% .82% Solid PerformanceStrong Trends
Slide 27: Indirect Auto Loans Peer Group Comparison Delinquency Rates
Indirect Auto Loans Peer Group Comparison Deliquency Rates* UNLOCKING POTENTIAL 27 Entity December December Entity 2008 2009 FSB .49% .60% Banks 3.50% 3.39% Captives 4.14% 4.35% Credit Unions 2.27% 2.40% Substantially Stronger than our Peers * Data Source: Experian
Slide 28: Effective Risk Management
Effective Risk Management 28 Liquidity RiskCredit RiskInterest Rate RiskCompliance RiskRegulatory RiskOperating RiskLegal RiskReputational Risk UNLOCKING POTENTIAL
Slide 29: Management Team
Management Team 29 Management Succession Management Experience Improving Bench Strength UNLOCKING POTENTIAL
Slide 30: Unlocking Potential
Unlocking Potential ea Financial Institutions, Inc?
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