Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Shareholder Meeting (May 2012)
37 slides from Financial Institutions's shareholder meeting presentation, May 9, 2012
Slide 1: 2012 Annual Shareholders' Meeting: Prepared for Uncertainty
2012 Annual Shareholders' Meeting May 9, 2012 Prepared for Uncertainty
Slide 2: Jack E. Benjamin, Chairman
Jack E. Benjamin Chairman Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 3: Agenda
Introductions Call Meeting to Order Director Nominations & Election Advisory Vote to Approve Executive Compensation Advisory Vote on Frequency of Say-on-Pay Proposals Management Presentation Voting Results Closing Remarks Agenda 2012 Annual Shareholders' Meeting
Slide 4: Peter G. Humphrey: Management Presentation
Peter G. Humphrey President and Chief Executive Officer Management Presentation 2012 Annual Shareholders' Meeting
Slide 5: 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 6: Investor Highlights
INVESTOR HIGHLIGHTS NASDAQ FISI Market capitalization $ 233.7 mil. Shares outstanding 13.8 mil. Recent price* $ 16.92 52-week range $ 12.18 - $ 17.99 Annualized Dividend Rate $ 0.52 Dividend yield 3.07% * Pricing as of April 30, 2012 Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 7: Peter G. Humphrey: Management Presentation
Peter G. Humphrey President and Chief Executive Officer Management Presentation 2012 Annual Shareholders' Meeting
Slide 8: Year in Review: Strategic Achievements
Enhanced Capital Structure Organizational Development Strengthened Human Resource Capabilities Branch Acquisition YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 9: Enhanced Capital Structure
Enhanced Capital Structure - Completed successful follow-on common stock offering with net proceeds of $43.1 million - Repaid in-full $37.5 million of TARP preferred stock and repurchased TARP warrant - Redeemed in-full $16.7 million of the 10.20% junior subordinated debentures YEAR IN REVIEW STRATE
Slide 10: Organizational Development
Organizational Development - Reorganized Executive Management Structure: combined Retail Banking with Retail Lending - Restructured Five Star Investment Services - Created Market Management Program Streamlined Operations Structure Enhanced Banking Center Operations Prepared for Uncertainty YEAR IN R
Slide 11: Strengthened Human Resource Capabilities
Strengthened Human Resource Capabilities - Created Management Assessment and Development Program - Enhanced Management Succession Planning - Internal "Branding" Program - Improved Recruiting Program - Improved Training Capabilities and Created Five Star University Prepared for Uncertainty YEAR IN RE
Slide 12: Branch Acquisition
Branch Acquisition - Acquire 8 branches with $375 million in deposits - In-market opportunity - Strengthen market share - Capitalize on operational efficiencies - Anticipate closing FNFG late in the second quarter and HSBC in the third quarter Prepared for Uncertainty YEAR IN REVIEW STRATEGIC ACHIEV
Slide 13: Investment Highlights
Solid and Sustainable Earnings Deep, Broad and Experienced Management Team Attractive Footprint in Upstate New York Growth Opportunities Stable Regional Economy Attractive Valuation Prepared for Uncertainty INVESTMENT HIGHLIGHTS 2012 Annual Shareholders' Meeting
Slide 14: Solid and Sustainable Earnings
2009 2010 2011 Q1 2012 EPS - Diluted $0 .99 $1.61 $1.49 $.42 Net Income $14,441 $21,287 $22,799 $6,196 Common Dividends $0.40 $0.40 $0.47 $0.13 Prepared for Uncertainty INVESTMENT HIGHLIGHTS Solid and Sustainable Earnings 2012 Annual Shareholders' Meeting
Slide 15: Experienced Management Team
Name Title Age Years at FISI Peter G. Humphrey President & CEO 57 35 Karl F. Krebs EVP, CFO 56 3 Martin K. Birmingham EVP, Commercial Banking 45 7 George D. Hagi EVP, Chief Risk Officer 59 6 Richard J. Harrison EVP, Chief of Retail Banking 66 9 Kevin B. Klotzbach SVP, Treasurer 59 11 R. Mitchell McL
Slide 16: Contiguous Counties, Branches, ATMs
14 Contiguous Counties 50 Branches Over 70 ATMs 2012 Annual Shareholders' Meeting
Slide 17: $ 11.1 Billion $ 23.7 Billion $ 1.1 Billion
$ 11.1 Billion $ 23.7 Billion $ 1.1 Billion 2012 Annual Shareholders' Meeting
Slide 18: Stable Regional Economy
Unemployment Rate Consumer Confidence INVESTMENT HIGHLIGHTS Stable Regional Economy 2012 Annual Shareholders' Meeting
Slide 19: Attractive Valuation
Prepared for Uncertainty INVESTMENT HIGHLIGHTS Attractive Valuation Keefe Bruyette & Woods, Inc. - Target stock price $19 Janney Capital Markets - Target stock price $20 with a strong buy rating Sandler O'Neill - Target stock price $19 with a buy rating 2012 Annual Shareholders' Meeting
Slide 20: Karl F. Krebs: Financial Overview
Karl F. Krebs Executive Vice President and Chief Financial Officer Financial Overview 2012 Annual Shareholders' Meeting
Slide 21: Financial Highlights: Key Statistics
FINANCIAL HIGHLIGHTS Key Statistics Dollars in thousands except Earnings per Share data Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 22: Net Interest Income and Noninterest Income
NET INTEREST INCOME AND NONINTEREST INCOME CAGR ('08-'11) 6.8% * All years exclude OTTI & Securities Gains Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 23: Strong Net Interest Margin
FINANCIAL OVERVIEW Strong Net Interest Margin Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 24: Expense Management-Efficiency Ratio
FINANCIAL OVERVIEW Expense Management-Efficiency Ratio Expense as a Percent of Revenue * Peer group average as defined in the FISI Proxy statement. Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 25: Low Risk Investment Portfolio
Other Securities 0.2% US Gov't Agencies & GSE 14.7% FINANCIAL OVERVIEW Low Risk Investment Portfolio Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 26: CAGR ('4Q, 08- 4Q, 11) 9.8% $ 1,121 $1,264 $1,346 $1,485 $1,521
CAGR ('4Q, 08- 4Q, 11) 9.8% $ 1,121 $1,264 $1,346 $1,485 $1,521 2012 Annual Shareholders' Meeting
Slide 27: Disciplined Lending
FINANCIAL OVERVIEW Disciplined Lending $ millions ------------ As of December 31 ------------- Loans Non-Performing Loan Ratio 1.67% 2011 Peer Group* * Peer group average as defined in the FISI Proxy statement. Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 28: Credit Quality
FINANCIAL OVERVIEW CREDIT QUALITY * Peer group average as defined in the FISI Proxy statement. Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 29: Cost of Deposits
Cost of Deposits 0.60% 2012 Annual Shareholders' Meeting FINANCIAL OVERVIEW
Slide 30: Capital Management
FINANCIAL OVERVIEW CAPITAL MANAGEMENT * Peer group average as defined in the FISI Proxy statement. Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 31: Peter G. Humphrey: Industry Outlook 2012 and Beyond
Peter G. Humphrey President and Chief Executive Officer Industry Outlook 2012 and Beyond 2012 Annual Shareholders' Meeting
Slide 32: Industry Outlook
Fragile Economy Regulatory Environment Reg. E, Dodd Frank, Durbin, CFPB 2012 Election Impact Competition Credit Union Non Bank - Wal-Mart, Apple, Pay Pal, Google INDUSTRY OUTLOOK Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 33: 2012 and Beyond
Strategic Planning Process Community Banking Philosophy Create Shareholder Value 2012 AND BEYOND Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 34: Jack E. Benjamin, Chairman
Jack E. Benjamin Chairman Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 35: Voting Results
Voting Results Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 36: Closing Remarks
Closing Remarks Prepared for Uncertainty 2012 Annual Shareholders' Meeting
Slide 37: 2012 Annual Shareholders' Meeting: Prepared for Uncertainty
2012 Annual Shareholders' Meeting May 9, 2012 Prepared for Uncertainty
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