Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Investor Presentation (May 2010)
29 slides from Financial Institutions's investor presentation, May 11, 2010
Slide 1: Unlocking Potential
Unlocking Potential x 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. (NASDAQ: FISI)
Financial Institutions, Inc.* 4 NASDAQ FISI Market capitalization $181.4 mil. Shares outstanding 10.9 mil. Recent price $16.61 52-week range $ 16.18 - $ 17.50 Annual dividend rate $ 0.40 Dividend yield 2.41% * Pricing as of May 3, 2010
Slide 5: Investor Highlights
Investor Highlights 5 Extensive Retail Delivery Network Stable Regional Economy Investment Portfolio Quality Loan Portfolio Quality Capital & Liquidity Solid & Sustainable Core Earnings Effective Risk Management Experienced Management Team
Slide 6: 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 6
Slide 7: Stable Upstate Regional Economy
Stable Upstate Regional Economy 7 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.
Slide 8: Improved Securities Portfolio Quality
Improved Securities Portfolio Quality 8 $621.1 million 2007 2009 $755.1 million Improved Risk Profile Sacrificed Yield for Quality December 31 December 31
Slide 9: Loan Quality
9 Loan Quality $ millions 2008 2009 Q1-2010 Non Performing Loans Non Performing Loans Non Performing Loans Non Performing Loans Balances $8.2 $8.7 $6.7 Percent .73% .69% .53% Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs Balances $3.3 $5.7 $.6 Percent .32% .47%
Slide 10: Capital Highlights
10 Capital Highlights As of 3/31/2010 Common Equity $ 150.1 million Preferred Equity $ 53.5 million Total Equity $ 203.6 million Leverage Ratio 8.32 % Total Risk Based Ratio 13.63 % Key Capital Ratios 2008 2009 Q1 - 2010 Leverage 8.05 % 7.96 % 8.32% Tier I Risk-based 11.83 % 11.95 % 12.37% Total Ris
Slide 11: Liquidity
Liquidity Self-Funding Capacity 11 67% Net Loan to Deposit ratio Over $ 200 million in liquidity to fund loan growth Little Dependence on Wholesale Funding
Slide 12: Solid Core Earnings
Solid Core Earnings 12 Improved Net Income / EPS Strong Net Interest Income Slightly Asset Sensitive Low Cost Core Deposits Quality Loan Growth - Balanced Loan Portfolio - Indirect Auto Program Disciplined Expense Control
Slide 13: Financial Highlights
13 Financial Highlights Category 2008 2009 Q1, 2010 EPS - Diluted ($2.54) $.99 $.40 NET INCOME ($millions) (Loss in brackets) ($26.2) $14.4 $5.3 Net Interest Income (millions) $65.3 $72.3 $19.3 Net Interest Margin 3.93 % 4.04 % 4.12 %
Slide 14: Strong Net Interest Margin
Strong Net Interest Margin 14
Slide 15: Low Cost Core Deposits
Low Cost Core Deposits 15 $1.7 billion Growth All deposit categories
Slide 16: Loan Growth
Loan Growth Portfolio and Sold & Serviced 16 1,624
Slide 17: Balanced Loan Portfolio
Balanced Loan Portfolio 17 Data as of 3/31/2010
Slide 18: Indirect Auto Loans
ee Financial Institutions, Inc? Indirect Auto Loans UNLOCKING POTENTIAL 18
Slide 19: Indirect Auto Loans
Indirect Auto Loans 19 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 Expertise
Slide 20: Indirect Auto Loans - Slow and Deliberate Approach
Indirect Auto Loans 20 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 21: Indirect Auto Loans - New Loan Production
Indirect Auto Loans New Loan Production 21 $ millions $199.7
Slide 22: Indirect Auto Loans - Balances
Indirect Auto Loans Balances 22 $ millions Indirect loans make up 28% of all loan balances. Portfolio increased 38% in 2009
Slide 23: Indirect Auto Loans - Market Potential
Indirect Auto Loans Market Potential* 23 * Data Source: AutoCount (c) Lien Filing Database, all Data through December 2009
Slide 24: Indirect Auto Loans - Loan Performance
Indirect Auto Loans Loan Performance 24 Category 2006 2007 2008 2009 Delinquency % 1.24% .87% .31% .42% Non-Accrual % .16% .21% .18% .18% TOTAL 1.40% 1.08% .49% .60% Net Losses .32% .65% .80% .83% Solid Performance Strong Trends
Slide 25: Indirect Auto Loans - Peer Group Comparison
Indirect Auto Loans Peer Group Comparison Deliquency Rates* 25 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 26: Efficiency Ratio
Efficiency Ratio Expense as a Percent of Income 26
Slide 27: Effective Risk Management
Effective Risk Management 27 Liquidity Risk Credit Risk Interest Rate Risk Compliance Risk Regulatory Risk Operating Risk Legal Risk Reputational Risk
Slide 28: Management Team
Management Team 28 Management Succession Management Experience Improving Bench Strength
Slide 29: Unlocking Potential - Peter G. Humphrey
29 Unlocking Potential Peter G. Humphrey President & Chief Executive Officer
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