Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Non-Deal Roadshow (June 2013)
31 slides from Financial Institutions's roadshow presentation, Jun 3, 2013
Slide 1: Investor Roadshow June 3-4, 2013
Investor Roadshow June 3-4, 2013 NASDAQ: FISI
Slide 2: Management Presentation
Martin K. Birmingham President and Chief Executive Officer Management Presentation
Slide 3: 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 4: Investor Highlights
Investor Highlights Focused on Mission to Deliver on Our Promise Strengthened and Deep Management Team to Drive Performance Remain Positioned for Growth Organic Strategy On Track Proven M&A Acumen Low Cost Operating Emphasis Effective Enterprise Risk Management Solid Capital Structure Attractive Div
Slide 5: Our Promise
Our Promise All Strategic Initiatives Focused on Delivering on our Promise Board & Management Accountability Measurement and Monitoring Tools in Place Enhance Customer Experience Employee Experience Shareholder Value
Slide 6: Our Approach
Our Approach Building Management Depth Attract and retain talent Promote from within - Create career opportunities Operational Efficiency Focus on revenue growth Responsible expense management Opportunistic Acquisitions Sound Risk Management Disciplined Lending Organic growth Balance between volume
Slide 7: 2012/2013 Management Transition and Strengthening
2012/2013 Management Transition and Strengthening 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 Klotzba
Slide 8: Employee Development
Employee Development Necessary Part of Growth and Expansion Strategy 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
Slide 9: Employee Development: Employee & Customer Assessments
Employee Development Regular Employee & Customer Assessments Correlation between Employee Satisfaction and Customer Satisfaction Satisfied Employees = Satisfied Customers = Shareholder Value
Slide 10: Customer Experience: New Service Offerings
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 11: Customer Experience: Made For You Philosophy
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 12: Customer Experience - Proven Results: Indirect Lending
Customer Experience - Proven Results Indirect Lending as Core Business Effective 2005 Large market Favorable competitive conditions and risk- adjusted returns Natural risk dispersion that comes with retail loans Necessary expertise available
Slide 13: Indirect Lending as Core Business: Loan Volume
Customer Experience - Proven Results Indirect Lending as Core Business (CHART) Indirect Loan Volume ($ Millions)
Slide 14: Indirect Auto Vintage Analysis
Customer Experience - Proven Results Indirect Auto Vintage Analysis As of 12/31/2012
Slide 15: Successful Branch Acquisitions
Successful Branch Acquisitions
Slide 16: 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 17: 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 18: Growth Opportunities
Growth Opportunities $ 29.8 Billion $ 10.9 Billion $ 1.0 Billion * Source - SNL Financial
Slide 19: Financial Overview
Financial Overview Kevin B. Klotzbach EVP and Chief Financial Officer/Treasurer
Slide 20: 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 21: 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 22: Strong Net Interest Margin
FINANCIAL overview Strong Net Interest Margin (CHART)
Slide 23: 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 24: (CHART) CAGR ('4Q, 09- 4Q, 12) 10.5%
(CHART) CAGR ('4Q, 09- 4Q, 12) 10.5%
Slide 25: 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 26: Low Risk Investment Portfolio
financial overview Low Risk Investment Portfolio (CHART)
Slide 27: Financial Overview
(CHART) (CHART) Financial OVERVIEW 1,883 1,932 2,262 2,409
Slide 28: 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 29: Total Shareholder Return
Total Shareholder Return (CHART)
Slide 30: Investor Merits & Metrics
Investor Merits & Metrics Metric 3/31/2013 Price-to-Earnings (LTM) * 12.3x Price-to-Tangible Book * 1.46x Return on Average Assets (LTM) 0.89% Return on Average Common Equity (LTM) 9.36% Annualized Dividend Rate $0.72 Dividend Yield * 3.64% Strong Management Team Positioned for Growth Organic Strate
Slide 31: Thank you.
Thank you. Martin K. Birmingham President and Chief Executive Officer Kevin B. Klotzbach EVP and Chief Financial Officer/Treasurer NASDAQ: FISI
Financial Institutions — Non-Deal Roadshow (June 2013) on 6ix