Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Keefe, Bruyette & Woods 13th Annual Community Bank Investor Conference (August 2012)
32 slides from Financial Institutions's conference presentation, Aug 1, 2012
Slide 1: Well Positioned for the Future
Keefe, Bruyette & Woods 13th Annual Community Bank Investor Conference August 1, 2012 Well Positioned for the Future
Slide 2: Strategic Overview
Peter G. Humphrey President and Chief Executive Officer Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference Strategic Overview
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 NASDAQ GSM FISI (Global Select Market) Market capitalization $ 233.0 mil. Shares outstanding 13.8 mil. Recent price* $ 16.87 52-week range $ 12.18 - $ 18.50 Annualized Dividend Rate $ 0.56 Dividend yield 3.32% * Pricing as of July 25, 2012 Well Positioned for the Future Keefe, Br
Slide 5: Year in Review: Strategic Achievements
Building a Scalable Organization - Enhanced Capital Structure - Improved Organizational Development - Successfully Completed Branch Acquisition - Effective Enterprise Risk Management YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community
Slide 6: Enhanced Capital Structure
Enhanced Capital Structure - Completed successful follow-on common stock offering with net proceeds of $43.1 million Emphasis on Tangible Common Equity Ratio Well Positioned for Basel III Well Positioned for Growth Opportunities YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Well Positioned for the Future Ke
Slide 7: Improved Organizational Development
Improved Organizational Development Reorganized Executive Management Structure: combined Retail Banking with Retail Lending Streamlined Operations Structure Enhanced Management Assessment, Development, and Succession Planning Well Positioned for the Future YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Keefe
Slide 8: Successfully Completed Branch Acquisition
Successfully Completed Branch Acquisition - Acquire 8 branches with $321 million in deposits and $76 million in loans - In-market opportunity - Strengthen market share - Capitalize on operational efficiencies Well Positioned for the Future YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Keefe, Bruyette & Wood
Slide 9: Effective Enterprise Risk Management
Effective Enterprise Risk Management - Solid Credit Risk - Loans and Securities - Strong Liquidity Levels - Disciplined Interest Rate Risk - Effective Compliance / Regulatory Risk - Low Operating Risk Well Positioned for the Future YEAR IN REVIEW STRATEGIC ACHIEVEMENTS Keefe, Bruyette & Woods - 13th
Slide 10: $ 11.1 Billion $ 23.7 Billion $ 1.1 Billion Keefe, Bruyette &
$ 11.1 Billion $ 23.7 Billion $ 1.1 Billion Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 11: Financial Overview
Karl F. Krebs Executive Vice President and Chief Financial Officer Financial Overview Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 12: Solid and Sustainable Earnings
2009 2010 2011 Q1 2012 Q2 2012 EPS - Diluted $0.99 $1.61 $1.49 $0.42 $0.46 Net Income $14,441 $21,287 $22,799 $6,196 $6,656 Common Dividends $0.40 $0.40 $0.47 $0.13 $0.14 Well Positioned for the Future INVESTMENT HIGHLIGHTS Solid and Sustainable Earnings Keefe, Bruyette & Woods - 13th Annual Communi
Slide 13: Financial Highlights: Key Statistics
FINANCIAL HIGHLIGHTS Key Statistics Dollars in thousands except Earnings per Share data Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 14: Net Interest Income and Noninterest Income
NET INTEREST INCOME AND NONINTEREST INCOME CAGR ('08-'11) 6.8% Note: All years exclude OTTI & Securities Gains Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 15: Strong Net Interest Margin
FINANCIAL OVERVIEW Strong Net Interest Margin Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 16: Expense Management-Efficiency Ratio
FINANCIAL OVERVIEW Expense Management-Efficiency Ratio Expense as a Percent of Revenue * Peer group average as defined in the SNL Mid-Atlantic U.S. Bank Index Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 17: Low Risk Investment Portfolio
FINANCIAL OVERVIEW Low Risk Investment Portfolio Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 18: Financial Overview
FINANCIAL OVERVIEW Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 19: CAGR ('4Q, 08- 4Q, 11) 9.8% $ 1,121 $1,264 $1,346 $1,485 $1,624 Keefe, Bruyette
CAGR ('4Q, 08- 4Q, 11) 9.8% $ 1,121 $1,264 $1,346 $1,485 $1,624 Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 20: Total Delinquency and Non Accruals
FINANCIAL OVERVIEW Total Delinquency and Non Accruals Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference Q1-12 Peer Group* * Peer group average as defined in the SNL Mid-Atlantic U.S. Bank Index
Slide 21: Disciplined Lending
FINANCIAL OVERVIEW Disciplined Lending $ millions Loans Non-Performing Loan Ratio 4.10% Q1-12 Peer Group* * Peer group average as defined in the SNL Mid-Atlantic U.S. Bank Index . Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 22: Credit Quality
FINANCIAL OVERVIEW CREDIT QUALITY Peer group average as defined in the SNL Mid-Atlantic U.S. Bank Index Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 23: Capital Management
FINANCIAL OVERVIEW CAPITAL MANAGEMENT * Peer group average as defined in the SNL Mid-Atlantic U.S. Bank Index Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 24: Indirect Lending Program
Richard J. Harrison Executive Vice President and Retail Banking Executive Indirect Lending Program Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 25: Indirect Lending as a Core Business
Decisioned in 2005 due to the following factors: Large market Favorable competitive conditions and risk- adjusted returns - Natural risk dispersion that comes with retail loans - Necessary expertise available Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investo
Slide 26: Key Personnel Experience
Retail Banking Executive - 30+ years Underwriting Executive - 20+ years Risk Manager - 30+ years Sales Manager - 20+ years Collection Manager - 30+ years Subordinate levels of management have similar experience Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Inves
Slide 27: Risk Management/Organization
Application processing Credit decisions Process incoming drafts - Loan setup Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference INDIRECT LENDING OVERVIEW Risk Management/Organization Underwriting Credit Process Administration - S1 system administr
Slide 28: Indirect Loan Volume
INDIRECT LENDING OVERVIEW Indirect Loan Volume Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference $ Millions
Slide 29: Indirect Net Charge-Off %
INDIRECT LENDING OVERVIEW Indirect Net Charge-Off % Well Positioned for the Future Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 30: Indirect Auto Vintage Analysis
Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference INDIRECT LENDING OVERVIEW Indirect Auto Vintage Analysis As of June 2012 Month-End
Slide 31: Attractive Valuation
Peter G. Humphrey President and Chief Executive Officer Attractive Valuation Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference
Slide 32: Attractive Valuation
Well Positioned for the Future INVESTMENT HIGHLIGHTS Attractive Valuation Keefe, Bruyette & Woods - 13th Annual Community Bank Investor Conference Price as of market close on July 25, 2012. * Estimated mean EPS per SNL Financial.