WARSAW, N.Y., July 29, 2019 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (Nasdaq:FISI) (the “Company”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the quarter ended June 30, 2019.
Net income for the quarter was $11.4 million compared to $12.2 million for the second quarter of 2018. After preferred dividends, net income available to common shareholders was $11.0 million for the quarter, or $0.69 per diluted share, compared to $11.8 million, or $0.74 per diluted share, for the second quarter of 2018. Second quarter 2018 net income was favorably impacted by a low provision for loan losses of $40 thousand, the result of a combination of factors described in the Credit Quality section below.
Pre-tax pre-provision income(1) for the quarter was $16.7 million compared to $15.2 million for the second quarter of 2018, an increase of $1.5 million, or 9.9%.
Second Quarter 2019 Highlights:
- Net income of $11.4 million was third highest in Company history
- Pre-tax pre-provision income of $16.7 million was the highest in Company history
- Net interest income of $32.5 million was $2.2 million, or 7.4%, higher than the second quarter of 2018 and the highest in Company history
- Net interest margin expanded to 3.28% as compared to 3.16% in the second quarter of 2018
- Return on average assets was 1.06%
- Total assets at quarter-end were $4.31 billion, an increase of $122.6 million from June 30, 2018
President and Chief Executive Officer Martin K. Birmingham stated, “We delivered a strong second quarter and first half of 2019 as we benefitted from our investments in people and systems and the execution of our strategic initiatives. For the second quarter in a row we generated record-breaking pre-tax pre-provision income.
“Our commercial and residential loan portfolios grew by 3.7% and 2.1% quarter-over-quarter and 16.8% and 11.4% year-over-year, respectively. Strong asset quality was illustrated by low annualized net charge-offs of 0.16% of average loans, the Company’s lowest quarterly charge-off level in more than ten years. Common book value per share increased by 3.3% in the quarter and tangible common book value per share(1) grew by 4.2%. Our capital ratios improved once again with a 30-basis-point increase in common equity to assets and a 32-basis-point increase in tangible common equity to tangible assets(1), or TCE ratio, to 7.77%.”
Chief Financial Officer Justin K. Bigham added, “Net interest margin for the quarter was favorably impacted by our ongoing balance sheet repositioning as we continue to redeploy assets from investment securities into higher-yielding loans. A continued focus on efficiency drove quarterly operating leverage year-over-year. We also made progress on our strategy to grow our relationship-based commercial and residential mortgage businesses and right-size our consumer indirect portfolio.”
Net Interest Income and Net Interest Margin
Net interest income was $32.5 million for the quarter, $672 thousand higher than the first quarter of 2019 and $2.2 million higher than the second quarter of 2018.
- Average interest-earning assets for the quarter were $4.01 billion, $11.7 million higher than the first quarter of 2019 and $124.4 million higher than the second quarter of 2018. The primary driver of the increase was organic loan growth.
- Second quarter 2019 net interest margin was 3.28%, four basis points higher than the first quarter of 2019 and 12 basis points higher than the second quarter of 2018. Net interest margin has been positively impacted by the continued repositioning of the Company’s balance sheet, as a growing proportion of interest-earning assets are deployed into loans.
Noninterest Income
Noninterest income was $9.2 million for the quarter, compared to $9.1 million in the first quarter of 2019 and $8.4 million in the second quarter of 2018.
- ATM and debit card charges of $1.7 million was $296 thousand higher than the first quarter of 2019 and $208 thousand higher than the second quarter of 2018, primarily due to an increase in consumer debit card activity.
- Net gain on sale of loans held for sale of $407 thousand was $225 thousand higher than the first quarter of 2019 and $276 thousand higher than the second quarter of 2018. This income fluctuates based upon the timing of loan and sale closings.
- Investment advisory fees were $2.3 million in the second quarter of 2019 compared to $2.2 million in the first quarter of 2019 and $1.9 million in the second quarter of 2018. The increase compared to the second quarter of 2018 was primarily the result of the June 1, 2018 acquisition of HNP Capital.
- A loss from derivative instruments of $45 thousand was recognized in the second quarter of 2019 driven by significantly lower volume of new interest rate swap transactions. As a result, the income recognized from new transactions was more than offset by the credit valuation adjustment associated with our interest rate swap portfolio.
- Insurance income was $872 thousand in the second quarter of 2019 compared to $1.4 million in the first quarter of 2019 and $1.0 million in the second quarter of 2018. The decrease compared to the first quarter of 2019 was the result of seasonality in this line of business. The decrease compared to the second quarter of 2018 was primarily due to higher contingent and transaction revenue in the prior year period.
Noninterest Expense
Noninterest expense was $25.0 million in the second quarter of 2019, compared to $25.2 million in the first quarter of 2019 and $23.4 million in the second quarter of 2018.
- Salaries and employee benefits expense totaled $13.2 million in the second quarter of 2019, $14.0 million in the first quarter of 2019 and $12.9 million in the second quarter of 2018. The decrease compared to the first quarter of 2019 was primarily due to favorable health claims in the second quarter combined with the impact of higher payroll-related taxes incurred in the first quarter. The increase compared to the second quarter of 2018 was primarily the result of investments in bank personnel and the 2018 acquisition of HNP Capital. The number of full-time equivalent employees was 689 at June 30, 2019, 687 at March 31, 2019, and 673 at June 30, 2018.
- Advertising and promotions expense of $1.1 million was $566 thousand higher than the first quarter of 2019 and $365 thousand higher than the second quarter of 2018 as a result of the timing of expenses related to the Five Star Bank branding campaign.
Income Taxes
Income tax expense was $2.9 million for the quarter compared to $3.0 million for each of the first quarter of 2019 and second quarter of 2018. The effective tax rate was 20.5% for the quarter compared to 20.8% for the first quarter of 2019 and 19.7% for the second quarter of 2018.
Effective tax rates are impacted by items of income and expense not subject to federal or state taxation. The Company’s effective tax rates differ from statutory rates primarily because of interest income from tax-exempt securities and earnings on company owned life insurance.
Balance Sheet and Capital Management
Total assets were $4.31 billion at June 30, 2019, up $11.4 million from $4.30 billion at March 31, 2019, and up $122.6 million from $4.19 billion at June 30, 2018.
Investment securities were $805.1 million at June 30, 2019, down $61.4 million from $866.5 million at March 31, 2019, and down $161.9 million from $967.0 million at June 30, 218. The decreases are the result of the redeployment of assets from investment securities into loans.
Total loans were $3.15 billion at June 30, 2019, up $42.5 million, or 1.4%, from March 31, 2019, and up $251.5 million, or 8.7%, from June 30, 2018.
- Commercial business loans totaled $594.9 million, up $41.2 million, or 7.4%, from March 31, 2019, and up $87.9 million, or 17.3%, from June 30, 2018.
- Commercial mortgage loans totaled $1.01 billion, up $16.8 million, or 1.7%, from March 31, 2019, and up $143.0 million, or 16.5%, from June 30, 2018.
- Residential real estate loans totaled $546.0 million, up $11.3 million, or 2.1%, from March 31, 2019, and up $56.1 million, or 11.4%, from June 30, 2018.
- Consumer indirect loans totaled $876.1 million, down $26.6 million, or 3.0%, from March 31, 2019, and down $30.1 million, or 3.3%, from June 30, 2018.
Total deposits were $3.47 billion at June 30, 2019, $36.8 million or 1.1% lower than March 31, 2019, and $209.8 million or 6.4% higher than June 30, 2018. The decrease from March 31, 2019, was primarily due to public deposit seasonality while the increase from June 30, 2018, was primarily the result of successful business development efforts. Public deposit balances represented 26% of total deposits at June 30, 2019, compared to 28% of total deposits at March 31, 2019, and 26% at June 30, 2018.
Short-term borrowings were $308.5 million at June 30, 2019, an increase of $21.2 million from March 31, 2019, and a decrease of $164.3 million from June 30, 2018. Short-term borrowings are typically utilized to manage the seasonality of public deposits.
Shareholders’ equity was $422.4 million at June 30, 2019, compared to $408.3 million at March 31, 2019, and $386.9 million at June 30, 2018. Tangible common book value per share was $20.60 at June 30, 2019, an increase of $0.83 or 4.2% from $19.77 at March 31, 2019, and an increase of $2.36 or 12.9% from $18.24 at June 30, 2018.
During the second quarter of 2019, the Company declared a common stock dividend of $0.25 per common share. The dividend returned 36% of second quarter net income to common shareholders.
The Company’s regulatory capital ratios at June 30, 2019, compared to the prior quarter and prior year:
- Leverage Ratio was 8.55%, compared to 8.36% and 8.10% at March 31, 2019, and June 30, 2018, respectively.
- Common Equity Tier 1 Capital Ratio was 9.95%, compared to 9.87% and 9.82% at March 31, 2019, and June 30, 2018, respectively.
- Tier 1 Capital Ratio was 10.45%, compared to 10.37% at each of March 31, 2019, and June 30, 2018.
- Total Risk-Based Capital Ratio was 12.57%, compared to 12.50% and 12.66% at March 31, 2019, and June 30, 2018, respectively.
Credit Quality
Non-performing loans were $11.5 million at June 30, 2019, compared to $5.8 million at March 31, 2019, and $9.7 million at June 30, 2018. The increase was primarily the result of the internal downgrade of one commercial credit relationship with an unpaid principal balance of $5.6 million.
The second quarter 2019 provision for loan losses was $2.4 million compared to $1.2 million in the first quarter of 2019 and $40 thousand in the second quarter of 2018. Quarterly provision for loan losses varies based primarily on loan growth, charge-offs, collateral values and qualitative factors.
Net charge-offs were $1.2 million in the quarter, $533 thousand lower than the first quarter of 2019 and $432 thousand lower than the second quarter of 2018. The ratio of annualized net charge-offs to total average loans was 0.16% in the quarter, 0.23% in the first quarter of 2019 and 0.24% in the second quarter of 2018.
The Company has remained strategically focused on the importance of credit discipline, allocating what we believe are the necessary resources to credit and risk management functions as the loan portfolio has grown. The total non-performing loans to total loans ratio was 0.36% at June 30, 2019, compared to 0.19% at March 31, 2019 and 0.34% at June 30, 2018. The ratio of allowance for loan losses to non-performing loans was 300% at June 30, 2019, compared to 574% at March 31, 2019, and 349% at June 30, 2018.
Conference Call
The Company will host an earnings conference call and audio webcast on July 30, 2019, at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and Justin K. Bigham, Chief Financial Officer. The live webcast will be available in listen-only mode on the Company’s website at www.fiiwarsaw.com. Within the United States, listeners may also access the call by dialing 1-888-346-9290 and requesting the Financial Institutions, Inc. call. The webcast replay will be available on the Company’s website for at least 30 days.
About Financial Institutions, Inc.
Financial Institutions, Inc. provides diversified financial services through its subsidiaries Five Star Bank, SDN, Courier Capital and HNP Capital. Five Star Bank provides a wide range of consumer and commercial banking and lending services to individuals, municipalities and businesses through a network of more than 50 offices throughout Western and Central New York State. SDN provides a broad range of insurance services to personal and business clients. Courier Capital and HNP Capital provide customized investment management, investment consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Financial Institutions, Inc. and its subsidiaries employ approximately 700 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI. Additional information is available at www.fiiwarsaw.com.
Non-GAAP Financial Information
In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.
The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Safe Harbor Statement
This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: the Company’s ability to implement its strategic plan, the Company’s ability to redeploy investment assets into loan assets, whether the Company experiences greater credit losses than expected, whether the Company experiences breaches of its, or third party, information systems, the attitudes and preferences of the Company’s customers, the Company’s ability to successfully integrate and profitably operate SDN, Courier Capital, HNP Capital and other acquisitions, the competitive environment, fluctuations in the fair value of securities in its investment portfolio, changes in the regulatory environment and the Company’s compliance with regulatory requirements, changes in interest rates, general economic and credit market conditions nationally and regionally. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.
(1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.
*****
For additional information contact:
Shelly J. Doran
Director of Investor and External Relations
585-627-1362
sjdoran@five-starbank.com
| |
| FINANCIAL INSTITUTIONS, INC. |
| Selected Financial Information (Unaudited) |
| (Amounts in thousands, except per share amounts) |
| |
| | 2019 | | | 2018 | |
| | June 30, | | | March 31, | | | December 31, | | | September 30, | | | June 30, | |
| SELECTED BALANCE SHEET DATA: | | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | $ | 108,988 | | | $ | 79,786 | | | $ | 102,755 | | | $ | 117,331 | | | $ | 89,094 | |
| Investment securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | 406,509 | | | | 427,545 | | | | 445,677 | | | | 458,310 | | | | 492,228 | |
| Held-to-maturity | | 398,610 | | | | 438,984 | | | | 446,581 | | | | 459,623 | | | | 474,803 | |
| Total investment securities | | 805,119 | | | | 866,529 | | | | 892,258 | | | | 917,933 | | | | 967,031 | |
| Loans held for sale | | 2,045 | | | | 2,069 | | | | 2,868 | | | | 3,166 | | | | 2,014 | |
| Loans: | | | | | | | | | | | | | | | | | | | |
| Commercial business | | 594,923 | | | | 553,745 | | | | 557,861 | | | | 537,942 | | | | 507,021 | |
| Commercial mortgage | | 1,010,071 | | | | 993,259 | | | | 958,194 | | | | 905,011 | | | | 867,049 | |
| Residential real estate loans | | 546,031 | | | | 534,691 | | | | 524,155 | | | | 507,598 | | | | 489,940 | |
| Residential real estate lines | | 108,006 | | | | 108,623 | | | | 109,718 | | | | 111,204 | | | | 113,287 | |
| Consumer indirect | | 876,116 | | | | 902,762 | | | | 919,917 | | | | 909,434 | | | | 906,237 | |
| Other consumer | | 16,537 | | | | 16,099 | | | | 16,753 | | | | 17,142 | | | | 16,678 | |
| Total loans | | 3,151,684 | | | | 3,109,179 | | | | 3,086,598 | | | | 2,988,331 | | | | 2,900,212 | |
| Allowance for loan losses | | 34,434 | | | | 33,327 | | | | 33,914 | | | | 33,955 | | | | 33,955 | |
| Total loans, net | | 3,117,250 | | | | 3,075,852 | | | | 3,052,684 | | | | 2,954,376 | | | | 2,866,257 | |
| Total interest-earning assets | | 4,007,797 | | | | 4,009,496 | | | | 4,031,151 | | | | 3,927,238 | | | | 3,884,628 | |
| Goodwill and other intangible assets, net | | 75,534 | | | | 75,850 | | | | 76,173 | | | | 78,853 | | | | 79,188 | |
| Total assets | | 4,313,945 | | | | 4,302,541 | | | | 4,311,698 | | | | 4,258,385 | | | | 4,191,315 | |
| Deposits: | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand | | 719,150 | | | | 732,631 | | | | 755,460 | | | | 748,167 | | | | 719,084 | |
| Interest-bearing demand | | 677,846 | | | | 707,430 | | | | 622,482 | | | | 711,321 | | | | 658,107 | |
| Savings and money market | | 966,509 | | | | 1,016,666 | | | | 968,897 | | | | 988,486 | | | | 1,012,972 | |
| Time deposits | | 1,108,484 | | | | 1,052,110 | | | | 1,020,068 | | | | 1,037,755 | | | | 872,004 | |
| Total deposits | | 3,471,989 | | | | 3,508,837 | | | | 3,366,907 | | | | 3,485,729 | | | | 3,262,167 | |
| Short-term borrowings | | 308,500 | | | | 287,300 | | | | 469,500 | | | | 308,200 | | | | 472,800 | |
| Long-term borrowings, net | | 39,237 | | | | 39,220 | | | | 39,202 | | | | 39,184 | | | | 39,167 | |
| Total interest-bearing liabilities | | 3,100,576 | | | | 3,102,726 | | | | 3,120,149 | | | | 3,084,946 | | | | 3,055,050 | |
| Shareholders’ equity | | 422,354 | | | | 408,253 | | | | 396,293 | | | | 392,154 | | | | 386,937 | |
| Common shareholders’ equity | | 405,026 | | | | 390,925 | | | | 378,965 | | | | 374,825 | | | | 369,608 | |
| Tangible common equity (1) | | 329,492 | | | | 315,075 | | | | 302,792 | | | | 295,972 | | | | 290,420 | |
| Accumulated other comprehensive loss | $ | (13,160 | ) | | $ | (18,554 | ) | | $ | (21,281 | ) | | $ | (21,820 | ) | | $ | (20,296 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | 15,995 | | | | 15,941 | | | | 15,929 | | | | 15,925 | | | | 15,924 | |
| Treasury shares | | 105 | | | | 115 | | | | 127 | | | | 131 | | | | 132 | |
| CAPITAL RATIOS AND PER SHARE DATA: | | | | | | | | | | | | | | | | | | | |
| Leverage ratio | | 8.55 | % | | | 8.36 | % | | | 8.16 | % | | | 8.18 | % | | | 8.10 | % |
| Common equity Tier 1 capital ratio | | 9.95 | % | | | 9.87 | % | | | 9.70 | % | | | 9.81 | % | | | 9.82 | % |
| Tier 1 capital ratio | | 10.45 | % | | | 10.37 | % | | | 10.21 | % | | | 10.34 | % | | | 10.37 | % |
| Total risk-based capital ratio | | 12.57 | % | | | 12.50 | % | | | 12.38 | % | | | 12.58 | % | | | 12.66 | % |
| Common equity to assets | | 9.39 | % | | | 9.09 | % | | | 8.79 | % | | | 8.80 | % | | | 8.82 | % |
| Tangible common equity to tangible assets (1) | | 7.77 | % | | | 7.45 | % | | | 7.15 | % | | | 7.08 | % | | | 7.06 | % |
| | | | | | | | | | | | | | | | | | | | |
| Common book value per share | $ | 25.32 | | | $ | 24.52 | | | $ | 23.79 | | | $ | 23.54 | | | $ | 23.21 | |
| Tangible common book value per share (1) | $ | 20.60 | | | $ | 19.77 | | | $ | 19.01 | | | $ | 18.59 | | | $ | 18.24 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| (1) | | See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.
|
| | | |
| FINANCIAL INSTITUTIONS, INC. |
| Selected Financial Information (Unaudited) |
| (Amounts in thousands, except per share amounts) |
| |
| | Six Months Ended | | | 2019 | | | 2018 | |
| | June 30, | | | Second | | | First | | | Fourth | | | Third | | | Second | |
| | 2019 | | | 2018 | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | |
| SELECTED INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| DATA: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | $ | 84,162 | | | $ | 72,490 | | | $ | 42,648 | | | $ | 41,514 | | | $ | 41,125 | | | $ | 39,117 | | | $ | 37,013 | |
| Interest expense | | 19,906 | | | | 12,558 | | | | 10,184 | | | | 9,722 | | | | 9,096 | | | | 8,214 | | | | 6,783 | |
| Net interest income | | 64,256 | | | | 59,932 | | | | 32,464 | | | | 31,792 | | | | 32,029 | | | | 30,903 | | | | 30,230 | |
| Provision for loan losses | | 3,547 | | | | 2,989 | | | | 2,354 | | | | 1,193 | | | | 3,884 | | | | 2,061 | | | | 40 | |
| Net interest income after provision | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| for loan losses | | 60,709 | | | | 56,943 | | | | 30,110 | | | | 30,599 | | | | 28,145 | | | | 28,842 | | | | 30,190 | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposits | | 3,436 | | | | 3,441 | | | | 1,756 | | | | 1,680 | | | | 1,866 | | | | 1,813 | | | | 1,703 | |
| Insurance income | | 2,250 | | | | 2,417 | | | | 872 | | | | 1,378 | | | | 1,012 | | | | 1,501 | | | | 1,018 | |
| ATM and debit card | | 3,182 | | | | 2,952 | | | | 1,739 | | | | 1,443 | | | | 1,643 | | | | 1,557 | | | | 1,531 | |
| Investment advisory | | 4,543 | | | | 3,689 | | | | 2,327 | | | | 2,216 | | | | 2,189 | | | | 2,245 | | | | 1,911 | |
| Company owned life insurance | | 834 | | | | 893 | | | | 424 | | | | 410 | | | | 460 | | | | 440 | | | | 443 | |
| Investments in limited partnerships | | 376 | | | | 691 | | | | 144 | | | | 232 | | | | 184 | | | | 328 | | | | 123 | |
| Loan servicing | | 214 | | | | 223 | | | | 104 | | | | 110 | | | | 122 | | | | 96 | | | | 108 | |
| Income (loss) from derivative | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| instruments, net | | 123 | | | | 347 | | | | (45 | ) | | | 168 | | | | 289 | | | | 336 | | | | 176 | |
| Net gain on sale of loans held for sale | | 589 | | | | 227 | | | | 407 | | | | 182 | | | | 266 | | | | 303 | | | | 131 | |
| Net (loss) gain on investment securities | | 113 | | | | 7 | | | | 166 | | | | (53 | ) | | | (39 | ) | | | (95 | ) | | | 7 | |
| Net gain on other assets | | 58 | | | | 12 | | | | 9 | | | | 49 | | | | 1 | | | | 37 | | | | 9 | |
| Other | | 2,635 | | | | 2,415 | | | | 1,330 | | | | 1,305 | | | | 1,355 | | | | 1,255 | | | | 1,247 | |
| Total noninterest income | | 18,353 | | | | 17,314 | | | | 9,233 | | | | 9,120 | | | | 9,348 | | | | 9,816 | | | | 8,407 | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | 27,250 | | | | 26,300 | | | | 13,249 | | | | 14,001 | | | | 14,373 | | | | 13,970 | | | | 12,871 | |
| Occupancy and equipment | | 8,912 | | | | 8,574 | | | | 4,326 | | | | 4,586 | | | | 4,427 | | | | 4,337 | | | | 4,167 | |
| Professional services | | 2,090 | | | | 1,779 | | | | 932 | | | | 1,158 | | | | 780 | | | | 1,353 | | | | 896 | |
| Computer and data processing | | 2,573 | | | | 2,593 | | | | 1,350 | | | | 1,223 | | | | 1,238 | | | | 1,291 | | | | 1,358 | |
| Supplies and postage | | 1,032 | | | | 1,060 | | | | 498 | | | | 534 | | | | 487 | | | | 485 | | | | 548 | |
| FDIC assessments | | 998 | | | | 988 | | | | 486 | | | | 512 | | | | 489 | | | | 498 | | | | 480 | |
| Advertising and promotions | | 1,606 | | | | 1,698 | | | | 1,086 | | | | 520 | | | | 935 | | | | 949 | | | | 721 | |
| Amortization of intangibles | | 639 | | | | 593 | | | | 316 | | | | 323 | | | | 330 | | | | 334 | | | | 305 | |
| Goodwill impairment | | - | | | | - | | | | - | | | | - | | | | 2,350 | | | | - | | | | - | |
| Other | | 5,074 | | | | 3,967 | | | | 2,760 | | | | 2,314 | | | | 2,394 | | | | 2,304 | | | | 2,102 | |
| Total noninterest expense | | 50,174 | | | | 47,552 | | | | 25,003 | | | | 25,171 | | | | 27,803 | | | | 25,521 | | | | 23,448 | |
| Income before income taxes | | 28,888 | | | | 26,705 | | | | 14,340 | | | | 14,548 | | | | 9,690 | | | | 13,137 | | | | 15,149 | |
| Income tax expense | | 5,966 | | | | 5,247 | | | | 2,939 | | | | 3,027 | | | | 2,199 | | | | 2,560 | | | | 2,979 | |
| Net income | | 22,922 | | | | 21,458 | | | | 11,401 | | | | 11,521 | | | | 7,491 | | | | 10,577 | | | | 12,170 | |
| Preferred stock dividends | | 731 | | | | 731 | | | | 366 | | | | 365 | | | | 365 | | | | 365 | | | | 366 | |
| Net income available to common | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| shareholders | $ | 22,191 | | | $ | 20,727 | | | $ | 11,035 | | | $ | 11,156 | | | $ | 7,126 | | | $ | 10,212 | | | $ | 11,804 | |
| FINANCIAL RATIOS: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Earnings per share – basic | $ | 1.39 | | | $ | 1.30 | | | $ | 0.69 | | | $ | 0.70 | | | $ | 0.45 | | | $ | 0.64 | | | $ | 0.74 | |
| Earnings per share – diluted | $ | 1.39 | | | $ | 1.30 | | | $ | 0.69 | | | $ | 0.70 | | | $ | 0.45 | | | $ | 0.64 | | | $ | 0.74 | |
| Cash dividends declared on common stock | $ | 0.50 | | | $ | 0.48 | | | $ | 0.25 | | | $ | 0.25 | | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.24 | |
| Common dividend payout ratio | | 35.97 | % | | | 36.92 | % | | | 36.23 | % | | | 35.71 | % | | | 53.33 | % | | | 37.50 | % | | | 32.43 | % |
| Dividend yield (annualized) | | 3.46 | % | | | 2.94 | % | | | 3.44 | % | | | 3.73 | % | | | 3.70 | % | | | 3.03 | % | | | 2.93 | % |
| Return on average assets | | 1.08 | % | | | 1.05 | % | | | 1.06 | % | | | 1.09 | % | | | 0.70 | % | | | 1.00 | % | | | 1.18 | % |
| Return on average equity | | 11.32 | % | | | 11.31 | % | | | 11.01 | % | | | 11.65 | % | | | 7.50 | % | | | 10.71 | % | | | 12.70 | % |
| Return on average common equity | | 11.45 | % | | | 11.44 | % | | | 11.12 | % | | | 11.79 | % | | | 7.46 | % | | | 10.82 | % | | | 12.90 | % |
| Return on average tangible common | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| equity (1) | | 14.21 | % | | | 14.41 | % | | | 13.73 | % | | | 14.71 | % | | | 9.40 | % | | | 13.71 | % | | | 16.27 | % |
| Efficiency ratio (2) | | 60.39 | % | | | 60.99 | % | | | 59.79 | % | | | 60.99 | % | | | 66.64 | % | | | 62.04 | % | | | 60.14 | % |
| Effective tax rate | | 20.7 | % | | | 19.6 | % | | | 20.5 | % | | | 20.8 | % | | | 22.7 | % | | | 19.5 | % | | | 19.7 | % |
| | |
| | | | | | | | | | |
| (1) | | See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.
|
| (2) | | The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP. |
| | | | | | | | | | |
| FINANCIAL INSTITUTIONS, INC. |
| Selected Financial Information (Unaudited) |
| (Amounts in thousands) |
| |
| | Six Months Ended | | | 2019 | | | 2018 | |
| | June 30, | | | Second | | | First | | | Fourth | | | Third | | | Second | |
| | 2019 | | | 2018 | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | |
| SELECTED AVERAGE BALANCES: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal funds sold and interest- | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| earning deposits | $ | 18,050 | | | $ | 28,183 | | | $ | 18,145 | | | $ | 17,955 | | | $ | 25,411 | | | $ | 17,955 | | | $ | 34,357 | |
| Investment securities (1) | | 866,138 | | | | 1,023,777 | | | | 845,624 | | | | 886,878 | | | | 937,907 | | | | 954,027 | | | | 1,012,846 | |
| Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial business | | 562,618 | | | | 467,225 | | | | 577,884 | | | | 547,182 | | | | 539,622 | | | | 519,114 | | | | 481,045 | |
| Commercial mortgage | | 994,271 | | | | 831,925 | | | | 1,010,544 | | | | 977,818 | | | | 944,476 | | | | 896,159 | | | | 842,422 | |
| Residential real estate loans | | 534,986 | | | | 477,130 | | | | 540,390 | | | | 529,522 | | | | 515,539 | | | | 498,371 | | | | 483,577 | |
| Residential real estate lines | | 108,673 | | | | 114,776 | | | | 107,826 | | | | 109,529 | | | | 110,236 | | | | 111,762 | | | | 113,948 | |
| Consumer indirect | | 901,556 | | | | 892,433 | | | | 891,967 | | | | 911,252 | | | | 914,636 | | | | 904,480 | | | | 899,069 | |
| Other consumer | | 15,972 | | | | 16,712 | | | | 15,721 | | | | 16,226 | | | | 16,671 | | | | 16,633 | | | | 16,449 | |
| Total loans | | 3,118,076 | | | | 2,800,201 | | | | 3,144,332 | | | | 3,091,529 | | | | 3,041,180 | | | | 2,946,519 | | | | 2,836,510 | |
| Total interest-earning assets | | 4,002,264 | | | | 3,852,161 | | | | 4,008,101 | | | | 3,996,362 | | | | 4,004,498 | | | | 3,918,501 | | | | 3,883,713 | |
| Goodwill and other intangible | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| assets, net | | 75,871 | | | | 75,271 | | | | 75,711 | | | | 76,033 | | | | 78,314 | | | | 79,047 | | | | 75,957 | |
| Total assets | | 4,291,670 | | | | 4,114,839 | | | | 4,300,254 | | | | 4,282,991 | | | | 4,268,809 | | | | 4,187,538 | | | | 4,142,735 | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand | | 664,577 | | | | 674,802 | | | | 660,747 | | | | 668,448 | | | | 669,491 | | | | 642,234 | | | | 677,582 | |
| Savings and money market | | 981,439 | | | | 1,022,554 | | | | 996,878 | | | | 965,829 | | | | 1,011,427 | | | | 978,578 | | | | 1,032,425 | |
| Time deposits | | 1,086,670 | | | | 881,863 | | | | 1,096,544 | | | | 1,076,687 | | | | 1,032,632 | | | | 946,499 | | | | 906,271 | |
| Short-term borrowings | | 334,939 | | | | 396,317 | | | | 323,461 | | | | 346,546 | | | | 355,439 | | | | 430,697 | | | | 381,043 | |
| Long-term borrowings, net | | 39,218 | | | | 39,147 | | | | 39,227 | | | | 39,209 | | | | 39,191 | | | | 39,174 | | | | 39,156 | |
| Total interest-bearing liabilities | | 3,106,843 | | | | 3,014,683 | | | | 3,116,857 | | | | 3,096,719 | | | | 3,108,180 | | | | 3,037,182 | | | | 3,036,477 | |
| Noninterest-bearing demand deposits | | 720,727 | | | | 693,648 | | | | 714,205 | | | | 727,321 | | | | 733,717 | | | | 730,960 | | | | 699,112 | |
| Total deposits | | 3,453,413 | | | | 3,272,867 | | | | 3,468,374 | | | | 3,438,285 | | | | 3,447,267 | | | | 3,298,271 | | | | 3,315,390 | |
| Total liabilities | | 3,883,446 | | | | 3,732,269 | | | | 3,884,843 | | | | 3,882,033 | | | | 3,872,545 | | | | 3,795,727 | | | | 3,758,465 | |
| Shareholders’ equity | | 408,224 | | | | 382,570 | | | | 415,411 | | | | 400,958 | | | | 396,264 | | | | 391,811 | | | | 384,270 | |
| Common equity | | 390,896 | | | | 365,242 | | | | 398,083 | | | | 383,630 | | | | 378,936 | | | | 374,482 | | | | 366,942 | |
| Tangible common equity (2) | $ | 315,025 | | | $ | 289,971 | | | $ | 322,372 | | | $ | 307,597 | | | $ | 300,622 | | | $ | 295,435 | | | $ | 290,985 | |
| Common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | 15,950 | | | | 15,898 | | | | 15,970 | | | | 15,930 | | | | 15,922 | | | | 15,921 | | | | 15,906 | |
| Diluted | | 15,997 | | | | 15,945 | | | | 16,015 | | | | 15,978 | | | | 15,971 | | | | 15,964 | | | | 15,948 | |
| SELECTED AVERAGE YIELDS: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Tax equivalent basis) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | 2.38 | % | | | 2.32 | % | | | 2.38 | % | | | 2.37 | % | | | 2.33 | % | | | 2.35 | % | | | 2.32 | % |
| Loans | | 4.80 | % | | | 4.39 | % | | | 4.82 | % | | | 4.77 | % | | | 4.68 | % | | | 4.55 | % | | | 4.43 | % |
| Total interest-earning assets | | 4.26 | % | | | 3.82 | % | | | 4.29 | % | | | 4.23 | % | | | 4.11 | % | | | 4.00 | % | | | 3.86 | % |
| Interest-bearing demand | | 0.21 | % | | | 0.13 | % | | | 0.21 | % | | | 0.20 | % | | | 0.20 | % | | | 0.19 | % | | | 0.13 | % |
| Savings and money market | | 0.43 | % | | | 0.22 | % | | | 0.44 | % | | | 0.41 | % | | | 0.38 | % | | | 0.33 | % | | | 0.26 | % |
| Time deposits | | 2.12 | % | | | 1.41 | % | | | 2.17 | % | | | 2.06 | % | | | 1.88 | % | | | 1.69 | % | | | 1.49 | % |
| Short-term borrowings | | 2.71 | % | | | 1.84 | % | | | 2.71 | % | | | 2.70 | % | | | 2.56 | % | | | 2.24 | % | | | 2.01 | % |
| Long-term borrowings, net | | 6.30 | % | | | 6.31 | % | | | 6.30 | % | | | 6.30 | % | | | 6.30 | % | | | 6.31 | % | | | 6.31 | % |
| Total interest-bearing liabilities | | 1.29 | % | | | 0.84 | % | | | 1.31 | % | | | 1.27 | % | | | 1.16 | % | | | 1.07 | % | | | 0.90 | % |
| Net interest rate spread | | 2.97 | % | | | 2.98 | % | | | 2.98 | % | | | 2.96 | % | | | 2.95 | % | | | 2.93 | % | | | 2.96 | % |
| Net interest rate margin | | 3.26 | % | | | 3.17 | % | | | 3.28 | % | | | 3.24 | % | | | 3.21 | % | | | 3.17 | % | | | 3.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| (1) | | Includes investment securities at adjusted amortized cost.
|
| (2) | | See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.
|
| | | | | | | | | | |
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| | Six Months Ended | | | 2019 | | | 2018 | |
| | June 30, | | | Second | | | First | | | Fourth | | | Third | | | Second | |
| | 2019 | | | 2018 | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | |
| ASSET QUALITY DATA: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | $ | 33,914 | | | $ | 34,672 | | | $ | 33,327 | | | $ | 33,914 | | | $ | 33,955 | | | $ | 33,955 | | | $ | 35,594 | |
| Net loan charge-offs (recoveries): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial business | | 37 | | | | 244 | | | | 10 | | | | 27 | | | | 1,135 | | | | 431 | | | | 259 | |
| Commercial mortgage | | (14 | ) | | | (4 | ) | | | 3 | | | | (17 | ) | | | 901 | | | | 110 | | | | (1 | ) |
| Residential real estate loans | | 101 | | | | (103 | ) | | | 76 | | | | 25 | | | | 23 | | | | 16 | | | | (53 | ) |
| Residential real estate lines | | (3 | ) | | | 86 | | | | (1 | ) | | | (2 | ) | | | 15 | | | | 21 | | | | (5 | ) |
| Consumer indirect | | 2,580 | | | | 2,981 | | | | 1,022 | | | | 1,558 | | | | 1,599 | | | | 1,246 | | | | 1,317 | |
| Other consumer | | 326 | | | | 502 | | | | 137 | | | | 189 | | | | 252 | | | | 237 | | | | 162 | |
| Total net charge-offs | | 3,027 | | | | 3,706 | | | | 1,247 | | | | 1,780 | | | | 3,925 | | | | 2,061 | | | | 1,679 | |
| Provision for loan losses | | 3,547 | | | | 2,989 | | | | 2,354 | | | | 1,193 | | | | 3,884 | | | | 2,061 | | | | 40 | |
| Ending balance | $ | 34,434 | | | $ | 33,955 | | | $ | 34,434 | | | $ | 33,327 | | | $ | 33,914 | | | $ | 33,955 | | | $ | 33,955 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| to average loans (annualized): | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial business | | 0.01 | % | | | 0.11 | % | | | 0.01 | % | | | 0.02 | % | | | 0.83 | % | | | 0.33 | % | | | 0.22 | % |
| Commercial mortgage | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | -0.01 | % | | | 0.38 | % | | | 0.05 | % | | | 0.00 | % |
| Residential real estate loans | | 0.04 | % | | | -0.04 | % | | | 0.06 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | -0.04 | % |
| Residential real estate lines | | -0.01 | % | | | 0.15 | % | | | -0.01 | % | | | -0.01 | % | | | 0.05 | % | | | 0.08 | % | | | -0.02 | % |
| Consumer indirect | | 0.58 | % | | | 0.67 | % | | | 0.46 | % | | | 0.69 | % | | | 0.69 | % | | | 0.55 | % | | | 0.59 | % |
| Other consumer | | 4.12 | % | | | 6.06 | % | | | 3.51 | % | | | 4.73 | % | | | 6.00 | % | | | 5.66 | % | | | 3.95 | % |
| Total loans | | 0.20 | % | | | 0.27 | % | | | 0.16 | % | | | 0.23 | % | | | 0.51 | % | | | 0.28 | % | | | 0.24 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental information (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-performing loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial business | $ | 638 | | | $ | 4,026 | | | $ | 638 | | | $ | 594 | | | $ | 912 | | | $ | 2,203 | | | $ | 4,026 | |
| Commercial mortgage | | 6,836 | | | | 2,151 | | | | 6,836 | | | | 909 | | | | 1,586 | | | | 1,900 | | | | 2,151 | |
| Residential real estate loans | | 2,283 | | | | 2,138 | | | | 2,283 | | | | 2,225 | | | | 2,391 | | | | 2,057 | | | | 2,138 | |
| Residential real estate lines | | 282 | | | | 288 | | | | 282 | | | | 252 | | | | 255 | | | | 297 | | | | 288 | |
| Consumer indirect | | 1,399 | | | | 1,124 | | | | 1,399 | | | | 1,822 | | | | 1,989 | | | | 1,385 | | | | 1,124 | |
| Other consumer | | 25 | | | | 4 | | | | 25 | | | | 2 | | | | 8 | | | | 8 | | | | 4 | |
| Total non-performing loans | | 11,463 | | | | 9,731 | | | | 11,463 | | | | 5,804 | | | | 7,141 | | | | 7,850 | | | | 9,731 | |
| Foreclosed assets | | 37 | | | | 299 | | | | 37 | | | | 41 | | | | 230 | | | | 290 | | | | 299 | |
| Total non-performing assets | $ | 11,500 | | | $ | 10,030 | | | $ | 11,500 | | | $ | 5,845 | | | $ | 7,371 | | | $ | 8,140 | | | $ | 10,030 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total non-performing loans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| to total loans | | 0.36 | % | | | 0.34 | % | | | 0.36 | % | | | 0.19 | % | | | 0.23 | % | | | 0.26 | % | | | 0.34 | % |
| Total non-performing assets | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| to total assets | | 0.27 | % | | | 0.24 | % | | | 0.27 | % | | | 0.14 | % | | | 0.17 | % | | | 0.19 | % | | | 0.24 | % |
| Allowance for loan losses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| to total loans | | 1.09 | % | | | 1.17 | % | | | 1.09 | % | | | 1.07 | % | | | 1.10 | % | | | 1.14 | % | | | 1.17 | % |
| Allowance for loan losses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| to non-performing loans | | 300 | % | | | 349 | % | | | 300 | % | | | 574 | % | | | 475 | % | | | 433 | % | | | 349 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FINANCIAL INSTITUTIONS, INC. |
| Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited) |
| (In thousands, except per share amounts) |
| |
| | Six Months Ended | | | 2019 | | | 2018 | |
| | June 30, | | | Second | | | First | | | Fourth | | | Third | | | Second | |
| | 2019 | | | 2018 | | | Quarter | | | Quarter | | | Quarter | | | Quarter | | | Quarter | |
| Ending tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | | | | | | | $ | 4,313,945 | | | $ | 4,302,541 | | | $ | 4,311,698 | | | $ | 4,258,385 | | | $ | 4,191,315 | |
| Less: Goodwill and other intangible | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| assets, net | | | | | | | | | | 75,534 | | | | 75,850 | | | | 76,173 | | | | 78,853 | | | | 79,188 | |
| Tangible assets | | | | | | | | | $ | 4,238,411 | | | $ | 4,226,691 | | | $ | 4,235,525 | | | $ | 4,179,532 | | | $ | 4,112,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending tangible common equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common shareholders’ equity | | | | | | | | | $ | 405,026 | | | $ | 390,925 | | | $ | 378,965 | | | $ | 374,825 | | | $ | 369,608 | |
| Less: Goodwill and other intangible | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| assets, net | | | | | | | | | | 75,534 | | | | 75,850 | | | | 76,173 | | | | 78,853 | | | | 79,188 | |
| Tangible common equity | | | | | | | | | $ | 329,492 | | | $ | 315,075 | | | $ | 302,792 | | | $ | 295,972 | | | $ | 290,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tangible common equity to tangible | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| assets (1) | | | | | | | | | | 7.77 | % | | | 7.45 | % | | | 7.15 | % | | | 7.08 | % | | | 7.06 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common shares outstanding | | | | | | | | | | 15,995 | | | | 15,941 | | | | 15,929 | | | | 15,925 | | | | 15,924 | |
| Tangible common book value per | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| share (2) | | | | | | | | | $ | 20.60 | | | $ | 19.77 | | | $ | 19.01 | | | $ | 18.59 | | | $ | 18.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average tangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average assets | $ | 4,291,670 | | | $ | 4,114,839 | | | $ | 4,300,254 | | | $ | 4,282,991 | | | $ | 4,268,809 | | | $ | 4,187,538 | | | $ | 4,142,735 | |
| Less: Average goodwill and other | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| intangible assets, net | | 75,871 | | | | 75,271 | | | | 75,711 | | | | 76,033 | | | | 78,314 | | | | 79,047 | | | | 75,957 | |
| Average tangible assets | $ | 4,215,799 | | | $ | 4,039,568 | | | $ | 4,224,543 | | | $ | 4,206,958 | | | $ | 4,190,495 | | | $ | 4,108,491 | | | $ | 4,066,778 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average tangible common equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Average common equity | $ | 390,896 | | | $ | 365,242 | | | $ | 398,083 | | | $ | 383,630 | | | $ | 378,936 | | | $ | 374,482 | | | $ | 366,942 | |
| Less: Average goodwill and other | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| intangible assets, net | | 75,871 | | | | 75,271 | | | | 75,711 | | | | 76,033 | | | | 78,314 | | | | 79,047 | | | | 75,957 | |
| Average tangible common equity | $ | 315,025 | | | $ | 289,971 | | | $ | 322,372 | | | $ | 307,597 | | | $ | 300,622 | | | $ | 295,435 | | | $ | 290,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income available to | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| common shareholders | $ | 22,191 | | | $ | 20,727 | | | $ | 11,035 | | | $ | 11,156 | | | $ | 7,126 | | | $ | 10,212 | | | $ | 11,804 | |
| Return on average tangible common | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| equity (3) | | 14.21 | % | | | 14.41 | % | | | 13.73 | % | | | 14.71 | % | | | 9.40 | % | | | 13.71 | % | | | 16.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pre-tax pre-provision income: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | $ | 22,922 | | | $ | 21,458 | | | $ | 11,401 | | | $ | 11,521 | | | $ | 7,491 | | | $ | 10,577 | | | $ | 12,170 | |
| Add: Income tax expense | | 5,966 | | | | 5,247 | | | | 2,939 | | | | 3,027 | | | | 2,199 | | | | 2,560 | | | | 2,979 | |
| Add: Provision for loan losses | | 3,547 | | | | 2,989 | | | | 2,354 | | | | 1,193 | | | | 3,884 | | | | 2,061 | | | | 40 | |
| Pre-tax pre-provision income | $ | 32,435 | | | $ | 29,694 | | | $ | 16,694 | | | $ | 15,741 | | | $ | 13,574 | | | $ | 15,198 | | | $ | 15,189 | |
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| (1) | | Tangible common equity divided by tangible assets.
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| (2) | | Tangible common equity divided by common shares outstanding. |
| (3) | | Net income available to common shareholders (annualized) divided by average tangible common equity. |
