NASDAQ$FISI

Financial Institutions Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Financial results announced with a decrease in net income due to higher provision for credit losses.

Financial Institutions, Inc. reported a net income of $1.1 million for the first quarter of 2020, a significant decrease compared to $11.5 million in the first quarter of 2019. The results were negatively impacted by a higher provision for credit losses of $13.9 million, driven by the adoption of CECL and the impact of COVID-19.

  • Net income was $1.1 million, down from $11.5 million in Q1 2019.
  • Earnings per diluted share were $0.05, compared to $0.70 in Q1 2019.
  • Provision for credit losses increased to $13.9 million due to CECL adoption and COVID-19 impacts.
  • Net interest income was $33.1 million, slightly higher than $31.792 million in Q1 2019.

Headline financials

Total Revenue

$43.1M

Previous: $40.9M+5.3%
EPS (adj)

$0.05

Previous: $0.70-92.9%
Net Interest Margin

3.3%

No prior period
Leverage Ratio

8.8%

No prior period
CET1 Capital Ratio

10.1%

No prior period
Tier 1 Capital Ratio

10.5%

No prior period
Total Capital Ratio

12.5%

No prior period
Capital Expenditures

-$1.2M

Previous: -$575K-108.0%
Free Cash Flow

$3.13M

Previous: $14.8M-78.9%
Net Income

$1.13M

Previous: $11.5M-90.2%
Operating Income

$10.7M

Previous: $21.2M-49.4%
Gross Profit

$29.7M

Previous: $39.7M-25.3%
Cash & Equivalents

$152M

Previous: $79.8M+90.7%
Total Assets

$4.47B

Previous: $4.3B+3.9%
Stock-Based Comp

$332K

Previous: $182K+82.4%

Revenue & EPS history

Financial Institutions · Revenue · Quarterly

$43.1M

Q1 2020+5.3%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Financial Institutions · $7.33M total across 9 segments · Q1 2020

  • Investment Advisory
    $2.25M
  • Deposit Fees
    $1.59M
  • Insurance Income
    $1.35M
  • Other
    $1.2M
  • COLI Income
    $465K
  • Loan Sale Gains
    $304K
  • Limited Partnerships
    $213K
  • Loan Servicing
    $7K
  • Tax Credit Loss
    -$40K

Forward guidance

The Company continued to advance the major transformational and technology initiatives announced last quarter. A multiple-phase launch of Five Star Digital Banking is planned for the second quarter of 2020. An enterprise standardization program, focused on improving operational efficiency and enhancing future profitability, continues to move forward as well.

Tailwinds

  • Five Star Bank Digital Banking platform will completely replace the existing digital platform for consumer and commercial customers
  • The new platform is expected to significantly improve the user experience across all devices
  • The company enhance customers’ capabilities to interact with us digitally
  • A multiple-phase launch of Five Star Digital Banking is planned for the second quarter of 2020
  • The Company is evaluating activities and functions across the organization, focusing on ways to improve operational efficiency and automate low-value, repetitive activities using robotic process automation while also enhancing the employee and customer experience.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.8%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+2.7%

Avg return

30 days after

64%

42 / 66 earnings

Positive

+12.3%

Q3 2020

Best reaction

-15.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%-0.4%+3.5%
Q4 2025+0.2%+5.6%-4.7%
Q3 2025+9.4%+9.2%+11.3%
Q2 2025-2.3%-1.7%+2.5%
Q1 2025+5.8%+8.9%+6.9%
Q4 2024-2.9%+0.4%-15.2%
Q3 2024-6.2%-4.4%+8.9%
Q2 2024+8.6%+16.1%+9.2%
Q1 2024-1.0%-3.1%+1.2%
Q4 2023-6.7%-5.2%-18.3%
Q3 2023+0.0%+1.9%+14.9%
Q2 2023+9.4%+5.7%-2.4%
Q1 2023+0.4%-0.3%-4.4%
Q4 2022+2.3%+6.0%+3.5%
Q3 2022-1.0%-7.7%-3.0%
Q2 2022-0.5%-2.1%-0.7%
Q1 2022-1.1%-2.2%-2.0%
Q4 2021+1.9%+1.7%+0.5%
Q3 2021+2.4%+3.4%-0.3%
Q2 2021+0.7%+4.1%+10.1%
Q1 2021+5.4%+9.9%+8.2%
Q4 2020+1.2%+10.7%+21.0%
Q3 2020+12.3%+19.1%+32.1%
Q2 2020+4.5%+6.3%+17.3%
Q1 2020-15.4%-18.6%-14.2%
Q4 2019+2.4%+1.8%-10.6%
Q3 2019+3.1%+3.3%+5.8%
Q2 2019+4.2%+3.0%-1.4%
Q1 2019+0.6%+2.9%-3.5%
Q4 2018+0.4%+1.4%+11.1%
Q3 2018+4.1%+8.1%+9.6%
Q2 2018-0.9%-2.9%+0.3%
Q1 2018+0.3%+0.2%+2.5%
Q4 2017+2.3%+3.4%-0.2%
Q3 2017+4.2%+9.5%+6.8%
Q2 2017-2.6%-2.8%-9.4%
Q1 2017-1.9%-3.2%-10.0%
Q4 2016+3.2%+5.3%+8.3%
Q3 2016+2.4%+2.9%+16.1%
Q2 2016+0.3%-0.1%-1.7%
Q1 2016+3.0%
Q4 2015+0.4%
Q3 2015+2.4%
Q2 2015-0.8%
Q1 2015+2.7%
Q4 2014-1.4%
Q3 2014-0.9%
Q2 2014-3.8%
Q1 2014-0.5%
Q4 2013+1.1%
Q3 2013+3.8%
Q2 2013+0.3%
Q1 2013-2.3%
Q4 2012-0.2%
Q3 2012-2.8%
Q2 2012+0.9%
Q1 2011+0.6%
Q1 2012+4.3%
Q4 2010+1.7%
Q4 2009+1.7%
Q4 2011+1.7%
Q3 2010-4.4%
Q3 2011-4.4%
Q2 2011+1.6%
Q2 2010+1.6%
Q1 2010-1.9%

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