NASDAQ$FISI

Financial Institutions Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Financial results for the second quarter of 2023 were announced.

Financial Institutions, Inc. reported a net income of $14.4 million for Q2 2023, with earnings per diluted share at $0.91. The company saw growth in total loans and noninterest income, while managing deposit outflows and margin compression amid a rising interest rate environment. Credit quality remained strong and the company strategically merged its investment advisory firms under Courier Capital.

  • Net income reached $14.4 million, or $0.91 per diluted share.
  • Total loans increased to $4.40 billion, up 3.6% from the previous quarter and 16.8% year-over-year.
  • Total deposits decreased to $5.03 billion, down 2.1% from the previous quarter but up 4.4% year-over-year.
  • Noninterest income increased to $11.5 million, up 5.0% from the previous quarter and 0.9% year-over-year.

Headline financials

Total Revenue

$53.8M

Previous: $53M+1.6%
EPS (adj)

$0.91

Previous: $0.99-8.1%
Common Equity to Assets

6.7%

Previous: 7.3%-9.4%
Tangible Common Equity Ratio

5.5%

Previous: 6.1%-9.2%
Leverage Ratio

8.1%

Previous: 8.2%-1.5%
CET1 Capital Ratio

9.1%

Previous: 9.9%-8.2%
Tier 1 Capital Ratio

9.4%

Previous: 10.3%-8.4%
Total Capital Ratio

11.8%

Previous: 12.8%-7.7%
Capital Expenditures

-$1.23M

Previous: -$4M+69.2%
Free Cash Flow

$13.6M

Previous: $77.8M-82.5%
Net Income

$14.4M

Previous: $15.6M-8.1%
Operating Income

$10.1M

Previous: $32.3M-68.8%
Gross Profit

$53.8M

Previous: $53M+1.6%
Cash & Equivalents

$180M

Previous: $110M+64.3%
Total Assets

$6.14B

Previous: $5.57B+10.3%
Stock-Based Comp

$657K

Previous: $947K-30.6%

Revenue & EPS history

Financial Institutions · Revenue · Quarterly

$53.8M

Q2 2023+1.6%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Financial Institutions · $10.2M total across 8 segments · Q2 2023

  • Investment Advisory
    $2.82M-3.0%
  • Card Interchange
    $2.11M+0.2%
  • Insurance Income
    $1.33M+7.6%
  • Deposit Fees
    $1.22M-14.9%
  • Other
    $1.15M+8.0%
  • COLI Income
    $953K+9.7%
  • Limited Partnerships
    $469K+93.8%
  • Loan Servicing
    $114K-15.6%

Forward guidance

Financial Institutions, Inc. is focused on deposit generation and anticipates Banking-as-a-Service (BaaS) deposits to increase. While margin compression continued in Q2, it was at a slower pace. Loan and investment cash flow is expected to be approximately $1 billion over the next 12 months due to the pace of loan originations in the first half of 2023.

Tailwinds

  • New marketing campaign launched to enhance deposit generation.
  • Anticipated Banking-as-a-Service (BaaS) deposits are beginning to materialize.
  • Margin compression continued, but at a more modest level than the previous quarter.
  • Observed a slowing of prepayments across all asset classes.
  • Expect loan and investment cash flow of approximately $1 billion over the next 12 months.

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 Q2 2023

Historical avgQ2 2023

+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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