Core Insights - The article emphasizes the importance of value investing as a popular strategy for identifying undervalued stocks that offer potential profits [2][3] - Zacks has developed a Style Scores system to help investors find stocks with specific traits, particularly in the Value category, where stocks with "A" grades and high Zacks Ranks are highlighted as strong value stocks [3] Company Analysis: Financial Institutions (FISI) - FISI currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 8.48, significantly lower than the industry average P/E of 11.13, suggesting it may be undervalued [4] - FISI's Forward P/E has fluctuated between 5.47 and 9.35 over the past year, with a median of 7.65, indicating variability in its valuation [4] - The P/B ratio for FISI is 0.91, compared to the industry average of 1.36, further supporting the notion of undervaluation [5] - Over the past year, FISI's P/B ratio has ranged from 0.59 to 0.95, with a median of 0.79, reflecting its attractive valuation metrics [5] - FISI's P/S ratio stands at 1.22, lower than the industry's average P/S of 1.93, reinforcing its potential as a value investment [6] Company Analysis: First Bank (FRBA) - First Bank has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong investment potential [6] - The P/B ratio for First Bank is 0.74, which is also below the industry average of 1.36, suggesting it may be undervalued [7] - Over the past year, First Bank's P/B ratio has varied between 0.60 and 0.79, with a median of 0.70, indicating consistent valuation metrics [7] - Both FISI and FRBA are highlighted as likely undervalued stocks, supported by their strong earnings outlooks and favorable valuation metrics [7]

Core Points - Financial Institutions, Inc. announced a quarterly cash dividend of $0.31 per outstanding common share, reflecting a 3.3% increase from the previous quarter [1][2] - The annualized yield of the cash dividend is 4.4%, based on a closing share price of $28.00 on February 12, 2025 [2] - The company also declared dividends of $0.75 per share on Series A 3% preferred stock and $2.12 per share on Series B-1 8.48% preferred stock, payable on April 2, 2025 [3] Company Overview - Financial Institutions, Inc. is a financial holding company with approximately $6.1 billion in assets as of December 31, 2024 [4] - The company offers banking and wealth management products and services through its subsidiary, Five Star Bank, which serves individuals, municipalities, and businesses in Western and Central New York [4] - Courier Capital, LLC, another subsidiary, provides customized investment management, financial planning, and consulting services to a diverse clientele [4]

Investor Presentation Financial Institutions, Inc. (Nasdaq: FISI) Fourth Quarter 2024 Earnings Presentation January 30, 2025 Safe Harbor Statement Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. (the "Company") and its subsidiaries constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe the objectives, plans or ...

Financial Performance - The Company reported a net loss of $65.7 million in Q4 2024, compared to a net income of $13.5 million in Q3 2024 and $9.8 million in Q4 2023, resulting in a loss of $4.02 per diluted share[3]. - Full year 2024 net loss was $24.5 million, down from a net income of $50.3 million in 2023, with a loss of $1.66 per diluted share compared to $3.15 per diluted share in 2023[4]. - The net loss for Q4 2024 was $(25,981,000), compared to a net income of $48,805,000 in Q4 2023, representing a significant downturn[46]. - Earnings per share (diluted) for Q4 2024 was $(1.66), a decrease from $3.15 in Q4 2023[46]. - Return on average assets (annualized) for Q4 2024 was -0.40%, down from 0.83% in Q4 2023[46]. - Return on average equity (annualized) for Q4 2024 was -5.15%, a decline from 11.86% in Q4 2023[46]. - Return on average tangible common equity was -6.58% for 2024, down from 14.64% in 2023, indicating a challenging year for profitability[51]. Asset and Loan Management - Total loans reached $4.48 billion at year-end 2024, reflecting a quarterly increase of $76.2 million (1.7%) and an annual increase of $17.1 million (0.4%)[6]. - Total loans increased to $4,437,496 thousand in 2024 from $4,322,612 thousand in 2023, representing a growth of 2.67%[48]. - Non-performing loans were $41.4 million, or 0.92% of total loans, at December 31, 2024, compared to 0.93% at September 30, 2024[32]. - Total non-performing loans increased to $41,406,000 in 2024 from $26,660,000 in 2023, marking a substantial increase of 55.3%[50]. - The ratio of total non-performing loans to total loans was 0.92% at the end of 2024, up from 0.60% in 2023, indicating a deterioration in asset quality[50]. Deposits and Funding - Total deposits were $5.10 billion at year-end 2024, down $201.9 million (3.8%) from Q3 2024 and down $108.2 million (2.1%) from the prior year end[6]. - Total deposits decreased to $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024[24]. - Total deposits grew to $5,211,794 thousand in 2024 from $5,108,561 thousand in 2023, an increase of 2.02%[48]. Capital and Equity - Shareholders' equity rose to $586.1 million at December 31, 2024, compared to $500.3 million at September 30, 2024[26]. - Shareholders' equity increased to $476,431 thousand in 2024 from $423,686 thousand in 2023, reflecting a growth of 12.43%[48]. - Common equity tier 1 ratio improved to 10.88%, up 145 basis points from year-end 2023, and the tangible common equity ratio increased to 8.40%, up 240 basis points[7]. - Tangible common equity increased to $508,065,000 in 2024 from $422,183,000 in 2023, representing a growth of 20.34%[51]. - Common shares outstanding increased to 20,077,000 in 2024 from 15,474,000 in 2023, reflecting a rise of 29.99%[51]. Expenses and Losses - Noninterest expense for the full year 2024 was $155.9 million, an increase of $18.7 million from 2023, primarily due to a deposit-related fraud event[18]. - Noninterest expense increased to $155,884,000 in Q4 2024 from $137,225,000 in Q4 2023, marking an increase of 13.6%[46]. - The efficiency ratio for Q4 2024 was 71.75%, up from 62.96% in Q4 2023, indicating a decrease in operational efficiency[47]. - A pre-tax loss of $100.2 million was recognized from the sale of $653.5 million of available-for-sale investment securities in Q4 2024[2]. Credit Losses and Provisions - The Company recorded a provision for credit losses of $6.5 million in Q4 2024, compared to $3.1 million in Q3 2024 and $5.3 million in Q4 2023[3]. - The allowance for credit losses on loans increased to $48,041 thousand, up from $44,678 thousand in the previous quarter[45]. - The provision for credit losses on loans for 2024 was $5,645,000, significantly lower than $14,213,000 in 2023, reflecting a decrease of 60.3%[50]. - The allowance for credit losses to total loans ratio was 1.07% at the end of 2024, slightly down from 1.14% in 2023[50]. Investment and Securities - Total investment securities increased to $1,027,106 thousand, up 1.1% from $1,008,095 thousand in the prior quarter[45]. - Investment securities decreased to $1,171,083 thousand in 2024 from $1,249,928 thousand in 2023, a decline of 6.27%[48]. Future Outlook - The Company will host an earnings conference call on January 31, 2025, at 8:30 a.m. Eastern Time[37].

Core Viewpoint - Financial Institutions, Inc. reported a significant net loss for the fourth quarter and full year of 2024, primarily due to a balance sheet restructuring and losses on investment securities, but anticipates improved performance moving forward due to strategic initiatives and capital raise efforts [3][4][6]. Financial Performance - The company recorded a net loss of $65.7 million in Q4 2024, compared to a net income of $13.5 million in Q3 2024 and $9.8 million in Q4 2023, resulting in a loss of $4.02 per diluted share [3][4]. - For the full year 2024, the net loss was $24.5 million, a stark contrast to the net income of $50.3 million in 2023, leading to a loss of $1.66 per diluted share [4][6]. - The provision for credit losses was $6.5 million in Q4 2024, up from $3.1 million in Q3 2024 and $5.3 million in Q4 2023 [3][34]. Balance Sheet Restructuring - The company executed a balance sheet restructuring plan, selling $653.5 million of available-for-sale investment securities, resulting in a pre-tax loss of $100.2 million [2][9]. - The net proceeds from the sale were reinvested into higher-yielding agency wrapped investment securities, which are expected to enhance future earnings [2][9]. Capital Management - The company completed an equity offering in December 2024, raising approximately $108.5 million, which was used to fund losses from the restructuring and improve capital positions [8][9]. - The common equity tier 1 ratio improved to 10.88% at year-end 2024, up 145 basis points from the previous year [8][30]. Loan and Deposit Trends - Total loans reached $4.48 billion at December 31, 2024, reflecting a modest increase of 1.7% from the previous quarter and 0.4% year-over-year [7][23]. - Total deposits decreased to $5.10 billion, down 3.8% from the previous quarter and 2.1% from the prior year, primarily due to seasonal public deposit outflows [7][24]. Noninterest Income and Expenses - The company reported a noninterest income loss of $91.0 million in Q4 2024, significantly down from $9.4 million in Q3 2024 and $15.4 million in Q4 2023, largely due to losses on investment securities [15][16]. - Noninterest expenses increased to $36.4 million in Q4 2024, compared to $32.5 million in Q3 2024, driven by nonrecurring expenses [17][18]. Credit Quality - Non-performing loans were $41.4 million, or 0.92% of total loans, at year-end 2024, slightly up from 0.93% in the previous quarter and significantly higher than 0.60% a year prior [32][33]. - The allowance for credit losses on loans to total loans ratio was 1.07% at year-end 2024, compared to 1.01% in the previous quarter and 1.14% a year ago [33][34].

Core Viewpoint - Financial Institutions, Inc. has appointed Angela J. Panzarella as a new independent member of the Boards of Directors for both the Company and its subsidiary, Five Star Bank, effective January 22, 2025 [1][8]. Group 1: Appointment Details - Angela Panzarella brings extensive leadership experience, including her role as CEO of the YWCA of Rochester and Monroe County and a 20-year tenure at Bausch + Lomb [2]. - Her appointment increases the Board size to twelve members, with eleven being independent and three appointed in the last four years [2]. - Panzarella will serve on the Audit and Management Development & Compensation Committees [2]. Group 2: Leadership Insights - The Chair of the Boards, Susan R. Holliday, expressed confidence that Panzarella's experience in the regulated healthcare industry will be a significant asset for the Company [3]. - Martin K. Birmingham, President and CEO, highlighted her proven ability to develop successful business strategies and her respected status in the Greater Rochester community [3]. Group 3: Background Information - Prior to her role at the YWCA, Panzarella was President of ACM Medical Laboratory, Inc., and held various executive roles at Bausch + Lomb [3]. - She has served on the boards of UR Medicine Home Care and the United Way of Greater Rochester, and holds a B.A. from St. John Fisher College and a J.D. from Albany Law School [4]. Group 4: Company Overview - Financial Institutions, Inc. is a financial holding company with approximately $6.2 billion in assets, offering banking and wealth management products and services [5]. - Its subsidiary, Five Star Bank, provides consumer and commercial banking services across Western and Central New York, along with a commercial loan production office in the Mid-Atlantic region [5].

Core Points - Financial Institutions, Inc. will release its fourth quarter and full year results for 2024 on January 30, 2025, after market close [1] - An earnings conference call will be held on January 31, 2025, at 8:30 a.m. Eastern Time, hosted by the CEO and CFO [2] - Financial Institutions, Inc. has approximately $6.2 billion in assets and offers banking and wealth management services through its subsidiaries [3] Company Overview - Financial Institutions, Inc. is a financial holding company with a focus on banking and wealth management products and services [3] - The company's subsidiary, Five Star Bank, provides consumer and commercial banking services across Western and Central New York [3] - Courier Capital, LLC, another subsidiary, offers investment management and financial planning services to a diverse clientele [3]

Core Viewpoint - Financial Institutions (FISI) is currently considered a strong investment opportunity due to its attractive valuation metrics and positive earnings outlook, reflected in its Zacks Rank of 2 (Buy) and Value grade of A [2][8]. Valuation Metrics - FISI has a P/E ratio of 8.63, significantly lower than the industry average of 11.23, indicating potential undervaluation [2]. - The stock's Forward P/E has fluctuated between 5.47 and 9.35 over the past 52 weeks, with a median of 6.82 [2]. - FISI's P/CF ratio stands at 6.22, compared to the industry's average of 23.87, suggesting it is undervalued based on cash flow [3]. - The P/S ratio for FISI is 1.13, which is lower than the industry average of 1.91, further supporting the undervaluation thesis [5]. - FISI's P/B ratio is 0.85, significantly below the industry average of 1.27, indicating a favorable valuation relative to book value [7]. Investment Strategy - Value investing focuses on identifying companies that are undervalued by the market, using fundamental analysis and traditional valuation metrics [6]. - FISI's current metrics suggest it is likely being undervalued, making it an appealing option for value investors [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Financial Institutions (FISI) - FISI currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, FISI shares increased by 7.97%, while the Zacks Banks - Northeast industry declined by 0.89% [6] - In a longer timeframe, FISI shares rose by 13.19% over the past quarter and 41.56% over the past year, outperforming the S&P 500's gains of 8.14% and 30.36%, respectively [7] - The average 20-day trading volume for FISI is 119,379 shares, indicating a bullish sign with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions for FISI show one upward revision for the full year, increasing the consensus estimate from $3.64 to $3.66 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating a positive earnings outlook [10] - These factors contribute to FISI's status as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Viewpoint - Financial Institutions, Inc. has announced a public offering of 4,000,000 shares of common stock at a price of $25.00 per share, aiming to raise approximately $95.0 million in net proceeds after underwriting discounts and commissions [1][2]. Group 1: Offering Details - The public offering consists of 4,000,000 shares priced at $25.00 each, with expected proceeds of around $95.0 million [1]. - The underwriters have a 30-day option to purchase an additional 600,000 shares at the same public offering price [1]. - The offering is expected to close on or about December 13, 2024, subject to customary conditions [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including balance sheet restructuring and repayment of indebtedness [2]. Group 3: Company Overview - Financial Institutions, Inc. is a financial holding company with approximately $6.2 billion in assets, providing banking and wealth management services through its subsidiaries [6]. - Its Five Star Bank subsidiary offers consumer and commercial banking services across Western and Central New York [6]. - Courier Capital, LLC provides customized investment management and financial planning services [6].