Financial Institutions(FISI)

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Financial Institutions(FISI) - 2019 Q3 - Quarterly Report
2019-11-06 21:17
PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) The company presents its unaudited consolidated financial statements for the periods ended September 30, 2019 [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to $4.33 billion, driven by loan growth funded by increased deposits and reduced borrowings Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$4,332,737** | **$4,311,698** | | Loans, net | $3,124,752 | $3,052,684 | | Total Securities | $781,746 | $892,258 | | **Total Liabilities** | **$3,900,120** | **$3,915,405** | | Total Deposits | $3,586,214 | $3,366,907 | | Short-term borrowings | $211,400 | $469,500 | | **Total Shareholders' Equity** | **$432,617** | **$396,293** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2019 net income rose 21.3% year-over-year to $12.8 million, driven by higher interest and noninterest income Key Income Statement Data (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $32,483 | $30,903 | $96,739 | $90,835 | | Provision for loan losses | $1,844 | $2,061 | $5,391 | $5,050 | | Noninterest Income | $12,361 | $9,816 | $30,714 | $27,130 | | Noninterest Expense | $25,886 | $25,521 | $76,060 | $73,073 | | **Net Income** | **$12,833** | **$10,577** | **$35,755** | **$32,035** | | **Diluted EPS** | **$0.78** | **$0.64** | **$2.16** | **$1.94** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased to $14.3 million in Q3 2019, boosted by higher net income and unrealized securities gains Comprehensive Income (in thousands) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $12,833 | $10,577 | $35,755 | $32,035 | | Other comprehensive income (loss) | $1,426 | $(1,524) | $12,330 | $(9,904) | | **Comprehensive Income** | **$14,259** | **$9,053** | **$48,085** | **$22,131** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity grew to $432.6 million, driven by net income and other comprehensive income gains - Shareholders' equity increased by **$36.3 million** during the first nine months of 2019, primarily due to **retained earnings** and a decrease in accumulated other comprehensive loss[22](index=22&type=chunk)[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $34.1 million in the first nine months of 2019, led by operating and investing activities Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,162 | $50,809 | | Net cash provided by (used in) investing activities | $44,808 | $(158,213) | | Net cash (used in) provided by financing activities | $(51,910) | $125,540 | | **Net increase in cash and cash equivalents** | **$34,060** | **$18,136** | [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section details accounting policies, business combinations, credit quality, and the adoption of new lease standards - The Company adopted ASU 2016-02 (Leases) on January 1, 2019, which resulted in the recognition of right-of-use assets of approximately **$22.7 million** and lease liabilities of approximately **$23.4 million**[43](index=43&type=chunk) - The Company is preparing for the implementation of ASU 2016-13 (CECL) effective January 1, 2020, which is expected to impact the statements of income and financial condition[43](index=43&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting a 21% Q3 net income increase from loan and noninterest income growth [Executive Overview](index=44&type=section&id=Executive%20Overview) Q3 2019 net income increased 21% year-over-year to $12.8 million, driven by strong loan and noninterest income growth Q3 2019 Performance Highlights | Metric | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | Net Income | $12.8 million | $10.6 million | | Diluted EPS | $0.78 | $0.64 | | Return on Average Assets | 1.19% | 1.00% | | Return on Average Common Equity | 12.00% | 10.82% | [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Operations improved with a 12 basis point net interest margin expansion and a surge in noninterest income - Net interest margin for Q3 2019 was **3.29%**, up 12 basis points from 3.17% in Q3 2018, driven by a better earning asset mix and higher contribution from net free funds[169](index=169&type=chunk) - Q3 2019 noninterest income increased to **$12.4 million** from $9.8 million YoY, largely due to a **$1.6 million** net gain on the sale of investment securities and a **$0.9 million** income from derivative instruments[164](index=164&type=chunk)[187](index=187&type=chunk) - The efficiency ratio improved to **59.52%** in Q3 2019 from 62.04% in Q3 2018, reflecting better operating leverage[190](index=190&type=chunk) [Analysis of Financial Condition](index=52&type=section&id=Analysis%20of%20Financial%20Condition) Financial condition remained strong with total loans growing to $3.16 billion, though asset quality slightly deteriorated - Total loans increased by **$69.8 million (2.3%)** in the first nine months of 2019, led by a **$93.9 million** increase in commercial loans[203](index=203&type=chunk) - The allowance for loan losses to total loans ratio decreased to **1.00%** at September 30, 2019, from 1.10% at December 31, 2018[208](index=208&type=chunk) - Non-performing loans increased to **$9.8 million (0.31% of total loans)** from $7.1 million (0.23% of total loans) at year-end 2018[212](index=212&type=chunk) [Liquidity and Capital Management](index=58&type=section&id=Liquidity%20and%20Capital%20Management) The company maintained strong liquidity and capital, with all regulatory ratios exceeding 'well-capitalized' thresholds Regulatory Capital Ratios | Ratio | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Tier 1 Leverage | 8.86% | 8.16% | | CET1 Capital | 10.06% | 9.70% | | Tier 1 Capital | 10.55% | 10.21% | | Total Risk-Based Capital | 12.57% | 12.38% | - The company and the Bank remained characterized as **'well-capitalized'** under the fully phased-in Basel III capital rules[225](index=225&type=chunk)[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk, with models showing potential NII decreases in various rate scenarios Net Interest Income at Risk (12-Month Estimate) | Rate Shock Scenario | Estimated Change in NII | % Change | | :--- | :--- | :--- | | -100 bp | $(2,811) thousand | (2.05)% | | +100 bp | $(1,178) thousand | (0.86)% | Economic Value of Equity (EVE) at Risk | Rate Shock Scenario | Change in EVE | % Change | | :--- | :--- | :--- | | -100 bp | $38,649 thousand | 6.19% | | +100 bp | $(21,990) thousand | (3.52)% | [Controls and Procedures](index=63&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Management concluded that the Company's disclosure controls and procedures were **effective** as of the end of the reporting period[238](index=238&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[239](index=239&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=64&type=section&id=ITEM%201.%20Legal%20Proceedings) No material developments in legal proceedings have occurred since the 2018 Annual Report on Form 10-K - There have been **no material developments** in legal proceedings since the company's 2018 Annual Report on Form 10-K[242](index=242&type=chunk) [Exhibits](index=64&type=section&id=ITEM%206.%20Exhibits) This section lists filed exhibits, including Sarbanes-Oxley certifications and XBRL interactive data files - Exhibits filed with this report include **Sarbanes-Oxley Act certifications** (Sections 302 and 906) and XBRL data files[243](index=243&type=chunk)
Financial Institutions(FISI) - 2019 Q2 - Quarterly Report
2019-08-07 20:17
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 000-26481 (Exact name of registrant as specified in its charter) NEW YORK 16-0816610 (State or o ...
Financial Institutions(FISI) - 2018 Q4 - Annual Report
2019-03-08 18:57
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) Form 10-K [ X ]ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-26481 | --- | --- | |----------------------------------------------------------------------------------------- ...