Financial Institutions(FISI)2024-11-04 21:05Financial Performance - Total interest income for the three months ended September 30, 2024, was 74,700,000 in the same period of 2023[5]. - Net interest income after provision for credit losses was 40,711,000 in the same period of 2023, reflecting a decrease of 5.2%[5]. - Noninterest income totaled 10,486,000 in the same period of 2023, a decline of 9.9%[5]. - Net income for the three months ended September 30, 2024, was 14,022,000 in the same period of 2023, representing a decrease of 4.0%[5]. - Earnings per common share (diluted) for the three months ended September 30, 2024, was 0.88 in the same period of 2023, a decline of 4.5%[5]. - Comprehensive income for the three months ended September 30, 2024, was 12,895,000 in the same period of 2023[7]. - Net income for the nine months ended September 30, 2024, was (6,323,000)[8]. - Net income available to common shareholders for the three months ended September 30, 2024, was 13.7 million for the same period in 2023, reflecting a decrease of 4.0%[22]. - For the nine months ended September 30, 2024, net income available to common shareholders was 39.4 million in 2023, representing an increase of 1.8%[22]. Expenses and Provisions - The provision for credit losses was 966,000 in the same period of 2023[5]. - Total noninterest expense decreased to 34,735,000 in the same period of 2023, a reduction of 6.5%[5]. - The allowance for credit losses on loans decreased to 51.082 million at the beginning of the year, reflecting a reduction of 12.5%[59]. - The provision for credit losses was 1.4 million in Q3 2023[162]. Shareholder Information - The company declared cash dividends of 4,620,000 for the nine months ended September 30, 2024[8]. - The balance of preferred equity as of September 30, 2024, was 393,000 worth of common stock for treasury during the nine months ended September 30, 2024[8]. Assets and Liabilities - The company reported total assets of 500,342,000, reflecting a decrease from 5.31 billion, reflecting an increase of 2.09 billion, or 39% of total deposits, as of September 30, 2024[169]. Loan Performance - The total loan portfolio amounted to 4.36 billion after accounting for an allowance for credit losses of 40.7 million, or 0.93% of total loans, as of September 30, 2024, up from 519 thousand if all such loans had been accruing interest[34]. - The total allowance for credit losses on loans at the end of the current period was 49.630 million at the end of the previous year, a decrease of 10.0%[61]. Market and Strategic Initiatives - The Company plans to wind down its Banking-as-a-Service (BaaS) offerings effective January 1, 2024, to focus on its core Upstate New York market[12]. - The company aims to maintain a diversified revenue stream and is prepared to pursue acquisition opportunities that align with its core competencies[127]. - The company has implemented a program to provide financial products and services to legal cannabis-related businesses, following New York State's legalization[128]. - The company anticipates that fluctuations in market interest rates may significantly impact its interest margins and income[124]. Risk Management - The company is subject to various risks, including credit losses, regulatory changes, and competition in the financial services industry[124]. - The company categorized loans into risk categories, with "Special Mention" loans indicating potential weaknesses that require close management attention[43]. - The company closely monitors the performance of modified loans, with 1,196 thousand in current payments for residential real estate loans modified due to financial difficulty[38].