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Financial Institutions(FISI) - 2024 Q4 - Annual Results
FISIFinancial Institutions(FISI)2025-01-30 21:06

Financial Performance - The Company reported a net loss of 65.7millioninQ42024,comparedtoanetincomeof65.7 million in Q4 2024, compared to a net income of 13.5 million in Q3 2024 and 9.8millioninQ42023,resultinginalossof9.8 million in Q4 2023, resulting in a loss of 4.02 per diluted share[3]. - Full year 2024 net loss was 24.5million,downfromanetincomeof24.5 million, down from a net income of 50.3 million in 2023, with a loss of 1.66perdilutedsharecomparedto1.66 per diluted share compared to 3.15 per diluted share in 2023[4]. - The net loss for Q4 2024 was (25,981,000),comparedtoanetincomeof(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),adecreasefrom(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 4.48billionatyear−end2024,reflectingaquarterlyincreaseof4.48 billion at year-end 2024, reflecting a quarterly increase of 76.2 million (1.7%) and an annual increase of 17.1million(0.417.1 million (0.4%)[6]. - Total loans increased to 4,437,496 thousand in 2024 from 4,322,612thousandin2023,representingagrowthof2.674,322,612 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 41,406,000in2024from41,406,000 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 5.10billionatyear−end2024,down5.10 billion at year-end 2024, down 201.9 million (3.8%) from Q3 2024 and down 108.2million(2.1108.2 million (2.1%) from the prior year end[6]. - Total deposits decreased to 5.10 billion at December 31, 2024, down 201.9million,or3.8201.9 million, or 3.8%, from September 30, 2024[24]. - Total deposits grew to 5,211,794 thousand in 2024 from 5,108,561thousandin2023,anincreaseof2.025,108,561 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 500.3millionatSeptember30,2024[26].−Shareholders′equityincreasedto500.3 million at September 30, 2024[26]. - Shareholders' equity increased to 476,431 thousand in 2024 from 423,686thousandin2023,reflectingagrowthof12.43423,686 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 422,183,000in2023,representingagrowthof20.34422,183,000 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 18.7millionfrom2023,primarilyduetoadeposit−relatedfraudevent[18].−Noninterestexpenseincreasedto18.7 million from 2023, primarily due to a deposit-related fraud event[18]. - Noninterest expense increased to 155,884,000 in Q4 2024 from 137,225,000inQ42023,markinganincreaseof13.6137,225,000 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 653.5millionofavailable−for−saleinvestmentsecuritiesinQ42024[2].CreditLossesandProvisions−TheCompanyrecordedaprovisionforcreditlossesof653.5 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 3.1millioninQ32024and3.1 million in Q3 2024 and 5.3 million in Q4 2023[3]. - The allowance for credit losses on loans increased to 48,041thousand,upfrom48,041 thousand, up from 44,678 thousand in the previous quarter[45]. - The provision for credit losses on loans for 2024 was 5,645,000,significantlylowerthan5,645,000, 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 1,027,106thousand,up1.11,027,106 thousand, up 1.1% from 1,008,095 thousand in the prior quarter[45]. - Investment securities decreased to 1,171,083thousandin2024from1,171,083 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].