Financial Institutions(US:FISI)2024-11-04 21:05Financial Performance - Total interest income for the three months ended September 30, 2024, was $77,911,000, an increase of 2.9% from $74,700,000 in the same period of 2023[5]. - Net interest income after provision for credit losses was $37,577,000 for the three months ended September 30, 2024, compared to $40,711,000 in the same period of 2023, reflecting a decrease of 5.2%[5]. - Noninterest income totaled $9,440,000 for the three months ended September 30, 2024, down from $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 $13,466,000, compared to $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 $0.84, down from $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 $37,211,000, compared to a loss of $12,895,000 in the same period of 2023[7]. - Net income for the nine months ended September 30, 2024, was $2,070,000, while the comprehensive loss was $(6,323,000)[8]. - Net income available to common shareholders for the three months ended September 30, 2024, was $13.1 million, compared to $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 $40.1 million, up from $39.4 million in 2023, representing an increase of 1.8%[22]. Expenses and Provisions - The provision for credit losses was $3,104,000 for the three months ended September 30, 2024, compared to a benefit of $966,000 in the same period of 2023[5]. - Total noninterest expense decreased to $32,469,000 for the three months ended September 30, 2024, from $34,735,000 in the same period of 2023, a reduction of 6.5%[5]. - The allowance for credit losses on loans decreased to $44.678 million as of September 30, 2024, down from $51.082 million at the beginning of the year, reflecting a reduction of 12.5%[59]. - The provision for credit losses was $2.4 million for Q3 2024, compared to $1.4 million in Q3 2023[162]. Shareholder Information - The company declared cash dividends of $0.30 per common share for the three months ended September 30, 2024, consistent with the same period in 2023[5]. - Cash dividends declared for common stock amounted to $4,620,000 for the nine months ended September 30, 2024[8]. - The balance of preferred equity as of September 30, 2024, was $17,292,000[8]. - The company purchased $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 $XX billion as of September 30, 2024, reflecting growth from the previous quarter[5]. - Total shareholders' equity as of September 30, 2024, was $500,342,000, reflecting a decrease from $454,796,000 at the end of 2023[8]. - Total deposits reached $5.31 billion, reflecting an increase of $93.7 million, or 2%, from December 31, 2023[169]. - Estimated uninsured deposits were approximately $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 as of September 30, 2024, with a net loan amount of $4.36 billion after accounting for an allowance for credit losses of $44.68 million[32]. - Non-performing loans increased to $40.7 million, or 0.93% of total loans, as of September 30, 2024, up from $26.7 million or 0.60% at December 31, 2023[165]. - The company recognized no interest income on nonaccrual loans during the nine months ended September 30, 2024, with estimated interest income of $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 $44.678 million, compared to $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].