Financial Institutions(FISI) - 2024 Q4 - Annual Results

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].