Financial Institutions(FISI) - 2025 Q1 - Quarterly Results

Financial Performance - The Company reported net income of $16.9 million for Q1 2025, a significant recovery from a net loss of $82.8 million in Q4 2024 and an increase from net income of $2.1 million in Q1 2024[2] - Noninterest income for Q1 2025 was $10.4 million, a recovery from a noninterest loss of $91.0 million in Q4 2024[11] - Net income available to common shareholders in Q1 2025 was $16,513,000, compared to a loss of $83,176,000 in Q4 2024[39] - Earnings per share (diluted) for Q1 2025 was $0.81, recovering from a loss of $5.07 in Q4 2024[39] - Return on average assets (annualized) for Q1 2025 was 1.10%, a recovery from -5.38% in Q4 2024[39] - The efficiency ratio improved to 58.79% in Q1 2025 from 117.13% in Q4 2024, indicating better cost management[39] Interest Income and Margin - Net interest income increased to $46.9 million in Q1 2025, up $5.2 million (12.6%) from Q4 2024 and up $6.8 million (16.9%) from Q1 2024[5] - The net interest margin expanded to 3.35% in Q1 2025, an increase of 44 basis points from Q4 2024 and 57 basis points from Q1 2024[5] - Interest income for Q1 2025 was $81,051,000, an increase from $78,413,000 in Q1 2024, representing a growth of 2.1%[39] - Net interest income after provision for credit losses in Q1 2025 was $43,936,000, compared to $45,538,000 in Q1 2024, a decrease of 3.5%[39] Loans and Deposits - Total loans reached $4.55 billion at March 31, 2025, reflecting a quarterly increase of $74.1 million (1.7%) and a year-over-year increase of $111.2 million (2.5%)[5] - Total deposits were $5.37 billion at March 31, 2025, up $268.2 million (5.3%) from December 31, 2024, but down $23.8 million (0.4%) from March 31, 2024[5] - Total loans for Q1 2025 reached $4,493,825, an increase from $4,434,365 in Q4 2024, representing a growth of 1.3%[41] - Total deposits for Q1 2025 were $5,213,376, slightly down from $5,241,779 in Q4 2024, a decrease of 0.5%[41] Credit Quality - Non-performing loans were $40.0 million, or 0.88% of total loans, at March 31, 2025, down from $41.4 million or 0.92% at December 31, 2024[25] - The allowance for credit losses on loans to total loans ratio was 1.08% at March 31, 2025, compared to 1.07% at December 31, 2024[26] - Provision for credit losses was $2.9 million in the current quarter, compared to $6.5 million in the linked quarter[28] - The ratio of allowance for credit losses on loans to non-performing loans was 122% at March 31, 2025, down from 161% at March 31, 2024[29] - The provision for credit losses in Q1 2025 was $2,928,000, down from $6,461,000 in Q4 2024, indicating improved credit quality[39] - Net charge-offs for Q1 2025 totaled $2,369, a decrease from $2,778 in Q4 2024, reflecting a decline of 14.7%[43] Capital and Equity - Shareholders' equity increased to $589.9 million at March 31, 2025, up from $569.0 million at December 31, 2024, and $445.7 million at March 31, 2024[21] - Common book value per share increased to $28.48 at March 31, 2025, up $1.00 or 3.6% from $27.48 at December 31, 2024[22] - Common Equity Tier 1 Capital Ratio was 10.38% at March 31, 2025, down from 10.54% at December 31, 2024[27] - The leverage ratio was 9.24% at March 31, 2025, compared to 9.15% at December 31, 2024[27] - Tangible common equity increased to $511,992 thousand, up from $490,941 thousand at December 31, 2024, marking a growth of 4.28%[38] - The common equity increased to $561,921 in Q1 2025 from $499,910 in Q4 2024, representing a growth of 12.4%[41] Dividends - The Company approved a 3.3% increase in its quarterly cash dividend to $0.31 per common share, reflecting confidence in its long-term growth strategy[5] - The Company declared a common stock dividend of $0.31 per share, an increase of $0.01 or 3.3% over the linked and year-ago quarters, returning more than 37% of first quarter net income to common shareholders[23] - The company declared cash dividends of $0.31 per share in Q1 2025, slightly up from $0.30 in Q4 2024[39] Assets - Total assets increased to $6,340,492 thousand as of March 31, 2025, up from $6,117,085 thousand at December 31, 2024, representing a growth of 3.66%[38] - Total interest-earning assets increased to $5,733,743 thousand, up from $5,602,570 thousand at December 31, 2024, reflecting a growth of 2.34%[38] - Total assets as of Q1 2025 were $6,220,187, up from $6,121,449 in Q4 2024, marking an increase of 1.6%[41] - Average assets for Q1 2025 were $6,220,187 thousand, compared to $6,225,760 thousand in Q1 2024, showing a marginal decrease of 0.09%[44] Conference Call - The Company will host an earnings conference call on April 29, 2025, at 8:30 a.m. Eastern Time[31]