Financial Institutions(US:FISI)2025-10-23 20:06Financial Performance - Net income available to common shareholders for Q3 2025 was $20.1 million, or $0.99 per diluted share, compared to $17.2 million, or $0.85 per diluted share in Q2 2025, and $13.1 million, or $0.84 per diluted share in Q3 2024[2]. - Noninterest income was $12.1 million, up $1.4 million, or 13.6%, from Q2 2025, and up $2.6 million, or 27.7%, from Q3 2024[11]. - The efficiency ratio improved to below 57%, with return on average assets at 1.32% and return on average equity at 13.31%[4]. - The Company declared a common stock dividend of $0.31 per share, reflecting an increase of $0.01 or 3.3% over the year-ago quarter, returning 31% of third quarter net income to common shareholders[22]. - Net income for the nine months ended September 30, 2024, was $41,165,000, compared to $54,887,000 in 2025, showing a decline of about 25%[38]. Loan and Deposit Growth - Total loans increased by $54.4 million, or 1.2%, from June 30, 2025, and $187.4 million, or 4.3%, from September 30, 2024, reaching $4.59 billion[5]. - Total deposits were $5.36 billion, up $201.8 million, or 3.9%, from June 30, 2025, and up $51.2 million, or 1.0%, from September 30, 2024[16]. - Total loans reached $4,590,423 thousand, up from $4,536,002 thousand in the previous quarter, representing an increase of 1.2%[37]. - Total deposits rose to $5,357,809 thousand, compared to $5,156,014 thousand in the prior quarter, marking a growth of 3.9%[37]. Interest Income and Margin - Net interest income reached a record high of $51.8 million, an increase of $2.7 million, or 5.4%, from Q2 2025, and $11.1 million, or 27.3%, from Q3 2024[5]. - The net interest margin expanded to 3.65%, an increase of 16 basis points from Q2 2025 and 76 basis points from Q3 2024[10]. - Net interest margin improved to 3.50% in Q3 2025, compared to 2.85% in Q3 2024, indicating a significant increase of 22.81%[40]. Credit Quality - Credit quality metrics remained solid, with annualized net charge-offs to average loans at 0.18%, down from 0.36% in the linked quarter[5]. - Non-performing loans were $34.0 million, or 0.74% of total loans, at September 30, 2025, stable compared to $32.4 million or 0.72% at June 30, 2025, and down from $40.7 million or 0.93% at September 30, 2024[24]. - The allowance for credit losses on loans to total loans ratio was 1.03% at September 30, 2025, compared to 1.04% at June 30, 2025[25]. - The provision for credit losses was $2.7 million in the current quarter, compared to $2.6 million in the linked quarter and $3.1 million in the prior year quarter[26]. - The total non-performing assets amounted to $34,093 thousand, down from $40,851 thousand, reflecting a decrease of about 16%[42]. Capital and Equity - Shareholders' equity increased to $621.7 million at September 30, 2025, compared to $601.7 million at June 30, 2025, and $500.3 million at September 30, 2024[20]. - Common book value per share increased to $30.03 at September 30, 2025, up $1.00 or 3.4% from June 30, 2025, but down $1.19 or 3.8% from September 30, 2024[21]. - Common equity Tier 1 Capital Ratio was 11.15% at September 30, 2025, compared to 10.84% at June 30, 2025[26]. - The tangible common equity reached $543.99 million, up from $523.82 million in the prior quarter, reflecting a growth trend[43]. Asset Management - Total assets increased to $6,288,052 thousand as of September 30, 2025, compared to $6,143,766 thousand in June 30, 2025, reflecting a growth of 2.35%[37]. - Total interest-earning assets grew to $5,739,699 thousand, compared to $5,614,008 thousand in the prior quarter, indicating effective asset management strategies[37]. - Cash and cash equivalents stood at $185,945 thousand, significantly higher than $93,034 thousand in the previous quarter, indicating improved liquidity[37]. Future Outlook - The Company will host an earnings conference call on October 24, 2025, at 8:30 a.m. Eastern Time[30]. - Financial Institutions, Inc. has approximately $6.3 billion in assets, offering banking and wealth management products and services[31].