Financial Institutions(US:FISI)2026-01-29 21:06Financial Performance - Net income available to common shareholders for Q4 2025 was $19.6 million, or $0.96 per diluted share, compared to a net loss of $83.2 million in Q4 2024[2]. - For the full year 2025, net income was $73.4 million, or $3.61 per diluted share, a significant recovery from a net loss of $43.1 million in 2024[3]. - Noninterest income for Q4 2025 was $11.9 million, compared to a net loss of $91.0 million in Q4 2024, and total noninterest income for 2025 was $45.0 million, recovering from a net loss of $46.7 million in 2024[15][16]. - Earnings per share (diluted) for 2025 was $3.61, a turnaround from a loss of $2.75 in 2024[45]. - The return on average equity (annualized) increased to 12.38% in 2025, compared to a negative 8.74% in 2024[45]. - The effective tax rate improved to 18.0% in 2025 from a negative 38.9% in 2024, reflecting better tax management[45]. Loan and Deposit Growth - Total loans increased to $4.66 billion at year-end 2025, reflecting a growth of $178.7 million, or 4.0%, from December 31, 2024[5]. - Total deposits were $5.21 billion at year-end 2025, up $101.6 million, or 2.0%, from December 31, 2024, despite a seasonal decline from the previous quarter[5]. - Total loans increased to $4.66 billion at December 31, 2025, an increase of $67.4 million, or 1.5%, from September 30, 2025, and an increase of $178.7 million, or 4.0%, from December 31, 2024[23]. - Total deposits were $5.21 billion at December 31, 2025, down $151.5 million, or 2.8%, from September 30, 2025, but up $101.6 million, or 2.0%, from December 31, 2024[24]. Asset Management - Total assets were $6.27 billion at December 31, 2025, down $13.9 million from September 30, 2025, and up $157.1 million from December 31, 2024[23]. - Total assets as of December 31, 2025, were $6,274,140, a slight decrease from $6,288,052 on September 30, 2024[44]. - Average assets for 2025 were $6,214,610, compared to $6,129,430 in 2024, indicating an increase of 1.39%[50]. Capital and Equity - The Company completed a private placement of $80.0 million in subordinated notes in December 2025, enhancing its capital position and receiving a BBB- rating[5][7]. - Shareholders' equity increased to $628.9 million at December 31, 2025, compared to $621.7 million at September 30, 2025, and $569.0 million at December 31, 2024[26]. - Common book value per share was $30.89 at December 31, 2025, an increase of $0.86, or 2.9%, from September 30, 2025, and an increase of $3.41, or 12.4%, from December 31, 2024[27]. - The Total Risk-Based Capital Ratio was 14.90% at December 31, 2025, impacted by an additional $80.0 million of capital on the balance sheet[38]. Credit Quality - The allowance for credit losses on loans was 1.02% at year-end 2025, a slight decrease from 1.07% a year prior, indicating stable credit quality[5]. - Non-performing loans were $35.8 million, or 0.77% of total loans, at December 31, 2025, compared to $34.0 million, or 0.74%, at September 30, 2025[32]. - The provision for credit losses was $3.4 million in the current quarter, compared to $2.7 million in the linked quarter and $6.5 million in the prior year quarter[34]. - The allowance for credit losses to non-performing loans ratio increased to 133%, up from 116% in the previous year, indicating stronger coverage[49]. Operational Efficiency - The efficiency ratio improved to 58.13% in 2025 from 82.35% in 2024, indicating enhanced operational efficiency[46]. - The net interest margin improved to 3.53% in 2025 from 2.86% in 2024, an increase of 23.4%[47]. - The net interest rate spread improved to 2.92% in 2025 from 2.16% in 2024, an increase of 35.1%[47]. Shareholder Returns - The Company declared a common stock dividend of $0.31 per common share, reflecting an increase of $0.01, or 3.3%, over the year-ago quarter[29]. - The company declared a common dividend payout ratio of 33.97% in 2025, up from a negative 43.64% in 2024[45].