Financial Institutions(US:FISI)2024-05-06 20:06Financial Performance - Net income decreased to $2,070 thousand for Q1 2024, down from $12,089 thousand in Q1 2023, reflecting a decline of 82.9%[12] - Earnings per common share decreased to $0.11 for Q1 2024, down from $0.76 in Q1 2023, a decline of 85.5%[12] - The company reported a net income of $2,070 thousand for the three months ended March 31, 2024, down from $12,089 thousand in the same period of 2023[183] - The total other comprehensive loss for the three months ended March 31, 2024, was $6.3 million, compared to a gain of $10.1 million in the same period of 2023[114] Asset and Deposit Growth - Total assets increased to $6,298,598 thousand as of March 31, 2024, up from $6,160,881 thousand at December 31, 2023, representing a growth of 2.24%[10] - Total deposits increased to $5,396,757 thousand as of March 31, 2024, compared to $5,212,912 thousand at December 31, 2023, marking a growth of 3.53%[10] - Cash and due from banks increased to $237,038 thousand as of March 31, 2024, up from $124,442 thousand at December 31, 2023, a growth of 90.5%[10] - Non-maturity deposits amounted to $3,836,171 thousand as of March 31, 2024, compared to $3,808,216 thousand on December 31, 2023[177] Credit Losses and Provisions - The provision for credit losses showed a benefit of $5,456 thousand in Q1 2024, compared to a provision of $4,214 thousand in Q1 2023, indicating improved credit quality[12] - The provision for credit losses was $5,456 thousand for the three months ended March 31, 2024, compared to a benefit of $4,214 thousand in the same period of 2023[183] - The allowance for credit losses on loans was $43.1 million as of March 31, 2024, compared to $51.1 million as of December 31, 2023[57] - The allowance for credit losses on loans decreased to $43.075 million as of March 31, 2024, from $47.528 million as of March 31, 2023, reflecting a reduction of approximately 9.6%[83] Expenses and Income - Noninterest expense surged to $54,013 thousand in Q1 2024, up from $33,661 thousand in Q1 2023, indicating a significant increase of 60.5%[12] - Cash paid for interest increased significantly to $46,143,000 in Q1 2024 from $28,666,000 in Q1 2023, an increase of 61.0%[28] - The charge-offs for the three months ended March 31, 2024, totaled $6.511 million, compared to $5.108 million for the same period in 2023, indicating an increase of about 27.5%[83] - Recoveries for the same period increased to $3.390 million in 2024 from $3.019 million in 2023, representing a growth of approximately 12.3%[83] Investment Securities - The total fair value of available-for-sale securities is $923.761 million, down from $887.730 million as of December 31, 2023, reflecting a decrease of approximately 3.8%[40] - The total fair value of held-to-maturity securities is $131.269 million as of March 31, 2024, compared to $137.030 million as of December 31, 2023, indicating a decline of about 4.2%[43] - The total investment securities pledged as collateral increased to $1.02 billion at March 31, 2024, from $845.2 million at December 31, 2023, representing a rise of approximately 20.7%[44] - The amortized cost of total available-for-sale securities was $1,083.669 million as of March 31, 2024, with unrealized losses amounting to $160.846 million[40] Loan Portfolio - The total loan portfolio amounted to $4.4 billion as of March 31, 2024, with a net amount of $4.4 billion after accounting for the allowance for credit losses[57] - As of March 31, 2024, total loans gross amounted to $4,397,860 thousand, with a past due amount of $21,053 thousand[62] - The performing residential real estate loans amounted to $641,363,000, while non-performing loans totaled $6,797,000[79] - The total residential real estate loans reached $648,160,000, with a significant portion being performing loans[79] Strategic Initiatives - The company exited the Pennsylvania automobile market effective January 1, 2024, to focus on its core Upstate New York market[23] - The company announced the sale of SDN Insurance Agency to NFP Property & Casualty Services, Inc. on April 1, 2024[24] - The Company focuses on increasing market share within existing markets while exploring growth opportunities in noninterest income lines through acquisitions[201] - The Company emphasizes a community bank philosophy, aiming to provide personalized service to small- to medium-sized businesses and individuals[196] Market Conditions and Competition - The company operates in a highly competitive industry, which may impact its financial performance and results of operations[189] - The Company faces competition in technological advancements and must adapt to changing customer preferences for banking services[194] - The Company has implemented a program to provide financial products and services to legal cannabis-related businesses, navigating regulatory risks[204] - The Company relies on dividends from subsidiaries for most of its revenue, highlighting the importance of effective risk management[194]