WARSAW, N.Y.--(BUSINESS WIRE)--July 27, 2006--
Financial Institutions, Inc. (NASDAQ: FISI) ("FII"), the
parent company of Five Star Bank, today announced its financial
results for the second quarter ended June 30, 2006. Net income for the
quarter was $5.4 million, or $0.44 per diluted share compared with a
net loss of $12.0 million, or $1.09 net loss per diluted share for the
second quarter of 2005. The increased earnings in the second quarter
of 2006 include a credit for loan losses as a result of the improved
risk profile of our loan portfolio. Lower noninterest expense also
contributed to improved earnings. These positive effects were somewhat
offset by a decline in net interest income, resulting primarily from a
lower earning asset base.
Net income for the six-month period of 2006 was $9.1 million, or
$0.74 per diluted share compared with a net loss of $9.7 million, or
$0.92 net loss per diluted share from the same period last year. The
second quarter of 2005 included the effects of actions to improve
asset quality through the decision to sell certain problem credits and
to focus on growing the core banking franchise through the elimination
of non-core community banking functions.
Mr. Peter G. Humphrey, President and CEO of Financial
Institutions, Inc., stated, "As an organization, we have accomplished
a significant amount of change and improvement. We are realizing solid
earnings as a result of operational efficiencies gained through our
effective consolidation strategy and the improved credit quality of
our loan portfolio. We believe we are on the right track for future
growth."
Credit for Loan Losses and Allowance for Loan Losses
FII recorded a credit for loan losses of $1.6 million and $1.4
million for the second quarter of 2006 and the first six months of
2006, respectively. Net loan charge-offs were $0.1 million for the
second quarter of 2006 and $0.3 million for the first six months of
2006. Nonperforming loans at June 30, 2006 were $15.4 million, a
reduction of $3.2 million from March 31, 2006. The improved risk
profile of the loan portfolio, the low level of net loan charge-offs,
a smaller loan portfolio as well as a change in the mix of the loan
portfolio to loan categories with reduced credit risk all contributed
to the credit for loan losses of $1.6 million and $1.4 million for the
second quarter of 2006 and for the first six months of 2006,
respectively. The allowance for loan losses was $18.6 million at June
30, 2006 and $20.3 million at March 31, 2006.
Revenue
For the second quarter of 2006 net interest income was $15.0
million compared with $16.9 million for the second quarter of 2005 and
$15.5 million for the first quarter of this year. The decline in net
interest income was principally due to a decline in the amount of
earning assets. For the second quarter of 2006, average earning assets
were $1.822 billion compared with $2.022 billion for the second
quarter of 2005 and $1.843 billion for the first quarter of this year.
Total average deposits were $1.645 billion for the second quarter
of 2006 compared with $1.834 billion for the second quarter of 2005
and $1.673 billion for the first quarter of 2006. Contributing to the
decline in deposits were fewer certificates of deposit, including
brokered certificates of deposit, as the Company actively managed to
lower the level of these higher cost deposits. Other deposit
categories have declined from deposit outflows associated with the
effects of the 2005 loan sale and higher rate offerings from
competitors' products. Net interest income has also been adversely
affected by a shift in the mix of earning assets and a flat overall
interest rate yield curve. For the second quarter of 2006, average
loans, which have a higher yield than investments, were 53% of average
earning assets compared with 60% for the second quarter of 2005. Net
interest margin was 3.57% for the quarter ended June 30, 2006 compared
with 3.64% in the first quarter of 2006 and 3.56% for the second
quarter of last year.
Loans at June 30, 2006 were $953.5 million, down $38.8 million, or
4% compared with $992.3 million at the end of last year and down $77.6
million, or 8% from the end of last year's second quarter loan
portfolio level of $1.031 billion. The decline in loans was almost
entirely due to commercial loans, as consumer loans remained
relatively stable during these periods.
Mr. Humphrey commented, "While we are pleased with our progress,
we recognize that there is plenty of work ahead of us as we focus on
growing our banking franchise. We are back to the basics of gathering
loans and deposits by building and strengthening relationships with
new and existing customers. To accomplish this, our experienced,
established executive management team has attracted experienced talent
within all areas of our organization and developed balanced
growth-oriented goals for our associates. Our renewed culture,
successful consolidation and enhanced asset quality has stabilized our
franchise allowing us to focus on new business opportunities to grow
our market share within our 10,000 square-mile footprint."
Net interest income for the six-months ended June 30, 2006 and
2005 was $30.5 million and $35.2 million, respectively. Average
interest earning assets declined $185.7 million for the first six
months of 2006 compared with the same period in 2005. Net interest
margin for the six-months ended June 30, 2006 was 3.60% compared with
3.73% in the prior year. Banks earn an interest spread over their
funding costs that has a relationship to the slope of the yield curve.
A flat yield curve provides a challenging environment for net interest
income as the rates paid for deposits and other funds are closer to
the rates earned on loan and investment assets. The drop in net
interest income reflects a lower average earning asset base coupled
with the decline in net interest margin.
Noninterest income for the second quarter and six months ending
June 30, 2006 was $5.2 million and $10.1 million, respectively. This
compared with noninterest income in the second quarter and first half
of 2005 of $4.8 million and $9.7 million. Service charges on deposits,
which represented 55% of total noninterest income in the second
quarter of 2006, were down $0.1 million from the same quarter last
year. When comparing the first six months of 2006 with 2005, service
charges on deposits were almost unchanged. Included in noninterest
income for the second quarter of 2006 and the first six months of 2006
was $0.4 million in income associated with the proceeds of
corporate-owned life insurance.
Noninterest Expense
Noninterest expense for the second quarter of 2006 decreased $2.0
million, or 12%, to $14.6 million from $16.6 million for the second
quarter of 2005. For the first six months of 2006, noninterest expense
was $29.9 million compared with $33.0 million for the same period in
2005. These declines were related to operational efficiencies gained
from the bank consolidation at the end of 2005, the elimination of
professional service fees related to last year's asset quality and
regulatory issues, as well as lower FDIC insurance costs. For the
second quarter of 2006, salaries and benefits declined $0.7 million
from the first quarter of 2006, principally due to reduced staffing
levels and lower payroll related taxes.
For the six months ending June 30, 2006 salaries and benefits were
$16.8 million, compared with $18.1 million for the first six months of
2005, as a result of lower staffing levels and related benefit costs.
The Company is tightly managing its staff and filling positions
vacated through attrition only when necessary. The Company's
efficiency ratio for the second quarter of 2006 was 67.29% compared
with 69.99% for the first quarter of 2006 and 72.27% for the second
quarter of 2005. The improved efficiency ratio is reflective of the
lower levels of noninterest expense partially offset by reductions in
net interest income.
Asset Quality
Nonperforming assets at June 30, 2006 were $16.3 million, down
from $149.6 million at the end of June 2005. The significant decline
in nonperforming assets was primarily the result of the sale of
problem loans in 2005. Nonperforming loans at the end of the second
quarter this year were down $3.2 million from the end of the first
quarter, primarily the result of effective loan workout efforts.
Net loan charge-offs in the second quarter of 2006 were $0.1
million compared with $40.8 million in the prior year's second
quarter. Net loan charge-offs to average loans (annualized) for the
second quarter 2006 were 0.04% compared with 0.08% in the first
quarter of 2006 and 13.81% in the second quarter last year. At June
30, 2006, the allowance for loan losses as a percentage of total loans
was 1.95% compared with 2.10% at March 31, 2006 and 2.04% at June 30,
2005. The ratio of allowance for loan losses to nonperforming loans
was 121% at June 30, 2006 compared with 109% at March 31, 2006 and
123% at June 30, 2005.
The ratio of nonperforming loans to total loans, excluding loans
held for sale, was 1.61% at the end of the second quarter 2006
compared with 1.93% at March 31, 2006 and 1.67% at the end of last
year's second quarter.
Financial Condition
Total assets at June 30, 2006 were $1.924 billion compared with
$1.981 billion and $2.109 billion at March 31, 2006 and June 30, 2005,
respectively. Total loans were $953.5 million as of June 30, 2006
compared with $965.6 million and $1.031 billion as of March 31, 2006
and June 30, 2005, respectively. This was reflective principally of
commercial loan payments outpacing new commercial loan originations.
Loan originations have slowed due to more stringent underwriting
requirements, firm pricing disciplines and a highly competitive
marketplace for quality commercial loan credits.
Total deposits, the Company's primary source of funds, were $1.617
billion at June 30, 2006 compared with $1.785 billion and $1.678
billion at the end of the second quarter of 2005 and the first quarter
of 2006, respectively. The year-over-year decline was primarily due to
lower nonpublic deposits attributed to the timing of rate campaigns,
the loss of deposits associated with the effects of the 2005 loan
sale, and fewer certificates of deposits, including brokered
certificates, as the Company actively managed to lower the level of
these higher cost deposits. Compared with the first quarter of 2006,
nonpublic deposits have somewhat flattened and public deposits reflect
a seasonal slowdown with a steady overall trend.
"Through patience and discipline, we continue to rebuild our loan
portfolio and core deposit base. Although our deposits and loans
decreased during the quarter, we believe their levels have stabilized,
and we hope to realize modest growth over the coming quarters. We also
continue to identify cost reduction opportunities," Mr. Humphrey
added.
Shareholders' equity at June 30, 2006 was $172.7 million compared
with $171.8 million at December 31, 2005.
Operating Ratios
Return on average common equity for the second quarter improved to
13.03% compared with 8.82% for the first quarter of 2006. Return on
average assets for the second quarter improved to 1.11% compared with
0.77% for the first quarter of 2006.
Outlook
Mr. Humphrey concluded, "We have a very solid capital structure
and continually evaluate the best uses of our capital, which may
include acquisitions, as well as organic growth. Our acquisition
strategy considers both the identification of banks with geographic
territories that have stronger economic potential than our current
territory and opportunities that might present themselves and
strengthen our franchise within our existing geographic footprint."
Webcast and Conference Call
A company-hosted teleconference will be held at 10:00 a.m. eastern
time on Friday, July 28, 2006. During the teleconference, Peter
Humphrey, President and CEO, and Ronald Miller, CFO, will review the
financial and operating results for the period and review Financial
Institutions' corporate strategy and outlook. A question-and-answer
session will follow.
The Financial Institutions conference call can be accessed the
following ways:
-- The live webcast can be found at http://www.fiiwarsaw.com.
Participants should go to the website 10-15 minutes prior to
the scheduled conference in order to download any necessary
audio software.
-- The teleconference can be accessed by dialing 1-913-312-1295
approximately 5-10 minutes prior to the call.
To listen to the archived call:
-- The archived webcast will be at http://www.fiiwarsaw.com. A
transcript will also be posted once available.
A replay can also be heard by calling 1-719-457-0820, and entering
passcode 2348355#. The telephonic replay will be available through
August 4, 2006 at 11:59 p.m. ET.
About Financial Institutions, Inc.
With total assets of $1.9 billion, Financial Institutions, Inc. is
the parent company of Five Star Bank, which provides a wide range of
consumer and commercial banking services to individuals,
municipalities and businesses through a network of 50 offices and 72
ATM's in Western and Central New York State. Through its Investment
Services affiliate, Five Star Investment Services, Inc., FII also
provides diversified financial services to its customers and clients,
including brokerage and insurance. More information on FII and its
subsidiaries is available through the Company web site at
www.fiiwarsaw.com.
Safe Harbor Statement
This press release contains forward-looking statements as defined
by federal securities laws. These statements may address issues that
involve significant risks, uncertainties, estimates and assumptions
made by management. Actual results could differ materially from
current beliefs or projections. There are a number of important
factors that could affect the Company's forward-looking statements
which include the effectiveness of its strategy and bank
consolidation, its ability to reduce operating expenses, the attitudes
and preferences of customers, the competitive environment and other
factors discussed in the Company's filings with the Securities and
Exchange Commission. The Company undertakes no obligation to revise
these statements following the date of this press release.
TABLES FOLLOW.
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Other Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Three months ended
June 30,
-----------------------
2006 2005 $ Change % Change
----------- ----------- -------- ---------
Interest and dividend
income $25,750 $25,818 $(68) -%
Interest expense 10,738 8,960 1,778 20%
----------- ----------- -------- ---------
Net interest income 15,012 16,858 (1,846) (11)%
Provision (credit) for loan
losses (1,601) 21,889 (23,490) (107)%
----------- ----------- -------- ---------
Net interest income
(loss) after provision
(credit) for loan losses 16,613 (5,031) 21,644 430%
Noninterest income:
Service charges on
deposits 2,833 2,934 (101) (3)%
ATM and debit card income 553 419 134 32%
Financial services group
fees and commissions 443 642 (199) (31)%
Mortgage banking
activities 306 387 (81) (21)%
Income from corporate
owned life insurance 432 20 412 2,060%
Net gain on sale and call -
of securities 14 (14) (100)%
Net gain on sale of
student loans held for 30
sale 47 (17) (36)%
Net gain (loss) on sale
of premises and
equipment 3 (83) 86 104%
Net gain (loss) on sale
of other real estate and
repossessed assets 20 (34) 54 159%
Other 561 445 116 26%
----------- ----------- -------- ---------
Total noninterest
income 5,181 4,791 390 8%
Noninterest expense:
Salaries and employee
benefits 8,064 9,278 (1,214) (13)%
Occupancy and equipment 2,428 2,290 138 6%
Supplies and postage 451 576 (125) (22)%
Amortization of
intangibles 107 107 - -%
Computer and data
processing expense 438 513 (75) (15)%
Professional fees 807 1,180 (373) (32)%
Other 2,286 2,648 (362) (14)%
----------- ----------- -------- ---------
Total noninterest
expense 14,581 16,592 (2,011) (12)%
Income (loss) from
continuing operations
before income taxes 7,213 (16,832) 24,045 143%
Income tax provision
(benefit) from continuing
operations 1,839 (7,264) 9,103 125%
----------- ----------- -------- ---------
Income (loss) from
continuing operations 5,374 (9,568) 14,942 156%
Discontinued operations:
Loss from operations of
discontinued subsidiary - (124) 124 100%
Provision for loss on sale
of discontinued subsidiary - (1,200) 1,200 100%
Income taxes - 1,073 (1,073) (100)%
----------- ----------- -------- ---------
Loss on discontinued
operations, net of taxes - (2,397) 2,397 100%
----------- ----------- --------
Net income (loss) $5,374 $(11,965) $17,339 145%
=========== =========== ======== =========
Preferred stock dividends $372 $372 $- -%
=========== =========== ======== =========
Taxable-equivalent net
interest income $16,242 $18,003 $(1,761) (10)%
=========== =========== ======== =========
Per common share data:
Basic:
Income (loss) from
continuing operations $0.44 $(0.88) $1.32 150%
Net income (loss) $0.44 $(1.09) $1.53 140%
Diluted:
Income (loss) from
continuing operations $0.44 $(0.88) $1.32 150%
Net income (loss) $0.44 $(1.09) $1.53 140%
Cash dividends declared $0.08 $0.08 $- -%
Common shares outstanding:
Weighted average shares -
basic 11,323,691 11,294,702
Weighted average shares -
diluted 11,366,183 11,294,702
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Additional Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Three months ended
June 30,
-------------------
2006 2005
-------- ----------
Performance ratios, annualized
Return (loss) on average assets 1.11% (2.22)%
Return (loss) on average common equity 13.03% (30.09)%
greater
Common dividend payout ratio 18.18% than 100%
Net interest margin (tax-equivalent) 3.57% 3.56%
Efficiency ratio (1) 67.29% 72.27%
Asset quality data:
Past due over 90 days and accruing $1 $16
Nonaccrual loans 15,361 17,168
-------- ----------
Total nonperforming loans 15,362 17,184
Other real estate owned (ORE) 933 1,457
-------- ----------
Total nonperforming loans and ORE 16,295 18,641
Nonaccrual loans held for sale - 130,970
-------- ----------
Total nonperforming assets $16,295 $149,611
======== ==========
Net loan charge-offs $100 $40,817
Asset quality ratios:
Nonperforming loans to total loans (2) 1.61% 1.67%
Nonperforming loans and ORE to total loans and
ORE (2) 1.71% 1.81%
Nonperforming assets to total assets 0.85% 7.09%
Allowance for loan losses to total loans (2) 1.95% 2.04%
Allowance for loan losses to nonperforming loans
(2) 121% 123%
Net loan charge-offs to average loans
(annualized) 0.04% 13.81%
Capital ratios:
Average common equity to average total assets 7.90% 7.62%
Leverage ratio 8.39% 6.76%
Tier 1 risk-based capital ratio 14.66% 11.06%
Risk-based capital ratio 15.92% 12.31%
(1) Ratio excludes the operations of discontinued subsidiary.
(2) Ratios exclude nonaccruing loans held for sale from nonperforming
loans and exclude loans held for sale from total loans.
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Other Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Six months ended
June 30,
-----------------------
2006 2005 $ Change % Change
----------- ----------- -------- ---------
Interest and dividend
income $51,025 $52,238 $(1,213) (2)%
Interest expense 20,534 17,011 3,523 21%
----------- ----------- -------- ---------
Net interest income 30,491 35,227 (4,736) (13)%
Provision (credit) for loan
losses (1,351) 25,581 (26,932) (105)%
----------- ----------- -------- ---------
Net interest income after
provision (credit) for
loan losses 31,842 9,646 22,196 230%
Noninterest income:
Service charges on
deposits 5,505 5,529 (24) -%
ATM and debit card income 1,087 807 280 35%
Financial services group
fees and commissions 1,068 1,381 (313) (23)%
Mortgage banking 614
activities 864 (250) (29)%
Income from corporate
owned life insurance 452 37 415 1,122%
Net gain on sale and call -
of securities 14 (14) (100)%
Net gain on sale of
student loans held for 177
sale 47 130 277%
Net gain on sale of
commercial-related loans
held for sale 82 - 82 -%
Net gain (loss) on sale
of premises and
equipment 14 (97) 111 114%
Net gain (loss) on sale
of other real estate and
repossessed assets 107 (5) 112 2,240%
Other 1,031 1,121 (90) (8)%
----------- ----------- -------- ---------
Total noninterest
income 10,137 9,698 439 5%
Noninterest expense:
Salaries and employee
benefits 16,784 18,073 (1,289) (7)%
Occupancy and equipment 4,790 4,502 288 6%
Supplies and postage 1,010 1,133 (123) (11)%
Amortization of
intangibles 215 215 - -%
Computer and data
processing expense 843 947 (104) (11)%
Professional fees 1,430 2,190 (760) (35)%
Other 4,784 5,950 (1,166) (20)%
----------- ----------- -------- ---------
Total noninterest
expense 29,856 33,010 (3,154) (10)%
Income (loss) from
continuing operations
before income taxes 12,123 (13,666) 25,789 189%
Income tax provision
(benefit) from continuing
operations 3,010 (6,483) 9,493 146%
----------- ----------- -------- ---------
Income (loss) from
continuing operations 9,113 (7,183) 16,296 227%
Discontinued operations:
Loss from operations of
discontinued subsidiary - (256) 256 100%
Provision for loss on sale
of discontinued subsidiary - (1,200) 1,200 100%
Income taxes - 1,037 (1,037) (100)%
----------- ----------- -------- ---------
Loss on discontinued
operations, net of taxes - (2,493) 2,493 100%
----------- ----------- --------
Net income (loss) $9,113 $(9,676) $18,789 194%
=========== =========== ======== =========
Preferred stock dividends $744 $744 $- -%
=========== =========== ======== =========
Taxable-equivalent net
interest income $32,938 $37,497 $(4,559) (12)%
=========== =========== ======== =========
Per common share data:
Basic:
Income (loss) from
continuing operations $0.74 $(0.70) $1.44 206%
Net income (loss) $0.74 $(0.92) $1.66 180%
Diluted:
Income (loss) from
continuing operations $0.74 $(0.70) $1.44 206%
Net income (loss) $0.74 $(0.92) $1.66 180%
Cash dividends declared $0.16 $0.24 $(0.08) (33)%
Book value $13.69 $13.39 $0.30 2%
Common shares outstanding:
Weighted average shares -
basic 11,326,035 11,272,213
Weighted average shares -
diluted 11,369,202 11,272,213
Period end actual 11,325,693 11,332,368
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Additional Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Six months ended
June 30,
-----------------
2006 2005
------ ----------
Performance ratios, annualized
Return (loss) on average assets 0.94% (0.91)%
Return (loss) on average common equity 10.93% (12.70)%
Common dividend payout ratio greater
21.62% than 100%
Net interest margin (tax-equivalent) 3.60% 3.73%
Efficiency ratio (1) 68.64% 69.09%
Asset quality data:
Net loan charge-offs $290 $43,687
Net loan charge-offs to average loans (annualized) 0.06% 7.22%
(1) Ratio excludes the operations of discontinued subsidiary.
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
June 30, December 31,
----------- ------------
2006 2005 $ Change % Change
----------- ------------ --------- ---------
ASSETS
Cash, due from banks and
interest-bearing
deposits $50,735 $47,258 $3,477 7%
Federal funds sold 25,938 44,682 (18,744) (42)%
Commercial paper due in
less than 90 days 9,987 - 9,987 -%
Investment securities
(HTM and AFS) 782,775 833,448 (50,673) (6)%
Loans held for sale 523 1,253 (730) (58)%
Loans 953,489 992,321 (38,832) (4)%
Less: Allowance for loan
losses 18,590 20,231 (1,641) (8)%
----------- ------------ --------- ---------
Loans, net 934,899 972,090 (37,191) (4)%
Goodwill 37,369 37,369 - -%
Other assets 81,593 86,292 (4,699) (5)%
----------- ------------ --------- ---------
Total assets $1,923,819 $2,022,392 $(98,573) (5)%
=========== ============ ========= =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand $257,224 $284,958 $(27,734) (10)%
Savings, money market,
and interest-bearing
checking 698,631 755,229 (56,598) (7)%
Certificates of deposit 661,202 677,074 (15,872) (2)%
----------- ------------ --------- ---------
Total deposits 1,617,057 1,717,261 (100,204) (6)%
Short-term borrowings 36,828 35,106 1,722 5%
Long-term borrowings 62,359 63,391 (1,032) (2)%
Junior subordinated
debentures issued to
unconsolidated
Subsidiary trust 16,702 16,702 - -%
Other liabilities 18,197 18,175 22 -%
----------- ------------ --------- ---------
Total liabilities 1,751,143 1,850,635 (99,492) (5)%
Shareholders' equity:
Preferred equity 17,623 17,634 (11) -%
Common equity and
accumulated other
comprehensive loss 155,053 154,123 930 1%
----------- ------------ --------- ---------
Total shareholders'
equity 172,676 171,757 919 1%
----------- ------------ --------- ---------
Total liabilities and
shareholders' equity $1,923,819 $2,022,392 $(98,573) (5)%
=========== ============ ========= =========
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Consolidated Average Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
Three months ended
June 30,
-----------------------
2006 2005 $ Change % Change
----------- ----------- ---------- ---------
ASSETS
Cash, due from banks and
interest-bearing
deposits $40,638 $42,577 $(1,939) (5)%
Federal funds sold 24,133 41,932 (17,799) (42)%
Commercial paper due in
less than 90 days 14,982 - 14,982 -%
Investment securities
(HTM and AFS) 807,086 769,189 37,897 5%
Loans held for sale 376 28,043 (27,667) (99)%
Loans 958,012 1,182,283 (224,271) (19)%
Less: Allowance for loan
losses 20,535 35,439 (14,904) (42)%
----------- ----------- ---------- ---------
Loans, net 937,477 1,146,844 (209,367) (18)%
Goodwill 37,369 37,369 - -%
Other assets 88,577 92,456 (3,879) (4)%
----------- ----------- ---------- ---------
Total assets $1,950,638 $2,158,410 $(207,772) (10)%
=========== =========== ========== =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand $254,785 $271,337 $(16,552) (6)%
Savings, money market,
and interest-bearing
checking 720,231 812,904 (92,673) (11)%
Certificates of
deposit 670,180 749,713 (79,533) (11)%
----------- ----------- ---------- ---------
Total deposits 1,645,196 1,833,954 (188,758) (10)%
Short-term borrowings 37,381 32,609 4,772 15%
Long-term borrowings 62,694 76,630 (13,936) (18)%
Junior subordinated
debentures issued to
unconsolidated
subsidiary trust 16,702 16,702 - -%
Other liabilities 17,008 16,407 601 4%
----------- ----------- ---------- ---------
Total liabilities 1,778,981 1,976,302 (197,321) (10)%
Shareholders' equity:
Preferred equity 17,623 17,657 (34) -%
Common equity and
accumulated other
comprehensive loss 154,034 164,451 (10,417) (6)%
----------- ----------- ---------- ---------
Total shareholders'
equity 171,657 182,108 (10,451) (6)%
----------- ----------- ---------- ---------
Total liabilities
and shareholders'
equity $1,950,638 $2,158,410 $(207,772) (10)%
=========== =========== ========== =========
FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES
Consolidated Average Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
Six months ended
June 30,
-----------------------
2006 2005 $ Change % Change
----------- ----------- ---------- ---------
ASSETS
Cash, due from banks and
interest-bearing
deposits $41,339 $42,902 $(1,563) (4)%
Federal funds sold 20,153 29,364 (9,211) (31)%
Commercial paper due in
less than 90 days 12,144 - 12,144 -%
Investment securities
(HTM and AFS) 818,378 765,480 52,898 7%
Loans held for sale 516 15,043 (14,527) (97)%
Loans 966,741 1,209,702 (242,961) (20)%
Less: Allowance for loan
losses 20,532 37,545 (17,013) (45)%
----------- ----------- ---------- ---------
Loans, net 946,209 1,172,157 (225,948) (19)%
Goodwill 37,369 37,369 - -%
Other assets 88,055 91,390 (3,335) (4)%
----------- ----------- ---------- ---------
Total assets $1,964,163 $2,153,705 $(189,542) (9)%
=========== =========== ========== =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand $256,908 $271,330 $(14,422) (5)%
Savings, money market,
and interest-bearing
checking 733,322 805,050 (71,728) (9)%
Certificates of deposit 668,734 750,105 (81,371) (11)%
----------- ----------- ---------- ---------
Total deposits 1,658,964 1,826,485 (167,521) (9)%
Short-term borrowings 36,203 32,332 3,871 12%
Long-term borrowings 63,036 78,035 (14,999) (19)%
Junior subordinated
debentures issued to
unconsolidated
subsidiary trust 16,702 16,702 - -%
Other liabilities 17,170 16,979 191 1%
----------- ----------- ---------- ---------
Total liabilities 1,792,075 1,970,533 (178,458) (9)%
Shareholders' equity:
Preferred equity 17,627 17,680 (53) -%
Common equity and
accumulated other
comprehensive loss 154,461 165,492 (11,031) (7)%
----------- ----------- ---------- ---------
Total shareholders'
equity 172,088 183,172 (11,084) (6)%
----------- ----------- ---------- ---------
Total liabilities and
shareholders' equity $1,964,163 $2,153,705 $(189,542) (9)%
=========== =========== ========== =========
Source: Financial Institutions, Inc.