Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FINANCIAL INSTITUTIONS INC | c20664e8vk.htm |
Exhibit 99.1
| COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Keefe, Bruyette & Woods12th Annual 2011 Community Bank Investor Conference |
| Peter G. Humphrey President & Chief Executive Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION |
| Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. and its subsidiaries constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve significant risks and uncertainties. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically the Company's last filed Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward looking statements. The Company assumes no obligation to update any information presented herein. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 3 |
| Investment Highlights NASDAQ FISIMarket capitalization $239.8 mil. Shares outstanding 13.8 mil.Recent price* $ 17.3752-week range $ 14.14 - $ 20.74Quarterly dividend rate $ 0.12Dividend yield 2.76% * Price as of market close on July 25, 2011 COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 4 |
| Investment Highlights Deep, broad and experienced management teamEffective risk managementLow risk balance sheetAttractive footprint in upstate New YorkExtensive retail delivery network - 50 branches in 14 contiguous countiesTargeting larger, more affluent markets of suburban Buffalo and Rochester for growth opportunitiesStable regional economyStrong capital managementDisciplined approach to capital managementAttractive capital structureSustainable earnings and financial positionStrong earnings and net interest margin Diversified revenue streamDiligent expense controlDiversified loan portfolio with pristine asset qualityDisciplined credit culture, no subprime lendingConservative investment portfolioEmphasis on core deposits and relationship bankingLow loan/deposit ratio Attractive valuation COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 5 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment Highlights Management Team Name Title Age Years at FISI Peter G. Humphrey President & CEO 57 34 Karl F. Krebs EVP, CFO 55 2 Martin K. Birmingham EVP, Commercial Banking 44 6 George D. Hagi EVP, Chief Risk Officer 58 5 Richard J. Harrison EVP, Sr. Retail Lending Administrator 66 8 Kevin B. Klotzbach SVP, Treasurer 58 10 R. Mitchell McLaughlin EVP, CIO 53 30 Rita M. Bartol SVP, Director of HR 50 <1 John L. Rizzo SVP, Corporate Secretary / Counsel 61 1 John J. Witkowski EVP, Retail Banking 49 6 6 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Liquidity RiskCredit RiskInterest Rate RiskCompliance RiskRegulatory RiskOperating RiskLegal RiskReputational Risk COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Investment Highlights Effective Risk Management 7 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Diversified Loan Portfolio with Pristine QualityDisciplined Credit Culture - No Subprime LendingConservative Investment PortfolioLow Loan / Deposit Ratio and Stable Core Deposit Base Investment Highlights Low Risk Balance Sheet COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 8 |
| Extensive Retail Delivery Network 14 Contiguous Counties 50 Branches Over 70 ATMs Investment Highlights COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION 9 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Source: SNL FinancialData as of 6/30/2010 Target Market Potential $ 10.3 Billion $ 33 Billion $ 1.1 Billion 10 |
| Increased disposable income plays well for core deposit performance as well as loan activity. COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment Highlights Target Market Potential Source: SNL FinancialData as of 6/30/2010 11 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION (CHART) Unemployment Rate (CHART) Consumer Confidence Investment Highlights Stable Regional Economy 12 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Provide sufficient capacity to continue to grow organicallyBe prepared for possible strategic opportunitiesPosition the Company to handle changing regulatory landscapeMaintain the confidence of regulators, employees, customers and investorsAllow for the payment of increased dividends Investment Highlights Disciplined Approach to Capital Planning COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 13 |
| 2009 2010 Q2 - 2011 Q1-2011 Peer Average* Tier I Risk-based Capital Ratio% 11.95 12.34 13.71 12.45 Total Risk Based Capital Ratio % 13.21 13.60 14.96 14.18 Leverage Ratio % 7.96 8.31 9.30 8.69 Tangible Common Equity Ratio % 5.19 5.65 7.97 6.97 Common BookValue Per Share $ 13.39 14.48 15.66 14.08 Tangible Common Book Value Per Share $ 9.94 11.06 12.96 10.47 COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment HighlightsAttractive Capital structure * Based on the peer group defined in the FISI Proxy statement. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 14 |
| Karl F. Krebs Executive Vice President & Chief Financial Officer COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Financial Overview |
| 2008 2009 2010 Q1 - 2011 Q2 - 2011 EPS - Diluted $ (2.54) $0.99 $1.61 $0.33 $0.39 Net Income (Loss) $ (26,158) $14,441 $21,287 $5,820 $5,719 COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL Highlights 16 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL Highlights YTD 2011 %Changevs. YTD 2010 BALANCE SHEET BALANCE SHEET BALANCE SHEET Loans $ 1,368,000 6% Deposits $ 1,872,000 3% INCOME STATEMENT INCOME STATEMENT INCOME STATEMENT Net Interest Income $ 40,091 3% Non-Interest Income $ 10,122 12% Income before taxes $ 17,572 11% Net Income $ 11,539 10% PERFORMANCE PERFORMANCE PERFORMANCE Diluted EPS $ 0.72 10% ROA 1.04% 5 bps Efficiency 59.32% 41 bps Key Statistics Dollars in thousands except Earnings per Share data COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 17 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL HighlightsStrong Net Interest Margin (CHART) COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 18 |
| COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION (CHART) CAGR (2007 to 2010) 8% * All years exclude Securities Gains & OTTI COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL HighlightsNet Interest Income vs. Noninterest Income 19 |
| (CHART) Financial HighlightsExpense Management-Efficiency Ratio Expense as a Percent of Revenue * Peer group as defined in the FISI Proxy statement. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 20 |
| (CHART) CAGR (Q4-07 to Q4-10) 12% $ 964 $1,121 $1,264 $1,346 $1,368 COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 21 |
| (CHART) (CHART) COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION $ millions ------------ As of December 31 ------------- LoanOutstandings Non-PerformingLoan Ratio 2.04% Q1-2011 Peer Average* * Peer group as defined in the FISI Proxy statement. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL HighlightsDisciplined Lending 22 |
| $ Millions 2009 2010 YTD 2011 Q1-2011 Peer Average* Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Non-Performing Loans Balances $8.7 $7.6 $7.0 % of Total Loans .69% .56% .51% 2.04% Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs Net Loan Charge-Offs Balances $5.7 $7.0 $2.0 % of Total Average Loans .47% .54% .29% .32% Allowance for Loan Losses Allowance for Loan Losses Allowance for Loan Losses Allowance for Loan Losses Allowance for Loan Losses Balances $20.7 $20.5 $20.6 % of Total Loans 1.64% 1.52% 1.51% 1.66% % of Non-Performing Loans 239% 270% 296% 81% * Peer group as defined in the FISI Proxy statement. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION FINANCIAL HighlightsLoan Quality 23 |
| (CHART) financial HighlightsLow Risk Security Portfolio COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION Data as of 6/30/2011 24 |
| (CHART) (CHART) COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 25 |
| FISIYTD 2011 Price / LTM EPS 11.35x Price / 2011 Est. Mean EPS* 11.13x Price / Tangible Book 1.34x ROA 1.04% ROE 10.43% COMPETIVE ADVANTAGE : SKILLFUL NAVIGATION Investment HighlightsAttractive valuation Price as of market close on July 25, 2011.* Estimated mean EPS per SNL Financial. COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 26 |
| Investment Highlights Deep, broad and experienced management teamEffective risk managementLow risk balance sheetAttractive footprint in upstate New YorkExtensive retail delivery network - 50 branches in 14 contiguous countiesTargeting larger, more affluent markets of suburban Buffalo and Rochester for growth opportunitiesStable regional economyStrong capital managementDisciplined approach to capital managementAttractive capital structureSustainable earnings and financial positionStrong earnings and net interest margin Diversified revenue streamDiligent expense controlDiversified loan portfolio with pristine asset qualityDisciplined credit culture, no subprime lendingConservative investment portfolioEmphasis on core deposits and relationship bankingLow loan/deposit ratio Attractive valuation COMPETITIVE ADVANTAGE : SKILLFUL NAVIGATION 27 |