Financial Institutions Inc. reported earnings results for the fourth quarter and full year ended December 31, 2017. Net income for the quarter was $11.1 million compared to $8.3 million for the third quarter of 2017 and $8.7 million for the fourth quarter of 2016. After preferred dividends, net income available to common shareholders was $10.7 million, or $0.68 per diluted share, compared to $7.9 million, or $0.52 per diluted share, for the third quarter of 2017 and $8.3 million, or $0.57 per diluted share, for the fourth quarter of 2016. Diluted earnings per share for the quarter of $0.68 was $0.11 higher than the fourth quarter of 2016. Net interest income for the quarter of $29.8 million increased $3.0 million, or 11.4%, as compared to the fourth quarter of 2016. Return on average common equity was 11.88% for the quarter and 9.68% for the year. Return on average tangible common equity was 15.03% for the quarter and 12.51% for the year.

Net income for the full year 2017 was $33.5 million compared to $31.9 million for 2016. Net income available to common shareholders was $32.1 million, or $2.13 per diluted share, compared to $30.5 million, or $2.10 per diluted share, for the full year 2016. Net interest income was $112.6 million for the year 2017, $9.9 million higher than 2016. The increase was primarily the result of a $339.5 million, or 10.4%, increase in average interest-earning assets, partially offset by a three-basis-point narrowing of the net interest margin to 3.21% in 2017 from 3.24% in 2016. EPS for the year of $2.13 was $0.03 higher than 2016.

Net charge-offs were $3.6 million during the quarter, $2.0 million higher than the third quarter of 2017 and $1.8 million higher than the fourth quarter of 2016. The ratio of annualized net charge-offs to total average loans was 0.54% in the quarter; 0.25% in the third quarter of 2017; and 0.30% in the fourth quarter of 2016.