Financial Institutions Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter of 2017
January 29, 2018 at 02:32 pm
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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.
Financial Institutions, Inc. is a financial holding company. The Company provides a full range of banking and related financial services to consumer, commercial and municipal customers through its bank and non-bank subsidiaries. It offers a range of deposit, lending and other financial services to individuals, municipalities and businesses in the Western and Central New York branch network and its Mid-Atlantic commercial loan production office serving the Baltimore and Washington, D.C. region, through its banking subsidiary, Five Star Bank. Its indirect lending network includes relationships with franchised automobile dealers in Western and Central New York, the Capital District of New York, and Northern and Central Pennsylvania. It offers customized investment advice, wealth management, investment consulting and retirement plan services through its subsidiary, Courier Capital, LLC.
Financial Institutions Inc. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter of 2017