Financial Institutions (FISI) Tops Q4 EPS by 14c

Financial Institutions (NASDAQ: FISI) reported Q4 EPS of $0.84, $0.14 better than the analyst estimate of $0.70.

“Our Company reported strong fourth quarter results in a challenging environment,” said President and Chief Executive Officer Martin K. Birmingham. “Record net interest income, noninterest income bolstered by our diversified revenue stream and continued expense discipline all contributed to record-high net income, earnings per share and pre-tax pre-provision income, as well as an efficiency ratio below 56%.”

“I am proud of the many accomplishments of our organization in 2020. We have delivered uninterrupted critical banking services to our customers throughout the pandemic and continue to modify operations to keep our customers and associates safe. We rolled out a series of solutions to support our customers that included the temporary waiving or elimination of fees and offered the opportunity for loan payment relief or deferrals. We also helped existing and new customers take advantage of Paycheck Protection Program (“PPP”) loans to source needed funds to cover operating expenses. Last year, we helped approximately 1,700 small businesses obtain approximately $270 million of PPP loans, preserving an estimated 18,000 jobs in our markets.

“Progress was achieved on fundamental strategic objectives. We grew loans and core deposits and increased liquidity. To deliver enhanced digital capabilities to our customers during a time when at-home access was critical, we successfully completed the launch of our new online and mobile platform, Five Star Bank Digital Banking. Our enterprise standardization program resulted in a streamlining of processes and operations to enhance customer experiences while driving our efficiency ratio lower.

“During 2020, we witnessed the dramatic effects of the health crisis on the economy and our Company’s operations. Notwithstanding these challenges, we ended the year stronger than before the crisis started and are well-positioned to take care of our customers and communities. I would like to thank my Five Star associates for their continued commitment and dedication to our customers, our communities and each other. They quickly adapted to new working environments due to the pandemic, all while delivering strong results for our shareholders.”

Chief Financial Officer Justin K. Bigham added, “Despite severe economic conditions brought about by the COVID-19 pandemic, including the near-zero interest rate environment, we generated year-over-year positive operating leverage and delivered pre-tax pre-provision growth over 8% for the full year.

“We finished the year with a fourth quarter that demonstrates continued across-the-board improvement in our fundamentals, delivering record-high net income and pre-tax pre-provision income and an efficiency ratio below 56%.

“During the fourth quarter, we completed a $35 million subordinated debt offering to provide capital for use in serving our customers, taking advantage of growth opportunities and strengthening the Bank’s capital ratios. We also put a stock repurchase program in place for up to approximately 5% of the Company’s outstanding common shares. We believe that these actions provide important flexibility in managing our balance sheet.”

For earnings history and earnings-related data on Financial Institutions (FISI) click here.

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