Financial Institutions (FISI) Tops Q1 EPS by 52c

Financial Institutions (NASDAQ: FISI) reported Q1 EPS of $1.27, $0.52 better than the analyst estimate of $0.75.

“We are very pleased to report another solid quarter for our Company, reflecting strong underlying performance across our businesses,” said President and Chief Executive Officer Martin K. Birmingham. “In addition to the positive provision impact, we reported continued growth in net interest income and noninterest income. We are also benefitting from cost savings as an outcome of the enterprise standardization program. These positive factors contributed to an efficiency ratio below 53% and record pre-tax pre-provision income for the quarter.

“The pace of activity has not slowed in 2021. We continue to assist new and existing customers with the Paycheck Protection Program (“PPP”), helping them obtain approximately $96 million of new loans and completing the forgiveness process for approximately $87 million of loans in the first quarter. We completed the acquisition of Landmark Group, significantly increasing awareness of our insurance offerings in the Rochester market and supporting our strategy of diversifying revenue. We also repurchased more than 230 thousand shares of common stock under our stock repurchase program at favorable pricing.

“As infection rates decline in our markets and vaccination rates rise, we are seeing signs of an expanded re-opening of the economy. I remain cautiously optimistic about the strength and timing of the economic recovery. We believe that our strong balance sheet, diversified business model and talented associates position us to perform well in this environment. The continued health, safety and financial well-being of our customers, associates and communities remains a key focus of the Company.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “Net interest margin was 3.29% for the quarter. Net interest income and net interest margin (“NIM”) benefited from the positive impact of PPP loan forgiveness and recognition of approximately $2.9 million of deferred fees in the quarter. Excluding all impacts of PPP loans, NIM was 3.15% for the first quarter of 2021 compared to 3.14% for the fourth quarter of 2020. NIM continues to be pressured by the interest rate environment and the lower respective yield of our excess liquidity position, driven by the increase in total deposits, up $929 million from the year earlier period.”

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

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