Financial Institutions Inc (FISI) Reports Q3 2023 Earnings
Net income for Q3 2023 stands at $14.0 million, slightly down from $14.4 million in Q2 2023 but up from $13.9 million in Q3 2022.
Total deposits increased by 5.6% from Q2 2023, reaching $5.32 billion.
Total loans increased by 0.8% from Q2 2023, reaching $4.43 billion.
Noninterest income was $10.5 million, down 8.5% from Q2 2023.
Financial Institutions Inc (NASDAQ:FISI) released its earnings report for the third quarter ended September 30, 2023, on October 26, 2023. The company reported a net income of $14.0 million, slightly down from $14.4 million in the second quarter of 2023, and up from $13.9 million in the third quarter of 2022. After preferred dividends, net income available to common shareholders was $13.7 million, or $0.88 per diluted share.
Financial Performance
Financial Institutions Inc (NASDAQ:FISI) reported total deposits of $5.32 billion, up $281.1 million, or 5.6%, from June 30, 2023, and up $410.8 million, or 8.4%, from one year prior. Total loans were $4.43 billion, reflecting an increase of $33.4 million, or 0.8%, from June 30, 2023, and an increase of $564.3 million, or 14.6%, from September 30, 2022.
Net interest income of $41.7 million decreased $660 thousand, or 1.6%, and $1.4 million, or 3.2%, from the linked and year-ago quarters, respectively, amid the current rising interest rate environment that has driven higher funding costs. Noninterest income was $10.5 million, down $980 thousand, or 8.5%, from the second quarter of 2023 and down $2.2 million, or 17.1%, from the third quarter of 2022.
Company Commentary
Our continued focus on deposit gathering resulted in strong growth during third quarter of 5.6%, with our retail, commercial and Banking-as-a-Service, or BaaS, lines of business all contributing to nonpublic deposit growth, said President and Chief Executive Officer Martin K. Birmingham.
While funding costs continued to pressure net interest margin in the third quarter, the pace of compression continues to moderate and our successful deposit gathering provided the capacity to reduce short term borrowings by $304 million during the quarter, supporting margin stability moving forward. With more than $1.2 billion in available liquidity and approximately $1 billion in cash flow anticipated over the next twelve months, we are well-positioned heading into the fourth quarter." added Chief Financial Officer and Treasurer W. Jack Plants II.
Looking Ahead
Despite the slight decrease in net income from the previous quarter, Financial Institutions Inc (NASDAQ:FISI) remains optimistic about its financial position. The company's focus on deposit gathering has resulted in strong growth, and it is well-positioned for the fourth quarter with more than $1.2 billion in available liquidity and approximately $1 billion in cash flow anticipated over the next twelve months.
Explore the complete 8-K earnings release (here) from Financial Institutions Inc for further details.
This article first appeared on GuruFocus.
