Financial Institutions, Inc. Announces 19% Increase in First Quarter Earnings

WARSAW, N.Y., April 23, 2014 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (the "Company") (Nasdaq:FISI), the parent company of Five Star Bank, today reported net income for the quarter ended March 31, 2014 of $7.2 million, compared with $6.1 million for the first quarter of 2013 and $6.4 million for the fourth quarter of 2013.

After preferred dividends, first quarter earnings per diluted common share was $0.50, an increase of 19% and 16% when compared to $0.42 and $0.43 per diluted common share for the first and fourth quarters of 2013, respectively.

In announcing these results, Martin K. Birmingham, President and Chief Executive Officer, said, "We are building on the momentum from our solid performance last year. This is a strong start to 2014 and reinforces our confidence in the outlook for Five Star Bank. We continue to execute our customer centric "Made for You" growth strategy with a focus on relationship banking in our target markets. We are committed to leveraging opportunities to operate as efficiently as possible while remaining disciplined in our lending practices and our approach to deploying capital."

Highlights:

  • Quarterly net income was $7.2 million, up 17% from a year ago and up 13% from the fourth quarter of 2013
  • Total assets of $3.0 billion and interest-earning assets of $2.8 billion were the highest in Company history
  • Strong quarterly return on average common equity of 11.38% and return on average tangible common equity of 14.30%
  • Average loans increased by $134.2 million or 8% from the first quarter of 2013 and $40.5 million or 2% from the fourth quarter of 2013
  • Average deposits for the first quarter reached highest level in Company history at over $2.4 billion with increases of $97.5 million or 4% from a year ago and $29.6 million or 1% from the fourth quarter of 2013
  • Quarterly cash dividend of $0.19 per common share represents a 3.35% dividend yield as of March 31, 2014 and a return of 38% of first quarter net income to common shareholders
  • Capital ratios remain strong with total risk-based capital of 12.14%

Net Interest Income and Net Interest Margin

Net interest income totaled $23.3 million in the first quarter 2014, up from $22.9 million in the first quarter 2013 and down from $23.4 million in the fourth quarter of 2013. Average earning assets were up $202.3 million, led by a $134.2 million increase in loans and a $68.2 million increase in investment securities in the first quarter of 2014 compared to the same quarter in 2013. When comparing the first quarter of 2014 to the fourth quarter of 2013, average earning assets increased $96.1 million, including increases of $40.5 million and $55.4 million in loans and investment securities, respectively. The growth in earning assets was offset by a narrowing net interest margin. First quarter 2014 net interest margin was 3.52%, a decrease of 21 basis points from 3.73% reported in the first quarter of 2013 and a 9 basis point decrease from 3.61% reported in the fourth quarter of 2013.

Kevin B. Klotzbach, Executive Vice President and Chief Financial Officer, commented, "The low interest rate environment has resulted in lower net interest margins across the industry since the financial crisis in 2008. Despite lower margins, we've been successful at increasing net interest income through growth in earning assets and the leveraging of our balance sheet."

"Results in the first quarter of 2014 also reflect our successful deposit gathering strategies and development of a diversified business mix with supportive regional economic conditions that have moderated the effects of net interest margin pressures impacting the overall banking sector," added Mr. Klotzbach.

Noninterest Income and Expense

Noninterest income totaled $6.4 million in the first quarter of 2014, $6.6 million in the first quarter of 2013 and $5.7 million in the fourth quarter of 2013. Included in these totals are gains realized from the sale of investment securities. Exclusive of those gains, noninterest income was $6.0 million in the recently completed quarter and $5.7 million in the first and fourth quarters of 2013. The main factor contributing to the higher noninterest income was income of $626 thousand from investments in limited partnerships in the first quarter of 2014, compared to $161 thousand and $319 thousand in the first and fourth quarters of 2013, respectively. The Company's investments in limited partnerships are primarily Small Business Investment Companies.

Noninterest expense in the first quarter of 2014 totaled $17.2 million, compared with $17.6 million and $17.4 million in the first and fourth quarters of 2013, respectively. The declines in noninterest expense were largely due to decreases in salaries and employee benefits due to lower pension and benefit costs during the first quarter of 2014.

Income Tax Expense

Income tax expense in the first quarter of 2014 totaled $3.1 million, compared with $3.0 million in the first and fourth quarters of 2013. Increased tax expense due to higher pre-tax income was partially offset by a lower effective tax rate, reflecting tax savings generated by the Company's real estate investment trust ("REIT"), which became effective during February 2014.

Balance Sheet and Capital Management

Total assets were $3.02 billion at March 31, 2014, up $188.0 million from $2.83 billion at March 31, 2013 and up $87.0 million from $2.93 billion at December 31, 2013.

Total loans were $1.85 billion at March 31, 2014, up $131.6 million or 8% from March 31, 2013 and up $15.2 million from December 31, 2013. The increase in loans was attributable to organic growth, primarily in the commercial, home equity and consumer indirect loan categories. Total investment securities were $928.2 million at March 31, 2014, up $57.0 million or 7% compared with March 31, 2013 and up $69.0 million or 8% from December 31, 2013. During the first quarter of 2014 we utilized the proceeds from short-term FHLB advances to purchase high-quality investment securities as part of a leverage strategy of approximately $50 million.

Total deposits were $2.53 billion at March 31, 2014, an increase of $123.9 million from March 31, 2013 and an increase of $213.4 million from December 31, 2013. The year-over-year increase was primarily due to successful business development efforts, while the increase during the first quarter of 2014 was mainly due to seasonal inflows of municipal deposits. Public deposit balances represented 28% of total deposits at March 31, 2014, compared to 26% at March 31, 2013 and 23% at December 31, 2013.

Short-term borrowings were $196.7 million at March 31, 2014, up $57.1 million from March 31, 2013 and down $140.3 million from December 31, 2013. The increase in short-term borrowings from March 31, 2013 was primarily due to the previously mentioned leverage strategy executed in the first quarter of 2014. Overnight FHLB borrowings outstanding at the end of 2013 were paid down during the first quarter of 2014 as a result of the aforementioned seasonal inflow of municipal deposits.

Shareholders' equity was $262.9 million at March 31, 2014, compared with $254.9 million at March 31, 2013 and $254.8 million at December 31, 2013. Common book value per share rose 3% to $17.72 at March 31, 2014 from $17.21 at March 31, 2013 and $17.17 at December 31, 2013. Tangible common book value per share rose 4% to $14.12 at March 31, 2014 from $13.56 at March 31, 2013 and December 31, 2013.

During the first quarter of 2014, the Company declared a common stock dividend of $0.19 per common share, consistent with the prior quarter and up $0.01 per share from the first quarter of 2013. The first quarter 2014 dividend returned 38% of the quarter's net income to common shareholders.

The Company's leverage ratio was 7.51% at March 31, 2014, compared to 7.46% and 7.63% at March 31, 2013 and December 31, 2013, respectively. The capital ratios decreased slightly from the prior quarter due to asset growth more than offsetting an increase in shareholders' equity.

Credit Quality

The provision for loans losses was $2.1 million in the first quarter of 2014, improved from $2.7 million and $2.4 million in the first and fourth quarters of 2013, respectively. Net charge-offs during the recent quarter were $1.7 million, up from $1.6 million in the first quarter of 2013 and down from $2.4 million in the final quarter of 2013. Net charge-offs expressed as an annualized percentage of average loans outstanding were 0.37% during the first three months of 2014, compared with 0.38% and 0.52% in the first and fourth quarters of 2013, respectively.

Non-performing loans were $16.3 million or 0.88% of total loans at March 31, 2014, as compared with $11.8 million or 0.69% of total loans at March 31, 2013, and $16.6 million or 0.91% of total loans at December 31, 2013. The year-over-year increase in non-performing loans was primarily due to a single commercial mortgage, which was modified as a troubled debt restructuring and placed on nonaccrual status during the fourth quarter 2013. The loan had a principal balance of $6.8 million and was current per the terms of the restructured loan agreement as of March 31, 2014.

About Financial Institutions, Inc.

Financial Institutions, Inc. provides diversified financial services through its subsidiary, Five Star Bank. Five Star Bank provides a wide range of consumer and commercial banking services to individuals, municipalities and businesses through a network of over 50 offices and more than 60 ATMs throughout Western and Central New York State. Financial Institutions, Inc. and its subsidiary employ over 600 individuals. The Company's stock is listed on the Nasdaq Global Select Market under the symbol FISI and is a member of the NASDAQ OMX ABA Community Bank Index. Additional information is available at the Company's website: www.fiiwarsaw.com.

Non-GAAP Financial Information

This news release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the Company, and facilitate investors' assessments of its business and performance trends in comparison to others in the financial services industry. In addition, the Company believes the exclusion of these non-operating items enables management to perform a more effective evaluation and comparison of the Company's results and to assess performance in relation to the company's ongoing operations. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in Appendix A to this document.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current beliefs or projections. There are a number of important factors that could affect the Company's forward-looking statements, which include its ability to implement its strategic plan, its ability to redeploy investment assets into loan assets, whether it experiences greater credit losses than expected, breaches of its third party information systems, the attitudes and preferences of its customers, its ability to successfully integrate and profitably operate acquired businesses, the competitive environment, fluctuations in the fair value of securities in its investment portfolio, changes in the regulatory environment and general economic and credit market conditions nationally and regionally. For more information about these factors and other factors that could affect the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
2014 2013
March 31, December 31, September 30, June 30, March 31,
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $72,401 59,692 99,384 50,927 84,791
Investment securities:
Available for sale 674,650 609,400 583,551 810,549 853,437
Held-to-maturity 253,576 249,785 245,708 17,348 17,747
Total investment securities 928,226 859,185 829,259 827,897 871,184
Loans held for sale 900 3,381 2,810 3,423 2,142
Loans:
Commercial business 268,352 265,766 253,925 257,732 259,062
Commercial mortgage 468,763 469,284 449,565 437,515 424,635
Residential mortgage 110,164 113,045 117,624 118,117 126,228
Home equity 332,348 326,086 316,626 306,215 292,225
Consumer indirect 647,546 636,368 618,088 599,586 590,440
Other consumer 21,667 23,070 23,844 24,249 24,700
Total loans 1,848,840 1,833,619 1,779,672 1,743,414 1,717,290
Allowance for loan losses 27,152 26,736 26,685 25,590 25,827
Total loans, net 1,821,688 1,806,883 1,752,987 1,717,824 1,691,463
Total interest-earning assets (1) (2) 2,780,489 2,705,045 2,613,746 2,576,028 2,567,948
Goodwill and other intangible assets, net 49,913 50,002 50,095 50,190 50,288
Total assets 3,015,619 2,928,636 2,867,517 2,782,303 2,827,658
Deposits:
Noninterest-bearing demand 532,914 535,472 542,517 511,802 494,362
Interest-bearing demand 541,660 470,733 519,283 475,448 529,115
Savings and money market 812,734 717,928 757,454 713,459 748,482
Certificates of deposit 646,112 595,923 594,931 623,527 637,538
Total deposits 2,533,420 2,320,056 2,414,185 2,324,236 2,409,497
Borrowings 196,746 337,042 188,146 193,413 139,620
Total interest-bearing liabilities 2,197,252 2,121,626 2,059,814 2,005,847 2,054,755
Shareholders' equity 262,865 254,839 247,845 244,888 254,930
Common shareholders' equity (3) 245,523 237,497 230,503 227,494 237,511
Tangible common equity (4) 195,610 187,495 180,408 177,304 187,223
Unrealized (loss) gain on investment securities, net of tax $ (1,467) (5,293) (1,154) (725) 13,745
Common shares outstanding 13,853 13,829 13,810 13,809 13,804
Treasury shares 309 333 352 353 358
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio 7.51% 7.63 7.68 7.59 7.46
Tier 1 risk-based capital 10.89% 10.82 10.94 10.96 10.84
Total risk-based capital 12.14% 12.08 12.19 12.21 12.09
Common equity to assets 8.14% 8.11 8.04 8.18 8.40
Tangible common equity to tangible assets (4) 6.60% 6.51 6.40 6.49 6.74
Common book value per share $17.72 17.17 16.69 16.47 17.21
Tangible common book value per share (4) 14.12 13.56 13.06 12.84 13.56
________
(1) Includes investment securities at adjusted amortized cost and non-performing investment securities.
(2) Includes nonaccrual loans.
(3) Excludes preferred shareholders' equity.
(4) See Appendix A – Non-GAAP to GAAP Reconciliation for the computation of this Non-GAAP measure.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
2014 2013
First Year ended Fourth Third Second First
Quarter December 31, Quarter Quarter Quarter Quarter
SELECTED INCOME STATEMENT DATA:
Interest income $25,059 98,931 25,218 24,623 24,342 24,748
Interest expense 1,784 7,337 1,838 1,820 1,818 1,861
Net interest income 23,275 91,594 23,380 22,803 22,524 22,887
Provision for loan losses 2,106 9,079 2,407 2,770 1,193 2,709
Net interest income after provision for loan losses 21,169 82,515 20,973 20,033 21,331 20,178
Noninterest income:
Service charges on deposits 2,250 9,948 2,511 2,728 2,568 2,141
ATM and debit card 1,174 5,098 1,249 1,283 1,317 1,249
Investments in limited partnerships 626 857 319 241 136 161
Broker-dealer fees and commissions 563 2,345 428 568 650 699
Company owned life insurance 403 1,706 431 422 438 415
Loan servicing 154 570 118 227 152 73
Net gain (loss) on sale of loans held for sale 105 117 (17) (101) 35 200
Net gain on investment securities 313 1,226 2 -- 332 892
Net (loss) gain on sale of other assets (35) (103) (142) -- 38 1
Other 804 3,069 836 801 710 722
Total noninterest income 6,357 24,833 5,735 6,169 6,376 6,553
Noninterest expense:
Salaries and employee benefits 9,256 37,828 9,420 9,473 9,226 9,709
Occupancy and equipment 3,235 12,366 3,203 2,959 3,035 3,169
Professional services 972 3,836 992 814 1,093 937
Computer and data processing 723 2,848 643 689 812 704
Supplies and postage 512 2,342 536 518 608 680
FDIC assessments 422 1,464 372 367 364 361
Advertising and promotions 179 896 220 209 253 214
Other 1,914 7,861 2,000 1,980 2,071 1,810
Total noninterest expense 17,213 69,441 17,386 17,009 17,462 17,584
Income before income taxes 10,313 37,907 9,322 9,193 10,245 9,147
Income tax expense 3,094 12,377 2,955 3,029 3,395 2,998
Net income 7,219 25,530 6,367 6,164 6,850 6,149
Preferred stock dividends 366 1,466 366 365 367 368
Net income available to common shareholders $6,853 24,064 6,001 5,799 6,483 5,781
FINANCIAL RATIOS AND STOCK DATA:
Earnings per share – basic $0.50 1.75 0.44 0.42 0.47 0.42
Earnings per share – diluted $0.50 1.75 0.43 0.42 0.47 0.42
Cash dividends declared on common stock $0.19 0.74 0.19 0.19 0.18 0.18
Common dividend payout ratio (1) 38.00% 42.29 43.18 45.24 38.30 42.86
Dividend yield (annualized) 3.35% 2.99 3.05 3.68 3.92 3.66
Return on average assets 0.99% 0.91 0.88 0.88 0.99 0.90
Return on average equity 11.19% 10.10 10.03 9.93 10.70 9.75
Return on average common equity (2) 11.38% 10.23 10.15 10.05 10.86 9.83
Return on average tangible common equity (3) 14.30% 13.00 12.90 12.88 13.74 12.47
Efficiency ratio (4) 56.96% 58.48 57.76 56.95 59.38 59.87
Stock price (Nasdaq:FISI):
High $25.69 26.59 26.59 21.99 20.66 20.83
Low $19.72 17.92 20.14 18.39 17.92 18.51
Close $23.02 24.71 24.71 20.46 18.41 19.96
________
(1) Common dividend payout ratio equals dividends declared during the period divided by earnings per share for the equivalent period.
(2) Annualized net income available to common shareholders divided by average common equity.
(3) See Appendix A – Non-GAAP to GAAP Reconciliation for the computation of this Non-GAAP measure.
(4) Efficiency ratio equals noninterest expense less other real estate expense and amortization of intangible assets as a percentage of net revenue, defined as the sum of tax-equivalent net interest income and noninterest income before net gains and impairment charges on investment securities.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
2014 2013
First Year ended Fourth Third Second First
Quarter December 31, Quarter Quarter Quarter Quarter
SELECTED AVERAGE BALANCES:
Federal funds sold and interest-earning deposits $316 191 94 126 226 320
Investment securities (1) 904,437 834,213 849,069 821,561 829,953 836,270
Loans (2):
Commercial business 265,137 256,236 253,458 256,256 256,332 258,958
Commercial mortgage 472,733 438,821 460,722 442,178 433,631 418,248
Residential mortgage 113,390 123,277 118,113 121,462 123,263 130,425
Home equity 328,833 304,868 320,872 309,970 299,230 288,993
Consumer indirect 642,241 604,148 627,557 605,286 595,235 588,068
Other consumer 22,062 24,089 23,132 23,641 24,080 25,535
Total loans 1,844,396 1,751,439 1,803,854 1,758,793 1,731,771 1,710,227
Total interest-earning assets 2,749,149 2,585,843 2,653,017 2,580,480 2,561,950 2,546,817
Goodwill and other intangible assets, net 49,968 50,201 50,058 50,153 50,249 50,350
Total assets 2,965,400 2,803,825 2,860,733 2,784,580 2,789,104 2,780,209
Interest-bearing liabilities:
Interest-bearing demand 511,073 488,047 501,753 466,889 489,047 494,654
Savings and money market 761,799 727,737 757,868 719,452 739,328 693,684
Certificates of deposit 618,126 621,455 599,971 603,434 635,583 647,551
Borrowings 274,414 190,310 208,338 207,491 153,626 191,412
Total interest-bearing liabilities 2,165,412 2,027,549 2,067,930 1,997,266 2,017,584 2,027,301
Noninterest-bearing demand deposits 524,346 509,383 526,146 527,438 501,354 481,909
Total deposits 2,415,344 2,346,622 2,385,738 2,317,213 2,365,312 2,317,798
Total liabilities 2,703,777 2,551,139 2,608,815 2,538,377 2,532,197 2,524,377
Shareholders' equity 261,623 252,686 251,918 246,203 256,907 255,832
Common equity (3) 244,281 235,290 234,576 228,827 239,500 238,373
Tangible common equity (4) $194,313 185,089 184,518 178,674 189,251 188,023
Common shares outstanding:
Basic 13,773 13,739 13,754 13,745 13,739 13,717
Diluted 13,824 13,784 13,817 13,787 13,767 13,767
SELECTED AVERAGE YIELDS:
(Tax equivalent basis)
Federal funds sold and interest-earning deposits 0.08% 0.19 0.16 0.15 0.19 0.21
Investment securities 2.43% 2.41 2.46 2.42 2.38 2.39
Loans 4.45% 4.65 4.55 4.59 4.65 4.83
Total interest-earning assets 3.79% 3.93 3.88 3.90 3.91 4.03
Interest-bearing demand 0.13% 0.15 0.16 0.18 0.14 0.11
Savings and money market 0.13% 0.13 0.14 0.14 0.13 0.13
Certificates of deposit 0.74% 0.79 0.77 0.77 0.79 0.82
Borrowings 0.38% 0.39 0.38 0.38 0.40 0.40
Total interest-bearing liabilities 0.33% 0.36 0.35 0.36 0.36 0.37
Net interest rate spread 3.46% 3.57 3.53 3.54 3.55 3.66
Net interest rate margin 3.52% 3.64 3.61 3.62 3.63 3.73
________
(1) Includes investment securities at adjusted amortized cost and non-performing investment securities.
(2) Includes nonaccrual loans.
(3) Excludes preferred shareholders' equity.
(4) See Appendix A – Non-GAAP to GAAP Reconciliation for the computation of this Non-GAAP measure.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
2014 2013
March 31, December 31, September 30, June 30, March 31,
ASSET QUALITY DATA:
Allowance for Loan Losses
Beginning balance $26,736 26,685 25,590 25,827 24,714
Net loan charge-offs (recoveries):
Commercial business 39 328 104 87 202
Commercial mortgage (7) 369 (87) (37) (11)
Residential mortgage 57 118 22 72 145
Home equity 95 8 14 (20) 232
Consumer indirect 1,350 1,416 1,465 1,170 913
Other consumer 156 117 157 158 115
Total net charge-offs 1,690 2,356 1,675 1,430 1,596
Provision for loan losses 2,106 2,407 2,770 1,193 2,709
Ending balance $27,152 26,736 26,685 25,590 25,827
Supplemental information
Period end loans:
Originated loans $1,803,209 1,785,599 1,728,453 1,688,392 1,657,431
Acquired loans 45,631 48,020 51,219 55,022 59,859
Total loans $1,848,840 1,833,619 1,779,672 1,743,414 1,717,290
Allowance for loan losses to total loans 1.47% 1.46 1.50 1.47 1.50
Allowance for loan losses for originated loans to originated loans 1.51% 1.50 1.54 1.52 1.56
Net charge-offs (recoveries) to average loans (annualized):
Commercial business 0.06% 0.51 0.16 0.14 0.32
Commercial mortgage -0.01% 0.32 -0.08 -0.03 -0.01
Residential mortgage 0.21% 0.41 0.07 0.24 0.45
Home equity 0.12% 0.01 0.02 -0.03 0.33
Consumer indirect 0.85% 0.90 0.96 0.79 0.63
Other consumer 2.87% 2.01 2.63 2.63 1.83
Total loans 0.37% 0.52 0.38 0.33 0.38
Non-performing loans:
Commercial business $3,706 3,474 4,078 5,043 5,616
Commercial mortgage 9,545 9,663 2,835 3,073 2,767
Residential mortgage 760 1,078 1,337 1,423 1,759
Home equity 826 925 911 699 598
Consumer indirect 1,387 1,471 1,161 1,035 1,007
Other consumer 46 11 16 22 19
Total non-performing loans 16,270 16,622 10,338 11,295 11,766
Foreclosed assets 412 333 424 415 371
Non-performing investment securities 113 128 128 207 343
Total non-performing assets $16,795 17,083 10,890 11,917 12,480
Total non-performing loans to total loans 0.88% 0.91 0.58 0.65 0.69
Total non-performing loans to originated loans 0.90% 0.93 0.60 0.67 0.71
Total non-performing assets to total assets 0.56% 0.58 0.38 0.43 0.44
Allowance for loan losses to non-performing loans 167% 161 258 227 220
FINANCIAL INSTITUTIONS, INC.
Appendix A - Non-GAAP to GAAP Reconciliation (Unaudited)
(In thousands, except per share amounts)
2014 2013
First Year ended Fourth Third Second First
Quarter December 31, Quarter Quarter Quarter Quarter
Ending tangible assets:
Total assets $3,015,619 2,928,636 2,867,517 2,782,303 2,827,658
Less: Goodwill and other intangible assets, net 49,913 50,002 50,095 50,190 50,288
Tangible assets (non-GAAP) $2,965,706 2,878,634 2,817,422 2,732,113 2,777,370
Ending tangible common equity:
Common shareholders' equity $245,523 237,497 230,503 227,494 237,511
Less: Goodwill and other intangible assets, net 49,913 50,002 50,095 50,190 50,288
Tangible common equity (non-GAAP) $195,610 187,495 180,408 177,304 187,223
Tangible common equity to tangible assets (non-GAAP) (1) 6.60% 6.51 6.40 6.49 6.74
Common shares outstanding 13,853 13,829 13,810 13,809 13,804
Tangible common book value per share (non-GAAP) (2) $14.12 13.56 13.06 12.84 13.56
Average tangible common equity:
Average common equity $244,281 235,290 234,576 228,827 239,500 238,373
Average goodwill and other intangible assets, net 49,968 50,201 50,058 50,153 50,249 50,350
Average tangible common equity (non-GAAP) $194,313 185,089 184,518 178,674 189,251 188,023
Return on average tangible common equity (3) 14.30% 13.00 12.90 12.88 13.74 12.47
________
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by common shares outstanding.
(3) Annualized net income divided by average tangible common equity.

CONTACT: Kevin B. Klotzbach Chief Financial Officer & Treasurer Phone: 585.786.1130 Email: KBKlotzbach@five-starbank.comSource:Financial Institutions, Inc.