Financial Institutions reports Q1 EPS 11c, consensus 59c

Common Equity Tier 1 Capital Ratio was 9.43% compared to 9.43% and 9.21% at December 31, 2023, and March 31, 2023, respectively. Common book value per share was $27.74 at March 31, 2024, a decrease of $0.66, or 2.3%, from $28.40 at December 31, 2023, and an increase of $1.36, or 5.2%, from $26.38 at March 31, 2023. “First quarter 2024 results were clearly impacted by the fraud event we disclosed in early March, as we recorded a deposit-related charge-off of approximately $18.4 million during the period, reflecting a reduction from the potential exposure of $18.9 million originally disclosed. We continue to pursue every avenue of legal recourse available to us to recoup additional funds and minimize the loss,” said President and Chief Executive Officer Martin K. Birmingham. “Even as we navigated this unprecedented challenge, we took strategic action in support of our continued focus on capital, liquidity and earnings. Our sale of the assets of our insurance subsidiary at the start of the second quarter of 2024 generated approximately $27 million in proceeds, unlocking significant value from this line of business, strengthening our capital position in the second quarter and supporting our focus on driving earnings in our core banking business. “In addition, our team’s unwavering focus on our customers and communities contributed to strong deposit growth during the first quarter, with public, nonpublic and reciprocal deposits all increasing from year-end 2023. Modest commercial loan growth during the first quarter was offset by anticipated declines in our consumer indirect portfolio. Amid the continued competitive banking landscape, we remain focused on deposit acquisition and retention and driving credit-disciplined loan origination across our footprint.”