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Mar 31, 2020
Financial Institutions Q1 2020 Earnings Report
Financial results announced with a decrease in net income due to higher provision for credit losses.
Key Takeaways
Financial Institutions, Inc. reported a net income of $1.1 million for the first quarter of 2020, a significant decrease compared to $11.5 million in the first quarter of 2019. The results were negatively impacted by a higher provision for credit losses of $13.9 million, driven by the adoption of CECL and the impact of COVID-19.
Net income was $1.1 million, down from $11.5 million in Q1 2019.
Earnings per diluted share were $0.05, compared to $0.70 in Q1 2019.
Provision for credit losses increased to $13.9 million due to CECL adoption and COVID-19 impacts.
Net interest income was $33.1 million, slightly higher than $31.792 million in Q1 2019.
Financial Institutions
Financial Institutions
Financial Institutions Revenue by Segment
Revenue by Segment
Service charges on deposits Revenue
CapyFin.comInsurance income Revenue
CapyFin.comInvestment advisory Revenue
CapyFin.comCompany owned life insurance Revenue
CapyFin.comInvestments in limited partnerships Revenue
CapyFin.comLoan servicing Revenue
CapyFin.comNet gain on sale of loans held for sale Revenue
CapyFin.comNet loss on tax credit investments Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company continued to advance the major transformational and technology initiatives announced last quarter. A multiple-phase launch of Five Star Digital Banking is planned for the second quarter of 2020. An enterprise standardization program, focused on improving operational efficiency and enhancing future profitability, continues to move forward as well.
Positive Outlook
- Five Star Bank Digital Banking platform will completely replace the existing digital platform for consumer and commercial customers
- The new platform is expected to significantly improve the user experience across all devices
- The company enhance customers’ capabilities to interact with us digitally
- A multiple-phase launch of Five Star Digital Banking is planned for the second quarter of 2020
- The Company is evaluating activities and functions across the organization, focusing on ways to improve operational efficiency and automate low-value, repetitive activities using robotic process automation while also enhancing the employee and customer experience.