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Jun 30, 2023
Financial Institutions Q2 2023 Earnings Report
Financial results for the second quarter of 2023 were announced.
Key Takeaways
Financial Institutions, Inc. reported a net income of $14.4 million for Q2 2023, with earnings per diluted share at $0.91. The company saw growth in total loans and noninterest income, while managing deposit outflows and margin compression amid a rising interest rate environment. Credit quality remained strong and the company strategically merged its investment advisory firms under Courier Capital.
Net income reached $14.4 million, or $0.91 per diluted share.
Total loans increased to $4.40 billion, up 3.6% from the previous quarter and 16.8% year-over-year.
Total deposits decreased to $5.03 billion, down 2.1% from the previous quarter but up 4.4% year-over-year.
Noninterest income increased to $11.5 million, up 5.0% from the previous quarter and 0.9% year-over-year.
Revenue by Segment
Forward Guidance
Financial Institutions, Inc. is focused on deposit generation and anticipates Banking-as-a-Service (BaaS) deposits to increase. While margin compression continued in Q2, it was at a slower pace. Loan and investment cash flow is expected to be approximately $1 billion over the next 12 months due to the pace of loan originations in the first half of 2023.
Positive Outlook
- New marketing campaign launched to enhance deposit generation.
- Anticipated Banking-as-a-Service (BaaS) deposits are beginning to materialize.
- Margin compression continued, but at a more modest level than the previous quarter.
- Observed a slowing of prepayments across all asset classes.
- Expect loan and investment cash flow of approximately $1 billion over the next 12 months.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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