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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.
Financial Institutions
Financial Institutions
Financial Institutions Revenue by Segment
Revenue by Segment
Service charges on deposits Revenue
CapyFin.comInsurance income Revenue
CapyFin.comCard interchange income Revenue
CapyFin.comInvestment advisory Revenue
CapyFin.comCompany owned life insurance Revenue
CapyFin.comInvestments in limited partnerships Revenue
CapyFin.comLoan servicing Revenue
CapyFin.comOther Revenue
CapyFin.com 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.