Financial Institutions, Inc. operates as the holding company for Five Star Bank that provides banking and financial services to individuals, municipalities, and businesses.
Very undervalued with flawless balance sheet and pays a dividend.
Share Price & News
How has Financial Institutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FISI's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FISI underperformed the US Banks industry which returned -26.2% over the past year.
Return vs Market: FISI underperformed the US Market which returned 5.3% over the past year.
Price Volatility Vs. Market
How volatile is Financial Institutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StOur View On Financial Institutions' (NASDAQ:FISI) CEO Pay
4 weeks ago | Simply Wall StCould The Financial Institutions, Inc. (NASDAQ:FISI) Ownership Structure Tell Us Something Useful?
1 month ago | Simply Wall StDoes Financial Institutions, Inc. (NASDAQ:FISI) Have A Volatile Share Price?
Is Financial Institutions undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FISI ($16.32) is trading below our estimate of fair value ($21)
Significantly Below Fair Value: FISI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FISI is good value based on its PE Ratio (7.1x) compared to the US Banks industry average (9.2x).
PE vs Market: FISI is good value based on its PE Ratio (7.1x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: FISI is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: FISI is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).
How is Financial Institutions forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FISI's forecast earnings growth (7.8% per year) is above the savings rate (2.2%).
Earnings vs Market: FISI's earnings (7.8% per year) are forecast to grow slower than the US market (22.5% per year).
High Growth Earnings: FISI's earnings are forecast to grow, but not significantly.
Revenue vs Market: FISI's revenue (3.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: FISI's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FISI's Return on Equity is forecast to be low in 3 years time (7.1%).
How has Financial Institutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FISI has high quality earnings.
Growing Profit Margin: FISI's current net profit margins (24.4%) are lower than last year (26.1%).
Past Earnings Growth Analysis
Earnings Trend: FISI's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: FISI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FISI had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Banks industry average (1.7%).
Return on Equity
High ROE: FISI's Return on Equity (8.8%) is considered low.
How is Financial Institutions's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: FISI's Assets to Equity ratio (10.2x) is moderate.
Allowance for Bad Loans: FISI has a sufficient allowance for bad loans (350%).
Low Risk Liabilities: 94% of FISI's liabilities are made up of primarily low risk sources of funding.
Loan Level: FISI has an appropriate level of Loans to Assets ratio (71%).
Low Risk Deposits: FISI's Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: FISI has an appropriate level of bad loans (0.4%).
What is Financial Institutions's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FISI's dividend (6.37%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: FISI's dividend (6.37%) is in the top 25% of dividend payers in the US market (4.59%)
Stability and Growth of Payments
Stable Dividend: FISI's dividends per share have been stable in the past 10 years.
Growing Dividend: FISI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.6%), FISI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FISI's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marty Birmingham (54yo)
Mr. Martin K. Birmingham, also known as Marty, has been the Chief Executive Officer of Financial Institutions Inc. and Five Star Bank since March 1, 2013 and has been its President since August 28, 2012. H ...
CEO Compensation Analysis
Compensation vs Market: Marty's total compensation ($USD1.33M) is about average for companies of similar size in the US market ($USD1.36M).
Compensation vs Earnings: Marty's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||1.25yrs||US$508.85k||0.0095% $24.5k|
|Senior VP and Chief Experience & Go to Market Officer of Five Star Bank||4yrs||US$435.05k||0.11% $272.4k|
|Senior VP||1.17yrs||no data||0.037% $96.3k|
|Senior VP and Director of Investor & External Relations||no data||no data||no data|
|Interim Chief Human Resources Officer||0.58yr||no data||0.015% $39.4k|
|Senior VP||no data||no data||0.025% $64.4k|
|Senior VP & Chief Administration Officer of Five Star Bank||no data||no data||no data|
Experienced Management: FISI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|Independent Vice Chairman||no data||US$94.98k||0.18% $477.5k|
|Independent Director||20.17yrs||US$74.98k||0.18% $459.6k|
|Independent Director||3.08yrs||US$74.98k||0.038% $97.1k|
|Independent Director||4.08yrs||US$79.98k||0.080% $207.1k|
|Independent Director||6.17yrs||US$79.98k||0.17% $431.2k|
|Independent Chairman of the Board||6.17yrs||US$138.98k||0.16% $417.7k|
|Independent Director||14.17yrs||US$79.98k||0.11% $284.5k|
|Independent Director||6.17yrs||US$84.98k||0.15% $399.3k|
|Independent Director||2.67yrs||US$74.98k||0.040% $102.0k|
Experienced Board: FISI's board of directors are considered experienced (6.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FISI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Financial Institutions, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Financial Institutions, Inc.
- Ticker: FISI
- Exchange: NasdaqGS
- Founded: 1817
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$258.276m
- Shares outstanding: 15.83m
- Website: https://www.five-starbank.com
Number of Employees
- Financial Institutions, Inc.
- 220 Liberty Street
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FISI||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 1999|
Financial Institutions, Inc. operates as the holding company for Five Star Bank that provides banking and financial services to individuals, municipalities, and businesses. It operates in two segments, Banking and Non-Banking. The company offers checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company also provides personal insurance, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services comprising life and disability insurance, Medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. The company operates a network of 53 offices in the New York State. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/15 00:05|
|End of Day Share Price||2020/07/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.