NasdaqGS:FISI

Stock Analysis Report

Financial Institutions

Executive Summary

Financial Institutions, Inc. operates as the holding company for Five Star Bank that provides banking and financial services to individuals, municipalities, and businesses.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Financial Institutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

FISI

2.7%

US Banks

0.4%

US Market


1 Year Return

7.6%

FISI

2.7%

US Banks

6.9%

US Market

Return vs Industry: FISI exceeded the US Banks industry which returned 2.7% over the past year.

Return vs Market: FISI matched the US Market which returned 6.9% over the past year.


Shareholder returns

FISIIndustryMarket
7 Day1.5%2.7%0.4%
30 Day-2.6%0.7%-1.1%
90 Day7.9%3.0%-0.5%
1 Year11.4%7.6%5.7%2.7%9.3%6.9%
3 Year25.9%15.0%52.1%41.6%45.8%36.4%
5 Year47.1%26.1%69.2%50.7%62.9%45.1%

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

Valuation

Is Financial Institutions undervalued compared to its fair value and its price relative to the market?

12.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FISI ($30.24) is trading above our estimate of fair value ($28.4)

Significantly Undervalued: FISI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FISI is good value based on its PE Ratio (12.2x) compared to the Banks industry average (12.6x).

PE vs Market: FISI is good value based on its PE Ratio (12.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: FISI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: FISI is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Financial Institutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FISI's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FISI's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: FISI's earnings are forecast to grow, but not significantly.

Revenue vs Market: FISI's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FISI's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FISI's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Financial Institutions performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FISI's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: FISI's earnings growth over the past year (0.5%) is below its 5-year average (9.6% per year).

Earnings vs Industry: FISI earnings growth over the past year (0.5%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: FISI's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: FISI's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FISI's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

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


Balance Sheet

Inventory Level: FISI has a low level of unsold assets or inventory.

Debt Coverage by Assets: FISI's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: FISI's level of assets compared to its equity is moderate.

Allowance for Bad Loans: FISI has a sufficient allowance for bad loans.

Low Risk Liabilities: FISI's liabilities are made up of primarily low risk sources of funding.

Loan Level: FISI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FISI's loans are broadly funded by customer deposits.

Level of Bad Loans: FISI has an appropriate level of bad loans (0.36%)


Next Steps

Dividend

What is Financial Institutions's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FISI's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FISI's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (39.5%), 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 well covered by earnings (37.2% payout ratio).


Next Steps

Management

What is the CEO of Financial Institutions's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Marty Birmingham (53yo)

6.6yrs

Tenure

US$1,135,282

Compensation

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 ($USD1.14M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Marty's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

55yo

Average Age

Experienced Management: FISI's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

68yo

Average Age

Experienced Board: FISI's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$301,57003 May 19
Joseph Dugan
EntityIndividual
Role
Other Key Executive
Senior VP and Chief Customer Experience & Go to Market Officer of Five Star Bank
Shares10,600
Max PriceUS$28.45
BuyUS$28,33003 May 19
Martin Birmingham
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$28.33
BuyUS$9,85002 Nov 18
Joseph Dugan
EntityIndividual
Role
Other Key Executive
Senior VP and Chief Customer Experience & Go to Market Officer of Five Star Bank
Shares345
Max PriceUS$28.55
BuyUS$56,88030 Oct 18
Martin Birmingham
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$28.44

Ownership Breakdown


Management Team

  • Sonia Dumbleton (57yo)

    Senior VP

    • Tenure: 0.4yrs
  • Kevin Klotzbach (66yo)

    Executive VP & Senior Financial Advisor

    • Tenure: 0.5yrs
    • Compensation: US$584.54k
  • Joe Dugan (57yo)

    Senior VP and Chief Customer Experience & Go to Market Officer of Five Star Bank

    • Tenure: 3.3yrs
    • Compensation: US$407.21k
  • Marty Birmingham (53yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$1.14m
  • Shelly Doran

    Senior VP and Director of Investor & External Relations

    • Tenure: 0yrs
  • Mike Grover (47yo)

    Senior VP

    • Tenure: 0yrs
  • Val Benjamin (50yo)

    Senior VP & Chief Human Resources Executive

    • Tenure: 1.2yrs
  • Dave Case (55yo)

    • Tenure: 5.2yrs
  • Bill Kreienberg (61yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$655.33k
  • Justin Bigham (45yo)

    Executive VP

    • Tenure: 0.5yrs

Board Members

  • Susan Holliday (63yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$79.98k
  • Samuel Gullo (70yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$74.98k
  • Don Boswell (67yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$74.98k
  • Kim VanGelder (55yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$74.98k
  • Andy Dorn (69yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$79.98k
  • Marty Birmingham (53yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$1.14m
  • Bob Latella (76yo)

    Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: US$138.98k
  • Karl Anderson (72yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$79.98k
  • Bob Glaser (72yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$84.98k
  • Dawn Burlew (54yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$74.98k

Company Information

Financial Institutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Financial Institutions, Inc.
  • Ticker: FISI
  • Exchange: NasdaqGS
  • Founded: 1817
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$478.690m
  • Shares outstanding: 15.83m
  • Website: https://www.five-starbank.com

Number of Employees


Location

  • Financial Institutions, Inc.
  • 220 Liberty Street
  • P.O. Box 227
  • Warsaw
  • New York
  • 14569
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FISINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1999

Biography

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, Ban ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.