NasdaqGS:FISI

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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. More Details


Snowflake Analysis

Flawless balance sheet 6 star 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

Stable Share Price: FISI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

FISI

3.1%

US Banks

-0.8%

US Market


1 Year Return

-44.2%

FISI

-26.5%

US Banks

18.0%

US Market

Return vs Industry: FISI underperformed the US Banks industry which returned -28.7% over the past year.

Return vs Market: FISI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FISIIndustryMarket
7 Day4.6%3.1%-0.8%
30 Day13.2%11.6%6.8%
90 Day8.3%3.1%8.9%
1 Year-41.3%-44.2%-23.8%-26.5%20.7%18.0%
3 Year-40.7%-47.1%-16.8%-23.7%41.5%32.1%
5 Year-24.4%-36.3%20.3%5.4%84.6%63.8%

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?

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FISI ($16.93) is trading below our estimate of fair value ($25.65)

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 (7.4x) compared to the US Banks industry average (10.1x).

PE vs Market: FISI is good value based on its PE Ratio (7.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FISI is poor value based on its PEG Ratio (2.9x)


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).


Next Steps

Future Growth

How is Financial Institutions forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FISI's forecast earnings growth (2.6% per year) is above the savings rate (2.2%).

Earnings vs Market: FISI's earnings (2.6% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: FISI's revenue (1.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: FISI's revenue (1.6% 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 (7.3%).


Next Steps

Past Performance

How has Financial Institutions performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FISI has high quality earnings.

Growing Profit Margin: FISI's current net profit margins (24.1%) are lower than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: FISI's earnings have grown by 10% 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 (-7.1%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: FISI's Return on Equity (8.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: FISI's Assets to Equity ratio (10.4x) is moderate.

Allowance for Bad Loans: FISI has a sufficient allowance for bad loans (351%).

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 (73%).

Low Risk Deposits: FISI's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: FISI has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

6.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FISI's dividend (6.14%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: FISI's dividend (6.14%) is in the top 25% of dividend payers in the US market (4.67%)


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 (44.4%), 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 (50.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Marty Birmingham (54 yo)

7.58yrs

Tenure

US$1,331,357

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 ($USD1.33M) is about average for companies of similar size in the US market ($USD1.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Birmingham
President7.58yrsUS$1.33m0.66%
$ 1.8m
Justin Bigham
Executive VP & CFO1.5yrsUS$508.85k0.0095%
$ 25.4k
Joseph Dugan
Senior VP and Chief Experience & Go to Market Officer of Five Star Bank4.25yrsUS$435.05k0.11%
$ 282.5k
Sonia Dumbleton
Senior VP1.42yrsno data0.037%
$ 99.9k
Shelly Doran
Senior VP and Director of Investor & External Relationsno datano datano data
Samuel Burruano
Interim Chief Human Resources Officer0.83yrno data0.015%
$ 40.9k
Michael Grover
Senior VPno datano data0.025%
$ 66.8k
Sean Willett
Senior VP & Chief Administration Officer of Five Star Bankno datano datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: FISI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Birmingham
President7.58yrsUS$1.33m0.66%
$ 1.8m
Susan Holliday
Independent Vice Chairmanno dataUS$94.98k0.18%
$ 495.4k
Samuel Gullo
Independent Director20.42yrsUS$74.98k0.18%
$ 476.8k
Donald Boswell
Independent Director3.33yrsUS$74.98k0.038%
$ 100.8k
Kim VanGelder
Independent Director4.33yrsUS$79.98k0.080%
$ 214.9k
Andrew Dorn
Independent Director6.42yrsUS$79.98k0.17%
$ 447.3k
Robert Latella
Independent Chairman of the Board6.42yrsUS$138.98k0.16%
$ 433.4k
Karl Anderson
Independent Director14.42yrsUS$79.98k0.11%
$ 295.1k
Robert Glaser
Independent Director6.42yrsUS$84.98k0.15%
$ 414.2k
Dawn Burlew
Independent Director2.92yrsUS$74.98k0.039%
$ 105.9k

6.4yrs

Average Tenure

69yo

Average Age

Experienced Board: FISI's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$268.447m
  • Shares outstanding: 15.86m
  • Website: https://www.five-starbank.com

Number of Employees


Location

  • Financial Institutions, Inc.
  • 220 Liberty Street
  • Warsaw
  • New York
  • 14569-1465
  • 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 Analysis2020/10/22 23:41
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.