Profile: Financial Institutions Inc (FISI.O)
Financial Institutions, Inc. (FII), incorporated on September 15, 1931, is a financial holding company.
The Company provides an array of deposit, lending and other financial services to individuals, municipalities and businesses in Western and Central New York through its wholly-owned New York chartered banking subsidiary, Five Star Bank (the Bank). It has two segments, banking and insurance. The banking segment includes all of the Company’s retail and commercial banking operations. The insurance segment includes the activities of Scott Danahy Naylon (SDN), a full service insurance agency that provides a range of insurance services to both personal and business clients.
The Company’s indirect lending network involves relationships with franchised automobile dealers in the Capital District of New York and Northern Pennsylvania. FII provides a range of consumer and commercial banking and financial services to individuals, municipalities and businesses through a network of over 50 offices and a network of automated teller machines (ATMs) in 15 counties of Western and Central New York: Allegany, Cattaraugus, Cayuga, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Steuben, Wyoming and Yates counties.
The Company offers a range of loans, including commercial business and revolving lines of credit, commercial mortgages, equipment loans, residential mortgage loans and home equity loans and lines of credit, home improvement loans, automobile loans and personal loans. It originates commercial business loans in its primary market areas and underwrites them based on the borrower’s ability to service the loan from operating income. FII offers a range of commercial lending products, including term loans and lines of credit. Short and medium-term commercial loans, primarily collateralized, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition of real estate, expansion and improvements) and the purchase of equipment. Commercial business loans are offered to the agricultural industry for short-term crop production, farm equipment and livestock financing.
The Company offers commercial mortgage loans to finance the purchase of real property, which generally consists of real estate with completed structures and, to a smaller extent, agricultural real estate financing. The Company originates fixed and variable rate one- to four-family residential mortgages collateralized by owner-occupied properties located in its market areas. It offers a variety of real estate loan products, which are generally amortized over periods of up to 30 years. The Company offers a variety of loan products to its consumer customers, including home equity loans and lines of credit, automobile loans, secured installment loans and various other types of secured and unsecured personal loans. The Company also originates consumer automobile loans, recreational vehicle loans, boat loans, home improvement loans, closed-end home equity loans, home equity lines of credit, personal loans (collateralized and uncollateralized) and deposit account collateralized loans.
At September 30, 2014, the Company’s total loans were $1.91 billion and residential mortgage loans were $103.0 million. Its home equity portfolio, which consists of home equity loans and lines, totaled $382.7 million as of September 30, 2014. As of September 30, 2014, the Company’s home equity portfolio comprised of $253.3 million of home equity loans and $129.4 million of home equity lines. As of September 30, 2014, FII’s loans held for sale were comprised of residential real estate mortgages and totaled $1.0 million.
As of September 30, 2014, the Company’s composition of the securities available-for-sale and securities held to maturity security portfolios included the United States Government agencies and government sponsored enterprises, mortgage-backed securities, state and political subdivisions, and asset-backed securities. At September 30, 2014, its available for sale (AFS) investment securities portfolio totaled $585.5 million.
Sources of Funds
The Company’s primary sources of funds are deposits, borrowed funds, scheduled amortization and prepayments of principal from loans and mortgage-backed securities, maturities and calls of investment securities and funds provided by operations. It maintains a range of deposit products and accounts to meet the needs of the residents and businesses. FII’s products include an array of checking and savings account programs for individuals and small businesses, such as money market accounts, certificates of deposit, sweep investment capabilities, as well as Individual Retirement Accounts and other plan accounts. It has access to a variety of borrowing sources and use both short-term and long-term borrowings.
At September 30, 2014, the Company’s total deposits were $2.54 billion and its Certificates of deposit were approximately 25% of total deposits. As of September 30, 2014, the Company’s nonpublic deposits represented 72% of total deposits and totaled $1.83 billion. It had no traditional brokered deposits at September 30, 2014. At September 30, 2014, the Company’s Reciprocal Certificate of Deposit Account Registry Service (CDARS) deposits and ICS deposits totaled $75.6 million and $64.1 million, respectively. It offers a variety of public (municipal) deposit products to towns, villages, counties and school districts within its market. As of September 30, 2014, FII’s total public deposits were $708.4 million or 28% of total deposits. Its short-term Federal Home Loan Bank (FHLB) borrowings at September 30, 2014 consisted of $167.2 million in short-term advances.
Financial Institutions Inc
220 Liberty St
WARSAW NY 14569-1465