fisi-ex991

WARSAW, N.Y., April 30, 2019 – Financial Institutions, Inc. (Nasdaq:FISI) (the “Company”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the quarter ended March 31, 2019.

Net income for the quarter grew to $11.5 million compared to $9.3 million for the first quarter of 2018. After preferred dividends, net income available to common shareholders was $11.2 million for the quarter, or $0.70 per diluted share, up from $8.9 million, or $0.56 per diluted share, for the first quarter of 2018.

President and Chief Executive Officer Martin K. Birmingham stated, “We delivered another strong quarter as we continue to execute our long-term strategy to achieve sustainable earnings growth. We are seeing meaningful results from our efforts to strengthen and transform our Company, as evidenced by this quarter’s growth in net income, pre-tax pre-provision income and deposits, as well as continued strong asset quality. Our capital ratios improved in the quarter with 30 basis point increases in common equity to assets and tangible common equity to tangible assets ⁽¹⁾, or the TCE ratio.”

Chief Financial Officer Justin K. Bigham added, “Our first quarter performance once again demonstrates that we are leveraging the investments we’ve made to deliver year-over-year top-line growth while exercising disciplined expense management to enhance profitability. We also made additional progress on our strategies to optimize the balance sheet by focusing on growth in our relationship-based commercial and residential mortgage businesses and redeploying assets from investment securities into higher-yielding loans.”

Net interest income was $31.8 million for the quarter, $237 thousand lower than the fourth quarter of 2018 and $2.1 million higher than the first quarter of 2018.

Noninterest income was $9.1 million for the quarter, compared to $9.3 million in the fourth quarter of 2018 and $8.9 million in the first quarter of 2018.

Noninterest expense was $25.2 million in the first quarter of 2019, compared to $27.8 million in the fourth quarter of 2018 and $24.1 million in the first quarter of 2018.

Income tax expense was $3.0 million for the quarter compared to $2.2 million for the fourth quarter of 2018 and $2.3 million for the first quarter of 2018. The effective tax rate was 20.8% for the quarter compared to 22.7% for the fourth quarter of 2018 and 19.6% for the first quarter of 2018.

Effective tax rates are impacted by items of income and expense not subject to federal or state taxation. The Company’s effective tax rates differ from statutory rates primarily because of interest income from tax-exempt securities, earnings on company owned life insurance and the fourth quarter 2018 non-cash goodwill impairment charge, a non-tax-deductible expense.

Total assets were $4.30 billion at March 31, 2019, down $9.2 million from $4.31 billion at December 31, 2018, and up $150.1 million from $4.15 billion at March 31, 2018.

Investment securities were $866.5 million at March 31, 2019, down $25.7 million from $892.3 million at December 31, 2018. During the quarter, the Company recorded $7.2 million of unrealized gains and used net proceeds of $33.0 million from investment securities to fund loan growth and pay down short-term borrowings. Investment securities were $145.6 million lower than $1.01 billion at March 31, 2018 as a result of $9.3 million of unrealized gains and the use of $154.9 million of net proceeds to primarily fund loan growth.

Total loans were $3.11 billion at March 31, 2019, up $22.6 million, or 0.7%, from December 31, 2018, and up $315.9 million, or 11.3%, from March 31, 2018.

Total deposits were $3.51 billion at March 31, 2019, $141.9 million or 4.2% higher than December 31, 2018, and $128.8 million or 3.8% higher than March 31, 2018. The increase from December 31, 2018, was primarily due to public deposit seasonality while the increase from March 31, 2018, was primarily the result of successful business development efforts. Public deposit balances represented 28% of total deposits at March 31, 2019, compared to 25% of total deposits at December 31, 2018, and 29% at March 31, 2018.

Short-term borrowings were $287.3 million at March 31, 2019, a decrease of $182.2 million from December 31, 2018, and a decrease of $40.3 million from March 31, 2018. Short-term borrowings are typically utilized to manage the seasonality of public deposits.

Shareholders’ equity was $408.3 million at March 31, 2019, compared to $396.3 million at December 31, 2018, and $380.3 million at March 31, 2018. Tangible common book value per share was $19.77 ⁽¹⁾ at March 31, 2019, an increase of $0.76 or 4.00% from $19.01 at December 31, 2018, and an increase of $1.62 or 8.9% from $18.15 at March 31, 2018.

During the first quarter of 2019, the Company declared a common stock dividend of $0.25 per common share, an increase of 4.2% over the previous dividend. The dividend returned 36% of first quarter net income to common shareholders.

The Company’s regulatory capital ratios at March 31, 2019, compared to the prior quarter and prior year:

Non-performing loans declined to $5.8 million at March 31, 2019, compared to $7.1 million at December 31, 2018, and $10.7 million at March 31, 2018. The first quarter 2019 provision for loan losses was $1.2 million, reflecting lower levels of charge-offs and loan growth in the first three months of the year. Provision was $3.9 million in the fourth quarter of 2018 and $2.9 million in the first quarter of 2018.

Net charge-offs were $1.8 million in the quarter, $2.1 million lower than the fourth quarter of 2018 and $247 thousand lower than the first quarter of 2018. The ratio of annualized net charge-offs to total average loans was 0.23% in the quarter, 0.51% in the fourth quarter of 2018 and 0.30% in the first quarter of 2018.

The Company has remained strategically focused on the importance of credit discipline, allocating what we believe are the necessary resources to credit and risk management functions as the loan portfolio has grown. Asset quality ratios continued to improve as the total non-performing loans to total loans ratio decreased to 0.19% at March 31, 2019, from 0.38% one year ago and the ratio of allowance for loan losses to non-performing loans increased to 574% at quarter-end from 322% at March 31, 2018.

On April 1, 2019, Justin K. Bigham was named Executive Vice President, Chief Financial Officer and Treasurer. Kevin B. Klotzbach, former Chief Financial Officer and Treasurer for the Company, was named Executive Vice President, Senior Financial Advisor. Mr. Klotzbach will remain with the Company through December 31, 2019, to ensure a successful transition.

This announcement represented the culmination of a successful CFO succession plan. In March of last year, the Company communicated Mr. Klotzbach’s intent to retire in 2019. Following a national search, Mr. Bigham joined the Company in October as Executive Vice President and Deputy CFO.

The Company will host an earnings conference call and audio webcast today, April 30, 2019, at 2:00 p.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and Justin K. Bigham, Chief Financial Officer. The live webcast will be available in listen-only mode on the Company’s website at www.fiiwarsaw.com. Within the United States, listeners may also access the call by dialing 1-888-346-9290 and requesting the Financial Institutions, Inc. call. The webcast replay will be available on the Company’s website for at least 30 days.

Financial Institutions, Inc. provides diversified financial services through its subsidiaries Five Star Bank, SDN, Courier Capital and HNP Capital. Five Star Bank provides a wide range of consumer and commercial banking and lending services to individuals, municipalities and businesses through a network of more than 50 offices throughout Western and Central New York State. SDN provides a broad range of insurance services to personal and business clients. Courier Capital and HNP Capital provide customized investment management, investment consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Financial Institutions, Inc. and its subsidiaries employ approximately 700 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI. Additional information is available at www.fiiwarsaw.com.

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.

The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: the Company’s ability to implement its strategic plan, the Company’s ability to redeploy investment assets into loan assets, whether the Company experiences greater credit losses than expected, whether the Company experiences breaches of its, or third party, information systems, the attitudes and preferences of the Company’s customers, the Company’s ability to successfully integrate and profitably operate SDN, Courier Capital, HNP Capital and other acquisitions, the competitive environment, fluctuations in the fair value of securities in its investment portfolio, changes in the regulatory environment and the Company’s compliance with regulatory requirements, changes in interest rates, general economic and credit market conditions nationally and regionally. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

⁽¹⁾ See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2019			2018
	March 31,			December 31,			September 30,			June 30,			March 31,
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents	$	79,786		$	102,755		$	117,331		$	89,094		$	122,914
Investment securities:
Available for sale		427,545			445,677			458,310			492,228			510,197
Held-to-maturity		438,984			446,581			459,623			474,803			501,905
Total investment securities		866,529			892,258			917,933			967,031			1,012,102
Loans held for sale		2,069			2,868			3,166			2,014			1,523
Loans:
Commercial business		553,745			557,861			537,942			507,021			464,139
Commercial mortgage		993,259			958,194			905,011			867,049			821,091
Residential real estate loans		534,691			524,155			507,598			489,940			477,935
Residential real estate lines		108,623			109,718			111,204			113,287			115,346
Consumer indirect		902,762			919,917			909,434			906,237			898,099
Other consumer		16,099			16,753			17,142			16,678			16,654
Total loans		3,109,179			3,086,598			2,988,331			2,900,212			2,793,264
Allowance for loan losses		33,327			33,914			33,955			33,955			35,594
Total loans, net		3,075,852			3,052,684			2,954,376			2,866,257			2,757,670
Total interest-earning assets		4,009,496			4,031,151			3,927,238			3,884,628			3,818,839
Goodwill and other intangible assets, net		75,850			76,173			78,853			79,188			74,415
Total assets		4,302,541			4,311,698			4,258,385			4,191,315			4,152,432
Deposits:
Noninterest-bearing demand		732,631			755,460			748,167			719,084			702,900
Interest-bearing demand		707,430			622,482			711,321			658,107			717,567
Savings and money market		1,016,666			968,897			988,486			1,012,972			1,052,270
Time deposits		1,052,110			1,020,068			1,037,755			872,004			907,272
Total deposits		3,508,837			3,366,907			3,485,729			3,262,167			3,380,009
Short-term borrowings		287,300			469,500			308,200			472,800			327,600
Long-term borrowings, net		39,220			39,202			39,184			39,167			39,149
Total interest-bearing liabilities		3,102,726			3,120,149			3,084,946			3,055,050			3,043,858
Shareholders’ equity		408,253			396,293			392,154			386,937			380,302
Common shareholders’ equity		390,925			378,965			374,825			369,608			362,973
Tangible common equity ⁽¹⁾		315,075			302,792			295,972			290,420			288,558
Accumulated other comprehensive loss	$	(18,554	)	$	(21,281	)	$	(21,820	)	$	(20,296	)	$	(18,163	)

Common shares outstanding		15,941			15,929			15,925			15,924			15,901
Treasury shares		115			127			131			132			155
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio		8.36	%		8.16	%		8.18	%		8.10	%		8.11	%
Common equity Tier 1 capital ratio		9.87	%		9.70	%		9.81	%		9.82	%		10.09	%
Tier 1 capital ratio		10.37	%		10.21	%		10.34	%		10.37	%		10.65	%
Total risk-based capital ratio		12.50	%		12.38	%		12.58	%		12.66	%		13.09	%
Common equity to assets		9.09	%		8.79	%		8.80	%		8.82	%		8.74	%
Tangible common equity to tangible assets ⁽¹⁾		7.45	%		7.15	%		7.08	%		7.06	%		7.08	%

Common book value per share	$	24.52		$	23.79		$	23.54		$	23.21		$	22.83
Tangible common book value per share ⁽¹⁾	$	19.77		$	19.01		$	18.59		$	18.24		$	18.15
Stock price (Nasdaq: FISI):
High	$	30.72		$	31.55		$	33.70		$	34.35		$	33.00
Low	$	25.50		$	24.49		$	30.12		$	28.95		$	29.50
Close	$	27.18		$	25.70		$	31.40		$	32.90		$	29.60

⁽¹⁾ See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this Non-GAAP measure.

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2019			2018
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
SELECTED INCOME STATEMENT DATA:
Interest income	$	41,514		$	41,125		$	39,117		$	37,013		$	35,477
Interest expense		9,722			9,096			8,214			6,783			5,775
Net interest income		31,792			32,029			30,903			30,230			29,702
Provision for loan losses		1,193			3,884			2,061			40			2,949
Net interest income after provision for loan losses		30,599			28,145			28,842			30,190			26,753
Noninterest income:
Service charges on deposits		1,680			1,866			1,813			1,703			1,738
Insurance income		1,378			1,012			1,501			1,018			1,399
ATM and debit card		1,443			1,643			1,557			1,531			1,421
Investment advisory		2,216			2,189			2,245			1,911			1,778
Company owned life insurance		410			460			440			443			450
Investments in limited partnerships		232			184			328			123			568
Loan servicing		110			122			96			108			115
Income from derivative instruments, net		168			289			336			176			171
Net gain on sale of loans held for sale		182			266			303			131			96
Net (loss) gain on investment securities		(53	)		(39	)		(95	)		7			-
Net gain on other assets		49			1			37			9			3
Other		1,305			1,355			1,255			1,247			1,168
Total noninterest income		9,120			9,348			9,816			8,407			8,907
Noninterest expense:
Salaries and employee benefits		14,001			14,373			13,970			12,871			13,429
Occupancy and equipment		4,586			4,427			4,337			4,167			4,407
Professional services		1,158			780			1,353			896			883
Computer and data processing		1,223			1,238			1,291			1,358			1,235
Supplies and postage		534			487			485			548			512
FDIC assessments		512			489			498			480			508
Advertising and promotions		520			935			949			721			977
Amortization of intangibles		323			330			334			305			288
Goodwill impairment		-			2,350			-			-			-
Other		2,314			2,394			2,304			2,102			1,865
Total noninterest expense		25,171			27,803			25,521			23,448			24,104
Income before income taxes		14,548			9,690			13,137			15,149			11,556
Income tax expense		3,027			2,199			2,560			2,979			2,268
Net income		11,521			7,491			10,577			12,170			9,288
Preferred stock dividends		365			365			365			366			365
Net income available to common shareholders	$	11,156		$	7,126		$	10,212		$	11,804		$	8,923
FINANCIAL RATIOS:
Earnings per share – basic	$	0.70		$	0.45		$	0.64		$	0.74		$	0.56
Earnings per share – diluted	$	0.70		$	0.45		$	0.64		$	0.74		$	0.56
Cash dividends declared on common stock	$	0.25		$	0.24		$	0.24		$	0.24		$	0.24
Common dividend payout ratio		35.71	%		53.33	%		37.50	%		32.43	%		42.86	%
Dividend yield (annualized)		3.73	%		3.70	%		3.03	%		2.93	%		3.29	%
Return on average assets		1.09	%		0.70	%		1.00	%		1.18	%		0.92	%
Return on average equity		11.65	%		7.50	%		10.71	%		12.70	%		9.89	%
Return on average common equity		11.79	%		7.46	%		10.82	%		12.90	%		9.95	%
Return on average tangible common equity ⁽¹⁾		14.71	%		9.40	%		13.71	%		16.27	%		12.52	%
Efficiency ratio ⁽²⁾		60.99	%		66.64	%		62.04	%		60.14	%		61.85	%
Effective tax rate		20.8	%		22.7	%		19.5	%		19.7	%		19.6	%

	2019			2018
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
SELECTED AVERAGE BALANCES:
Federal funds sold and interest- earning deposits	$	17,955		$	25,411		$	17,955		$	34,357		$	21,941
Investment securities ⁽¹⁾		886,878			937,907			954,027			1,012,846			1,034,831
Loans:
Commercial business		547,182			539,622			519,114			481,045			453,250
Commercial mortgage		977,818			944,476			896,159			842,422			821,311
Residential real estate loans		529,522			515,539			498,371			483,577			470,612
Residential real estate lines		109,529			110,236			111,762			113,948			115,614
Consumer indirect		911,252			914,636			904,480			899,069			885,723
Other consumer		16,226			16,671			16,633			16,449			16,978
Total loans		3,091,529			3,041,180			2,946,519			2,836,510			2,763,488
Total interest-earning assets		3,996,362			4,004,498			3,918,501			3,883,713			3,820,260
Goodwill and other intangible assets, net		76,033			78,314			79,047			75,957			74,577
Total assets		4,282,991			4,268,809			4,187,538			4,142,735			4,086,633
Interest-bearing liabilities:
Interest-bearing demand		668,448			669,491			642,234			677,582			671,991
Savings and money market		965,829			1,011,427			978,578			1,032,425			1,012,574
Time deposits		1,076,687			1,032,632			946,499			906,271			857,184
Short-term borrowings		346,546			355,439			430,697			381,043			411,760
Long-term borrowings, net		39,209			39,191			39,174			39,156			39,138
Total interest-bearing liabilities		3,096,719			3,108,180			3,037,182			3,036,477			2,992,647
Noninterest-bearing demand deposits		727,321			733,717			730,960			699,112			688,123
Total deposits		3,438,285			3,447,267			3,298,271			3,315,390			3,229,872
Total liabilities		3,882,033			3,872,545			3,795,727			3,758,465			3,705,782
Shareholders’ equity		400,958			396,264			391,811			384,270			380,851
Common equity		383,630			378,936			374,482			366,942			363,523
Tangible common equity ⁽²⁾	$	307,597		$	300,622		$	295,435		$	290,985		$	288,946
Common shares outstanding:
Basic		15,930			15,922			15,921			15,906			15,890
Diluted		15,978			15,971			15,964			15,948			15,941
SELECTED AVERAGE YIELDS: (Tax equivalent basis)
Investment securities		2.37	%		2.33	%		2.35	%		2.32	%		2.32	%
Loans		4.77	%		4.68	%		4.55	%		4.43	%		4.36	%
Total interest-earning assets		4.23	%		4.11	%		4.00	%		3.86	%		3.79	%
Interest-bearing demand		0.20	%		0.20	%		0.19	%		0.13	%		0.12	%
Savings and money market		0.41	%		0.38	%		0.33	%		0.26	%		0.18	%
Time deposits		2.06	%		1.88	%		1.69	%		1.49	%		1.33	%
Short-term borrowings		2.70	%		2.56	%		2.24	%		2.01	%		1.68	%
Long-term borrowings, net		6.30	%		6.30	%		6.31	%		6.31	%		6.31	%
Total interest-bearing liabilities		1.27	%		1.16	%		1.07	%		0.90	%		0.78	%
Net interest rate spread		2.96	%		2.95	%		2.93	%		2.96	%		3.01	%
Net interest rate margin		3.24	%		3.21	%		3.17	%		3.16	%		3.18	%

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)

	2019			2018
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
ASSET QUALITY DATA:
Allowance for Loan Losses
Beginning balance	$	33,914		$	33,955		$	33,955		$	35,594		$	34,672
Net loan charge-offs (recoveries):
Commercial business		27			1,135			431			259			(15	)
Commercial mortgage		(17	)		901			110			(1	)		(3	)
Residential real estate loans		25			23			16			(53	)		(50	)
Residential real estate lines		(2	)		15			21			(5	)		91
Consumer indirect		1,558			1,599			1,246			1,317			1,664
Other consumer		189			252			237			162			340
Total net charge-offs		1,780			3,925			2,061			1,679			2,027
Provision for loan losses		1,193			3,884			2,061			40			2,949
Ending balance	$	33,327		$	33,914		$	33,955		$	33,955		$	35,594

Net charge-offs (recoveries) to average loans (annualized):
Commercial business		0.02	%		0.83	%		0.33	%		0.22	%		-0.01	%
Commercial mortgage		-0.01	%		0.38	%		0.05	%		0.00	%		0.00	%
Residential real estate loans		0.02	%		0.02	%		0.01	%		-0.04	%		-0.04	%
Residential real estate lines		-0.01	%		0.05	%		0.08	%		-0.02	%		0.32	%
Consumer indirect		0.69	%		0.69	%		0.55	%		0.59	%		0.76	%
Other consumer		4.73	%		6.00	%		5.66	%		3.95	%		8.12	%
Total loans		0.23	%		0.51	%		0.28	%		0.24	%		0.30	%

Supplemental information ⁽¹⁾
Non-performing loans:
Commercial business	$	594		$	912		$	2,203		$	4,026		$	4,312
Commercial mortgage		909			1,586			1,900			2,151			2,310
Residential real estate loans		2,225			2,391			2,057			2,138			2,224
Residential real estate lines		252			255			297			288			372
Consumer indirect		1,822			1,989			1,385			1,124			1,467
Other consumer		2			8			8			4			32
Total non-performing loans		5,804			7,141			7,850			9,731			10,717
Foreclosed assets		41			230			290			299			480
Total non-performing assets	$	5,845		$	7,371		$	8,140		$	10,030		$	11,197

Total non-performing loans to total loans		0.19	%		0.23	%		0.26	%		0.34	%		0.38	%
Total non-performing assets to total assets		0.14	%		0.17	%		0.19	%		0.24	%		0.27	%
Allowance for loan losses to total loans		1.07	%		1.10	%		1.14	%		1.17	%		1.27	%
Allowance for loan losses to non-performing loans		574	%		475	%		433	%		349	%		322	%

FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)

	2019			2018
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Ending tangible assets:
Total assets	$	4,302,541		$	4,311,698		$	4,258,385		$	4,191,315		$	4,152,432
Less: Goodwill and other intangible assets, net		75,850			76,173			78,853			79,188			74,415
Tangible assets	$	4,226,691		$	4,235,525		$	4,179,532		$	4,112,127		$	4,078,017

Ending tangible common equity:
Common shareholders’ equity	$	390,925		$	378,965		$	374,825		$	369,608		$	362,973
Less: Goodwill and other intangible assets, net		75,850			76,173			78,853			79,188			74,415
Tangible common equity	$	315,075		$	302,792		$	295,972		$	290,420		$	288,558

Tangible common equity to tangible assets ⁽¹⁾		7.45	%		7.15	%		7.08	%		7.06	%		7.08	%

Common shares outstanding		15,941			15,929			15,925			15,924			15,901
Tangible common book value per share ⁽²⁾	$	19.77		$	19.01		$	18.59		$	18.24		$	18.15

Average tangible assets:
Average assets	$	4,282,991		$	4,268,809		$	4,187,538		$	4,142,735		$	4,086,633
Less: Average goodwill and other intangible assets, net		76,033			78,314			79,047			75,957			74,577
Average tangible assets	$	4,206,958		$	4,190,495		$	4,108,491		$	4,066,778		$	4,012,056

Average tangible common equity:
Average common equity	$	383,630		$	378,936		$	374,482		$	366,942		$	363,523
Less: Average goodwill and other intangible assets, net		76,033			78,314			79,047			75,957			74,577
Average tangible common equity	$	307,597		$	300,622		$	295,435		$	290,985		$	288,946

Net income available to common shareholders	$	11,156		$	7,126		$	10,212		$	11,804		$	8,923
Return on average tangible common equity ⁽³⁾		14.71	%		9.40	%		13.71	%		16.27	%		12.52	%

Pre-tax pre-provision income:
Net income	$	11,521		$	7,491		$	10,577		$	12,170		$	9,288
Add: Income tax expense		3,027			2,199			2,560			2,979			2,268
Add: Provision for loan losses		1,193			3,884			2,061			40			2,949
Pre-tax pre-provision income	$	15,741		$	13,574		$	15,198		$	15,189		$	14,505


NEWS RELEASE
For Immediate Release