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Financial Institutions shares up after Q3 results

By THOMAS ADAMS - 10/24/2013 4:18:44 PM

Financial Institutions Inc. stock was trading 3 percent higher Thursday after the parent of Five Star Bank reported a 49 percent increase in third-quarter net income.

The shares (NasdaqGS: FISI) were trading at $22.99 midafternoon, up from Wednesday’s close of $22.41. The stock’s 52-week high is $23.27.

The Warsaw, Wyoming County-based bank reported attributable to shareholders of $5.8 million, or 42 cents a diluted share, up from $3.9 million, or 28 cents a share, in the third quarter 2012. The company reported its results Wednesday after the markets closed.

Analysts polled by Thomson Reuters had expected earnings of 45 cents a share.

The performance of Financial Institutions in the third quarter 2012 was affected pre-tax costs of $2.6 million, or 12 cents a share, related to the retirement of former President and CEO Peter Humphrey. The company also incurred pre-tax costs of $1.9 million, or 9 cents a share, related to the acquisition and conversion of HSBC Bank USA N.A. and First Niagara Bank N.A. branches.

“We are very pleased with our exceptional loan growth, margin stability and the relatively low-risk profile of our balance sheet,” President and CEO Martin Birmingham said in a statement.

“Consistent with our strategy, we will continue to focus on all aspects of our customer-centric approach in the markets we serve while maintaining prudent expense-management policies.”

The company increased its quarterly cash dividend to 19 cents a common share, the fourth such increase since the beginning of 2012.

Five Star Bank ranks seventh in the Rochester market with local deposits of $888 million, data from the Federal Deposit Insurance Corp. shows.

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