8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 22, 2009

Financial Institutions, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

New York	0-26481	16-0816610
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
220 Liberty Street, Warsaw, New York		14569
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 585-786-1100

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2009, Financial Institutions, Inc. issued a press release to report financial results for the three and nine months ended September 30, 2009. The press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1 is furnished pursuant to Item 2.02 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 Press Release issued October 22, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Financial Institutions, Inc.
October 22, 2009	By:	Karl F. Krebs
		Name: Karl F. Krebs
		Title: Executive Vice President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press Release issued October 22, 2009.

EX-99.1

NEWS RELEASE 220 Liberty Street Warsaw, NY 14569

For Additional Information:

Karl F. Krebs

Executive VP & CFO

Phone: 585.786.1125

Email: KFKrebs@fiiwarsaw.com

Financial Institutions, Inc. Announces Third Quarter Earnings

WARSAW, N.Y., October 22, 2009 — Financial Institutions, Inc. (Nasdaq: FISI) (the “Company”), the parent company of Five Star Bank, today announced financial results for the third quarter ended September 30, 2009. Net income for the Company was $3.4 million or $0.23 per diluted share for the third quarter of 2009, compared with a net loss of $28.4 million or $2.66 per diluted share for the third quarter of 2008. For the first nine months of 2009, net income was $9.0 million or $0.57 per diluted share, compared with a net loss of $23.0 million or $2.21 per diluted share for the same period last year.

Highlights:

• Net interest income for the third quarter of 2009 was $18.1 million, an increase of $1.3 million or 8% over the third quarter of 2008. For the first nine months of 2009, net interest income was $53.1 million, an increase of $5.0 million or 10% over the first nine months of 2008. The increase is reflective of higher earning asset volume and an improved mix of earnings assets, primarily driven by growth in the loan portfolio.

• Net interest margin was 3.99% for the third quarter of 2009, up 1 basis point from the third quarter of 2008. For the nine months ended September 30, 2009, net interest margin was 4.03%, an increase of 15 basis points from the same period last year.

• Total loans were $1.259 billion at September 30, 2009, an increase of $181.2 million or 17% from September 30, 2008.

• Commercial loans were $536.6 million at September 30, 2009, an increase of $85.0 million or 19% from one year ago, and an increase of $12.9 million or 2% since June 30, 2009.

• Consumer loans were $722.8 million at September 30, 2009, an increase of $96.2 million or 15% from one year ago, and an increase of $27.8 million or 4% since June 30, 2009.

• Total deposits were $1.797 billion at September 30, 2009, an increase of $136.8 million or 8% from September 30, 2008, the majority of which was attributable to an increase in nonpublic certificates of deposit.

• The “well capitalized” position was maintained, with total shareholders’ equity of $195.9 million, a leverage capital ratio of 7.89% and a total risk-based capital ratio of 11.98%.

• Nonaccrual loans totaled $5.8 million at September 30, 2009, down $1.8 million or 24% from a year ago, and down $3.7 million or 39% from the prior quarter. Foreclosed assets totaled $696 thousand, down $313 thousand or 31% from a year ago, and down $350 thousand or 33% from the prior quarter.

• Provision for loan losses for the third quarter of 2009 was $2.6 million and net charge-offs were $2.5 million. Provision for loan losses of $6.6 million for the first nine months of 2009 exceeded net charge-offs of $4.6 million, resulting in a $2.0 million increase in the allowance for loan losses to $20.8 million or 1.65% of total loans.

• The third quarter of 2009 includes FDIC assessments totaling $753 thousand, a $517 thousand increase from the third quarter of 2008, due to higher premiums mandated by the FDIC to replenish deposit insurance reserves.

• The third quarter of 2009 includes other-than-temporary impairment charges of $2.3 million on selected investment securities that were partially offset by $1.7 million in net gain on investment securities.

“Our core community banking business model continues to produce positive results in 2009,” said Peter G. Humphrey, President and Chief Executive Officer of the Company. “We’ve had outstanding business development as both commercial and consumer loans reflect double digit percentage growth from a year ago, while maintaining our disciplined underwriting standards. As loans and deposits have grown over the past several quarters, our capital, liquidity and asset quality have remained strong. These factors, along with higher revenues and a command on controllable costs continue to positively impact our core operations.”

Net Interest Income

Net interest income for the third quarter of 2009 was $18.1 million, an increase of $1.3 million or 8% over the third quarter of 2008. For the first nine months of 2009, net interest income was $53.1 million, an increase of $5.0 million or 10% over the first nine months of 2008. Net interest margin was 3.99% for the third quarter of 2009, an increase of 1 basis point from the third quarter of 2008. For the nine months ended September 30, 2009, net interest margin was 4.03%, an increase of 15 basis points from the same period last year. An improved mix of earning assets, primarily driven by growth in the loan portfolio, coupled with a significant decline in funding costs were the primary factors driving the performance of net interest income and margin.

Noninterest Income (Loss)

Noninterest income for the third quarter of 2009 was $4.4 million, compared with a noninterest loss of $29.3 million for the third quarter of 2008. For the first nine months of 2009, noninterest income was $13.6 million, compared with a noninterest loss of $23.7 million for the first nine months of 2008. Other-than-temporary impairment charges (“OTTI”) on a privately issued whole loan collateralized mortgage obligation and pooled trust preferred securities included in noninterest income amounted to $2.3 million during the third quarter of 2009. The noninterest loss for the third quarter of 2008 included OTTI of $34.6 million related to auction rate preferred equity securities and pooled trust preferred securities. The third quarter of 2009 also reflects a $1.7 million net gain on sale of investment securities, comprised of $1.9 million in gross gains, primarily from securities issued by U.S. government sponsored agencies, and $141 thousand in gross losses on privately issued whole loan collateralized mortgage obligations.

Noninterest Expense

Noninterest expense for the third quarter of 2009 was $15.1 million, an increase of $1.7 million from the third quarter of 2008. For the first nine months of 2009 noninterest expense was $47.7 million, an increase of $5.6 million over the first nine months of 2008. The most significant cause for the increase was higher FDIC assessments, which included a $923 thousand special assessment incurred during the second quarter of 2009, coupled with increases in FDIC deposit insurance coverage and changes in premiums mandated by the FDIC to replenish deposit insurance reserves. Noninterest expense for 2009 also reflects higher incentive compensation and pension benefit costs, increases in occupancy and equipment costs associated with the opening of two new branches in the suburban Rochester area during 2008, and an increase in professional services expense.

Balance Sheet

Total assets at September 30, 2009 were $2.138 billion, up $192.4 million from $1.946 billion at September 30, 2008. Total loans were $1.259 billion at September 30, 2009, an increase of $181.2 million from $1.078 billion at September 30, 2008. Total deposits increased $136.8 million to $1.797 billion at September 30, 2009, versus $1.660 billion at September 30, 2008. The majority of the increase in deposits was attributable to an increase in nonpublic certificates of deposit.

Total investment securities were $670.8 million at September 30, 2009, down slightly from $671.8 million at September 30, 2008. The Company previously identified three groups of securities from its available for sale portfolio that contained high levels of risk. Those securities consisted of auction rate preferred equity securities, privately issued whole loan collateralized mortgage obligations and pooled trust preferred securities. At September 30, 2009 there were no auction rate preferred equity securities, $1.4 million in pooled trust preferred securities and $8.8 million of privately issued whole loan collateralized mortgage obligations included in available for sale investment securities. This group of securities totaled $10.2 million at September 30, 2009, a reduction of $70.7 million from $80.9 million at September 30, 2008. The fair value of those securities at September 30, 2009 was $10.7 million resulting in an unrealized gain of $469 thousand over the adjusted book value of $10.2 million. The reduction in this group of securities has resulted from sales, amortization and recognition of other than temporary impairment charges.

Asset Quality and Capital Ratios

Net charge-offs increased by $1.9 million from the third quarter of 2008 to $2.5 million, or 0.79% of average loans, primarily due to a $1.4 million charge-off of one commercial loan relationship. For the nine months ended September 30, 2009 net charge-offs increased in comparison to the same period last year by $2.5 million to $4.6 million, or 0.51% of average loans. The provision for loan losses was $2.6 million for the quarter, compared with $1.9 million in the same quarter a year ago. For the nine months ended September 30, 2009 the provision for loan losses totaled $6.6 million, compared with $4.0 million in the same period last year. The allowance for loan losses was $20.8 million or 1.65% of total loans at September 30, 2009, compared with $17.4 million or 1.62% of total loans at September 30, 2008. At September 30, 2009, non-performing loans totaled $5.8 million, or 0.46% of total loans, down $1.8 million or 24% from a year ago, and down $3.7 million or 39% from prior quarter. At September 30, 2009, foreclosed assets totaled $696 thousand, down $313 thousand or 31% from a year ago, and down $350 thousand or 33% from prior quarter. The reduction in nonperforming loans of $3.7 million during the third quarter of 2009 was principally attributable to one commercial loan relationship of $3.1 million on which the Company recorded a charge-off of $1.4 million together with a cash settlement of the remaining $1.7 million. At September 30, 2009 non-performing assets totaled $7.9 million, which included $1.4 million in non-performing investment securities on which interest payments are being deferred.

At September 30, 2009, all of the Company’s regulatory capital ratios exceeded the guidelines required to be considered a “well capitalized” institution as established by the Company’s primary banking regulators. Well capitalized levels are considered to be at least 5.00% for the leverage ratio and 10.00% for the total risk-based capital ratio. At September 30, 2009, the Company’s leverage ratio was 7.89% and the total risk-based capital ratio was 11.98%.

About Financial Institutions, Inc.

With approximately $2.1 billion in assets, Financial Institutions, Inc. provides diversified financial services through its subsidiaries, Five Star Bank and Five Star Investment Services, Inc. Five Star Bank provides a wide range of consumer and commercial banking services to individuals, municipalities and businesses through a network of over 50 offices and more than 70 ATMs in Western and Central New York State. Five Star Investment Services provides brokerage and insurance products and services within the same New York State markets. The consolidated entity employs over 600 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI. Additional information is available at the Company’s website: www.fiiwarsaw.com.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current beliefs or projections. There are a number of important factors that could affect the Company’s forward-looking statements which include its ability to implement its strategic plan, its ability to redeploy investment assets into loan assets, the attitudes and preferences of its customers, the competitive environment, fluctuations in the fair value of securities in the investment portfolio, and general economic and credit market conditions nationally and regionally, The Company undertakes no obligation to revise these statements following the date of this press release.

*****

FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)

	2009							2008
	September 30,			June 30,		March 31,		December 31,		September 30,
SELECTED BALANCE SHEET DATA
(Amounts in thousands)
Cash and cash equivalents:
Cash and due from banks	$	48,721			41,405		48,073		34,528		54,105
Federal funds sold and interest-bearing deposits		11,385			39,910		74,616		20,659		22,599
Total cash and cash equivalents		60,106			81,315		122,689		55,187		76,704
Investment securities:
Available for sale		625,744			498,561		553,710		547,506		607,357
Held-to-maturity		45,056			47,465		60,675		58,532		64,434
Total investment securities		670,800			546,026		614,385		606,038		671,791
Loans held for sale		1,032			3,005		2,290		1,013		1,008
Loans:
Commercial		197,404			198,608		174,505		158,543		156,809
Commercial real estate		296,648			282,048		266,176		262,234		248,267
Agriculture		42,545			42,997		42,524		44,706		46,490
Residential real estate		147,447			149,926		170,834		177,683		173,893
Consumer indirect		345,448			319,735		283,465		255,054		227,971
Consumer direct and home equity		229,870			225,258		220,440		222,859		224,693
Total loans		1,259,362			1,218,572		1,157,944		1,121,079		1,078,123
Allowance for loan losses		20,782			20,614		19,657		18,749		17,420
Total loans, net		1,238,580			1,197,958		1,138,287		1,102,330		1,060,703
Total interest-earning assets (1) (2)		1,934,786			1,802,489		1,843,522		1,743,141		1,789,499
Goodwill		37,369			37,369		37,369		37,369		37,369
Total assets		2,138,205			1,996,724		2,030,429		1,916,919		1,945,819
Deposits:
Noninterest-bearing demand		298,972			292,825		279,284		292,586		293,027
Interest-bearing demand		383,982			357,443		392,353		344,616		376,098
Savings and money market		402,042			366,373		396,644		348,594		383,456
Certificates of deposit		712,182			683,619		668,999		647,467		607,833
Total deposits		1,797,178			1,700,260		1,737,280		1,633,263		1,660,414
Borrowings		120,113			79,977		78,761		70,820		114,684
Total interest-bearing liabilities		1,618,319			1,487,412		1,536,757		1,411,497		1,482,071
Shareholders’ equity		195,935			192,455		191,676		190,300		152,770
Common shareholders’ equity (3)		142,605			139,213		138,519		137,226		135,195
Tangible common shareholders’ equity (4)		105,176			101,712		100,946		99,577		97,468
Securities available for sale – fair value adjustment
included in shareholders’ equity, net of tax	$	4,778			3,081		3,503		3,463		(9,797	)
Common shares outstanding		10,818			10,821		10,805		10,798		10,806
Treasury shares		530			527		543		550		542
CAPITAL RATIOS
Leverage ratio		7.89	%		7.84		7.96		8.05		7.37
Tier 1 risk-based capital		10.73	%		10.69		11.23		11.83		11.10
Total risk based capital		11.98	%		11.94		12.49		13.08		12.35
Common equity to assets		6.67	%		6.97		6.82		7.16		6.95
Tangible common equity to tangible assets (4)		5.01	%		5.19		5.07		5.30		5.11
Common book value per share	$	13.18			12.86		12.82		12.71		12.51
Tangible common book value per share (4)	$	9.72			9.40		9.34		9.22		9.02

FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)

							Quarterly Trends
	Nine months ended						2009									2008
	September 30,						Third			Second			First			Fourth			Third
	2009			2008			Quarter			Quarter			Quarter			Quarter			Quarter
SELECTED INCOME STATEMENT DATA
(Dollar amounts in thousands)
Interest income	$	70,092			74,366			23,697			23,302			23,093			24,582			24,558
Interest expense		17,042			26,348			5,619			5,657			5,766			7,269			7,812
Net interest income		53,050			48,018			18,078			17,645			17,327			17,313			16,746
Provision for loan losses		6,614			3,965			2,620			2,088			1,906			2,586			1,891
Net interest income after provision
for loan losses		46,436			44,053			15,458			15,557			15,421			14,727			14,855
Noninterest income (loss):
Service charges on deposits		7,480			7,812			2,643			2,517			2,320			2,685			2,794
ATM and debit card		2,639			2,460			920			908			811			853			852
Loan servicing		1,031			530			304			470			257			134			112
Company owned life insurance		806			269			271			275			260			294			223
Broker-dealer fees and commissions		741			1,223			238			234			269			235			363
Net gain on sale of loans held for sale		545			304			129			246			170			35			48
Net gain on investment securities		2,928			232			1,721			1,153			54			56			12
Impairment charge on investment securities		(4,101	)		(38,345	)		(2,318	)		(1,733	)		(50	)		(29,870	)		(34,554	)
Net gain on sale of other assets		177			254			19			—			158			51			102
Other		1,366			1,589			479			445			442			421			700
Total noninterest income (loss)		13,612			(23,672	)		4,406			4,515			4,691			(25,106	)		(29,348	)
Noninterest expense:
Salaries and employee benefits		25,421			23,626			8,253			8,437			8,731			7,811			7,021
Occupancy and equipment		8,289			7,789			2,730			2,683			2,876			2,713			2,642
FDIC assessments		3,026			369			753			1,593			680			305			236
Professional services		1,972			1,504			532			591			849			637			467
Computer and data processing		1,757			1,764			578			562			617			669			603
Supplies and postage		1,414			1,353			473			476			465			447			475
Advertising and promotions		650			905			227			249			174			548			472
Other		5,131			4,757			1,596			1,849			1,686			2,264			1,493
Total noninterest expense		47,660			42,067			15,142			16,440			16,078			15,394			13,409
Income (loss) before income taxes		12,388			(21,686	)		4,722			3,632			4,034			(25,773	)		(27,902	)
Income tax expense (benefit)		3,384			1,330			1,313			1,004			1,067			(22,631	)		524
Net income (loss)	$	9,004			(23,016	)		3,409			2,628			2,967			(3,142	)		(28,426	)
Preferred stock dividends		2,770			1,112			927			925			918			426			371
Net income (loss) applicable to
common shareholders	$	6,234			(24,128	)		2,482			1,703			2,049			(3,568	)		(28,797	)
STOCK AND RELATED PER SHARE DATA
Net income (loss) per share – basic	$	0.58			(2.21	)		0.23			0.16			0.19			(0.33	)		(2.66	)
Net income (loss) per share – diluted	$	0.57			(2.21	)		0.23			0.16			0.19			(0.33	)		(2.66	)
Cash dividends declared on common stock	$	0.30			0.44			0.10			0.10			0.10			0.10			0.15
Common dividend payout ratio (5)		51.72	%	NA				43.48			62.50			52.63		NA			NA
Dividend yield (annualized)		4.02	%		2.94			3.98			2.94			5.32			2.77			2.98
Stock price (Nasdaq: FISI):
High	$	15.99			22.50			15.00			15.99			14.95			20.27			22.50
Low	$	3.27			14.82			9.90			6.98			3.27			10.06			14.82
Close	$	9.97			20.01			9.97			13.66			7.62			14.35			20.01

FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)

							Quarterly Trends
	Nine months ended						2009						2008
	September 30,						Third		Second		First		Fourth			Third
	2009			2008			Quarter		Quarter		Quarter		Quarter			Quarter
SELECTED AVERAGE BALANCES
(Amounts in thousands)
Federal funds sold and interest-bearing deposits	$	44,209			29,751			39,945		49,105		43,618		17,089			12,897
Investment securities (1)		593,533			739,896			585,830		593,740		601,199		666,917			721,419
Loans (2):
Commercial		181,515			144,060			194,803		183,733		165,688		155,814			147,350
Commercial real estate		277,633			248,544			288,658		275,275		268,749		255,882			249,769
Agriculture		42,771			45,283			43,250		42,368		42,690		44,299			45,965
Residential real estate		163,665			169,939			148,325		168,300		174,659		175,200			173,175
Consumer indirect		301,110			165,153			334,123		301,112		267,360		244,891			200,586
Consumer direct and home equity		223,187			225,050			226,355		222,122		221,024		222,235			222,241
Total loans		1,189,881			998,029			1,235,514		1,192,910		1,140,170		1,098,321			1,039,086
Total interest-earning assets		1,829,799			1,768,567			1,862,779		1,838,320		1,787,470		1,782,938			1,774,201
Goodwill		37,369			37,369			37,369		37,369		37,369		37,369			37,369
Total assets		2,005,656			1,899,023			2,040,030		2,012,337		1,963,764		1,924,174			1,908,577
Interest-bearing liabilities:
Interest-bearing demand		362,870			343,247			361,147		366,985		360,470		360,970			342,188
Savings and money market		377,877			368,882			369,562		392,355		371,738		373,034			366,449
Certificates of deposit		681,204			613,443			699,011		676,221		668,041		629,111			591,025
Borrowings		81,675			87,200			94,642		78,763		71,363		105,164			118,023
Total interest-bearing liabilities		1,503,626			1,412,772			1,524,362		1,514,324		1,471,612		1,468,279			1,417,685
Noninterest-bearing demand deposits		288,918			279,064			298,723		286,155		281,690		284,643			294,136
Total deposits		1,710,869			1,604,636			1,728,443		1,721,716		1,681,939		1,647,758			1,593,798
Total liabilities		1,812,692			1,707,733			1,845,010		1,819,891		1,772,377		1,766,239			1,727,473
Shareholders’ equity		192,964			191,290			195,020		192,446		191,387		157,935			181,104
Common equity (3)		139,771			173,710			141,741		139,253		138,281		136,887			163,527
Tangible common equity (4)	$	102,226			135,861			104,269		101,709		100,660		99,191			125,754
Common shares outstanding:
Basic		10,726			10,852			10,738		10,723		10,716		10,717			10,738
Diluted		10,764			10,852			10,779		10,765		10,747		10,717			10,738
SELECTED AVERAGE YIELDS/
RATES AND RATIOS
(Tax equivalent basis)
Federal funds sold and interest-bearing deposits		0.22	%		2.57			0.20		0.21		0.25		1.09			2.10
Investment securities		4.17	%		4.87			3.79		4.16		4.54		4.72			4.66
Loans		6.01	%		6.70			6.01		5.99		6.04		6.35			6.52
Total interest-earning assets		5.27	%		5.87			5.19		5.24		5.39		5.69			5.73
Interest-bearing demand		0.22	%		1.02			0.19		0.20		0.25		0.69			0.86
Savings and money market		0.28	%		1.13			0.29		0.27		0.27		0.68			0.93
Certificates of deposit		2.62	%		3.80			2.49		2.63		2.76		3.09			3.33
Borrowings		3.78	%		4.83			3.35		3.91		4.21		4.23			4.30
Total interest-bearing liabilities		1.51	%		2.49			1.46		1.50		1.59		1.97			2.19
Net interest rate spread		3.76	%		3.38			3.73		3.74		3.80		3.72			3.54
Net interest rate margin		4.03	%		3.88			3.99		4.01		4.09		4.07			3.98
Net income (loss) (annualized returns on):
Average assets		0.60	%		(1.62	)		0.66		0.52		0.61		(0.65	)		(5.93	)
Average equity		6.24	%		(16.07	)		6.93		5.48		6.29		(7.91	)		(62.44	)
Average common equity (6)		5.96	%		(18.55	)		6.95		4.91		6.01		(10.37	)		(70.06	)
Average tangible common equity (7)		8.15	%		(23.72	)		9.45		6.72		8.25		(14.31	)		(91.10	)
Efficiency ratio (8)		67.51	%		63.17			63.43		69.49		69.72		66.65			58.10

FINANCIAL INSTITUTIONS, INC.
Summary of Quarterly Financial Data (Unaudited)

						Quarterly Trends
	Nine months ended					2009						2008
	September 30,					Third		Second		First		Fourth		Third
	2009			2008		Quarter		Quarter		Quarter		Quarter		Quarter
ASSET QUALITY DATA
(Dollar amounts in thousands)
Nonaccrual loans	$	5,816			7,609		5,816		9,496		8,826		8,189		7,609
Accruing loans past due 90 days or more		1			32		1		2		301		7		32
Total non-performing loans		5,817			7,641		5,817		9,498		9,127		8,196		7,641
Foreclosed assets		696			1,009		696		1,046		877		1,007		1,009
Non-performing investment securities		1,431			—		1,431		3,175		3,396		49		—
Total non-performing assets	$	7,944			8,650		7,944		13,719		13,400		9,252		8,650
Net loan charge-offs	$	4,581			2,066		2,452		1,131		998		1,257		509
Net charge-offs to average loans (annualized)		0.51	%		0.28		0.79		0.38		0.35		0.46		0.20
Total non-performing loans to total loans		0.46	%		0.71		0.46		0.78		0.79		0.73		0.71
Total non-performing assets to total assets		0.37	%		0.44		0.37		0.69		0.66		0.48		0.44
Allowance for loan losses to total loans		1.65	%		1.62		1.65		1.69		1.70		1.67		1.62
Allowance for loan losses to
non-performing loans		357	%		228		357		217		215		229		228

⁽¹⁾ Includes investment securities at adjusted amortized cost and non-performing investment securities.

⁽²⁾ Includes nonaccrual loans.

⁽³⁾ Excludes preferred shareholders’ equity.
⁽⁴⁾ Excludes preferred shareholders’ equity, goodwill and other intangible assets.

⁽⁵⁾ Common dividend payout ratio equals dividends declared during the period divided by earnings per share for the equivalent period. There is no ratio shown for periods where the Company both declares a dividend and incurs a loss during the period because the ratio would result in a negative payout since the dividend declared (paid out) will always be greater than 100% of earnings.

⁽⁶⁾ Net income available to common shareholders divided by average common equity.

⁽⁷⁾ Net income available to common shareholders divided by average tangible equity.

⁽⁸⁾ Efficiency ratio equals noninterest expense less other real estate expense and amortization of intangible assets as a percentage of net revenue, defined as the sum of tax-equivalent net interest income and noninterest income before net gains and impairment charges on investment securities.