FISI - Financial Institutions: Dividend Yield Over 6% High Potential Price Upside

2024-05-13 16:41:53 ET

Summary

• Earnings will be lower this year relative to last year because of the fraudulent activity reported in 1Q.
• After a disappointing 1Q performance, loan growth will bounce back thanks to the sale of the insurance business as well as regional economic strength.
• The margin will likely turn around, but the average for 2024 will still be lower than the average for 2023.
• The December 2024 target price suggests a high expected price upside of 21%.
• FISI is offering a dividend yield of 6.4%, at an implied payout ratio of 49%.

Earnings of Financial Institutions, Inc. ( FISI ) will likely be lower this year because of the hit from fraudulent activity reported in the first quarter. Financial Institutions' subsidiary bank, Five Star Bank, (not to be confused with the subsidiary of Five Star Bancorp, Five Star Bank, which operates in Northern California) was the victim of a deposit-account related incident earlier this year....

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