Q4 2023 Financial Institutions Inc Earnings Call

Contributing sentiments towards policy:

51% : Income tax expense was $5.2 million in the quarter, representing an effective tax rate of 34.5%.
48% : We expect net interest margin of 285 to 295 basis points using a spot rate forecast as of year end, Neumune is expected to show modest improvement throughout 2024 as we reposition our balance sheet by utilizing cash flow from the loan and investment portfolios, coupled with core deposit growth to fund anticipated loan originations, we are projecting relatively flat noninterest income for 2024 versus 2023, excluding items, such as the impact of the stable value component in the 2023 company-owned life insurance transaction, impairment of investment tax credits and other noninterest income categories that are difficult to predict, such as limited partnership income and losses on investment securities.
48% : These investments are expected to contribute to the positive operating leverage that we are modeling for 2024 we expect the 2024 effective tax rate to fall within a range of 14% to 16%, including the impact of the amortization of tax credit investments placed in service in recent years, we will continue to evaluate tax credit opportunities and the positive impact these investments would have on our effective tax rate.
46% : And we do expect delinquencies in this asset class to remain somewhat elevated through at least the first half of 2024 as the impacts of inflation, the exhaustion of stimulus payments by consumers, resumption of student loan payments and economic headwinds work their way through the portfolio as we continue to reduce overall indirect balances.

*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. Bias scores are on a scale of -100% to 100% with higher negative scores being more liberal and higher positive scores being more conservative, and 0% being neutral. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization.