Financial services congolmerate Financial Institutions (FISI -1.35%) wasn't making its shareholders wealthier at the end of the week. The company's stock plunged by almost 8% following the release of its latest set of quarterly results. That slump was notably worse than the essentially flat trajectory of the S&P 500 index.
Revenue up, net income down
After market hours Thursday, Financial Institutions unveiled its fourth-quarter and year-end 2023 figures. For the period, the company's revenue was a bit more than $55 million, an improvement over the fourth-quarter 2022 tally of $54 million. Net income fell to $9.4 million, or $0.61 per share, from the year-ago profit of $12.1 million.
The company's total loans stood at nearly $5.5 billion last Dec. 31, only slightly higher than at the same point in 2022. Total deposits amounted to $5.2 billion, a figure that was more than $103 million lower year over year.
Compounding the bottom-line slide, analysts tracking Financial Institutions stock were modeling a net income figure that was substantially higher, at $0.72 per share.
Last month, the financial services company made a series of changes to its top management structure and enacted an "associated realignment" throughout its organization. It said these measures will save it around $6 million in annual noninterest expenses.
Changes should kick in this year
In its earnings release, Financial Institutions did not proffer any guidance for its current quarter (first quarter) or the entirety of 2024.
It does believe its recent moves better position it for success. It quoted CEO Martin Birmingham as saying that "The strategic realignment announced in December 2023 strengthens our leadership team and streamlines our organizational structure in key areas while also supporting our continued focus on expense management."
