Financial Institutions Inc. (NASDAQ:FISI) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET

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Financial Institutions Inc. (NASDAQ:FISI) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Financial Institutions Inc. Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Shelly Doran, Director of Investor Relations. Please go ahead.

Executive
Shelly J. Doran

Thank you for joining us for today's call. Providing prepared comments will be President and CEO, Marty Birmingham; and CFO, Justin Bigham. Director of Financial Planning and Analysis, Mike Grover, will participate in the Q&A portion of the call.

Today's prepared comments and Q&A will include forward-looking statements. Actual results may differ materially from forward-looking statements due to a variety of risks, uncertainties and other factors. We refer you to yesterday's earnings release and historical SEC filings available on our website for a Safe Harbor description and a detailed discussion of the risk factors relating to forward-looking statements.

We will also discuss certain non-GAAP financial measures intended to supplement and not substitute for comparable GAAP measures. Reconciliations of these measures to GAAP financial measures were provided in the earnings release, which was filed as an exhibit to a Form 8-K. Please note that this call includes information accurate only as of today's date, July 30, 2020.

I'll now turn the call over to Marty.

Executive
Martin K. Birmingham

Thank you, Shelly. Good morning, everyone, and welcome to our second quarter earnings call. The past few months have been very challenging and eventful for our organization. We responded swiftly to the COVID pandemic in March, taking action to protect our associates and our customers by creating less dense work environments. Work from home and alternative work locations were implemented for as many associates as possible, as well as non-essential business travel and visitor restrictions. Most branch lobbies were closed, and by-appointment-only protocols were implemented for those transactions requiring face-to-face interaction.

In our new normal of working together yet apart, we implemented an array of actions to support consumers and businesses, including waiving certain fees, not reporting payment deferrals to credit bureaus and the granting of up to 90-day grace periods for consumer mortgage and auto loan payments. $4.3 million of consumer loan payments were extended on average for 60 days, and forbearance was granted on approximately 633,000 [Phonetic] in residential mortgages and monthly line payments on average for 90 days.

Credit was thoughtfully extended to small business and commercial customers for working capital and operating purposes. And loan relief was provided to 135 small business customers, representing $19 million of loans, and 227 commercial clients, representing $383 million in loans. We were able to help approximately 1,700 small businesses obtain $270 million of SBA Payroll Protection Program loans, helping to preserve an estimated 18,000 jobs in our market. And we continue to work with customers on one-to-one to address unique needs during this time.

We are staying in close contact with our commercial customers, making sure we understand their operating environments and business challenges, and offering assistance or solutions where possible. We completed a thorough credit analysis of our commercial loan portfolio, designed to uncover potential portfolio risks and help us