Financial Institutions Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported that interest income was $25,218,000 compared to $25,087,000 a year ago. Net interest income was $23,380,000 compared to $23,088,000 a year ago. Net interest income after provision for loan losses was $20,973,000 compared to $20,568,000 a year ago. Income before income taxes was $9,322,000 compared to $9,310,000 a year ago. Net income was $6,367,000 compared to $6,332,000 a year ago. Net income available to common shareholders was $6,001,000 or $0.43 per diluted share compared to $5,963,000 or $0.43 per diluted share a year ago. Return on average assets was 0.88% compared to 0.95% a year ago. Return on average equity was 10.03% compared to 9.85% a year ago. Return on average common equity was 10.15% compared to 9.95% a year ago. Non-GAAP net operating income was $25,530,000 compared to $27,085,000 a year ago. The increase in net interest income resulted from a $72.5 million increase in average earning assets during the fourth quarter 2013, partially offset by a decrease in the net interest margin to 3.61% in the fourth quarter 2013 from 3.62% in the third quarter 2013. Non-GAAP net operating income available to common shareholders was $24,064,000 compared to $25,611,000 a year ago.

For the year, the company reported that interest income was $98,931,000 compared to $97,567,000 a year ago. Net interest income was $91,534,000 compared to $88,516,000 a year ago. Net interest income after provision for loan losses was $82,515,000 compared to $81,388,000 a year ago. Income before income taxes was $37,907,000 compared to $37,768,000 a year ago. Net income was $25,530,000 compared to $23,449,000 a year ago. Net income available to common shareholders was $24,064,000 or $1.75 per basic and diluted share compared to $21,975,000 or $1.60 per basic and diluted share a year ago. Return on average assets was 0.91% compared to 0.93% a year ago. Return on average equity was 10.10% compared to 9.46% a year ago. Return on average common equity was 10.23% compared to 9.53% a year ago. Non-GAAP net operating income was $6,367,000 compared to $6,332,000 a year ago. Tangible book value was $13.56 per share compared to $13.49 per share a year ago. Common book value and tangible common book value were $17.17 per share and $13.56 per share, respectively, at year end compared to $16.69 per share and $13.06 per share, respectively, at September 30, 2013 and $17.15 per share and $13.49 per share, respectively, at December 31, 2012.

Net loan charge-offs increased to $2.4 million in the fourth quarter of 2013 from $1.7 million in the third quarter 2013. The increase in net loan charge-offs in the fourth quarter 2013 was primarily related to the single commercial mortgage loan referenced above. The provision for loan losses was $2.4 million in the fourth quarter 2013, compared to $2.8 million in the third quarter 2013.