FISI

EX-99.1

2 fisi-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Institutions, Inc. Reports Net Income Available to Common Shareholders of $19.6 million, or $0.99 per Diluted Share, for the Third Quarter of 2026

Quarterly results highlighted by loan growth of 2.2% and deposit growth of 3.3%

WARSAW, N.Y., October 29, 2026 – Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us") today reported financial and operational results for the third quarter ended September 30, 2026, reflecting strong performance by subsidiaries Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), including healthy loan and deposit growth and sustained profitability.

KEY FINANCIAL METRICS

Quarter-over-Quarter

("QoQ")

Year-over-Year

("YoY")

Dollars in thousands, except per share data Return metrics annualized

Q3 2026

Q2 2026

Q3 2025

Variance

%

Variance

%

Net income

$

19,990

$

21,184

$

20,477

$

(1,194

)

-5.6

%

$

(487

)

-2.4

%

Net income available to common shareholders

19,626

20,819

20,112

(1,193

)

-5.7

%

(486

)

-2.4

%

Diluted earnings per common share

$

0.99

$

1.04

$

0.99

$

(0.05

)

-4.8

%

$

-

0.0

%

Return on average assets

1.26

%

1.35

%

1.32

%

(9

)

bps

(6

)

bps

Return on average equity

12.32

%

13.31

%

13.31

%

(99

)

bps

(99

)

bps

Return on average tangible common equity(1)

13.75

%

14.88

%

14.98

%

(113

)

bps

(123

)

bps

Efficiency ratio

56.84

%

55.33

%

56.78

%

151

bps

6

bps

Total loans (end of period)

$

4,855,827

$

4,752,965

$

4,590,423

$

102,862

2.2

%

$

265,404

5.8

%

Total deposits (end of period)

$

5,474,936

$

5,299,465

$

5,357,809

$

175,471

3.3

%

$

117,127

2.2

%

Third Quarter 2026 Highlights and Key Developments

• Total loans grew 2.2% from the end of the linked quarter and 5.8% from September 30, 2025, to reach $4.86 billion at September 30, 2026, driven by robust commercial lending.

• Total deposits increased 3.3% quarter-over-quarter and 2.2% year-over-year to $5.47 billion at September 30, 2026. Growth was broad-based across all deposit categories, led by seasonal support in public deposits.

• Net interest income reached a new quarterly high of $54.3 million and net interest margin of 3.70% was stable with the linked quarter and up 5 basis points from the year-ago quarter.

• Investment advisory income, the Company's leading contributor of noninterest income, increased 1.7% and 10.6% from the linked and year-ago quarters, respectively.

• The efficiency ratio remained below 57% for the quarter, reflecting the Company's focus on sustained profitability.

• The Company's strong capital position enabled the repurchase of 185,833 shares of common stock at an average price of $40.92 per share during the quarter.

"Our third quarter results underscore the strength of our relationship-driven business model and our unwavering commitment to disciplined execution," said President and Chief Executive Officer Martin K. Birmingham. "Our commercial franchise continues to be the primary driver of loan growth and was supported by increases in consumer indirect and residential mortgage lending during the third quarter. While our quarterly net charge-off ratio was up from lower-than-typical levels in the linked and year-ago quarters, it remains within our full-year guidance. At the same time, the ratio of non-performing loans to total loans decreased by 3 basis points. Overall, we remain focused on credit-disciplined loan production in our core Upstate New York markets."

Chief Financial Officer and Treasurer W. Jack Plants II added, "Third quarter performance benefited from continued growth in average earning assets and effective balance sheet management, supporting a 3.70% net interest margin and a nearly 5% increase in net interest income from the prior year period. Our balance sheet remains a source of strength, reflected in a tangible common equity ratio(1) of 8.40%, a common equity Tier 1 ratio of 11.36%, and a return on average tangible common equity(1) of 13.75%. These strong capital levels provide us flexibility to support loan growth and thoughtful investments in our business, while continuing to return capital to shareholders through share buybacks, as we did during the third quarter with the repurchase of 185,833 shares."

Net Interest Income and Net Interest Margin

NET INTEREST INCOME

QoQ

YoY

Dollars in thousands

Q3 2026

Q2 2026

Q3 2025

Variance

%

Variance

%

Interest income

$

85,003

$

83,076

$

84,422

$

1,927

2.3

%

$

581

0.7

%

Interest expense

30,712

29,715

32,633

997

3.4

%

(1,921

)

-5.9

%

Net interest income

54,291

53,361

51,789

930

1.7

%

2,502

4.8

%

Net interest margin (tax-equivalent basis)(2)

3.70

%

3.70

%

3.65

%

-

bps

5

bps

Average interest-earning assets

$

5,837,535

$

5,785,900

$

5,656,869

$

51,635

0.9

%

$

180,666

3.2

%

Average interest-bearing liabilities

4,573,266

4,559,420

EX-99.1

2 fisi-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Institutions, Inc. Reports Net Income Available to Common Shareholders of $20.8 million, or $1.04 per Diluted Share, for the Second Quarter of 2026

The Company's community bank subsidiary delivered strong loan growth of 2.7% during the quarter and its wealth manager's assets under management surpassed a new milestone of $4.0 billion

WARSAW, N.Y., July 23, 2026 – Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us") today reported financial and operational results for the second quarter ended June 30, 2026, reflecting strong performance by subsidiaries Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), including healthy loan growth, all-time-high assets under management ("AUM") and sustained profitability.

KEY FINANCIAL METRICS

Quarter-over-Quarter

("QoQ")

Year-over-Year

("YoY")

Dollars in thousands, except per share data Return metrics annualized

Q2 2026

Q1 2026

Q2 2025

Variance

%

Variance

%

Net income

$

21,184

$

20,985

$

17,532

$

199

0.9

%

$

3,652

20.8

%

Net income available to common shareholders

20,819

20,621

17,168

198

1.0

%

3,651

21.3

%

Diluted earnings per common share

$

1.04

$

1.04

$

0.85

$

-

0.0

%

$

0.19

22.4

%

Return on average assets

1.35

%

1.37

%

1.13

%

(2

)

bps

22

bps

Return on average equity

13.31

%

13.43

%

11.78

%

(12

)

bps

153

bps

Return on average tangible common equity(1)

14.88

%

15.04

%

13.27

%

(16

)

bps

161

bps

Efficiency ratio

55.33

%

57.06

%

59.68

%

(173

)

bps

(435

)

bps

Total loans (end of period)

$

4,752,965

$

4,627,587

$

4,536,002

$

125,378

2.7

%

$

216,963

4.8

%

Total deposits (end of period)

$

5,299,465

$

5,337,881

$

5,156,014

$

(38,416

)

-0.7

%

$

143,451

2.8

%

Second Quarter 2026 Highlights and Key Developments

• Total loans of $4.75 billion at June 30, 2026 grew 2.7% from March 31, 2026, driven by robust commercial lending, while deposits of $5.30 billion were down modestly quarter-over-quarter, reflecting public deposit seasonality.

• Net interest income reached a new quarterly high of $53.4 million and net interest margin of 3.70% reflected expansion of 3 and 21 basis points from the linked and year-ago quarters, respectively.

• Noninterest income of $11.0 million was up 2.6% and 3.2% from the linked and year-ago quarters, respectively, supported by increased investment advisory fees as Courier Capital's AUM surpassed $4.0 billion.

• The efficiency ratio improved to 55%, reflecting both strong revenue generation and disciplined expense management, as noninterest expense of $35.6 million held flat with the linked quarter.

• Net charge-offs were 0.11% of average loans in the second quarter of 2026, while the ratio of allowance for credit losses on loans to total loans increased to 1.00% at June 30, 2026.

"We delivered another quarter of strong and profitable results, highlighted by annualized loan growth of more than 10%, healthy revenue generation and prudent expense management," said President and Chief Executive Officer Martin K. Birmingham. "Commercial loan growth was robust, driven by our core Western and Central New York markets, and our pipelines are healthy heading into the second half of the year. In our wealth business, assets under management grew to more than $4.0 billion as of June 30, 2026, as new business activity complemented market performance. Overall, our results continue to reflect disciplined execution by each of our business lines and our commitment to sustainable profitability and long-term value creation."

Chief Financial Officer and Treasurer W. Jack Plants II added, "Our disciplined approach to managing funding costs supported further net interest margin expansion to 3.70% for the second quarter. Given current rate dynamics, we are beginning to see deposit costs level off and remain focused on preserving margin stability amid a competitive environment. Heading into the third quarter, we remain focused on deposit retention and acquisition, credit disciplined loan growth and effective expense management. Capital strength remains a key pillar of our financial performance, with a tangible common equity ratio(1) of 9.02%, a common equity Tier 1 ratio of 11.44%, and a return on average tangible common equity(1) of 14.88%."

Net Interest Income and Net Interest Margin

NET INTEREST INCOME

QoQ

YoY

Dollars in thousands

Q2 2026

Q1 2026

Q2 2025

Variance

%

Variance

%

Interest income

$

83,076

$

81,563

$

82,867

$

1,513

1.9

%

$

209

0.3

%

Interest expense

29,715

29,570

33,745

145

0.5

%

(4,030

)

-11.9

%

Net interest income

53,361

51,993

49,122

1,368

2.6

%

4,239

8.6

%

Net interest margin (tax-equivalent basis)(2)

3.70

%

3.67

%

3.49

%

3

bps

21

bps

Average interest-earning assets

$

5,785,900

$

5,724,534

$

5,651,374

$

61,366

1.1

%

$

134,526

2.4

%

Average in

EX-99.1

2 fisi-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Financial Institutions, Inc. Reports Net Income Available to Common Shareholders of $20.6 million, or $1.04 per Diluted Share, for the First Quarter of 2026

Results highlighted by robust earnings and strong profitability metrics, including a 28.4% year-over-year increase in earnings per diluted share, return on average assets of 1.37%, return on average equity of 13.43% and an efficiency ratio of 57%

WARSAW, N.Y., April 23, 2026 – Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the first quarter ended March 31, 2026, that reflect the Company's strong focus on high quality earnings and sustained profitability.

The Company reported net income of $21.0 million in the first quarter of 2026, compared to net income of $20.0 million in the fourth quarter of 2025 and $16.9 million in the first quarter of 2025. After preferred stock dividends, net income available to common shareholders was $20.6 million, or $1.04 per diluted share, in the first quarter of 2026, compared to net income of $19.6 million, or $0.96 per diluted share, in the fourth quarter of 2025, and $16.5 million, or $0.81 per diluted share, in the first quarter of 2025.

First Quarter 2026 Highlights and Key Developments:

• Net interest margin of 3.67% reflected expansion of 5 and 32 basis points from the linked and year-ago quarters, respectively.

• Return on average assets of 1.37% and efficiency ratio of 57% reflected strong revenue generation, supported by net interest income of $52.0 million and noninterest income of $10.7 million, as well as disciplined expense management, as noninterest expenses totaled $35.6 million for the first quarter of 2026.

• Total loans of $4.63 billion at March 31, 2026 were up $74.3 million, or 1.6%, from March 31, 2025, driven by commercial lending in the Bank's Western and Central New York markets. While loans were down modestly on a linked quarter basis, reflecting higher payoffs and paydowns, we continue to target full year growth of 5%.

• Total deposits at March 31, 2026 were $5.34 billion, up $131.5 million, or 2.5%, from December 31, 2025, and down modestly from March 31, 2025, primarily due to lower use of brokered deposits year-over-year and the completion of the Company's BaaS wind-down.

• The Company's strong capital position enabled the repurchase of 163,197 common shares at an average price of $31.50 per share, during the quarter. Since December 2025, the Company has repurchased 500,066 shares, reflecting our commitment to maximizing capital in the best interest of shareholders.

• In February, the Company's Board of Directors approved a 3.2% increase in its quarterly cash dividend to $0.32 per common share, a reflection of both its ongoing commitment to building shareholder value and its confidence in the Company’s long-term sustainable growth strategy.

"Our first quarter results demonstrate the strength of our community bank franchise, disciplined execution by our team and focus on profitability, which came together to support a more than 28% year-over-year increase in earnings per diluted share, a 27-basis-point year-over-year expansion of return on average assets, and further improvement in our efficiency ratio," said President and Chief Executive Officer Martin K. Birmingham. "Credit-disciplined loan production remains a priority for our team, and while first quarter originations were offset by higher-than-typical payoffs and paydowns, our pipelines are healthy and continue to build, supporting our confidence in our 5% full year 2026 loan growth target. We also continue to expect full-year charge-off activity to fall within our guided range, even with first quarter’s charge-off of a portion of a single commercial exposure, which as previously disclosed has been on nonaccrual status and for which specific reserve was in place. Heading into the second quarter, we remain committed to building full relationships with current and prospective customers, demonstrating continued expense discipline and generating profitable growth in 2026."

Chief Financial Officer and Treasurer W. Jack Plants II added, "During the first quarter, we continued the execution of our strategic actions to further strengthen our capital position and enhance shareholder value. As previously disclosed, in January we completed the refinancing of $65.0 million of legacy sub-debt issuances. We also continued to return capital to shareholders during the first quarter through the repurchase of 163,197 common shares and the increase of our common stock dividend by 3.2%. We delivered meaningful expansion in our return on average tangible common equity ratio(1), which increased to 15.04%, up 102 basis points from the linked quarter and 168 basis points from the prior year quarter. Collectively, these resul