AI Earnings Predictions for Financial Institutions Inc. (FISI)

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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

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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

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EX-99.1

Exhibit 99.1

Financial Institutions, Inc. Reports Net Income Available to Common Shareholders of $19.6 million, or $0.96 per Diluted Share, for the Fourth Quarter of 2025 and $73.4 million, or $3.61 per Diluted Share, for Full Year 2025

Quarterly and annual results reflect strong performance across the Company's commercial banking, consumer banking and wealth management business lines

WARSAW, N.Y., January 29, 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 fourth quarter and year ended December 31, 2025, that reflect the Company's continued focus on profitable, organic growth.

The Company reported net income of $20.0 million in the fourth quarter of 2025, compared to net income of $20.5 million in the third quarter of 2025 and net loss of $82.8 million in the fourth quarter of 2024. After preferred stock dividends, net income available to common shareholders was $19.6 million, or $0.96 per diluted share, in the fourth quarter of 2025, compared to net income of $20.1 million, or $0.99 per diluted share, in the third quarter of 2025, and net loss of $83.2 million, or $5.07 per diluted share, in the fourth quarter of 2024.

For full year 2025, the Company reported net income of $74.9 million, compared to net loss of $41.6 million in 2024. After preferred dividends, net income available to common shareholders was $73.4 million, or $3.61 per diluted share, for 2025, compared to net loss of $43.1 million, or $2.75 per diluted share, for 2024.

Fourth Quarter and Full Year 2025 Highlights:

• In December 2025, the Company completed a private placement of $80.0 million of fixed-to-floating rate subordinated notes. The Notes received a BBB- rating from Kroll Bond Rating Agency, which revised the Company’s long-term outlook to Stable, reflecting sustained improvement in its profitability and its enhanced capital position.

• Net interest income reached quarterly and annual records of $52.2 million and $200.0 million, respectively, while full year net interest margin of 3.53% expanded 67 basis points year-over-year, and fourth quarter 2025 margin of 3.62% was down 3 basis points from the linked quarter, primarily driven by the impact of the December 2025 subordinated debt offering, and up 71 basis points from the year-ago quarter.

• Noninterest income was $11.9 million and $45.0 million for the quarter and year, respectively, benefiting from robust swap activity, growth in investment advisory income and AUM, and company owned life insurance ("COLI") income benefiting from the surrender and redeploy strategy initiated in January 2025.

• Total loans were $4.66 billion at December 31, 2025, reflecting increases of $67.4 million, or 1.5%, from September 30, 2025, and $178.7 million, or 4.0%, from December 31, 2024. Commercial loans grew $90.9 million, or 3.0%, during the quarter and $215.7 million, or 7.5%, during the year, to reach $3.08 billion.

• Total deposits were $5.21 billion at December 31, 2025, down $151.5 million, or 2.8%, from September 30, 2025, reflecting public deposit seasonality and a reduction in brokered deposits, and up $101.6 million, or 2.0%, from December 31, 2024, led by growth in reciprocal and public deposits that are anchored by commercial and public relationships.

• Strong capital position enabled the repurchase of 336,869 common shares, or 1.7% of shares outstanding, at an average price of $31.98 per share, during the quarter.

• Allowance for credit losses on loans to total loans was 1.02% at year-end 2025, compared to 1.03% at September 30, 2025, and 1.07% one year prior.

"Our 2025 performance reflects our team's strong execution against the targets we laid out at the start of this year and success in delivering profitable organic growth, highlighted by full year return on average assets and return on average

equity of 1.20% and 12.38%, respectively, and an efficiency ratio of 58%. In 2025, our Board also approved a more than 3% increase in our quarterly dividend as well as a new stock repurchase plan, which we've since activated, reflecting its confidence in our ability to deliver consistent financial results and execute against our strategic priorities to deliver long-term value to shareholders," said President and Chief Executive Officer Martin K. Birmingham. "Strong demand from commercial borrowers in our core Upstate New York footprint drove full year loan growth of 4% and annualized fourth quarter growth of 6%. We also saw healthy commercial deposit growth in the fourth quarter, which is a testament to the value that relationship-based community banking provides small and mid-sized businesses in our markets. Deposit retention and acquisition remain a strong focus as we head into 2026."

Chief Financial Officer and Treasurer W. Jack Plants II added, "We

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Exhibit 99.1

Financial Institutions, Inc. Reports Third Quarter 2025 Results, Including Net Income Available to Common Shareholders of $20.1 million, or $0.99 per Diluted Share

Quarterly results highlighted by double-digit net interest margin expansion, record net interest income, and strong noninterest income, in addition to loan and deposit growth

WARSAW, N.Y., October 23, 2025 – 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 third quarter ended September 30, 2025, that reflect strong performance by each of the Company's commercial banking, consumer banking and wealth management business lines.

The Company reported net income of $20.5 million in the third quarter of 2025, compared to $17.5 million in the second quarter of 2025 and $13.5 million in the third quarter of 2024. After preferred dividends, net income available to common shareholders was $20.1 million, or $0.99 per diluted share, in the third quarter of 2025, compared to $17.2 million, or $0.85 per diluted share, in the second quarter of 2025, and $13.1 million, or $0.84 per diluted share, in the third quarter of 2024.

Third Quarter 2025 Highlights:

• Net interest margin expanded 16 and 76 basis points from the linked and year-ago quarters, respectively, to 3.65%, while net interest income of $51.8 million was an all-time quarterly high and reflected increases of $2.7 million, or 5.4%, from the second quarter of 2025 and $11.1 million, or 27.3%, from the third quarter of 2024.

• Noninterest income was $12.1 million, up $1.4 million, or 13.6%, from the linked quarter and up $2.6 million, or 27.7%, from the year-ago quarter, with higher investment advisory income and swap fees as compared to both the linked and year-ago quarters. Income from company-owned life insurance ("COLI") was also higher than the third quarter of 2024, benefiting from a previously disclosed January 2025 restructuring of the portfolio.

• Total loans increased $54.4 million, or 1.2%, from June 30, 2025, and $187.4 million, or 4.3%, from September 30, 2024, to reach $4.59 billion at September 30, 2025, driven by solid commercial loan growth.

• Total deposits were $5.36 billion at September 30, 2025, up $201.8 million, or 3.9%, from June 30, 2025, driven by seasonal public deposit inflows along with nonpublic deposit growth, and up $51.2 million, or 1.0%, from September 30, 2024, reflecting an increase of brokered deposits amid the ongoing wind-down of the Company's Banking-as-a-Service, or BaaS, offering.

• Regulatory and tangible capital ratios expanded meaningfully on a linked quarter and year-over-year basis.

• Solid credit quality metrics, as measured by annualized net charge offs to average loans, which were 0.18%, down from 0.36% in the linked quarter and relatively in-line with the 0.15% reported in the year-ago quarter.

"Our Company reported strong third quarter 2025 financial results, highlighted by record quarterly net interest income and robust noninterest income that pushed return on average assets and return on average equity up to 1.32% and 13.31%, respectively, and our efficiency ratio down to below 57%," said President and Chief Executive Officer Martin K. Birmingham. "Profitable, organic growth remains a top priority, and we believe that our year-to-date performance provides momentum to support a strong finish to 2025 while positioning the Company for sustained incremental performance in 2026. Our Board shares that confidence, as evidenced by its recent decision to authorize a new, larger share repurchase program that provides us with appropriate flexibility to manage capital, even as we invest in and grow our commercial, consumer and wealth business lines."

Chief Financial Officer and Treasurer W. Jack Plants II added, "Loan growth for the quarter was nearly 5% on an annualized basis, driven by commercial lending in our core Upstate New York market, and asset quality metrics remain solid. With seasonal increases in our public deposit portfolio complemented by growth of core, nonpublic deposits in the third quarter, our team remains steadfast in growing relationship-based banking and deposit gathering to help offset the wind-down of our BaaS offering, which we initiated in September 2024 and expect to complete in early 2026. Overall, our prudent balance sheet management, credit disciplined loan growth and resilient noninterest income have supported strong revenue

generation and positive operating leverage. I am proud of our team’s execution, the strength of our operating results and the corresponding growth across tangible equity and regulatory capital ratios."

Stock Repurchase Program

On September 22, 2025, the Company announced a share repurchase program, for up to 1,006,379 shares of its common stock, or approximately 5% o

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EX-99.1

Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES SECOND QUARTER 2025 RESULTS

WARSAW, N.Y., July 24, 2025 – 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 second quarter ended June 30, 2025.

The Company reported net income of $17.5 million in the second quarter of 2025, compared to $16.9 million in the first quarter of 2025 and $25.6 million in the second quarter of 2024. After preferred dividends, net income available to common shareholders was $17.2 million, or $0.85 per diluted share, in the second quarter of 2025, compared to $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, and $25.3 million, or $1.62 per diluted share, in the second quarter of 2024. The Company recorded a provision for credit losses of $2.6 million in the current quarter, compared to $2.9 million in the linked quarter and $2.0 million in the prior year quarter.

Second Quarter 2025 Highlights:

• Net interest margin of 3.49% for second quarter of 2025 was up 14 and 62 basis points from the linked and year-ago quarters, respectively, while net interest income of $49.1 million for second quarter of 2025 increased $2.3 million, or 4.8%, from the first quarter of 2025 and $7.9 million, or 19.2%, from the second quarter of 2024.

• Noninterest income was $10.6 million in the second quarter of 2025, compared to $10.4 million in the linked quarter and $24.0 million in the year-ago quarter, when results benefited from a $13.5 million pre-tax gain associated with the sale of the Company's insurance business.

• Total loans were $4.54 billion at June 30, 2025, reflecting a decrease of $17.3 million, or 0.4%, from March 31, 2025, driven by a decrease in our consumer indirect lending portfolio as pay-downs exceeded originations, and an increase of $74.5 million, or 1.7%, from one year prior.

• Total deposits were $5.16 billion at June 30, 2025, down $216.9 million, or 4.0%, from March 31, 2025, driven by both seasonal public deposit outflows and the previously announced wind-down of the Company's Banking-as-a-Service, or BaaS, offering, and relatively flat compared to one year prior.

• Nonperforming assets to total assets were 0.53% at June 30, 2025, down from 0.63% at the linked quarter-end and up from 0.41% one year prior.

"Second quarter 2025 financial results were highlighted by continued margin expansion, increased net interest income and durable noninterest revenues, which allowed us to deliver 4% growth in net income available to common shareholders from the linked first quarter," said President and Chief Executive Officer Martin K. Birmingham. "Profitability continues to be a paramount focus, and we were pleased to maintain an efficiency ratio below 60% and report solid annualized return on average assets and return on average equity of 1.13% and 11.78%, respectively, for the most recent quarter.

"Deposit balances reflect typical seasonality within our public deposit portfolio and total loans were relatively flat with the end of the first quarter, as commercial business lending growth was more than offset by a reduction in consumer indirect balances. Given our strong first quarter loan production and existing pipelines, we continue to expect low single-digit full year loan growth that aligns with our credit-disciplined philosophy."

Chief Financial Officer and Treasurer W. Jack Plants II added, "Our results continue to benefit from our team's focus on prudent balance sheet stewardship through redeployment of cash flows into higher yielding assets, active investment portfolio management and our ability to effectively reprice deposits, supporting a six basis point reduction in our overall cost of funds. Expenses in the second quarter were somewhat elevated, in part reflecting timing of certain expenses and some higher costs that we expect to be nonrecurring, and we will remain intently focused on expense management through the coming quarters to support positive operating leverage in 2025."

Net Interest Income and Net Interest Margin

Net interest income was $49.1 million for the second quarter of 2025, an increase of $2.3 million from the first quarter of 2025, and an increase of $7.9 million from the second quarter of 2024.

Average interest-earning assets for the current quarter of $5.65 billion were flat with the first quarter of 2025, as a $46.9 million increase in average loans was offset by a $32.7 million decrease in the average balance of Federal Reserve interest-earning cash and a $14.0 million decrease in the average balance of investment securities. Average interest-earning assets decreased $114.5 million from the second quarter of 2024, as a $123.2 million decrease in the average balance of investment securities and a $95.1 million decrease in the average balance of Federal Rese

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EX-99.1

Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS

WARSAW, N.Y., April 28, 2025 – 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, 2025.

The Company reported net income of $16.9 million in the first quarter of 2025, compared to a net loss of $82.8 million in the fourth quarter of 2024 and net income of $2.1 million in the first quarter of 2024. After preferred dividends, net income available to common shareholders was $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, compared to net loss of $83.2 million, or $(5.07) per diluted share, in the fourth quarter of 2024, and net income of $1.7 million, or $0.11 per diluted share, in the first quarter of 2024. The Company recorded a provision for credit losses of $2.9 million in the current quarter, compared to a provision of $6.5 million in the linked quarter and a benefit of $5.5 million in the prior year quarter.

First Quarter 2025 Key Results:

• Net interest margin and net interest income expanded meaningfully in the first quarter of 2025, primarily reflecting the impact of the investment portfolio restructuring that was executed at the end of 2024. Net interest margin of 3.35% for first quarter of 2025 was up 44 and 57 basis points from the linked and year-ago quarters, respectively, while net interest income of $46.9 million for first quarter of 2025 increased $5.2 million, or 12.6%, and $6.8 million, or 16.9%, from the linked and year-ago quarters, respectively.

• Noninterest income was $10.4 million in the first quarter of 2025, compared to noninterest loss of $91.0 million in the linked quarter, which reflected the previously disclosed investment securities loss, and noninterest income of $10.9 million in the year-ago quarter, when the Company's results included income from its former insurance subsidiary. First quarter 2025 noninterest income benefited from higher income from company owned life insurance ("COLI") as a result of a surrender and redeploy strategy initiated in January 2025, in addition to higher swap fees and investment advisory income relative to comparable prior periods.

• Noninterest expense in the first quarter of 2025 totaled $33.7 million, compared to noninterest expense including non-operating items in the linked and year-ago quarters of $59.4 million and $54.0 million, respectively.

• Total loans were $4.55 billion at March 31, 2025, reflecting an increase of $74.1 million, or 1.7%, during the quarter, and an increase of $111.2 million, or 2.5%, from one year prior, driven by both commercial business and commercial mortgage lending.

• Total deposits were $5.37 billion at March 31, 2025, up $268.2 million, or 5.3%, from December 31, 2024, driven by seasonal public deposit inflows as well as an increase in brokered deposits, and down $23.8 million, or 0.4%, from one year prior, due in part to lower reciprocal deposits and the previously announced wind-down of the Company's Banking-as-a-Service, or BaaS, offering.

• The Company reported improved credit quality metrics, as measured by quarterly net charge-offs to average loans of 0.21% for the first quarter of 2025, down from both the linked and year-ago quarters.

• In February, the Company's Board of Directors approved a 3.3% increase in its quarterly cash dividend to $0.31 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 were highlighted by improved earnings and profitability metrics, and reflected the full benefit of the strategic investment securities restructuring we undertook in December, as well as our team's ability to meet the banking, credit and investment advisory needs of our customers amid a challenging environment," said President and Chief Executive Officer Martin K. Birmingham. "Our focus on performance resulted in a more than 12% increase in net interest income from the linked quarter, as well as a 44-basis-point expansion of net interest margin, an efficiency ratio below 60% and solid return on average assets of 1.10% and return on average equity of 11.82%.

"Our pipelines carried momentum with credit-disciplined lending heading into 2025 and supported a 1.7% quarterly increase in total loans, with stable-to-improved credit metrics for the first quarter. Amid the uncertain economic landscape, coupled with our current pipelines and discussions with customers, we believe that loan growth will be concentrated in the first half of the year."

Chief Financial Officer and Treasurer W. Jack Plants II added, “Our successful fourth quarter public equity offering not only allowed us to restructure our investment securities portfol

8-K/A

true000086283100008628312024-12-312024-12-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 31, 2024

Financial Institutions, Inc.

(Exact name of Registrant as Specified in Its Charter)

New York

0-26481

16-0816610

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

220 Liberty Street

Warsaw, New York

14569

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 585 786-1100

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

FISI

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Explanatory Note

Financial Institutions, Inc. (the “Company”), parent company of Five Star Bank (the “Bank”) is filing this amendment to its Current Report on Form 8-K, dated January 30, 2025, filed with the Securities and Exchange Commission (the “Prior Report”), in order to update certain financial information for the fiscal year and fourth quarter ended December 31, 2024 that was included in Exhibit 99.1 to the Prior Report (the “Original Earnings Release”). Certain financial information contained in the Original Earnings Release is accordingly updated as set forth below due to a subsequent event that occurred following the filing of the Prior Report.

Item 2.02 Results of Operations and Financial Condition.

On January 30, 2025, the Company announced financial results for the fiscal year and fourth quarter ended December 31, 2024. Subsequent to issuing the Original Earnings Release and based on new information, the Company recorded a loss contingency related to the previously disclosed class action lawsuit to which the Company and the Bank are parties, brought by borrowers in New York and Pennsylvania regarding notices the Bank sent to defaulting borrowers after their vehicles were repossessed, which were alleged to have not fully complied with the relevant portions of the Uniform Commercial Code in both states.

On March 7, 2025, following a mediation held on February 28, 2025, the Company executed a Settlement Agreement (“the Settlement Agreement”) in full resolution of the matter. The Settlement Agreement is subject to Court approval. The Company does not anticipate that additional amounts will be accrued for this matter in 2025 or other future periods. The Company determined that the March 7, 2025 event meets the definition of a recognized subsequent event in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, Subsequent Events, at the December 31, 2024 balance sheet date and has therefore recorded a $23.0 million pre-tax litigation accrual, which reflects the agreed upon settlement less approximately $6.5 million of available related insurance proceeds, in the Company’s 2024 fourth quarter consolidated financial statements. This litigation accrual will be reflected in the Company’s consolidated financial statements for inclusion in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 to be filed with the Securities and Exchange Commission (“SEC”). As a result of the foregoing, net loss, as reported in the Original Earnings Release, was increased by $17.1 million to $82.8 million and $41.6 million for the fourth quarter of 2024 and full year 2024, respectively. Diluted loss per share, as reported in the Original Earnings Release, was increased by $1.05 to $5.07 for the fourth quarter of 2024 and by $1.09 to $2.75 for the f

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS

WARSAW, N.Y., January 30, 2025 – 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 fourth quarter and year ended December 31, 2024.

These results reflect the Company's previously disclosed balance sheet restructuring plan, which was executed in December following its successful and oversubscribed underwritten public common stock offering. As part of the restructuring, the Bank sold $653.5 million of available-for-sale ("AFS") investment securities, which resulted in a pre-tax loss on the sale of securities of $100.2 million in the fourth quarter. The after-tax impact of the loss of approximately $75 million was entirely funded by a portion of the capital raised through the Company's equity offering that was downstreamed to the Bank. The net proceeds from the pre-tax sale of the securities were reinvested into higher yielding, agency wrapped investment securities.

The Company reported a net loss of $65.7 million in the fourth quarter of 2024, compared to net income of $13.5 million in the third quarter of 2024 and net income of $9.8 million in the fourth quarter of 2023. After preferred dividends, net loss available to common shareholders was $66.1 million, or ($4.02) per diluted share, in the fourth quarter of 2024, compared to net income of $13.1 million, or $0.84 per diluted share, in the third quarter of 2024, and net income of $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023. The Company recorded a provision for credit losses of $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter.

The Company reported a full year 2024 net loss of $24.5 million, compared to net income of $50.3 million in 2023. After preferred dividends, net loss available to common shareholders was $26.0 million, or ($1.66) per diluted share, for 2024 compared to net income available to common shareholders of $48.8 million, or $3.15 per diluted share, in 2023. Provision for credit losses was $6.2 million in 2024 and $13.7 million in 2023.

Fourth Quarter and Full Year 2024 Key Results:

• Net interest margin was up to 2.91% for the fourth quarter, up two basis points from the linked quarter and up 13 basis points from the year-ago quarter. Full year net interest margin of 2.86% compares to 2.94% in 2023.

• Net interest income of $41.6 million in the fourth quarter of 2024 increased $952 thousand, or 2.3%, and $1.7 million, or 4.4%, from the linked and year-ago quarters, respectively. Full year net interest income of $163.6 million was down $2.1 million, or 1.3%, from 2023.

• Total loans were $4.48 billion at December 31, 2024, reflecting an increase of $76.2 million, or 1.7%, during the quarter and an increase of $17.1 million, or 0.4%, during the year. Commercial loans totaled $2.86 billion at December 31, 2024, reflecting an increase of $104.8 million, or 3.8%, during the quarter and an increase of $123.9 million, or 4.5%, during the year.

• Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, primarily due to seasonal public deposit outflows, and down $108.2 million, or 2.1%, from the prior year end, driven by a reduction in brokered deposits.

• Provision for credit losses of $6.5 million in the current quarter was driven by a combination of factors, including the impact of loan growth during the period, an increase in net charge-offs relative to the linked quarter, and higher qualitative factors overall.

• Allowance for credit losses on loans to total loans was 1.07% at year-end 2024, compared to 1.01% at September 30, 2024 and 1.14% one year prior.

• The Company reported stable credit quality metrics, as measured by annual net charge-offs to average loans of 0.20% for both 2024 and 2023.

"Our Company navigated an incredibly dynamic 2024, rising above challenges to execute strategic initiatives that position us well not only heading into 2025, but for years to come. Our successful equity offering in the fourth quarter enabled us to

undertake a balance sheet restructuring that is expected to contribute meaningfully to earnings, net interest margin, efficiency ratio, return on average assets and the quality of capital moving forward,” said President and Chief Executive Officer Martin K. Birmingham. “We believe these measures will allow us to accelerate operating performance with minimal downside risk, supporting our plans for continued organic growth.”

"While loan growth was modest in 2024, in part reflecting the intentional reduction of our consumer indirect balances that partially offset commercial growth of 4.5% during the year, we remain enthused about organ

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

WARSAW, N.Y., October 24, 2024 – 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 third quarter ended September 30, 2024.

Net income was $13.5 million in the third quarter of 2024, compared to $25.6 million in the second quarter of 2024 and $14.0 million in the third quarter of 2023. After preferred dividends, net income available to common shareholders was $13.1 million, or $0.84 per diluted share, in the third quarter of 2024, compared to $25.3 million, or $1.62 per diluted share, in the second quarter of 2024, and $13.7 million, or $0.88 per diluted share, in the third quarter of 2023. Third quarter 2024 results included $384 thousand of professional services expenses attributed to the deposit-related fraud event disclosed in March 2024 that occurred in the first quarter of 2024. The Company's second quarter 2024 financial results benefited from a $13.5 million pre-tax gain associated with its previously disclosed insurance subsidiary asset sale, and also included $371 thousand of professional services expenses related to the fraud event that were partially offset by a recovery of $143 thousand. The Company recorded a provision for credit losses of $3.1 million in the current quarter, compared to a provision of $2.0 million in the linked quarter and a provision of $1.0 million in the prior year quarter.

Third Quarter 2024 Key Results:

• Net interest margin was 2.89% for the third quarter of 2024, up two basis points compared to the second quarter of 2024, while net interest income of $40.7 million decreased by $512 thousand, or 1.2%, from the linked quarter.

• Noninterest income was $9.4 million for the current quarter, compared to $24.0 million in the linked quarter, when results benefited from a $13.5 million pre-tax gain associated with the Company's insurance subsidiary asset sale.

• Total deposits were $5.31 billion at September 30, 2024, up $173.3 million, or 3.4%, from June 30, 2024, driven by seasonality and new business in our public deposit portfolio and non-public deposit growth. Deposits were relatively flat with September 30, 2023, as a $313.3 million reduction in brokered deposits largely offset year-over-year growth in non-public and public deposits.

• Total loans were $4.40 billion at September 30, 2024, reflecting a decrease of $58.5 million, or 1.3%, from June 30, 2024 and a decrease of $28.2 million, or 0.6%, from September 30, 2023.

• Noninterest expense of $32.5 million for the current quarter was down $551 thousand, or 1.7%, from the second quarter of 2024 and down $2.3 million, or 6.5%, from the third quarter of 2023.

• Regulatory and tangible capital ratios continued to expand on a linked quarter and year-over-year basis.

• The Company maintained solid credit quality metrics, as measured by annualized net charge-offs to average loans of 0.15% for the current quarter, compared to 0.10% in the linked quarter and 0.14%, in the third quarter of 2023.

"Our third quarter results were highlighted by strong deposit growth, incremental net interest margin expansion, solid expense management, and continued build in our regulatory and tangible capital ratios. We remain very focused on driving sustainable growth across each of our retail banking, commercial banking and wealth management business lines. Supporting that focus is our strategic decision to begin to wind-down our Banking-as-a-Service, or BaaS, offerings, announced in September," said President and Chief Executive Officer Martin K. Birmingham.

"While total loans were down during the quarter, as growth in commercial mortgage and stability in residential loans and lines were offset by declines in commercial business and consumer indirect loans, we continue to see excellent opportunity in our geographic markets to drive credit-disciplined loan growth. Our regulatory and tangible capital positions further improved during the quarter, including a common equity tier 1 ratio of 10.28%, up 25 basis points from June 30, 2024 and up 102 basis points from September

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30, 2023. Tangible common book value per share(1) grew by 8% and 32% from the end of the linked and year-ago quarters, respectively," Mr. Birmingham added.

Chief Financial Officer and Treasurer W. Jack Plants II commented, "We saw further margin expansion on a linked quarter basis and our ability to drive solid deposit growth provided us with capacity to further reduce short-term borrowings during the quarter. From a credit perspective, we did move one commercial relationship to non-performing status during the third quarter, which drove the increase in non-performing assets as compared to June 30, 2024. We remain very confident in the overall health of our

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS

WARSAW, N.Y., July 25, 2024 – 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 second quarter ended June 30, 2024.

Net income was $25.6 million in the second quarter of 2024, compared to $2.1 million in the first quarter of 2024 and $14.4 million in the second quarter of 2023. After preferred dividends, net income available to common shareholders was $25.3 million, or $1.62 per diluted share, in the second quarter of 2024, compared to $1.7 million, or $0.11 per diluted share, in the first quarter of 2024, and $14.0 million, or $0.91 per diluted share, in the second quarter of 2023. Second quarter 2024 financial results benefited from a $13.5 million pre-tax gain associated with the Company's April 1, 2024 sale of the assets of SDN Insurance Agency, LLC, while the linked first quarter results were negatively impacted by the Company's previously disclosed deposit-related fraud event, for which it recorded an $18.4 million pre-tax loss for deposit-related charged-off items and approximately $660 thousand of legal and consulting expenses, recorded in professional services expenses. In the second quarter of 2024, the Company incurred approximately $371 thousand of professional services expenses related to this event. The Bank continues to aggressively pursue its legal rights and seek any and all recovery avenues. In the second quarter of 2024, the Company recorded a small recovery of approximately $143 thousand. The Company recorded a provision for credit losses of $2.0 million in the current quarter, compared to a benefit for credit losses of $5.5 million in the linked quarter and a provision of $3.2 million in the prior year quarter.

Second Quarter 2024 Key Results:

• The Company announced and completed the sale of the assets of SDN Insurance Agency, LLC on April 1, 2024, resulting in a $13.5 million pre-tax gain that contributed to noninterest income of $24.0 million for the current quarter.

• Net interest margin was 2.87% for the second quarter of 2024, up nine basis points compared to the first quarter of 2024, while net interest income of $41.2 million increased by $1.1 million, or 2.8%, from the linked quarter.

• Total loans were $4.46 billion at June 30, 2024, reflecting an increase of $19.4 million, or 0.4%, from March 31, 2024 and an increase of $63.7 million, or 1.4%, from June 30, 2023.

• Total deposits were $5.13 billion at June 30, 2024, down $263.4 million, or 4.9%, from March 31, 2024, and up $98.5 million, or 2.0%, from June 30, 2023. The linked quarter decrease was due primarily to seasonality of public deposits, coupled with a reduction in brokered CDs.

• Noninterest expense of $33.0 million for the current quarter was down $21.0 million, or 38.9%, from the first quarter of 2024 and down $762 thousand, or 2.3% from the second quarter of 2023. The linked quarter decrease was driven by the aforementioned fraud event, coupled with expense reduction associated with the April 1, 2024 insurance subsidiary asset sale.

• Meaningful expansion of regulatory and tangible capital ratios on a linked quarter and year-over-year basis.

• Continued strong credit quality metrics, including annualized net charge-offs to average loans of 0.10% for the current quarter and non-performing assets to total assets of 0.41% as of June 30, 2024.

"Our continued focus on liquidity, capital and earnings led to strong second quarter 2024 outcomes. Our results benefited from not only the successful sale of the assets of our insurance subsidiary on April 1, which achieved strong value for shareholders by generating a significant pre-tax gain of $13.5 million, but also reflect solid performance from our core businesses. Quarterly net income available to common shareholders of $25.3 million, benefiting from the SDN sale, was a record. Importantly, net interest margin expansion from the linked quarter, improvement in our stable asset quality metrics as compared to the first quarter of 2024, and meaningful build in our capital ratios were achieved," said President and Chief Executive Officer Martin K. Birmingham.

"Margin expanded by nine basis points and our already strong asset quality metrics further improved in the second quarter, including annualized net charge-offs to average loans of just 10 basis points. We finished the quarter with improved regulatory and tangible capital positions, reporting a common equity tier 1 ratio surpassing 10%, up 60 basis points from March 31, 2024 and

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up 93 basis points from June 30, 2023, and growing tangible common book value per share(1) by 9% and 16% from the end of the linked and year-ago quarters, respectively," Mr. Birmingham added.

Chief Financial Officer and T

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS

WARSAW, N.Y., April 25, 2024 – 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, 2024.

Net income was $2.1 million in the first quarter of 2024, compared to $9.8 million in the fourth quarter of 2023 and $12.1 million in the first quarter of 2023. After preferred dividends, net income available to common shareholders was $1.7 million, or $0.11 per diluted share, in the first quarter of 2024, compared to $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023, and $11.7 million, or $0.76 per diluted share, in the first quarter of 2023. First quarter 2024 financial results were negatively impacted by the Company's previously disclosed deposit-related fraud event, which was the primary driver of noninterest expense variances from the linked and year-ago periods. The Company recorded an $18.4 million pre-tax loss for deposit-related charged-off items and approximately $660 thousand of legal and consulting expenses, recorded in professional services expenses, in the first quarter of 2024 related to this event. The Company recorded a benefit for credit losses of $5.5 million in the current quarter, compared to provision for credit losses of $5.3 million in the linked quarter and $4.2 million in the prior year quarter. The release of credit loss reserves and corresponding benefit for credit losses in the first quarter of 2024 was primarily driven by positive trends in qualitative factors, including a reduction in consumer indirect loan delinquencies during the period, an improvement in forecasted losses, which are based in part on the national unemployment forecast, and a reduction in period-end consumer indirect loan balances.

First Quarter 2024 Key Results:

• Total deposits were $5.40 billion at March 31, 2024, up $183.8 million, or 3.5%, from December 31, 2023, and up $255.5 million, or 5.0%, from March 31, 2023.

• Total loans were $4.44 billion at March 31, 2024, reflecting a decrease of $20.1 million, or 0.5%, from December 31, 2023 and an increase of $198.7 million, or 4.7%, from March 31, 2023.

• Net interest income of $40.1 million in the first quarter of 2024 increased by $196 thousand, or 0.5%, and decreased $1.7 million, or 4.1%, from the linked and year-ago quarters, respectively.

• Noninterest income was $10.9 million in the first quarter of 2024, down $4.5 million, or 29.1%, from the fourth quarter of 2023, when the Company executed its previously disclosed company owned life insurance surrender and redeploy strategy, and flat with the first quarter of 2023.

• Noninterest expense of $54.0 million for the current quarter was up $19.0 million, or 54.1%, from the fourth quarter of 2023 and up $20.4 million, or 60.5% from the first quarter of 2023. The linked quarter and year-over-year increases were driven by the aforementioned fraud event.

• The Company continues to report strong credit quality metrics, including annualized net charge-offs to average loans of 0.28% for the current quarter and non-performing assets to total assets of 0.43% as of March 31, 2024.

"First quarter 2024 results were clearly impacted by the fraud event we disclosed in early March, as we recorded a deposit-related charge-off of approximately $18.4 million during the period, reflecting a reduction from the potential exposure of $18.9 million originally disclosed. We continue to pursue every avenue of legal recourse available to us to recoup additional funds and minimize the loss," said President and Chief Executive Officer Martin K. Birmingham. "Even as we navigated this unprecedented challenge, we took strategic action in support of our continued focus on capital, liquidity and earnings. Our sale of the assets of our insurance subsidiary at the start of the second quarter of 2024 generated approximately $27 million in proceeds, unlocking significant value from this line of business, strengthening our capital position in the second quarter and supporting our focus on driving earnings in our core banking business.

"In addition, our team's unwavering focus on our customers and communities contributed to strong deposit growth during the first quarter, with public, nonpublic and reciprocal deposits all increasing from year-end 2023. Modest commercial loan growth during the first quarter was offset by anticipated declines in our consumer indirect portfolio. Amid the continued competitive banking

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landscape, we remain focused on deposit acquisition and retention and driving credit-disciplined loan origination across our footprint."

Chief Financial Officer and Treasurer W. Jack Plants II added, "Our strong first quarter deposit growth allowed us to reduce short term borrowings

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS

WARSAW, N.Y., January 25, 2024 – Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank"), SDN Insurance Agency, LLC ("SDN") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the fourth quarter and year ended December 31, 2023.

Net income was $9.8 million in the fourth quarter of 2023, compared to $14.0 million in the third quarter of 2023 and $12.1 million in the fourth quarter of 2022. After preferred dividends, net income available to common shareholders was $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023, compared to $13.7 million, or $0.88 per diluted share, in the third quarter of 2023, and $11.7 million, or $0.76 per diluted share, in the fourth quarter of 2022. The Company recorded a provision for credit losses of $5.3 million in the current quarter, compared to $966 thousand in the linked quarter and $6.1 million in the prior year quarter.

The Company reported full year 2023 net income of $50.3 million, compared to $56.6 million in 2022. After preferred dividends, net income available to common shareholders was $48.8 million, or $3.15 per diluted share, for 2023 compared to $55.1 million, or $3.56 per diluted share, in 2022. The Company recorded provision for credit losses of $13.7 million in 2023 and $13.3 million in 2022. Net income for 2023 reflects the impact of the higher interest rate environment on funding costs that generated revenue pressure and adversely impacted current year earnings in comparison to the prior year.

Fourth Quarter and Full Year 2023 Key Results:

• Total deposits were $5.21 billion at December 31, 2023, down $103.1 million, or 1.9%, from September 30, 2023, and up $283.5 million, or 5.8%, from the prior year end. The linked quarter decline is reflective of seasonal public deposit outflows, while the improvement over the prior year was driven by nonpublic deposit growth.

• Total loans were $4.46 billion at December 31, 2023, reflecting an increase of $31.0 million, or 0.7%, from September 30, 2023 and an increase of $411.7 million, or 10.2%, from December 31, 2022, with both quarterly and annual growth led by commercial lending.

• As previously disclosed, the Company repositioned a portion of its investment securities portfolio, selling approximately $54 million in available-for-sale agency mortgage-backed securities early in the fourth quarter at an after-tax loss of $2.8 million, reinvesting the proceeds into higher yielding bonds. The after-tax interest income benefit of $1.4 million annually translates to an earn-back of two years.

• Net interest income of $39.9 million in the fourth quarter of 2023 decreased $1.8 million, or 4.3%, and $3.3 million, or 7.6%, from the linked and year-ago quarters, respectively. Full year net interest income of $165.7 million was down $1.7 million, or 1.0%, from 2022. Net interest income in 2023 has been impacted by the current higher interest rate environment that has driven funding costs higher.

• Noninterest income was $15.4 million in the fourth quarter of 2023, up $4.9 million, or 46.6%, from the third quarter of 2023 and up $4.4 million, or 40.5%, from the fourth quarter of 2022, while full year noninterest income totaled $48.2 million, reflecting an increase of $2.0 million, or 4.3%, from 2022.

• Contributing to fourth quarter 2023 noninterest income was $9.1 million of company owned life insurance (“COLI”) revenue, approximately $8 million of which was generated by the surrender and redeploy of $53.9 million in cash surrender value of COLI during the quarter. The revenue from the transaction, which was partially offset by $5.4 million of related incremental income taxes, was based upon the crediting rate of the premium allocation to separate account investments, as supported by the performance of the underlying investment divisions. The cash surrender value of the separate account COLI and corresponding revenue is expected to stabilize in future periods.

• Noninterest expense of $35.0 million for the current quarter was up $312 thousand, or 0.9%, from the third quarter of 2023 and up $1.5 million, or 4.6% from the fourth quarter of 2022, while full year noninterest expense of $137.2 million reflects an increase of $7.9 million, or 6.1%, over the prior year.

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• The Company continues to report strong credit quality metrics, including annual net charge-offs to total loans of 0.20% and non-performing assets to total assets of 0.44% as of December 31, 2023.

"Amid unprecedented pressures on the banking industry throughout 2023, our Company responded by defending and growing deposits, strengthening liquidity and capital while deepening relationships with our customers and welcoming new ones to our diversified financial services company," said Pre

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES THIRD QUARTER 2023 RESULTS

WARSAW, N.Y., October 26, 2023 – Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the third quarter ended September 30, 2023.

Net income was $14.0 million for the third quarter of 2023, compared to $14.4 million in the second quarter of 2023 and $13.9 million in the third quarter of 2022. After preferred dividends, net income available to common shareholders was $13.7 million, or $0.88 per diluted share, in the third quarter of 2023, compared to $14.0 million, or $0.91 per diluted share, in the second quarter of 2023, and $13.5 million, or $0.88 per diluted share, in the third quarter of 2022. The Company recorded a provision for credit losses of $966 thousand in the current quarter, compared to $3.2 million in the linked quarter and $4.3 million in the prior year quarter.

Third Quarter 2023 Key Results:

• Total deposits were $5.32 billion at September 30, 2023, up $281.1 million, or 5.6%, from June 30, 2023 and up $410.8 million, or 8.4%, from one year prior.

• Total loans were $4.43 billion at September 30, 2023, reflecting an increase of $33.4 million, or 0.8%, from June 30, 2023 and an increase of $564.3 million, or 14.6%, from September 30, 2022.

• Net interest income of $41.7 million decreased $660 thousand, or 1.6%, and $1.4 million, or 3.2%, from the linked and year-ago quarters, respectively, amid the current rising interest rate environment that has driven higher funding costs.

• Noninterest income was $10.5 million, down $980 thousand, or 8.5%, from the second quarter of 2023 and down $2.2 million, or 17.1%, from the third quarter of 2022. The variance from the year-ago period was largely driven by the non-recurring nature of a $2.0 million enhancement recorded in the third quarter of 2022 for company owned life insurance.

• The Company continues to report strong credit quality metrics, including annualized net charge-offs to average loans for the current quarter of 0.14%, as well as non-performing loans to total loans of 0.21% and non-performing assets to total assets of 0.16% as of September 30, 2023.

“Our continued focus on deposit gathering resulted in strong growth during third quarter of 5.6%, with our retail, commercial and Banking-as-a-Service, or BaaS, lines of business all contributing to nonpublic deposit growth,” said President and Chief Executive Officer Martin K. Birmingham. “BaaS deposits totaled approximately $77 million at September 30, 2023, as we continue to gain momentum with fintech clients and their end customers. We also welcomed hundreds of new customers to Five Star Bank as a result of a new marketing campaign launched during the third quarter, supporting our near-term focus on deposit growth as well as our ongoing efforts to gain market share in Upstate New York metros like Buffalo and Rochester. As expected, loan growth was softer in the third quarter, with commercial mortgage demand slowing as a result of economic conditions and higher pricing hurdles. Our asset quality metrics remain strong, reflective of our long-term commitment to credit disciplined loan growth."

Chief Financial Officer and Treasurer W. Jack Plants II added, "While funding costs continued to pressure net interest margin in the third quarter, the pace of compression continues to moderate and our successful deposit gathering provided the capacity to reduce short term borrowings by $304 million during the quarter, supporting margin stability moving forward. With more than $1.2 billion in available liquidity and approximately $1 billion in cash flow anticipated over the next twelve months, we are well-positioned heading into the fourth quarter."

Net Interest Income and Net Interest Margin

Net interest income was $41.7 million for the third quarter of 2023, a decrease of $660 thousand from the second quarter of 2023 and a decrease of $1.4 million from the third quarter of 2022.

Average interest-earning assets for the current quarter were $5.70 billion, an increase of $12.2 million from the second quarter of 2023 due to an $81.1 million increase in average loans, partially offset by a $38.6 million decrease in the average balance of

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investment securities and a $30.3 million decrease in the average balance of Federal Reserve interest-earning cash. Average interest-earning assets for the current quarter were $473.3 million higher than the third quarter of 2022 due to a $591.4 million increase in average loans and a $20.5 million increase in the average balance of Federal Reserve interest-earning cash, partially offset by a $138.6 million decrease in the average balance of investment securities.

Average interest-bearing liabilities for the current quarter were

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES SECOND QUARTER 2023 RESULTS

WARSAW, N.Y., July 27, 2023 – Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the second quarter ended June 30, 2023.

Net income was $14.4 million for the second quarter of 2023, compared to $12.1 million in the first quarter of 2023 and $15.6 million in the second quarter of 2022. After preferred dividends, net income available to common shareholders was $14.0 million, or $0.91 per diluted share, in the second quarter of 2023, compared to $11.7 million, or $0.76 per diluted share, in the first quarter of 2023, and $15.3 million, or $0.99 per diluted share, in the second quarter of 2022. The Company recorded a provision for credit losses of $3.2 million in the current quarter, compared to $4.2 million in the linked quarter and $563 thousand in the prior year quarter.

Second Quarter 2023 Highlights:

• Total loans were $4.40 billion at June 30, 2023, reflecting an increase of $154.5 million, or 3.6%, from March 31, 2023 and $633.8 million, or 16.8%, from June 30, 2022.

• Total deposits were $5.03 billion at June 30, 2023, down $106.4 million, or 2.1%, from March 31, 2023, reflective of seasonal outflows in the public deposit portfolio that occur during the second quarter, and up $214.3 million, or 4.4%, from one year prior.

• Net interest income of $42.3 million increased $522 thousand, or 1.2%, and $740 thousand, or 1.8%, from the linked and year-ago quarters, respectively, amid the current rising interest rate environment that has driven higher yields as well as higher funding costs.

• Noninterest income was $11.5 million, up $542 thousand, or 5.0%, from the first quarter of 2023 and up $106 thousand, or 0.9%, from the second quarter of 2022.

• The Company completed the merger of its two wholly-owned SEC-registered investment advisory firm subsidiaries, under which HNP Capital, LLC merged with and into Courier Capital, LLC, now one of the largest registered investment advisory firms headquartered in Western New York with assets under management of $2.75 billion at June 30, 2023.

• The Company continues to report strong credit quality metrics, including annualized net charge-offs to average loans for the current quarter of 0.06%, as well as non-performing loans to total loans of 0.23% and non-performing assets to total assets of 0.16% as of June 30, 2023.

• Results for the second quarter of 2023 were positively impacted by a reduction in income tax expense of approximately $761 thousand for federal and state tax benefits related to tax credit investments placed in service in the current and prior quarters. These tax credit investments also generated a net gain of $489 thousand, recorded in noninterest income, resulting in a net positive impact in the quarter of $1.3 million.

“Our second quarter performance included incremental loan growth, which helped to partially offset ongoing funding cost pressures impacting our industry, as well as the continuation of solid credit quality metrics that reflect our long-term commitment to credit disciplined loan growth,” said President and Chief Executive Officer Martin K. Birmingham. “We continue to believe that 2023 loan growth will be concentrated in the first half of the year, with commercial mortgage originations expected to slow significantly as a result of softer demand given economic conditions and higher liquidity premiums in our pricing models. Our consumer and commercial loan portfolios continue to demonstrate stability and acceptable performance despite the volatility associated with the higher interest rate environment. Credit quality remains very strong, as measured by our ratios of annualized charge-offs to average loans for commercial mortgage loans standing at zero basis points and our consumer indirect charge-off ratio improving to 12 basis points for the quarter.

“During the second quarter, we also took steps to better position our wealth management business for growth by combining our registered investment advisory firms under the Courier Capital name. The merger enhances the size and scale of Courier Capital

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within our footprint, including in Buffalo, Rochester and across Upstate New York, thereby expanding the spectrum of opportunities where we can compete. It also streamlines our business development efforts with respect to institutional clients, retirement plan sponsors and high-net-worth individuals and families. Our wealth business has and will continue to be an important driver of noninterest income and overall revenue diversity.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “Heading into the second half of the year, we are maintaining a strong focus on deposit generation. We l

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Exhibit 99.1

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER 2023 RESULTS

WARSAW, N.Y., April 26, 2023 – Financial Institutions, Inc. (NASDAQ:FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the first quarter ended March 31, 2023.

Net income was $12.1 million for both the first quarter of 2023 and the fourth quarter of 2022, compared to $15.0 million in the first quarter of 2022. After preferred dividends, net income available to common shareholders was $11.7 million, or $0.76 per diluted share, in both the first quarter of 2023 and fourth quarter of 2022, compared to $14.6 million, or $0.93 per diluted share, in the first quarter of 2022. The Company recorded a provision for credit losses of $4.2 million in the current quarter, compared to $6.1 million in the linked quarter and $2.3 million in the prior year quarter.

First Quarter 2023 Highlights:

• Total loans were $4.24 billion at March 31, 2023, an increase of $192.9 million, or 4.8%, from December 31, 2022 and $509.7 million, or 13.7%, from March 31, 2022.

• Total deposits were $5.14 billion at March 31, 2023, $211.9 million higher than December 31, 2022, and $138.4 million higher than March 31, 2022.

• Net interest income of $41.8 million decreased $1.3 million, or 3.1%, from the linked quarter, reflective of fewer days in the most recent quarter and amid the current rising interest rate environment that has driven higher funding costs, and increased by $2.3 million, or 5.7%, from the year-ago quarter.

• Solid revenue from the Company’s insurance and investment advisory subsidiaries contributed to noninterest income of $10.9 million, which was consistent with the fourth quarter of 2022 and decreased by $398 thousand, or 3.5%, from the first quarter of 2022.

• The Company continues to report strong credit quality metrics, including non-performing loans to total loans of 0.21% and non-performing assets to total assets of 0.15% as of March 31, 2023 and annualized net charge-offs to average loans for the current quarter of 0.21%.

“During the first three months of 2023, our Company reported strong loan growth which helped to offset continued funding cost pressures that face our industry amid the current interest rate environment,” said President and Chief Executive Officer Martin K. Birmingham. “Year-over-year commercial loan growth reflects continued momentum of commercial banking execution, with exceptional performance from our Mid-Atlantic team helping to grow and diversify our portfolio. To further enhance our commercial and industrial lending, during the first quarter of 2023 we announced an expansion in Central New York with a new loan production office in Syracuse. We remain focused on building relationships with high-quality commercial clients, as evidenced by our strong credit quality metrics.

“In the first quarter, we were also pleased to announce a 3.4% increase in our common stock dividend. This marks the 13th consecutive annual dividend increase and underscores our Board’s ongoing confidence in our strategy and earnings potential. As we navigate a challenging economic environment, we believe that our relationship-based approach to banking, financially stable geographic footprint, disciplined credit culture and diversified revenue streams will support our ability to drive long-term value for our shareholders.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “While our net interest margin was pressured during the first quarter as a result of a shift in our funding mix, given seasonality of public deposits and growth of reciprocal deposits in the current interest rate environment, we continue to expect to deploy cash flow from our loan and securities portfolio into new loan originations at market rates to stabilize our margin moving forward despite increased funding costs.”

Net Interest Income and Net Interest Margin

Net interest income was $41.8 million for the first quarter of 2023, a decrease of $1.3 million from the fourth quarter of 2022 and an increase of $2.3 million from the first quarter of 2022.

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Average interest-earning assets for the current quarter were $5.49 billion, an increase of $155.8 million from the fourth quarter of 2022 due to a $172.8 million increase in average loans and a $14.2 million increase in the average balance of Federal Reserve interest-earning cash, partially offset by a $31.3 million decrease in the average balance of investment securities. Average interest-earning assets for the current quarter were $319.1 million higher than the first quarter of 2022 due to a $418.8 million increase in average loans and an $18.8 million increase in the average balance of Federal Reserve interest-earning cash, partially offset by a $118.4 million de

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Exhibit 99.1

FOR IMMEDIATE RELEASE

FINANCIAL INSTITUTIONS, INC. ANNOUNCES THIRD QUARTER 2022 RESULTS

WARSAW, N.Y., October 27, 2022 – Financial Institutions, Inc. (NASDAQ:FISI) (the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the third quarter ended September 30, 2022.

Net income for the current quarter was $13.9 million compared to $17.2 million in the third quarter of 2021. After preferred dividends, net income available to common shareholders was $13.5 million, or $0.88 per diluted share, in the third quarter of 2022, compared to $16.8 million, or $1.05 per diluted share, in the third quarter of 2021. The Company recorded a $4.3 million provision for credit losses in the current quarter, compared to a benefit of $541 thousand in the prior year quarter.

Pre-tax pre-provision income(1) for the current quarter was $22.9 million, up $1.7 million, or 8.1%, from the third quarter of 2021. Excluding a non-recurring $2.0 million enhancement from the surrender and redeployment of $25.5 million in cash surrender value of company owned life insurance, which offset $2.0 million in incremental income taxes associated with the transaction, of which approximately $1.5 million was recognized in the third quarter, adjusted pre-tax pre-provision income(1) decreased by $291 thousand, or 1.4%, from the prior year period. Excluding this non-recurring enhancement as well as accretion income and fees related to Paycheck Protection Program (“PPP”) loans during both periods of comparison, pre-PPP adjusted pre-tax pre-provision income(1) increased by $770 thousand, or 3.9% from the third quarter of 2021.

Third Quarter 2022 Highlights:

• Total loans were $3.87 billion at September 30, 2022, an increase of $213.0 million, or 5.8%, from September 30, 2021 and $102.8 million, or 2.7%, from June 30, 2022. Excluding the impact of PPP loans, the loan portfolio grew $326.8 million, or 9.2%, and $109.0 million, or 2.9%, during the twelve and three months ended September 30, 2022, respectively.

• Net interest income increased by $4.8 million, or 12.5%, from the year-ago quarter and $1.5 million, or 3.5%, from the linked quarter on continued loan growth and net interest margin expansion to 3.28%.

• Noninterest income increased by $569 thousand, or 4.7%, from the third quarter of 2021 and $1.3 million, or 11.4%, from the second quarter of 2022. Contributing to third quarter 2022 noninterest income was the previously mentioned enhancement from the surrender and redeployment strategy executed in the third quarter of 2022, which offset income taxes associated with the transaction.

• The Company continues to report strong credit quality metrics, including non-performing loans to total loans of 0.22% and non-performing assets to total assets of 0.15% as of September 30, 2022.

“Our solid third quarter performance was driven by the strength of our commercial lending franchise that was bolstered by our strategic expansion into the Mid-Atlantic earlier this year," said President and Chief Executive Officer Martin K. Birmingham. “Year-over-year commercial loan growth was strong and we’re seeing excellent performance and a sizable pipeline coming from the Baltimore and Washington, D.C. region. Throughout our entire footprint, we remain focused on introducing high-quality commercial clients to our relationship-based approach to banking to support our continued, credit-disciplined loan growth.

“Amid the current challenging economic environment, we believe that all of our businesses – including our community bank, commercial bank, insurance business and investment advisory affiliates – are well-positioned to serve our customers and communities. The strategic investments we’ve made in recent quarters have allowed us to bring on exceptional talent, expand our geographic reach, and significantly enhance our digital capabilities and offerings, which in turn is enabling us to enhance the efficiency of our team, improve the customer experience and expand our client base to reach fintechs and other non-bank financials.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “Solid organic loan growth and continued expansion of our net interest margin in the current rising rate environment supported a 3.5% increase in quarterly net interest income growth from the linked quarter. Loan growth, along with changes in the allowance for unfunded commitments and the impact of an increase in the national unemployment forecast, contributed to an increase in our provision for credit losses to $4.3 million in the most recent quarter. Total noninterest income was up 11.4% compared to the second quarter of 2022, as the Company recorded a $2.0 million increase in company owned life insurance revenue, reflecting

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Exhibit 99.1

FOR IMMEDIATE RELEASE

FINANCIAL INSTITUTIONS, INC. ANNOUNCES SECOND QUARTER RESULTS

WARSAW, N.Y., July 28, 2022 – Financial Institutions, Inc. (NASDAQ:FISI) (the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the second quarter ended June 30, 2022.

Net income for the quarter was $15.6 million compared to $20.2 million in the second quarter of 2021. After preferred dividends, net income available to common shareholders was $15.3 million, or $0.99 per diluted share, compared to $19.8 million, or $1.25 per diluted share, in the second quarter of 2021.

Primary drivers of the decrease in net income were:

• A $563 thousand provision for credit losses was recognized in the current quarter compared to a benefit of $4.6 million in the second quarter of 2021. Loan loss provision has returned to a more normalized level in 2022, excluding a $2.0 million commercial loan recovery recognized in the second quarter. The second quarter 2021 benefit was the result of improvement in the national unemployment forecast, positive trends in qualitative factors and lower net charge-offs that resulted in a release of credit loss reserves and corresponding benefit for credit losses.

• Salaries and employee benefits expense was $2.4 million higher in the current quarter, primarily driven by investments in personnel, higher stock-based compensation expense, and annual merit increases.

• The Company recorded $1.3 million of non-recurring restructuring charges in the current quarter related to the 2020 closure of five locations.

Pre-tax pre-provision income(1) for the quarter was $20.1 million, a decrease of $908 thousand from the second quarter of 2021. Excluding non-recurring restructuring charges, adjusted pre-tax pre-provision income(1) was $21.3 million, an increase of $361 thousand from the prior year quarter.

“We are pleased to report net income of $15.6 million, return on average common equity of 14.6% and return on average tangible common equity of 17.8%(1) for the second quarter of 2022,” said President and Chief Executive Officer Martin K. Birmingham. “We continued to execute on our strategic initiatives to grow across all lines of business with investments in people and technology to better serve our customers. Excluding a non-recurring expense for the adjustment to fair market value of former branch locations, expenses were in line with our expectations.

“The total loan portfolio increased during the quarter, and our new Mid-Atlantic team is building a strong commercial pipeline. We also benefitted from a continued benign credit environment and a high-quality loan portfolio, as evidenced by net recoveries of $1 million.

“Economic headwinds are expected as we are experiencing an inflationary period not seen in decades. We remain focused on supporting our customers and communities and we’re leading with our human capital. Challenging economic cycles come and go and we are confident that we will maintain a strong regulatory capital footing to help individuals and companies grow and thrive despite the challenges.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “It was a strong quarter for net interest income with 5.2% growth over the linked quarter. Net interest margin expanded by nine basis points, excluding the impact of Paycheck Protection Program (“PPP”) loans, primarily as a result of rising interest rates. Our strategic focus on growing non-public deposits resulted in a 2.9% increase from the linked quarter.

“During the current quarter, we took advantage of the opportunity to sell a $31 million portfolio of indirect loans and recognized a gain of $586 thousand, demonstrating our ability to capture gains within this portfolio by leveraging capital markets relationships to re-mix loan exposures. Excluding the impact of PPP loan forgiveness and the indirect sale, the total loan portfolio increased by 2.3%.”

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Stock Repurchase Program

On June 13, 2022, the Company announced a stock repurchase program for up to 766,447 shares of its common stock, or approximately 5% of the Company’s then outstanding common shares. Shares may be repurchased in open market transactions and pursuant to any trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Company to purchase any shares and it may be extended, modified, or discontinued at any time. No shares have been repurchased to-date under this program.

During the first quarter of 2022, the Company completed its prev

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Exhibit 99.1

FOR IMMEDIATE RELEASE

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER RESULTS

WARSAW, N.Y., April 27, 2022– Financial Institutions, Inc. (NASDAQ:FISI) (the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the first quarter ended March 31, 2022.

Net income for the quarter was $15.0 million compared to $20.7 million in the first quarter of 2021. After preferred dividends, net income available to common shareholders was $14.6 million, or $0.93 per diluted share, compared to $20.3 million, or $1.27 per diluted share, in the first quarter of 2021.

Primary drivers of the decrease in net income were:

• A $2.3 million provision for credit losses was recognized in the current quarter compared to a benefit of $2.0 million in the first quarter of 2021. Loan loss provision returned to a more normalized level in the first quarter of 2022 due to the impact of qualitative factors reflecting economic uncertainty associated with higher interest rates and global political unrest, partially offset by low net charge-offs, national unemployment trends and a reduction in overall specific reserve levels.

• Revenue related to Paycheck Protection Program (“PPP”) loans was $2.5 million lower in the first quarter of 2022 than the first quarter of 2021. PPP loan balances are significantly lower in 2022 as a result of loan forgiveness.

Pre-tax pre-provision income(1) for the quarter was $20.7 million, a decrease of $3.3 million from the first quarter of 2021.

“We achieved solid first quarter results with earnings of $15 million, return on average common equity of 12.5% and return on average tangible common equity of 14.8%(1), continuing the positive momentum from record earnings in 2021,” said President and Chief Executive Officer Martin K. Birmingham. “We grew loans and deposits, recognized growth in revenue from our insurance and investment advisory lines of business and continued to benefit from a stable credit environment. Ongoing organic growth across our businesses, coupled with good expense discipline, allowed us to continue making thoughtful investments in people, process and technology to further advance opportunities to deliver BaaS solutions and other transformational digital solutions that empower our customers and support enhanced long-term corporate efficacy in accordance with our strategic plan.

“We took advantage of available talent to expand our commercial lending platform, adding a team in the Baltimore/Washington, D.C. market. Our strong track record of credit-disciplined loan growth and well-defined strategic and risk frameworks give us confidence in the expected positive outcomes of this exciting expansion beyond our operating footprint. Loan growth in the quarter was positively impacted by the commercial real estate category, which has yet to benefit from our new Mid-Atlantic team that is building a strong pipeline of opportunities.

“Our Board increased the quarterly common stock dividend by 7.4% in February, following strong earnings performance in 2021 and reflecting confidence in the Company’s strategy and earnings potential. This was our 12th consecutive annual dividend increase, demonstrating a continued commitment to shareholder return.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “While the company delivered strong core operating results for the quarter, we did experience a $54 million decline in accumulated other comprehensive income, primarily as a result of an increase in the unrealized loss position of the available for sale securities portfolio. A drastic increase in the intermediate maturities of the treasury curve negatively impacted the market valuation of our investment portfolio due to its 5-year duration. We do not believe any component of this portfolio is impaired as it is primarily comprised of agency wrapped mortgage-backed securities (89% of the portfolio) with the implicit and explicit guarantee of the US Government. This unrealized loss position does not impact our forward earnings metrics as we expect these securities to mature at a terminal value equivalent to par.”

Commercial Lending Expansion to Baltimore and Washington, D.C.

On February 22, 2022, Five Star Bank launched a commercial lending platform in Baltimore and Washington, D.C. by taking advantage of experienced and available talent to hire a team of four commercial banking officers. The team is led by John G. Mangan, Commercial Real Estate Executive and Mid-Atlantic President. The Bank’s commercial loan production office is located in Ellicott City (Baltimore), Maryland.

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Net Interest Income and Net Interest Margin

Net interest income was $39.6 million for the quarter, a decrease of $1.3 million from the fourth quarter of 2021 and an increa

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Exhibit 99.1

FOR IMMEDIATE RELEASE

FINANCIAL INSTITUTIONS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 RESULTS

WARSAW, N.Y., January 31, 2022 – Financial Institutions, Inc. (NASDAQ:FISI)(the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the fourth quarter and year ended December 31, 2021.

Results for the Fourth Quarter

• Net income was $19.6 million compared to $13.8 million in 2020. After preferred dividends, net income available to common shareholders was $19.2 million, or $1.21 per diluted share, compared to $13.4 million, or $0.84 per diluted share, in 2020.

• Results for 2021 and 2020 were positively impacted by a reduction in income tax expense of approximately $1.7 million and $915 thousand, respectively, for federal and state tax benefits related to tax credit investments. These tax credit investments also generated a net loss of $493 thousand in 2021 and $155 thousand in 2020, recorded in noninterest income, reducing the net positive impact to $1.2 million in 2021 and $760 thousand in 2020.

• Reflected in the increase in net income was a $1.2 million benefit for credit losses in the current quarter as compared to a provision of $5.5 million in the fourth quarter of 2020. Ongoing improvement in the national unemployment forecast, positive trends in qualitative factors and a reduction in specific reserves resulted in a release of overall credit loss reserves and a corresponding benefit for credit losses.

• Pre-tax pre-provision income(1) was the second highest in Company history at $22.6 million, an increase of $1.7 million from the fourth quarter of 2020.

Results for the Year

• Net income was $77.7 million compared to $38.3 million in 2020. After preferred dividends, net income available to common shareholders was $76.2 million, or $4.78 per diluted share, compared to $36.9 million, or $2.30 per diluted share, in 2020.

• Results for 2021 and 2020 were positively impacted by a reduction in income tax expense of approximately $2.6 million and $1.5 million, respectively, for federal and state tax benefits related to tax credit investments placed in service. These tax credit investments also generated a net loss of $431 thousand in 2021 and $275 thousand in 2020, recorded in noninterest income, reducing the net positive impact to $2.2 million in 2021 and $1.2 million in 2020.

• Reflected in the increase in net income was an $8.3 million benefit for credit losses in the current year as compared to a provision of $27.2 million in 2020. Improvement in the national unemployment forecast, positive trends in qualitative factors, a reduction in specific reserves and lower net charge-offs resulted in the release of overall credit loss reserves and a corresponding benefit for credit losses in each quarter of 2021. Results for 2020 were negatively impacted by a higher than historical provision for credit losses, driven by the adoption of the current expected credit loss (“CECL”) standard and the impact of COVID-19 on the economic environment.

• Pre-tax pre-provision income was $88.9 million, an increase of $16.0 million from 2020.

“We ended 2021 with another strong quarter, reporting the highest net interest income and second highest pre-tax pre-provision income in our history” said President and Chief Executive Officer Martin K. Birmingham. “Continued improvement in the economy and a reduction in specific loan reserves resulted in our fourth consecutive quarter with a benefit for credit losses. Commercial loan pipelines remain healthy and, excluding the impact of Paycheck Protection Program (“PPP”) loans, we grew the total loan portfolio by 2.5% from September 30th.

“We earned record net income of $78 million in 2021, with every business line providing positive contributions. Loan and deposit growth were strong at 8% (excluding PPP loans) and 13%, respectively, versus the year-ago period. Our insurance and wealth management businesses performed well, evidencing growth and increased profitability.

“Our investment in an integrated customer relationship management solution will give all lines of business a single shared view of the customer. This will create a unified approach to customer engagement and help us better educate and interact with our customers and community partners, expanding these critical relationships. We also continue execution on opportunities to deliver BaaS solutions and other digital transformation solutions. We believe these investments position us well to capitalize on industry changes and deliver

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positive outcomes supporting long-term shareholder value. I thank my teammates for their hard work on behalf of our customers, communities and shareholders.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “While quarte

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Exhibit 99.1

FOR IMMEDIATE RELEASE

FINANCIAL INSTITUTIONS, INC. ANNOUNCES THIRD QUARTER RESULTS

WARSAW, N.Y., October 28, 2021 – Financial Institutions, Inc. (NASDAQ:FISI)(the “Company” “we” or “us”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today reported financial and operational results for the third quarter ended September 30, 2021.

Net income for the quarter was $17.2 million compared to $12.3 million in the third quarter of 2020. After preferred dividends, net income available to common shareholders was $16.8 million, or $1.05 per diluted share, compared to $11.9 million, or $0.74 per diluted share, in the third quarter of 2020.

 Reflected in the increase in quarterly net income was a $541 thousand benefit for credit losses in the current quarter as compared to a provision of $4.0 million in the third quarter of 2020. Ongoing improvement in the national unemployment forecast, positive trends in qualitative factors and lower net charge-offs resulted in a release of credit loss reserves and a corresponding benefit for credit losses.

Pre-tax pre-provision income(1) for the quarter was $21.2 million, an increase of $1.9 million from the third quarter of 2020.

“We reported strong results grounded in positive economic trends and sustained incremental organic growth across our businesses,” said President and Chief Executive Officer Martin K. Birmingham. “Continued improvement in the economy resulted in a third consecutive quarterly release of credit loss reserves, and loan charge-offs remained exceptionally low. Excluding the impact of Paycheck Protection Program loans, we grew the total loan portfolio by 2.2% from June 30th and our loan pipelines remain healthy. Net interest income increased, and we remain focused on the optimal investment of excess liquidity. While expenses did go up in the quarter, we also generated strong noninterest income driven by our insurance and wealth subsidiaries and investments in limited partnerships, resulting in an efficiency ratio of 58%.

“Five Star Bank relocated its City of Elmira branch in the quarter, investing in an area undergoing revitalization while reducing annual operating costs associated with more favorable lease terms and significantly reduced space. Our SDN insurance subsidiary completed a bolt-on transaction in August, acquiring an employee benefits business that adds important expertise in employee benefits and human resources consulting.

“We continue to make investments in people, process, technology and strategic bolt-on acquisitions to position our organization for expected long-term growth and profitability. We are focused on the successful execution of opportunities related to ongoing digital transformation, traditional banking and new businesses associated with banking as a service, or BaaS. I am incredibly proud of our accomplishments and the associates that made them possible.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “Noninterest expense was higher than the second quarter of 2021 with a significant portion of the increase attributable to salaries and benefits. Strong year-to-date performance drove an approximately $690 thousand increase in commission and incentive compensation. In addition, we’ve made investments in experienced personnel to support strategic initiatives including digital banking, retail community banking expansion, customer experience and technology. We believe these initiatives, along with the bolt-on acquisitions completed in 2021, will support future revenue growth. With that said, we will continue to manage expenses to produce positive long-term operating leverage.”

Acquisition of North Woods Capital Benefits

On August 2, 2021, North Woods Capital Benefits LLC (“North Woods”) was acquired by the Company’s insurance subsidiary SDN. North Woods was a Buffalo-based employee benefits and human resources advisory firm with a mission of helping clients of all sizes navigate the complexities of employee benefits, human resources and compliance to control costs and maximize long-term savings.

The acquisition expands SDN’s employee benefits business and adds important expertise in employee benefits and human resources consulting. William (Bill) Wadsworth, North Woods’ Founder, continues his long-term client relationships in his new role leading SDN’s employee benefits practice. Sarah Kirke, former Director of Client Service and HR Consulting at North Woods, serves as Employee Benefits Account Manager and HR Consultant at SDN.

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Elmira Branch Relocation

Five Star Bank opened its relocated branch in the City of Elmira on August 2, 2021. The new branch is in a newly-constructed building that is part of the New York State Downtown Revitalization Initiative. Consumers and businesses can access a full spectrum of banking and lending service