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
Rhea-AI Summary
Financial Institutions (NASDAQ:FISI) reported second quarter 2026 net income of $21.2 million and net income available to common shareholders of $20.8 million, or $1.04 per diluted share, flat sequentially and up from $0.85 a year ago.
Return on average assets was 1.35% and return on average equity 13.31%. Net interest income reached a record $53.4 million with net interest margin of 3.70%, up 3 bps QoQ and 21 bps YoY as funding costs declined. Noninterest income was $11.0 million, modestly higher QoQ and YoY, supported by investment advisory fees as Courier Capital’s AUM exceeded $4.0 billion.
Total loans grew 2.7% QoQ to $4.75 billion, led by commercial lending, while deposits were $5.30 billion, down 0.7% QoQ but up 2.8% YoY. The efficiency ratio improved to about 55% as noninterest expense held at $35.6 million. Credit quality metrics included net charge-offs of 0.11% of average loans and an allowance for credit losses equal to 1.00% of total loans. Reported capital ratios included tangible common equity of 9.02% and CET1 of 11.44%.
Positive
- Net income available to common $20.8 million, up 21.3% YoY
- Diluted EPS $1.04, unchanged QoQ, up from $0.85 YoY
- Net interest income $53.4 million, +2.6% QoQ and +8.6% YoY
- Net interest margin 3.70%, +3 bps QoQ and +21 bps YoY
- Total loans $4.75 billion, +2.7% QoQ and +4.8% YoY
- Efficiency ratio 55.33%, improved 173 bps QoQ and 435 bps YoY
- Courier Capital AUM surpassed $4.0 billion, boosting advisory fees
- Return on average tangible common equity 14.88% for Q2 2026
Negative
- Total deposits $5.30 billion, down 0.7% QoQ due to public deposit seasonality
- Unencumbered securities $29.9 million, down 28.9% QoQ and 77.5% YoY
- FHLBNY borrowing availability $182.4 million, down 34.9% QoQ
- Loss on investments in limited partnerships $140 thousand in Q2 2026
- Salaries and employee benefits expense up $564 thousand QoQ and $1.1 million YoY
- Effective tax rate 17.3%, up from 15.5% in Q1 2026
News Explained
At June 30, all regulatory capital ratios exceeded the requirements for well-capitalized status.
The company has now reported the quarter ended
The
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 30 | Q2 earnings scheduling | Neutral | +2.8% | Scheduled Q2 2026 earnings release and conference call for July 23 and July 24. |
| May 20 | Quarterly dividend | Positive | +0.8% | Board declared quarterly cash dividends on common and preferred shares. |
| Apr 23 | Q1 earnings report | Positive | -1.3% | Reported Q1 net income of $20.6 million and diluted EPS of $1.04. |
| Apr 02 | Q1 earnings conference | Neutral | +1.7% | Updated conference call details for the first-quarter 2026 earnings release. |
| Mar 30 | Q1 earnings scheduling | Neutral | +2.1% | Scheduled first-quarter 2026 results release and April 24 earnings call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
FISI's recent earnings-related history was mostly associated with positive 24-hour price reactions, although the prior-quarter earnings release was followed by a decline.
Key Terms
net interest margin financial
efficiency ratio financial
net charge-offs financial
common equity tier 1 ratio regulatory
tangible common equity ratio regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
The Company's community bank subsidiary delivered strong loan growth of
WARSAW, N.Y., July 23, 2026 (GLOBE NEWSWIRE) -- 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 grew2.7% 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 of3.70% reflected expansion of 3 and 21 basis points from the linked and year-ago quarters, respectively. - Noninterest income of
$11.0 million was up2.6% and3.2% 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 to1.00% at June 30, 2026.
"We delivered another quarter of strong and profitable results, highlighted by annualized loan growth of more than
Chief Financial Officer and Treasurer W. Jack Plants II added, "Our disciplined approach to managing funding costs supported further net interest margin expansion to
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 interest-bearing liabilities | 4,559,420 | 4,513,440 | 4,518,370 | 45,980 | 1.0 | % | 41,050 | 0.9 | % | ||||||||||||||
Net interest income was
- Average interest earning assets of
$5.79 billion were up$61.4 million from the first quarter of 2026 and up$134.5 million from the second quarter of 2025. The linked quarter variance reflected increases in both average loans and investment securities, partially offset by a small decrease in the average balance of Federal Reserve interest-earning cash. The year-over-year variance reflected a$139.2 million increase in average balance of loans, partially offset by a$10.7 million decrease in the average balance of Federal Reserve interest-earning cash, as average balances of investment securities remained relatively consistent. The yield on interest-earning assets was5.76% in both the first and second quarters of 2026, compared to5.88% in the second quarter of 2025. - Average interest-bearing liabilities of
$4.56 billion were up$46.0 million from the first quarter of 2026 and up$41.1 million from the second quarter of 2025. The linked quarter variance was due to increases in the average balances of savings and money market deposits and short-term borrowings, partially offset by decreases in long-term borrowings, average interest-bearing demand deposits and time deposits. The year-over-year variance reflected increases in the average balances of time deposits, short-term borrowings and savings and money market deposits, partially offset by decreases in average long-term borrowings and average interest-bearing demand deposits. The cost of interest-bearing liabilities was2.61% , reflecting decreases of 4 and 39 basis points from the linked and year-ago quarters, respectively.
Noninterest Income
| SELECT NONINTEREST INCOME CATEGORIES | QoQ Change | YoY Change | |||||||||||||||||||
| Dollars in thousands | Q2 2026 | Q1 2026 | Q2 2025 | $ | % | $ | % | ||||||||||||||
| Investment advisory | $ | 3,287 | $ | 3,061 | $ | 2,885 | $ | 226 | 7.4 | % | $ | 402 | 13.9 | % | |||||||
| Investments in limited partnerships | (140 | ) | 224 | 307 | (364 | ) | -162.5 | % | (447 | ) | -145.6 | % | |||||||||
| Income from derivative instruments, net | 518 | 239 | 339 | 279 | 116.7 | % | 179 | 52.8 | % | ||||||||||||
| Net gain (loss) on other assets | 27 | (481 | ) | - | 508 | -105.6 | % | 27 | N/A | ||||||||||||
| Other | 1,200 | 1,770 | 1,284 | (570 | ) | -32.2 | % | (84 | ) | -6.5 | % | ||||||||||
| Total noninterest income | 10,954 | 10,673 | 10,617 | 281 | 2.6 | % | 337 | 3.2 | % | ||||||||||||
Noninterest income was
- A loss on investments in limited partnerships, which are primarily small business investment companies, of
$140 thousand was recognized in the second quarter of 2026, compared to gains of$224 thousand and$307 thousand in the linked and year-ago quarters, respectively. Income from these investments, which we account for under the equity method, fluctuates based on the maturity and performance of the underlying investments. - A net gain on other assets of
$27 thousand was recognized in the second quarter of 2026, compared to a net loss of$481 thousand in the first quarter of 2026 related to the write-down of two branch locations that were held for sale as of March 31, 2026. No gain or loss was recorded in the second quarter of 2025. - Other noninterest income of
$1.2 million was down from both the linked and year-ago quarters. The linked quarter variance was driven by a variety of factors, including insurance recoveries recorded in the first quarter of 2026 related to a previously disclosed deposit-related charge-off.
Noninterest Expense and Income Taxes
| SELECT NONINTEREST EXPENSE CATEGORIES | QoQ Change | YoY Change | |||||||||||||||||||
| Dollars in thousands | Q2 2026 | Q1 2026 | Q2 2025 | $ | % | $ | % | ||||||||||||||
| Salaries and employee benefits | $ | 19,165 | $ | 18,601 | $ | 18,070 | $ | 564 | 3.0 | % | $ | 1,095 | 6.1 | % | |||||||
| Computer and data processing | 5,512 | 6,211 | 5,879 | (699 | ) | -11.3 | % | (367 | ) | -6.2 | % | ||||||||||
| Total noninterest expense | 35,605 | 35,595 | 35,682 | 10 | 0.0 | % | (77 | ) | -0.2 | % | |||||||||||
Noninterest expense was
- Salaries and employee benefits expense was
$564 thousand higher than the first quarter of 2026, primarily driven by the timing of annual merit increases as well as the impact of an additional business day in the recent quarter, and$1.1 million higher than the second quarter of 2025, reflecting a combination of factors, including annual merit increases, incentive compensation and investments in personnel. - Computer and data processing expense was
$699 thousand and$367 thousand lower than the linked and year-ago quarters, respectively, due in part to the termination of a vendor relationship in the first quarter of 2026.
| INCOME TAXES | QoQ | YoY | |||||||||||||||||||
| Dollars in thousands | Q2 2026 | Q1 2026 | Q2 2025 | Variance | % | Variance | % | ||||||||||||||
| Income tax expense | $ | 4,418 | $ | 3,847 | $ | 3,963 | $ | 571 | 14.8 | % | $ | 455 | 11.5 | % | |||||||
| Tax credit on investments placed in service/amortized | 1,045 | 1,045 | 1,103 | - | 0.0 | % | (58 | ) | -5.3 | % | |||||||||||
| Effective tax rate | 17.3 | % | 15.5 | % | 18.4 | % | 1.8 | % | -1.2 | % | |||||||||||
Income tax expense was
- The effective tax rate, which was
17.3% for the second quarter of 2026, fluctuates on a quarterly basis primarily due to the level of pre-tax earnings or loss and may differ from statutory rates due to interest income from tax-exempt securities, earnings on COLI and the impact of repositionings, the tax impact of restricted stock award vesting, and the impact of tax credit investments.
Balance Sheet Composition and Liquidity
| SELECT BALANCE SHEET DATA | QoQ Change | YoY Change | |||||||||||||||||||
| Dollars in thousands, end of period | Q2 2026 | Q1 2026 | Q2 2025 | $ | % | $ | % | ||||||||||||||
| Total assets | $ | 6,334,952 | $ | 6,294,783 | $ | 6,143,766 | $ | 40,169 | 0.6 | % | $ | 191,186 | 3.1 | % | |||||||
| Total investment securities | 989,764 | 1,085,771 | 1,008,268 | (96,007 | ) | -8.8 | % | (18,504 | ) | -1.8 | % | ||||||||||
| Commercial business and commercial mortgage | 3,210,384 | 3,078,180 | 2,941,371 | 132,204 | 4.3 | % | 269,013 | 9.1 | % | ||||||||||||
| Residential real estate | 738,681 | 727,640 | 722,880 | 11,041 | 1.5 | % | 15,801 | 2.2 | % | ||||||||||||
| Consumer indirect and other consumer | 803,900 | 821,767 | 871,751 | (17,867 | ) | -2.2 | % | (67,851 | ) | -7.8 | % | ||||||||||
| Total loans | 4,752,965 | 4,627,587 | 4,536,002 | 125,378 | 2.7 | % | 216,963 | 4.8 | % | ||||||||||||
| Total deposits | 5,299,465 | 5,337,881 | 5,156,014 | (38,416 | ) | -0.7 | % | 143,451 | 2.8 | % | |||||||||||
| Short-term borrowings | 182,000 | 114,000 | 101,000 | 68,000 | 59.6 | % | 81,000 | 80.2 | % | ||||||||||||
| Long-term borrowings, net | 78,694 | 78,621 | 114,960 | 73 | 0.1 | % | (36,266 | ) | -31.5 | % | |||||||||||
Total loans of
- Strong commercial lending activity in the Bank's Western and Central New York markets drove both the linked quarter and year-over-year growth.
Total deposits were
- The linked quarter variance was primarily due to seasonally lower public deposit balances, while the year-over-year increase reflected increases in public, nonpublic and reciprocal deposit balances, partially offset by a decrease in brokered deposits. Public deposits represented
22% of total deposits at June 30, 2026,23% at March 31, 2026, and21% at June 30, 2025.
| LIQUIDITY SOURCES | QoQ Change | YoY Change | |||||||||||||||||||
| Dollars in thousands, end of period | Q2 2026 | Q1 2026 | Q2 2025 | $ | % | $ | % | ||||||||||||||
| Unencumbered securities | $ | 29,876 | $ | 42,049 | $ | 132,898 | $ | (12,173 | ) | -28.9 | % | $ | (103,022 | ) | -77.5 | % | |||||
| FHLBNY borrowing availability | 182,426 | 280,164 | 240,211 | (97,738 | ) | -34.9 | % | (57,785 | ) | -24.1 | % | ||||||||||
| FRB excess cash | 39,564 | 28,943 | 18,098 | 10,621 | 36.7 | % | 21,466 | 118.6 | % | ||||||||||||
| FRB discount window | 900,825 | 919,931 | 856,993 | (19,106 | ) | -2.1 | % | 43,832 | 5.1 | % | |||||||||||
| Total on-balance sheet liquidity | 1,152,691 | 1,271,087 | 1,248,200 | (118,396 | ) | -9.3 | % | (95,509 | ) | -7.7 | % | ||||||||||
The Company maintains liquidity, both on and off-balance sheet, to meet customer demand. As outlined in the table above, at June 30, 2026, the Company had approximately
Capital Strength and Shareholder Returns
| REGULATORY CAPITAL RATIOS | Q2 2026 | Q1 2026 | Q2 2025 | QoQ Change | YoY Change | ||||||||||||
| Leverage Ratio | 10.06 | % | 9.89 | % | 9.45 | % | 17 | bps | 61 | bps | |||||||
| Common Equity Tier 1 Ratio | 11.44 | % | 11.37 | % | 10.84 | % | 7 | bps | 60 | bps | |||||||
| Tier 1 Capital Ratio | 11.76 | % | 11.70 | % | 11.17 | % | 6 | bps | 59 | bps | |||||||
| Total Risk Based Capital Ratio | 14.20 | % | 14.16 | % | 13.27 | % | 4 | bps | 93 | bps | |||||||
The Company's regulatory capital ratios at June 30, 2026 continued to exceed all regulatory capital requirements to be considered well capitalized.
| SELECT SHAREHOLDERS' EQUITY AND PER SHARE DATA | QoQ | YoY | |||||||||||||||||||||
| Dollars in thousands, except per share data | Q2 2026 | Q1 2026 | Q2 2025 | Variance | % | Variance | % | ||||||||||||||||
| Shareholders' equity | $ | 643,441 | $ | 631,670 | $ | 601,668 | $ | 11,771 | 1.9 | % | $ | 41,773 | 6.9 | % | |||||||||
| Common shareholders' equity | 626,156 | 614,385 | 584,383 | 11,771 | 1.9 | % | 41,773 | 7.1 | % | ||||||||||||||
| Tangible common equity (1) | 566,007 | 554,140 | 523,837 | 11,867 | 2.1 | % | 42,170 | 8.1 | % | ||||||||||||||
| Common book value per share | $ | 31.77 | $ | 31.21 | $ | 29.03 | $ | 0.56 | 1.8 | % | $ | 2.74 | 9.4 | % | |||||||||
| Tangible common book value per share (1) | $ | 28.72 | $ | 28.15 | $ | 26.03 | $ | 0.57 | 2.0 | % | $ | 2.69 | 10.3 | % | |||||||||
| Common equity to assets ratio | 9.88 | % | 9.76 | % | 9.51 | % | 12 | bps | 37 | bps | |||||||||||||
| Tangible common equity to tangible assets ratio (1) | 9.02 | % | 8.89 | % | 8.61 | % | 13 | bps | 41 | bps | |||||||||||||
Shareholders' equity grew to
- The increase in shareholders' equity supported significant year-over-year expansion of both the common equity to assets ratio, which was
9.88% at June 30, 2026, and the tangible common equity to tangible assets ratio(1), or the TCE ratio, which was9.02% at June 30, 2026.
The Company declared a common stock dividend of
As of June 30, 2026, 503,313 shares, or approximately half of the amount authorized by the Board of Directors, remained available under the repurchase program that was approved in September 2025. The Company did not repurchase shares of its common stock under the share repurchase program in the second quarter of 2026.
Credit Quality
| SELECT CREDIT QUALITY METRICS | QoQ | YoY | |||||||||||||||||||||
| Dollars in thousands | Q2 2026 | Q1 2026 | Q2 2025 | Variance | % | Variance | % | ||||||||||||||||
| Non-performing loans | $ | 39,007 | $ | 38,475 | $ | 32,436 | $ | 532 | 1.4 | % | $ | 6,571 | 20.3 | % | |||||||||
| Total non-performing loans to total loans | 0.82 | % | 0.83 | % | 0.72 | % | (1 | ) | bps | 11 | bps | ||||||||||||
| Allowance for credit losses "ACL" – loans | 47,497 | 44,661 | 47,291 | 2,836 | 6.4 | % | 206 | 0.4 | % | ||||||||||||||
| ACL – loans to total loans ratio | 1.00 | % | 0.97 | % | 1.04 | % | 3 | bps | (4 | ) | bps | ||||||||||||
| Provision for credit losses – loans | $ | 4,133 | $ | 2,355 | $ | 2,377 | $ | 1,778 | 75.5 | % | $ | 1,756 | 73.9 | % | |||||||||
| Provision for credit losses | 3,108 | 2,239 | 2,562 | 869 | 38.8 | % | $ | 546 | 21.3 | % | |||||||||||||
| Net charge-offs/average loans (annualized) | 0.11 | % | 0.44 | % | 0.36 | % | (33 | ) | bps | (25 | ) | bps | |||||||||||
The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown.
- Non-performing loans were
$39.0 million , or0.82% of total loans, at June 30, 2026. The increase from one year prior primarily reflects one well-collateralized commercial business loan that moved to nonaccrual status in the first quarter of 2026, offset in part by the partial charge-off of a previously disclosed nonaccrual commercial business relationship for which a specific reserve was in place. - Provision for credit losses was
$3.1 million in the second quarter of 2026 and was driven by a combination of factors, including loan growth and fluctuation in the balance of unfunded commitments. The provision for credit losses on unfunded commitments, which is included in the provision for credit losses as required by the current expected credit loss standard ("CECL"), totaled a credit of$1.0 million in the second quarter of 2026, compared to a credit of$116 thousand in the first quarter of 2026 and a provision of$185 thousand in the second quarter of 2025.
Subsequent Events
The Company is required, under U.S. generally accepted accounting principles ("GAAP"), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2026 on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2026, and will adjust amounts preliminarily reported, if necessary, in its Form 10-Q as filed with the Securities and Exchange Commission (the "SEC").
Conference Call
The Company will host an earnings conference call and audio webcast on July 24, 2026, at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. Within the United States, participants may access the call by dialing 1-877-425-9470 and requesting the “Financial Institutions, Inc. Second Quarter 2026 Earnings Conference Call.” A live webcast will also be available at https://viavid.webcasts.com/starthere.jsp?ei=1767913&tp_key=12f3894d15 in listen-only mode. A replay of the webcast will be available on the Company’s IR website, www.FISI-Investors.com, for at least 30 days.
About Financial Institutions, Inc.
Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately
Non-GAAP Financial Information
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.
The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Safe Harbor Statement
This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "anticipate," "believe," "continue," "estimate," "expect," "focus," "forecast," "intend," "may," "plan," "preliminary," "should," "target" or "will." Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; inflation; tariffs; changes in deposit flows and the cost and availability of funds; fraudulent deposit activity; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company's customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company's compliance with regulatory requirements; general economic and credit market conditions nationally and regionally; and macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.
(1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
(2) Calculated on a tax-equivalent basis assuming a Federal income tax rate of
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
| 2026 | 2025 | |||||||||||||||||||
| SELECT BALANCE SHEET DATA: | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| Cash and cash equivalents | $ | 99,174 | $ | 85,451 | $ | 108,751 | $ | 185,945 | $ | 93,034 | ||||||||||
| Investment securities: | ||||||||||||||||||||
| Available for sale | 910,466 | 1,003,697 | 922,472 | 923,592 | 916,149 | |||||||||||||||
| Held-to-maturity, net | 79,298 | 82,074 | 84,708 | 87,625 | 92,119 | |||||||||||||||
| Total investment securities | 989,764 | 1,085,771 | 1,007,180 | 1,011,217 | 1,008,268 | |||||||||||||||
| Loans held for sale | 2,502 | 1,034 | 3,365 | 2,252 | 2,356 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial business | 768,549 | 746,425 | 738,307 | 740,603 | 726,218 | |||||||||||||||
| Commercial mortgage – construction | 558,036 | 513,615 | 488,558 | 441,034 | 536,552 | |||||||||||||||
| Commercial mortgage – multifamily | 565,027 | 578,731 | 588,732 | 592,634 | 496,223 | |||||||||||||||
| Commercial mortgage – non-owner occupied | 970,966 | 922,628 | 942,219 | 893,884 | 873,207 | |||||||||||||||
| Commercial mortgage – owner occupied | 347,806 | 316,781 | 322,776 | 321,555 | 309,171 | |||||||||||||||
| Residential real estate loans | 662,582 | 652,861 | 657,001 | 648,397 | 647,205 | |||||||||||||||
| Residential real estate lines | 76,099 | 74,779 | 75,121 | 76,109 | 75,675 | |||||||||||||||
| Consumer indirect | 771,126 | 787,888 | 807,310 | 838,671 | 833,452 | |||||||||||||||
| Other consumer | 32,774 | 33,879 | 37,842 | 37,536 | 38,299 | |||||||||||||||
| Total loans | 4,752,965 | 4,627,587 | 4,657,866 | 4,590,423 | 4,536,002 | |||||||||||||||
| Allowance for credit losses – loans | 47,497 | 44,661 | 47,386 | 47,292 | 47,291 | |||||||||||||||
| Total loans, net | 4,705,468 | 4,582,926 | 4,610,480 | 4,543,131 | 4,488,711 | |||||||||||||||
| Total interest-earning assets | 5,834,020 | 5,787,556 | 5,755,696 | 5,739,699 | 5,614,008 | |||||||||||||||
| Goodwill and other intangible assets, net | 60,149 | 60,245 | 60,343 | 60,443 | 60,546 | |||||||||||||||
| Total assets | 6,334,952 | 6,294,783 | 6,274,140 | 6,288,052 | 6,143,766 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | 950,510 | 953,397 | 962,724 | 959,404 | 940,341 | |||||||||||||||
| Interest-bearing demand | 712,124 | 744,690 | 672,323 | 776,445 | 704,871 | |||||||||||||||
| Savings and money market | 1,964,402 | 1,984,048 | 1,884,801 | 1,955,832 | 1,898,302 | |||||||||||||||
| Time deposits | 1,672,429 | 1,655,746 | 1,686,500 | 1,666,128 | 1,612,500 | |||||||||||||||
| Total deposits | 5,299,465 | 5,337,881 | 5,206,348 | 5,357,809 | 5,156,014 | |||||||||||||||
| Short-term borrowings | 182,000 | 114,000 | 109,000 | 55,000 | 101,000 | |||||||||||||||
| Long-term borrowings, net | 78,694 | 78,621 | 193,653 | 115,000 | 114,960 | |||||||||||||||
| Total interest-bearing liabilities | 4,609,649 | 4,577,105 | 4,546,277 | 4,568,405 | 4,431,633 | |||||||||||||||
| Shareholders’ equity | 643,441 | 631,670 | 628,854 | 621,720 | 601,668 | |||||||||||||||
| Common shareholders’ equity | 626,156 | 614,385 | 611,569 | 604,435 | 584,383 | |||||||||||||||
| Tangible common equity (1) | 566,007 | 554,140 | 551,226 | 543,992 | 523,837 | |||||||||||||||
| Accumulated other comprehensive loss | (43,349 | ) | (39,327 | ) | $ | (33,030 | ) | $ | (36,758 | ) | $ | (42,214 | ) | |||||||
| Common shares outstanding | 19,706 | 19,686 | 19,797 | 20,130 | 20,128 | |||||||||||||||
| Treasury shares | 993 | 1,013 | 902 | 570 | 572 | |||||||||||||||
| CAPITAL RATIOS AND PER SHARE DATA: | ||||||||||||||||||||
| Leverage ratio | 10.06 | % | 9.89 | % | 9.69 | % | 9.77 | % | 9.45 | % | ||||||||||
| Common equity Tier 1 capital ratio | 11.44 | % | 11.37 | % | 11.11 | % | 11.15 | % | 10.84 | % | ||||||||||
| Tier 1 capital ratio | 11.76 | % | 11.70 | % | 11.43 | % | 11.48 | % | 11.17 | % | ||||||||||
| Total risk-based capital ratio | 14.20 | % | 14.16 | % | 14.90 | % | 13.60 | % | 13.27 | % | ||||||||||
| Common equity to assets | 9.88 | % | 9.76 | % | 9.75 | % | 9.61 | % | 9.51 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 9.02 | % | 8.89 | % | 8.87 | % | 8.74 | % | 8.61 | % | ||||||||||
| Common book value per share | $ | 31.77 | $ | 31.21 | $ | 30.89 | $ | 30.03 | $ | 29.03 | ||||||||||
| Tangible common book value per share (1) | $ | 28.72 | $ | 28.15 | $ | 27.84 | $ | 27.02 | $ | 26.03 | ||||||||||
(1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
| Six Months Ended | 2026 | 2025 | ||||||||||||||||||||||||||
| SELECT STATEMENT OF OPERATIONS | June 30, | Second | First | Fourth | Third | Second | ||||||||||||||||||||||
| DATA: | 2026 | 2025 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Interest income | $ | 164,639 | $ | 163,918 | $ | 83,076 | $ | 81,563 | $ | 84,649 | $ | 84,422 | $ | 82,867 | ||||||||||||||
| Interest expense | 59,285 | 67,932 | 29,715 | 29,570 | 32,438 | 32,633 | 33,745 | |||||||||||||||||||||
| Net interest income | 105,354 | 95,986 | 53,361 | 51,993 | 52,211 | 51,789 | 49,122 | |||||||||||||||||||||
| Provision for credit losses | 5,347 | 5,490 | 3,108 | 2,239 | 3,404 | 2,732 | 2,562 | |||||||||||||||||||||
| Net interest income after provision for credit losses | 100,007 | 90,496 | 50,253 | 49,754 | 48,807 | 49,057 | 46,560 | |||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||
| Service charges on deposits | 2,127 | 2,141 | 1,083 | 1,044 | 1,082 | 1,137 | 1,089 | |||||||||||||||||||||
| Card interchange income | 3,955 | 3,777 | 2,063 | 1,892 | 2,011 | 2,006 | 1,937 | |||||||||||||||||||||
| Investment advisory | 6,348 | 5,622 | 3,287 | 3,061 | 3,074 | 3,023 | 2,885 | |||||||||||||||||||||
| Company owned life insurance | 5,656 | 5,742 | 2,884 | 2,772 | 2,788 | 2,849 | 2,965 | |||||||||||||||||||||
| Investments in limited partnerships | 84 | 722 | (140 | ) | 224 | 457 | 223 | 307 | ||||||||||||||||||||
| Loan servicing | 352 | 303 | 201 | 151 | 208 | 181 | 180 | |||||||||||||||||||||
| Income from derivative instruments, net | 757 | 589 | 518 | 239 | 1,110 | 847 | 339 | |||||||||||||||||||||
| Net gain on sale of loans held for sale | 306 | 257 | 181 | 125 | 195 | 285 | 140 | |||||||||||||||||||||
| Net gain on investment securities | 328 | 3 | - | 328 | 225 | 703 | 3 | |||||||||||||||||||||
| Net (loss) gain on other assets | (454 | ) | - | 27 | (481 | ) | (225 | ) | (281 | ) | - | |||||||||||||||||
| Net loss on tax credit investments | (802 | ) | (1,026 | ) | (350 | ) | (452 | ) | (446 | ) | (513 | ) | (512 | ) | ||||||||||||||
| Other | 2,970 | 2,860 | 1,200 | 1,770 | 1,430 | 1,596 | 1,284 | |||||||||||||||||||||
| Total noninterest income | 21,627 | 20,990 | 10,954 | 10,673 | 11,909 | 12,056 | 10,617 | |||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 37,766 | 34,968 | 19,165 | 18,601 | 19,323 | 18,522 | 18,070 | |||||||||||||||||||||
| Occupancy and equipment | 7,806 | 7,572 | 3,941 | 3,865 | 4,104 | 3,814 | 3,982 | |||||||||||||||||||||
| Professional services | 2,613 | 3,142 | 1,263 | 1,350 | 1,686 | 1,688 | 1,451 | |||||||||||||||||||||
| Computer and data processing | 11,723 | 11,366 | 5,512 | 6,211 | 5,934 | 5,789 | 5,879 | |||||||||||||||||||||
| FDIC assessments | 1,973 | 2,859 | 987 | 986 | 984 | 1,227 | 1,392 | |||||||||||||||||||||
| Advertising and promotions | 1,116 | 837 | 592 | 524 | 482 | 491 | 495 | |||||||||||||||||||||
| Amortization of intangibles | 194 | 212 | 96 | 98 | 100 | 103 | 105 | |||||||||||||||||||||
| Deposit-related charged-off items expense (recoveries) | 235 | (61 | ) | 126 | 109 | 77 | 144 | 233 | ||||||||||||||||||||
| Other | 7,774 | 8,472 | 3,923 | 3,851 | 4,029 | 4,097 | 4,075 | |||||||||||||||||||||
| Total noninterest expense | 71,200 | 69,367 | 35,605 | 35,595 | 36,719 | 35,875 | 35,682 | |||||||||||||||||||||
| Income before income taxes | 50,434 | 42,119 | 25,602 | 24,832 | 23,997 | 25,238 | 21,495 | |||||||||||||||||||||
| Income tax expense | 8,265 | 7,709 | 4,418 | 3,847 | 4,017 | 4,761 | 3,963 | |||||||||||||||||||||
| Net income | 42,169 | 34,410 | 21,184 | 20,985 | 19,980 | 20,477 | 17,532 | |||||||||||||||||||||
| Preferred stock dividends | 729 | 729 | 365 | 364 | 364 | 365 | 364 | |||||||||||||||||||||
| Net income available to common shareholders | $ | 41,440 | $ | 33,681 | $ | 20,819 | $ | 20,621 | $ | 19,616 | $ | 20,112 | $ | 17,168 | ||||||||||||||
| FINANCIAL RATIOS: | ||||||||||||||||||||||||||||
| Earnings per share – basic | $ | 2.11 | $ | 1.68 | $ | 1.06 | $ | 1.05 | $ | 0.98 | $ | 1.00 | $ | 0.85 | ||||||||||||||
| Earnings per share – diluted | $ | 2.08 | $ | 1.66 | $ | 1.04 | $ | 1.04 | $ | 0.96 | $ | 0.99 | $ | 0.85 | ||||||||||||||
| Cash dividends declared on common stock | $ | 0.64 | $ | 0.62 | $ | 0.32 | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.31 | ||||||||||||||
| Common dividend payout ratio | 30.33 | % | 36.90 | % | 30.19 | % | 30.48 | % | 31.63 | % | 31.00 | % | 36.47 | % | ||||||||||||||
| Dividend yield (annualized) | 3.31 | % | 4.87 | % | 3.29 | % | 4.09 | % | 3.95 | % | 4.52 | % | 4.84 | % | ||||||||||||||
| Return on average assets (annualized) | 1.36 | % | 1.12 | % | 1.35 | % | 1.37 | % | 1.27 | % | 1.32 | % | 1.13 | % | ||||||||||||||
| Return on average equity (annualized) | 13.37 | % | 11.80 | % | 13.31 | % | 13.43 | % | 12.53 | % | 13.31 | % | 11.78 | % | ||||||||||||||
| Return on average common equity (annualized) | 13.50 | % | 11.90 | % | 13.44 | % | 13.57 | % | 12.64 | % | 13.45 | % | 11.88 | % | ||||||||||||||
| Return on average tangible common equity (annualized) (1) | 14.96 | % | 13.31 | % | 14.88 | % | 15.04 | % | 14.02 | % | 14.98 | % | 13.27 | % | ||||||||||||||
| Efficiency ratio (2) | 56.18 | % | 59.24 | % | 55.33 | % | 57.06 | % | 57.43 | % | 56.78 | % | 59.68 | % | ||||||||||||||
| Effective tax rate | 16.4 | % | 18.3 | % | 17.3 | % | 15.5 | % | 16.7 | % | 18.9 | % | 18.4 | % | ||||||||||||||
(1) See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
(2) The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (tax-equivalent basis assuming a Federal income tax rate of
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| Six Months Ended | 2026 | 2025 | ||||||||||||||||||||||||||
| June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
| SELECT AVERAGE BALANCES: | 2026 | 2025 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Federal funds sold and interest-earning deposits | $ | 29,301 | $ | 55,306 | $ | 28,347 | $ | 30,266 | $ | 48,418 | $ | 31,461 | $ | 39,027 | ||||||||||||||
| Investment securities (1) | 1,066,571 | 1,078,600 | 1,077,633 | 1,055,385 | 1,066,829 | 1,059,244 | 1,071,628 | |||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||
| Commercial business | 741,484 | 699,141 | 745,977 | 736,942 | 731,314 | 726,315 | 720,347 | |||||||||||||||||||||
| Commercial mortgage | 2,367,615 | 2,212,786 | 2,392,003 | 2,342,957 | 2,313,465 | 2,239,666 | 2,221,576 | |||||||||||||||||||||
| Residential real estate loans | 654,822 | 646,001 | 655,028 | 654,614 | 650,190 | 648,642 | 645,007 | |||||||||||||||||||||
| Residential real estate lines | 74,523 | 74,860 | 74,853 | 74,189 | 75,288 | 75,774 | 75,010 | |||||||||||||||||||||
| Consumer indirect | 787,178 | 843,763 | 779,336 | 795,107 | 823,521 | 838,026 | 839,294 | |||||||||||||||||||||
| Other consumer | 33,892 | 40,850 | 32,723 | 35,074 | 36,917 | 37,741 | 39,485 | |||||||||||||||||||||
| Total loans | 4,659,514 | 4,517,401 | 4,679,920 | 4,638,883 | 4,630,695 | 4,566,164 | 4,540,719 | |||||||||||||||||||||
| Total interest-earning assets | 5,755,386 | 5,651,307 | 5,785,900 | 5,724,534 | 5,745,942 | 5,656,869 | 5,651,374 | |||||||||||||||||||||
| Goodwill and other intangible assets, net | 60,256 | 60,663 | 60,207 | 60,305 | 60,404 | 60,505 | 60,610 | |||||||||||||||||||||
| Total assets | 6,249,798 | 6,218,412 | 6,271,961 | 6,227,388 | 6,261,856 | 6,159,886 | 6,216,657 | |||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Interest-bearing demand | 709,029 | 738,055 | 701,768 | 716,370 | 713,033 | 687,978 | 730,979 | |||||||||||||||||||||
| Savings and money market | 1,941,869 | 1,964,884 | 1,976,903 | 1,906,445 | 1,924,952 | 1,881,445 | 1,953,412 | |||||||||||||||||||||
| Time deposits | 1,679,954 | 1,598,381 | 1,676,759 | 1,683,185 | 1,692,138 | 1,643,342 | 1,631,407 | |||||||||||||||||||||
| Short-term borrowings | 116,782 | 90,636 | 125,331 | 108,138 | 79,913 | 110,011 | 86,099 | |||||||||||||||||||||
| Long-term borrowings, net | 88,923 | 120,648 | 78,659 | 99,302 | 133,242 | 114,976 | 116,473 | |||||||||||||||||||||
| Total interest-bearing liabilities | 4,536,557 | 4,512,604 | 4,559,420 | 4,513,440 | 4,543,278 | 4,437,752 | 4,518,370 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 947,322 | 925,043 | 944,037 | 950,644 | 955,880 | 960,089 | 923,409 | |||||||||||||||||||||
| Total deposits | 5,278,174 | 5,226,363 | 5,299,467 | 5,256,644 | 5,286,003 | 5,172,854 | 5,239,207 | |||||||||||||||||||||
| Total liabilities | 5,613,678 | 5,630,349 | 5,633,343 | 5,593,794 | 5,629,101 | 5,549,575 | 5,619,834 | |||||||||||||||||||||
| Shareholders’ equity | 636,120 | 588,063 | 638,618 | 633,594 | 632,755 | 610,311 | 596,823 | |||||||||||||||||||||
| Common equity | 618,835 | 570,778 | 621,333 | 616,309 | 615,470 | 593,026 | 579,538 | |||||||||||||||||||||
| Tangible common equity (2) | 558,579 | 510,115 | 561,126 | 556,004 | 555,066 | 532,521 | 518,928 | |||||||||||||||||||||
| Common shares outstanding: | ||||||||||||||||||||||||||||
| Basic | 19,665 | 20,290 | 19,687 | 19,642 | 20,093 | 20,122 | 20,107 | |||||||||||||||||||||
| Diluted | 19,931 | 20,291 | 19,941 | 19,922 | 20,347 | 20,336 | 20,294 | |||||||||||||||||||||
| SELECTED AVERAGE YIELDS: (Tax equivalent basis) | ||||||||||||||||||||||||||||
| Investment securities (3) | 4.47 | % | 4.30 | % | 4.46 | % | 4.48 | % | 4.48 | % | 4.45 | % | 4.34 | % | ||||||||||||||
| Loans | 6.07 | % | 6.23 | % | 6.07 | % | 6.07 | % | 6.20 | % | 6.29 | % | 6.26 | % | ||||||||||||||
| Total interest-earning assets | 5.76 | % | 5.84 | % | 5.76 | % | 5.76 | % | 5.86 | % | 5.93 | % | 5.88 | % | ||||||||||||||
| Interest-bearing demand | 1.06 | % | 1.18 | % | 1.08 | % | 1.04 | % | 1.20 | % | 1.09 | % | 1.21 | % | ||||||||||||||
| Savings and money market | 2.31 | % | 2.71 | % | 2.33 | % | 2.29 | % | 2.46 | % | 2.62 | % | 2.67 | % | ||||||||||||||
| Time deposits | 3.45 | % | 4.19 | % | 3.38 | % | 3.53 | % | 3.73 | % | 3.88 | % | 4.08 | % | ||||||||||||||
| Short-term borrowings | 2.52 | % | 1.95 | % | 2.62 | % | 2.40 | % | 1.77 | % | 2.41 | % | 1.80 | % | ||||||||||||||
| Long-term borrowings, net | 6.91 | % | 5.17 | % | 6.99 | % | 6.84 | % | 6.31 | % | 5.53 | % | 5.35 | % | ||||||||||||||
| Total interest-bearing liabilities | 2.63 | % | 3.03 | % | 2.61 | % | 2.65 | % | 2.83 | % | 2.92 | % | 3.00 | % | ||||||||||||||
| Net interest rate spread | 3.13 | % | 2.81 | % | 3.15 | % | 3.11 | % | 3.03 | % | 3.01 | % | 2.88 | % | ||||||||||||||
| Net interest margin | 3.68 | % | 3.42 | % | 3.70 | % | 3.67 | % | 3.62 | % | 3.65 | % | 3.49 | % | ||||||||||||||
(1) Includes investment securities at adjusted amortized cost.
(2) See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
(3) The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of
FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)
| Six Months Ended | 2026 | 2025 | ||||||||||||||||||||||||||
| June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
| ASSET QUALITY DATA: | 2026 | 2025 | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||
| Allowance for Credit Losses – Loans | ||||||||||||||||||||||||||||
| Beginning balance | $ | 47,386 | $ | 48,041 | $ | 44,661 | $ | 47,386 | $ | 47,292 | $ | 47,291 | $ | 48,964 | ||||||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||||||||||
| Commercial business | 2,967 | 1,960 | (23 | ) | 2,990 | 46 | 123 | 1,903 | ||||||||||||||||||||
| Commercial mortgage – construction | - | - | - | - | (10 | ) | (357 | ) | - | |||||||||||||||||||
| Commercial mortgage – multifamily | - | - | - | - | - | - | - | |||||||||||||||||||||
| Commercial mortgage – non-owner occupied | (2 | ) | 595 | (1 | ) | (1 | ) | - | (1 | ) | 596 | |||||||||||||||||
| Commercial mortgage – owner occupied | (1 | ) | (2 | ) | - | (1 | ) | - | (1 | ) | (1 | ) | ||||||||||||||||
| Residential real estate loans | 19 | 133 | - | 19 | (4 | ) | (25 | ) | 92 | |||||||||||||||||||
| Residential real estate lines | 27 | 27 | 30 | (3 | ) | - | - | 27 | ||||||||||||||||||||
| Consumer indirect | 2,990 | 3,091 | 1,140 | 1,850 | 2,239 | 1,926 | 942 | |||||||||||||||||||||
| Other consumer | 377 | 615 | 151 | 226 | 140 | 396 | 491 | |||||||||||||||||||||
| Total net charge-offs (recoveries) | 6,377 | 6,419 | 1,297 | 5,080 | 2,411 | 2,061 | 4,050 | |||||||||||||||||||||
| Provision for credit losses – loans | 6,488 | 5,669 | 4,133 | 2,355 | 2,505 | 2,062 | 2,377 | |||||||||||||||||||||
| Ending balance | $ | 47,497 | $ | 47,291 | $ | 47,497 | $ | 44,661 | $ | 47,386 | $ | 47,292 | $ | 47,291 | ||||||||||||||
| Net charge-offs (recoveries) to average loans (annualized): | ||||||||||||||||||||||||||||
| Commercial business | 0.81 | % | 0.57 | % | -0.01 | % | 1.65 | % | 0.02 | % | 0.07 | % | 1.06 | % | ||||||||||||||
| Commercial mortgage – construction | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | -0.01 | % | -0.31 | % | 0.00 | % | ||||||||||||||
| Commercial mortgage – multifamily | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Commercial mortgage – non-owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Commercial mortgage – owner occupied | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
| Residential real estate loans | 0.01 | % | 0.04 | % | 0.00 | % | 0.01 | % | 0.00 | % | -0.02 | % | 0.06 | % | ||||||||||||||
| Residential real estate lines | 0.07 | % | 0.07 | % | 0.16 | % | -0.03 | % | 0.00 | % | 0.00 | % | 0.14 | % | ||||||||||||||
| Consumer indirect | 0.77 | % | 0.74 | % | 0.59 | % | 0.94 | % | 1.08 | % | 0.91 | % | 0.45 | % | ||||||||||||||
| Other consumer | 2.24 | % | 3.04 | % | 1.85 | % | 2.61 | % | 1.50 | % | 4.16 | % | 4.99 | % | ||||||||||||||
| Total loans | 0.28 | % | 0.29 | % | 0.11 | % | 0.44 | % | 0.21 | % | 0.18 | % | 0.36 | % | ||||||||||||||
| Supplemental information (1) | ||||||||||||||||||||||||||||
| Non-performing loans: | ||||||||||||||||||||||||||||
| Commercial business | $ | 7,677 | $ | 3,671 | $ | 7,677 | $ | 6,698 | $ | 4,709 | $ | 3,799 | $ | 3,671 | ||||||||||||||
| Commercial mortgage – construction | 20,520 | 19,621 | 20,520 | 20,520 | 20,321 | 19,794 | 19,621 | |||||||||||||||||||||
| Commercial mortgage – multifamily | 540 | - | 540 | 540 | 540 | 540 | - | |||||||||||||||||||||
| Commercial mortgage – non-owner occupied | - | 164 | - | - | - | - | 164 | |||||||||||||||||||||
| Commercial mortgage – owner occupied | 981 | - | 981 | 983 | 1,095 | 1,102 | - | |||||||||||||||||||||
| Residential real estate loans | 6,974 | 5,885 | 6,974 | 7,434 | 6,443 | 5,877 | 5,885 | |||||||||||||||||||||
| Residential real estate lines | 412 | 299 | 412 | 431 | 374 | 212 | 299 | |||||||||||||||||||||
| Consumer indirect | 1,772 | 2,571 | 1,772 | 1,767 | 2,155 | 2,482 | 2,571 | |||||||||||||||||||||
| Other consumer | 131 | 225 | 131 | 102 | 118 | 145 | 225 | |||||||||||||||||||||
| Total non-performing loans | 39,007 | 32,436 | 39,007 | 38,475 | 35,755 | 33,951 | 32,436 | |||||||||||||||||||||
| Foreclosed assets | 552 | 142 | 552 | 552 | 94 | 142 | 142 | |||||||||||||||||||||
| Total non-performing assets | $ | 39,559 | $ | 32,578 | $ | 39,559 | $ | 39,027 | $ | 35,849 | $ | 34,093 | $ | 32,578 | ||||||||||||||
| Total non-performing loans to total loans | 0.82 | % | 0.72 | % | 0.82 | % | 0.83 | % | 0.77 | % | 0.74 | % | 0.72 | % | ||||||||||||||
| Total non-performing assets to total assets | 0.62 | % | 0.53 | % | 0.62 | % | 0.62 | % | 0.57 | % | 0.54 | % | 0.53 | % | ||||||||||||||
| Allowance for credit losses – loans to total loans | 1.00 | % | 1.04 | % | 1.00 | % | 0.97 | % | 1.02 | % | 1.03 | % | 1.04 | % | ||||||||||||||
| Allowance for credit losses – loans to non-performing loans | 122 | % | 146 | % | 122 | % | 116 | % | 133 | % | 139 | % | 146 | % | ||||||||||||||
(1) At period end.
FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)
| Six Months Ended | 2026 | 2025 | ||||||||||||||||||||||||||
| June 30, | Second | First | Fourth | Third | Second | |||||||||||||||||||||||
| 2026 | 2025 | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||
| Ending tangible assets: | ||||||||||||||||||||||||||||
| Total assets | $ | 6,334,952 | $ | 6,294,783 | $ | 6,274,140 | $ | 6,288,052 | $ | 6,143,766 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 60,149 | 60,245 | 60,343 | 60,443 | 60,546 | |||||||||||||||||||||||
| Tangible assets | $ | 6,274,803 | $ | 6,234,538 | $ | 6,213,797 | $ | 6,227,609 | $ | 6,083,220 | ||||||||||||||||||
| Ending tangible common equity: | ||||||||||||||||||||||||||||
| Common shareholders’ equity | $ | 626,156 | $ | 614,385 | $ | 611,569 | $ | 604,435 | $ | 584,383 | ||||||||||||||||||
| Less: Goodwill and other intangible assets, net | 60,149 | 60,245 | 60,343 | 60,443 | 60,546 | |||||||||||||||||||||||
| Tangible common equity | $ | 566,007 | $ | 554,140 | $ | 551,226 | $ | 543,992 | $ | 523,837 | ||||||||||||||||||
| Tangible common equity to tangible assets (1) | 9.02 | % | 8.89 | % | 8.87 | % | 8.74 | % | 8.61 | % | ||||||||||||||||||
| Common shares outstanding | 19,706 | 19,686 | 19,797 | 20,130 | 20,128 | |||||||||||||||||||||||
| Tangible common book value per share (2) | $ | 28.72 | $ | 28.15 | $ | 27.84 | $ | 27.02 | $ | 26.03 | ||||||||||||||||||
| Average tangible assets: | ||||||||||||||||||||||||||||
| Average assets | $ | 6,249,798 | $ | 6,218,412 | $ | 6,271,961 | $ | 6,227,388 | $ | 6,261,856 | $ | 6,159,886 | $ | 6,216,657 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 60,256 | 60,663 | 60,207 | 60,305 | 60,404 | 60,505 | 60,610 | |||||||||||||||||||||
| Average tangible assets | $ | 6,189,542 | $ | 6,157,749 | $ | 6,211,754 | $ | 6,167,083 | $ | 6,201,452 | $ | 6,099,381 | $ | 6,156,047 | ||||||||||||||
| Average tangible common equity: | ||||||||||||||||||||||||||||
| Average common equity | $ | 618,835 | $ | 570,778 | $ | 621,333 | $ | 616,309 | $ | 615,470 | $ | 593,026 | $ | 579,538 | ||||||||||||||
| Less: Average goodwill and other intangible assets, net | 60,256 | 60,663 | 60,207 | 60,305 | 60,404 | 60,505 | 60,610 | |||||||||||||||||||||
| Average tangible common equity | $ | 558,579 | $ | 510,115 | $ | 561,126 | $ | 556,004 | $ | 555,066 | $ | 532,521 | $ | 518,928 | ||||||||||||||
| Net income available to common shareholders | $ | 41,440 | $ | 33,681 | $ | 20,819 | $ | 20,621 | $ | 19,616 | $ | 20,112 | $ | 17,168 | ||||||||||||||
| Return on average tangible common equity (3) | 14.96 | % | 13.31 | % | 14.88 | % | 15.04 | % | 14.02 | % | 14.98 | % | 13.27 | % | ||||||||||||||
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by common shares outstanding.
(3) Net income available to common shareholders (annualized) divided by average tangible common equity.
For additional information contact: Kate Croft Director of Investor Relations and Corporate Communications (716) 817-5159 klcroft@five-starbank.com