Financial Institutions Q3 common profit falls 2.4%

Net interest income reached a quarterly high of $54.3 million as loans and deposits expanded year over year.

Rhea-AI Filing Summary

Financial Institutions, Inc. (FISI) reported third-quarter 2026 net income available to common shareholders of $19.6 million, or $0.99 per diluted share, for the quarter ended September 30, 2026. Net income available to common shareholders was down 2.4% year over year, while diluted earnings per share were unchanged.

Net interest income reached $54.3 million, up 4.8% year over year, and net interest margin was 3.70%, up 5 basis points. At September 30, 2026, total loans were $4.86 billion, up 5.8% year over year, and deposits were $5.47 billion, up 2.2%. Noninterest income declined 13.3% to $10.5 million; noninterest expense increased 2.6% to $36.8 million.

The third-quarter provision for credit losses was $3.9 million, and non-performing loans were $38.5 million, or 0.79% of total loans. Common Equity Tier 1 was 11.36%, and tangible common equity to tangible assets was 8.40%. FISI declared a $0.32-per-share dividend, up 3.2% year over year, and repurchased 185,833 shares at an average price of $40.92 during the quarter.

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0 major · 1 point

How the balance works

Positive

• Minor pointFISI's common dividend rose 3.2% year over year to $0.32 per share.

Negative

• Moderate pointCredit-loss provision rose 42.0% year over year to $3.9 million.

Filing Explained

At September 30, 2026, FISI had 320,480 shares remaining under its September 2025 repurchase program, which has no expiration date; this is authorization to repurchase shares, not a commitment to buy them.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income available to common shareholders: $19.6 million Diluted earnings per common share: $0.99 per diluted share Net interest income: $54.3 million +5 more

8 metrics

Net income available to common shareholders $19.6 million Third quarter of 2026; down 2.4% year over year

Diluted earnings per common share $0.99 per diluted share Third quarter of 2026; unchanged year over year

Net interest income $54.3 million Third quarter of 2026; up 4.8% year over year

Net interest margin 3.70% Third quarter of 2026; up 5 basis points year over year

Total loans $4.86 billion At September 30, 2026; up 5.8% year over year

Total deposits $5.47 billion At September 30, 2026; up 2.2% year over year

Provision for credit losses $3.9 million Third quarter of 2026; up 42.0% year over year

Dividend per common share $0.32 per common share Third quarter of 2026; 3.2% increase from the year-ago quarter

Key Terms

net interest margin, Common Equity Tier 1 Ratio, Allowance for credit losses, nonaccrual status, +1 more

5 terms

net interest margin financial

"net interest margin of 3.70% was consistent with the linked quarter"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

Common Equity Tier 1 Ratio financial

"Common Equity Tier 1 Ratio | 11.36%"

The common equity tier 1 ratio is a measure of a bank's financial strength, showing how much high-quality core capital it has compared to its total risk-weighted assets. Think of it as a safety buffer or cushion that helps ensure the bank can withstand economic shocks. For investors, a higher ratio indicates a stronger, more resilient bank, making it a key indicator of its financial health.

Allowance for credit losses financial

"Allowance for credit losses - loans to total loans ratio"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonaccrual status financial

"moved to nonaccrual status in the first quarter of 2026"

Nonaccrual status is when a lender stops recording interest income on a loan because payments are late or the borrower’s ability to pay is in serious doubt. For investors this is a red flag: it signals deteriorating loan quality, can reduce reported earnings and may require the lender to set aside more reserves, much like marking a damaged product off the books until its value is clear.

tangible common equity financial

"tangible common equity to tangible assets ratio"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

Earnings Snapshot

Net income available to common shareholders: $19.6 million

Third quarter of 2026

Net income available to common shareholders $19.6 million -2.4% year over year

Diluted earnings per common share $0.99 per diluted share 0.0% year over year

Net interest income $54.3 million +4.8% year over year

Net interest margin 3.70% +5 basis points year over year

Total loans $4.86 billion +5.8% year over year

Total deposits $5.47 billion +2.2% year over year

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did FISI earn in Q3 2026?

Financial Institutions reported $19.6 million in net income available to common shareholders, or $0.99 per diluted share, for the third quarter of 2026. Net income available to common shareholders was 2.4% below the third quarter of 2025, while diluted earnings per share were unchanged at $0.99.

How much did FISI's loans and deposits grow in Q3 2026?

At September 30, 2026, total loans were $4.86 billion, up 5.8% from September 30, 2025, and total deposits were $5.47 billion, up 2.2% year over year. On a linked-quarter basis, loans increased 2.2% and deposits increased 3.3%.

How many shares remained available under FISI's repurchase program?

320,480 shares remained available under the repurchase program as of September 30, 2026. The program was approved in September 2025 and has no expiration date.

When is FISI's Q3 2026 earnings call?

Financial Institutions scheduled its earnings conference call and audio webcast for October 30, 2026, at 8:30 a.m. Eastern Time. A webcast replay was to be available on the company's investor relations website for at least 30 days.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/29/2026 - 04:07 PM EDT Accepted by SEC EDGAR 10/29/2026 - 04:06 PM EDT Learn about SEC filing dates

false000086283100008628312026-09-302026-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): September 30, 2026

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. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2026, Financial Institutions, Inc. (the “Company”) issued a press release to report financial results for the third quarter ended September 30, 2026. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

The Company published an investor presentation with data for the third quarter ended September 30, 2026. The presentation is available on the Company’s website at www.FISI-investors.com under “Events & Presentations”. Investors should note that the Company announces material information in Securities and Exchange Commission (“SEC”) filings and press releases. Based on guidance from the SEC, the Company may also use the Investor Relations section of its corporate website, www.FISI-investors.com, to communicate with investors about the Company. It is possible that the information posted there could be deemed to be material information. The information on the Company’s website is not incorporated by reference into this Current Report on Form 8-K.

This information is furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”), as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, of the Exchange Act, whether made before or after the date of this report, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

d) Exhibits.

Exhibit Number		Description		Location
99.1		Press Release issued by Financial Institutions, Inc. on October 29, 2026		Filed Herewith
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			Financial Institutions, Inc.
Date:	October 29, 2026	By:	/s/ W. Jack Plants II
			W. Jack Plants II Executive Vice President, Chief Financial Officer      and Treasurer

Exhibit 99.1

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

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

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

KEY FINANCIAL METRICS										Quarter-over-Quarter ("QoQ")							Year-over-Year ("YoY")
Dollars in thousands, except per share data Return metrics annualized	Q3 2026			Q2 2026			Q3 2025			Variance				%			Variance				%
Net income	$	19,990		$	21,184		$	20,477		$	(1,194	)			-5.6	%	$	(487	)			-2.4	%
Net income available to common shareholders		19,626			20,819			20,112			(1,193	)			-5.7	%		(486	)			-2.4	%
Diluted earnings per common share	$	0.99		$	1.04		$	0.99		$	(0.05	)			-4.8	%	$	-				0.0	%
Return on average assets		1.26	%		1.35	%		1.32	%		(9	)	bps					(6	)	bps
Return on average equity		12.32	%		13.31	%		13.31	%		(99	)	bps					(99	)	bps
Return on average tangible common equity(1)		13.75	%		14.88	%		14.98	%		(113	)	bps					(123	)	bps
Efficiency ratio		56.84	%		55.33	%		56.78	%		151		bps					6		bps
Total loans (end of period)	$	4,855,827		$	4,752,965		$	4,590,423		$	102,862				2.2	%	$	265,404				5.8	%
Total deposits (end of period)	$	5,474,936		$	5,299,465		$	5,357,809		$	175,471				3.3	%	$	117,127				2.2	%

Third Quarter 2026 Highlights and Key Developments

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

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

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

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

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

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

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

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

Net Interest Income and Net Interest Margin

NET INTEREST INCOME										QoQ							YoY
Dollars in thousands	Q3 2026			Q2 2026			Q3 2025			Variance				%			Variance				%
Interest income	$	85,003		$	83,076		$	84,422		$	1,927				2.3	%	$	581				0.7	%
Interest expense		30,712			29,715			32,633			997				3.4	%		(1,921	)			-5.9	%
Net interest income		54,291			53,361			51,789			930				1.7	%		2,502				4.8	%
Net interest margin (tax-equivalent basis)(2)		3.70	%		3.70	%		3.65	%		-		bps					5		bps
Average interest-earning assets	$	5,837,535		$	5,785,900		$	5,656,869		$	51,635				0.9	%	$	180,666				3.2	%
Average interest-bearing liabilities		4,573,266			4,559,420			4,437,752			13,846				0.3	%		135,514				3.1	%

Net interest income was $54.3 million, up $930 thousand from the linked quarter and up $2.5 million from the third quarter of 2025. Net interest margin of 3.70% was consistent with the linked quarter and up 5 basis points from the year-ago quarter, driven by lower interest-bearing liability costs.

•Average interest-earning assets of $5.84 billion were up $51.6 million from the second quarter of 2026 and up $180.7 million from the third quarter of 2025. The linked quarter variance reflected a $114.5 million increase in average loans, partially offset by decreases in the average balances of investment securities of $61.6 million and Federal Reserve interest-earning cash of $1.2 million. The year-over-year variance reflected a $228.2 million increase in the average balance of loans, partially offset by a $43.2 million decrease in the average balance of investment securities and a $4.3 million decrease in the average balance of Federal Reserve interest-earning cash. The average yield on interest-earning assets was 5.79% in the third quarter of 2026, compared to 5.76% in the second quarter of 2026, and 5.93% in the third quarter of 2025.

•Average interest-bearing liabilities of $4.57 billion were up $13.8 million from the second quarter of 2026 and up $135.5 million from the third quarter of 2025. The linked quarter variance was primarily due to increases in the average balances of time, savings and money market deposits, partially offset by decreases in average interest-bearing demand deposits and short-term borrowings, while average long-term borrowings were flat. The year-over-year variance reflected increases in the average balances of savings and money market deposits, time deposits, short-term borrowings and interest-bearing demand deposits, partially offset by a decrease in average long-term borrowings. The average cost of interest-bearing liabilities was 2.67%, reflecting an increase of 6 basis points from the linked quarter and a decrease of 25 basis points from the year-ago quarter.

Noninterest Income

SELECT NONINTEREST INCOME CATEGORIES										QoQ Change						YoY Change
Dollars in thousands	Q3 2026			Q2 2026			Q3 2025			$			%			$			%
Investment advisory	$	3,343		$	3,287		$	3,023		$	56			1.7	%	$	320			10.6	%
Investments in limited partnerships		(274	)		(140	)		223			(134	)		95.7	%		(497	)		-222.9	%
Income from derivative instruments, net		106			518			847			(412	)		-79.5	%		(741	)		-87.5	%
Net gain on investment securities		-			-			703			-		-				(703	)		-100.0	%
Other		1,239			1,200			1,596			39			3.3	%		(357	)		-22.4	%
Total noninterest income		10,457			10,954			12,056			(497	)		-4.5	%		(1,599	)		-13.3	%

Noninterest income was $10.5 million in the third quarter of 2026, versus $11.0 million in the second quarter of 2026 and $12.1 million in the third quarter of 2025. The linked quarter variance was primarily driven by decreased income from derivative instruments, net, or swap fees, along with greater losses on investments in limited partnerships. The aforementioned lower level of swap fees and loss on limited partnerships were also contributors to the year-over-year variance. Detail on other select categories with notable variances follows:

•Investment advisory income of $3.3 million was up from both the linked and year-ago quarters, reflecting both new business and market performance.

•A loss on investments in limited partnerships, which are primarily small business investment companies, of $274 thousand was recognized in the third quarter of 2026, compared to a loss of $140 thousand and a gain of $223 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.

•Income from derivative instruments, net, which is based on the number and value of interest rate swap transactions executed during the quarter, of $106 thousand was down from $518 thousand and $847 thousand in the linked and year-ago quarters, respectively.

•A net gain on investment securities of $703 thousand was recorded in the third quarter of 2025. There was no gain or loss recorded in the second or third quarters of 2026.

•Other noninterest income of $1.2 million was relatively flat with the linked quarter and down from the year-ago quarter, driven by a variety of factors.

Noninterest Expense and Income Taxes

SELECT NONINTEREST EXPENSE CATEGORIES										QoQ Change						YoY Change
Dollars in thousands	Q3 2026			Q2 2026			Q3 2025			$			%			$			%
Salaries and employee benefits	$	19,654		$	19,165		$	18,522		$	489			2.6	%	$	1,132			6.1	%
Professional services		1,475			1,263			1,688			212			16.8	%		(213	)		-12.6	%
Total noninterest expense		36,822			35,605			35,875			1,217			3.4	%		947			2.6	%

Noninterest expense was $36.8 million in the third quarter of 2026, compared to $35.6 million in the second quarter of 2026 and $35.9 million in the third quarter of 2025. Detail on select categories with notable variances follows:

•Salaries and employee benefits expense was $489 thousand higher than the second quarter of 2026, primarily driven by an increase in health insurance benefit expense, and $1.1 million higher than the third quarter of 2025, reflecting a combination of factors, including annual merit increases, higher incentive compensation and investments in personnel.

•Professional services expense was $212 thousand higher than the linked quarter, driven in part by the timing of typical external audit-related expenses. The $213 thousand decrease year-over-year was driven by lower other professional and consulting expenses.

INCOME TAXES										QoQ						YoY
Dollars in thousands	Q3 2026			Q2 2026			Q3 2025			Variance			%			Variance			%
Income tax expense	$	4,057		$	4,418		$	4,761		$	(361	)		-8.2	%	$	(704	)		-14.8	%
Tax credit on investments placed in service/amortized		1,045			1,045			1,103			-			0.0	%		(58	)		-5.3	%
Effective tax rate		16.9	%		17.3	%		18.9	%		-0.4	%					-2.0	%

Income tax expense was $4.1 million for the third quarter of 2026, compared to $4.4 million in the second quarter of 2026 and $4.8 million in the third quarter of 2025. Income tax expense reflects federal and state tax benefits that the Company recognized related to tax credit investments placed in service and/or amortized during each period, as outlined above.

•The effective tax rate, which was 16.9% for the third 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, 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	Q3 2026			Q2 2026			Q3 2025			$			%			$			%
Total assets	$	6,506,919		$	6,334,952		$	6,288,052		$	171,967			2.7	%	$	218,867			3.5	%
Total investment securities		1,034,758			989,764			1,011,217			44,994			4.5	%		23,541			2.3	%
Commercial business and commercial mortgage		3,305,501			3,210,384			2,989,710			95,117			3.0	%		315,791			10.6	%
Residential real estate		740,524			738,681			724,506			1,843			0.2	%		16,018			2.2	%
Consumer indirect and other consumer		809,802			803,900			876,207			5,902			0.7	%		(66,405	)		-7.6	%
Total loans		4,855,827			4,752,965			4,590,423			102,862			2.2	%		265,404			5.8	%
Total deposits		5,474,936			5,299,465			5,357,809			175,471			3.3	%		117,127			2.2	%
Short-term borrowings		167,000			182,000			55,000			(15,000	)		-8.2	%		112,000			203.6	%
Long-term borrowings, net		78,768			78,694			115,000			74			0.1	%		(36,232	)		-31.5	%

Total loans of $4.86 billion at September 30, 2026 were up $102.9 million from the end of the linked quarter and up $265.4 million from September 30, 2025.

•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 $5.47 billion at September 30, 2026, up $175.5 million from June 30, 2026, and up $117.1 million from September 30, 2025.

•The linked quarter variance was primarily due to seasonally higher public deposit balances, but reflected growth across all deposit types. The year-over-year increase reflected higher nonpublic, reciprocal and brokered deposits, partially offset by a modest decrease in public deposits. Public deposits represented 22% of total deposits at September 30, 2026, 22% at June 30, 2026, and 23% at September 30, 2025.

LIQUIDITY SOURCES										QoQ Change						YoY Change
Dollars in thousands, end of period	Q3 2026			Q2 2026			Q3 2025			$			%			$			%
Unencumbered securities	$	6,853		$	29,876		$	58,476		$	(23,023	)		-77.1	%	$	(51,623	)		-88.3	%
FHLBNY borrowing availability		204,714			182,426			288,811			22,288			12.2	%		(84,097	)		-29.1	%
FRB excess cash		37,629			39,564			96,968			(1,935	)		-4.9	%		(59,339	)		-61.2	%
FRB discount window		922,388			900,825			956,770			21,563			2.4	%		(34,382	)		-3.6	%
Total on-balance sheet liquidity		1,171,584			1,152,691			1,401,025			18,893			1.6	%		(229,441	)		-16.4	%

The Company maintains liquidity, both on and off-balance sheet, to meet customer demand. As outlined in the table above, at September 30, 2026, the Company had approximately $1.17 billion in available liquidity, excluding brokered deposit capacity, in addition to cash and cash equivalents of $102.9 million and available unsecured lines of credit totaling $155.0 million.

Capital Strength and Shareholder Returns

REGULATORY CAPITAL RATIOS	Q3 2026			Q2 2026			Q3 2025			QoQ Change				YoY Change
Leverage Ratio		10.09	%		10.06	%		9.77	%		3		bps		32		bps
Common Equity Tier 1 Ratio		11.36	%		11.44	%		11.15	%		(8	)	bps		21		bps
Tier 1 Capital Ratio		11.68	%		11.76	%		11.48	%		(8	)	bps		20		bps
Total Risk Based Capital Ratio		14.07	%		14.20	%		13.60	%		(13	)	bps		47		bps

The Company's regulatory capital ratios at September 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	Q3 2026			Q2 2026			Q3 2025			Variance				%			Variance				%
Shareholders' equity	$	618,993		$	643,441		$	621,720		$	(24,448	)			-3.8	%	$	(2,727	)			-0.4	%
Common shareholders' equity		601,710			626,156			604,435			(24,446	)			-3.9	%		(2,725	)			-0.5	%
Tangible common equity(1)		541,655			566,007			543,992			(24,352	)			-4.3	%		(2,337	)			-0.4	%
Common book value per share	$	30.82		$	31.77		$	30.03		$	(0.95	)			-3.0	%	$	0.79				2.6	%
Tangible common book value per share(1)	$	27.75		$	28.72		$	27.02		$	(0.97	)			-3.4	%	$	0.73				2.7	%
Common equity to assets ratio		9.25	%		9.88	%		9.61	%		(64	)	bps					(37	)	bps
Tangible common equity to tangible assets ratio(1)		8.40	%		9.02	%		8.74	%		(62	)	bps					(33	)	bps

Shareholders' equity was $619.0 million at September 30, 2026, compared to $643.4 million at June 30, 2026, and $621.7 million at September 30, 2025. The decline was primarily the result of an increase in accumulated other comprehensive loss associated with unrealized losses in the available for sale securities portfolio, which was driven by the increase in interest rates, as well as stock repurchases during the third quarter of 2026, partially offset by net income, net of dividends, retained.

The Company declared a common stock dividend of $0.32 per common share in the third quarter of 2026, consistent with the linked quarter and reflecting an increase of $0.01, or 3.2%, over the year-ago quarter, returning 32% of third quarter net income to common shareholders.

During the third quarter of 2026, the Company repurchased 185,833 shares of common stock at an average price of $40.92 per share. As of September 30, 2026, 320,480 shares remained available under the repurchase program that was approved in September 2025 and which does not have an expiration date.

Credit Quality

SELECT CREDIT QUALITY METRICS										QoQ							YoY
Dollars in thousands	Q3 2026			Q2 2026			Q3 2025			Variance				%			Variance				%
Non-performing loans	$	38,542		$	39,007		$	33,951		$	(465	)			-1.2	%	$	4,591				13.5	%
Total non-performing loans to total loans		0.79	%		0.82	%		0.74	%		(3	)	bps					5		bps
Allowance for credit losses "ACL" - loans		48,014			47,497			47,292			517				1.1	%		722				1.5	%
ACL - loans to total loans ratio		0.99	%		1.00	%		1.03	%		(1	)	bps					(4	)	bps
Provision for credit losses - loans	$	4,542		$	4,133		$	2,062		$	409				9.9	%	$	2,480				120.3	%
Provision for credit losses		3,879			3,108			2,732			771				24.8	%	$	1,147				42.0	%
Net charge-offs/average loans (annualized)		0.33	%		0.11	%		0.18	%		22		bps					15		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 $38.5 million, or 0.79% of total loans, at September 30, 2026, a modest decrease from the linked quarter. 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 $3.9 million in the third 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, totaled a credit of $663 thousand in the third quarter of 2026, compared to a credit of $1.0 million in the second quarter of 2026 and a provision of $671 thousand in the third 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 September 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 September 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 October 30, 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. Third Quarter 2026 Earnings Conference Call.” A live webcast will also be available at https://viavid.webcasts.com/starthere.jsp?ei=1776786&tp_key=90ac35b0c7 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 $6.5 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Its Courier Capital, LLC subsidiary offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at FISI-Investors.com.

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 the Company's reports filed with the SEC, could adversely affect it 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 21%.

*****

For additional information contact:

Kate Croft

Director of Investor Relations and Corporate Communications

(716) 817-5159

klcroft@five-starbank.com

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

		2026												2025
SELECT BALANCE SHEET DATA:		September 30,				June 30,				March 31,				December 31,				September 30,
Cash and cash equivalents		$	102,883			$	99,174			$	85,451			$	108,751			$	185,945
Investment securities:
Available for sale			958,239				910,466				1,003,697				922,472				923,592
Held-to-maturity, net			76,519				79,298				82,074				84,708				87,625
Total investment securities			1,034,758				989,764				1,085,771				1,007,180				1,011,217
Loans held for sale			1,913				2,502				1,034				3,365				2,252
Loans:
Commercial business			773,008				768,549				746,425				738,307				740,603
Commercial mortgage–construction			625,095				558,036				513,615				488,558				441,034
Commercial mortgage–multifamily			560,780				565,027				578,731				588,732				592,634
Commercial mortgage–non-owner occupied			1,001,518				970,966				922,628				942,219				893,884
Commercial mortgage–owner occupied			345,100				347,806				316,781				322,776				321,555
Residential real estate loans			663,160				662,582				652,861				657,001				648,397
Residential real estate lines			77,364				76,099				74,779				75,121				76,109
Consumer indirect			779,059				771,126				787,888				807,310				838,671
Other consumer			30,743				32,774				33,879				37,842				37,536
Total loans			4,855,827				4,752,965				4,627,587				4,657,866				4,590,423
Allowance for credit losses–loans			48,014				47,497				44,661				47,386				47,292
Total loans, net			4,807,813				4,705,468				4,582,926				4,610,480				4,543,131
Total interest-earning assets			6,020,962				5,834,020				5,787,556				5,755,696				5,739,699
Goodwill and other intangible assets, net			60,055				60,149				60,245				60,343				60,443
Total assets			6,506,919				6,334,952				6,294,783				6,274,140				6,288,052
Deposits:
Noninterest-bearing demand			974,634				950,510				953,397				962,724				959,404
Interest-bearing demand			769,479				712,124				744,690				672,323				776,445
Savings and money market			2,021,827				1,964,402				1,984,048				1,884,801				1,955,832
Time deposits			1,708,996				1,672,429				1,655,746				1,686,500				1,666,128
Total deposits			5,474,936				5,299,465				5,337,881				5,206,348				5,357,809
Short-term borrowings			167,000				182,000				114,000				109,000				55,000
Long-term borrowings, net			78,768				78,694				78,621				193,653				115,000
Total interest-bearing liabilities			4,746,070				4,609,649				4,577,105				4,546,277				4,568,405
Shareholders’ equity			618,993				643,441				631,670				628,854				621,720
Common shareholders’ equity			601,710				626,156				614,385				611,569				604,435
Tangible common equity (1)			541,655				566,007				554,140				551,226				543,992
Accumulated other comprehensive loss			(74,414	)			(43,349	)			(39,327	)		$	(33,030	)		$	(36,758	)
Common shares outstanding			19,521				19,706				19,686				19,797				20,130
Treasury shares			1,179				993				1,013				902				570
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio			10.09	%			10.06	%			9.89	%			9.69	%			9.77	%
Common equity Tier 1 capital ratio			11.36	%			11.44	%			11.37	%			11.11	%			11.15	%
Tier 1 capital ratio			11.68	%			11.76	%			11.70	%			11.43	%			11.48	%
Total risk-based capital ratio			14.07	%			14.20	%			14.16	%			14.90	%			13.60	%
Common equity to assets			9.25	%			9.88	%			9.76	%			9.75	%			9.61	%
Tangible common equity to tangible assets (1)			8.40	%			9.02	%			8.89	%			8.87	%			8.74	%
Common book value per share		$	30.82			$	31.77			$	31.21			$	30.89			$	30.03
Tangible common book value per share (1)		$	27.75			$	28.72			$	28.15			$	27.84			$	27.02

(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)

		Nine Months Ended								2026												2025
SELECT STATEMENT OF OPERATIONS		September 30,								Third				Second				First				Fourth				Third
DATA:		2026				2025				Quarter				Quarter				Quarter				Quarter				Quarter
Interest income		$	249,642			$	248,340			$	85,003			$	83,076			$	81,563			$	84,649			$	84,422
Interest expense			89,997				100,565				30,712				29,715				29,570				32,438				32,633
Net interest income			159,645				147,775				54,291				53,361				51,993				52,211				51,789
Provision for credit losses			9,226				8,222				3,879				3,108				2,239				3,404				2,732
Net interest income after provision for credit losses			150,419				139,553				50,412				50,253				49,754				48,807				49,057
Noninterest income:
Service charges on deposits			3,244				3,278				1,117				1,083				1,044				1,082				1,137
Card interchange income			6,026				5,783				2,071				2,063				1,892				2,011				2,006
Investment advisory			9,691				8,645				3,343				3,287				3,061				3,074				3,023
Company owned life insurance			8,588				8,591				2,932				2,884				2,772				2,788				2,849
Investments in limited partnerships			(190	)			945				(274	)			(140	)			224				457				223
Loan servicing			541				484				189				201				151				208				181
Income from derivative instruments, net			863				1,436				106				518				239				1,110				847
Net gain on sale of loans held for sale			491				542				185				181				125				195				285
Net gain on investment securities			328				706				-				-				328				225				703
Net (loss) gain on other assets			(454	)			(281	)			-				27				(481	)			(225	)			(281	)
Net loss on tax credit investments			(1,253	)			(1,539	)			(451	)			(350	)			(452	)			(446	)			(513	)
Other			4,209				4,456				1,239				1,200				1,770				1,430				1,596
Total noninterest income			32,084				33,046				10,457				10,954				10,673				11,909				12,056
Noninterest expense:
Salaries and employee benefits			57,421				53,490				19,654				19,165				18,601				19,323				18,522
Occupancy and equipment			11,968				11,386				4,161				3,941				3,865				4,104				3,814
Professional services			4,088				4,830				1,475				1,263				1,350				1,686				1,688
Computer and data processing			17,349				17,155				5,627				5,512				6,211				5,934				5,789
FDIC assessments			3,041				4,086				1,068				987				986				984				1,227
Advertising and promotions			1,559				1,328				444				592				524				482				491
Amortization of intangibles			288				315				94				96				98				100				103
Deposit-related charged-off items expense			443				83				207				126				109				77				144
Other			11,865				12,569				4,092				3,923				3,851				4,029				4,097
Total noninterest expense			108,022				105,242				36,822				35,605				35,595				36,719				35,875
Income before income taxes			74,481				67,357				24,047				25,602				24,832				23,997				25,238
Income tax expense			12,321				12,470				4,057				4,418				3,847				4,017				4,761
Net income			62,160				54,887				19,990				21,184				20,985				19,980				20,477
Preferred stock dividends			1,094				1,094				364				365				364				364				365
Net income available to common shareholders		$	61,066			$	53,793			$	19,626			$	20,819			$	20,621			$	19,616			$	20,112
FINANCIAL RATIOS:
Earnings per share – basic		$	3.11			$	2.68			$	1.00			$	1.06			$	1.05			$	0.98			$	1.00
Earnings per share – diluted		$	3.07			$	2.65			$	0.99			$	1.04			$	1.04			$	0.96			$	0.99
Cash dividends declared on common stock		$	0.96			$	0.93			$	0.32			$	0.32			$	0.32			$	0.31			$	0.31
Common dividend payout ratio			30.87	%			34.70	%			32.00	%			30.19	%			30.48	%			31.63	%			31.00	%
Dividend yield (annualized)			3.29	%			4.57	%			3.26	%			3.29	%			4.09	%			3.95	%			4.52	%
Return on average assets (annualized)			1.33	%			1.18	%			1.26	%			1.35	%			1.37	%			1.27	%			1.32	%
Return on average equity (annualized)			13.01	%			12.32	%			12.32	%			13.31	%			13.43	%			12.53	%			13.31	%
Return on average common equity (annualized)			13.14	%			12.44	%			12.43	%			13.44	%			13.57	%			12.64	%			13.45	%
Return on average tangible common equity (annualized) (1)			14.55	%			13.89	%			13.75	%			14.88	%			15.04	%			14.02	%			14.98	%
Efficiency ratio (2)			56.40	%			58.38	%			56.84	%			55.33	%			57.06	%			57.43	%			56.78	%
Effective tax rate			16.5	%			18.5	%			16.9	%			17.3	%			15.5	%			16.7	%			18.9	%

(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 21%) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)

(Amounts in thousands)

		Nine Months Ended								2026												2025
		September 30,								Third				Second				First				Fourth				Third
SELECT AVERAGE BALANCES:		2026				2025				Quarter				Quarter				Quarter				Quarter				Quarter
Federal funds sold and interest-earning deposits		$	28,566			$	47,271			$	27,120			$	28,347			$	30,266			$	48,418			$	31,461
Investment securities (1)			1,049,543				1,072,077				1,016,043				1,077,633				1,055,385				1,066,829				1,059,244
Loans:
Commercial business			748,647				708,298				762,740				745,977				736,942				731,314				726,315
Commercial mortgage			2,407,298				2,221,845				2,485,369				2,392,003				2,342,957				2,313,465				2,239,666
Residential real estate loans			657,336				646,891				662,283				655,028				654,614				650,190				648,642
Residential real estate lines			75,222				75,168				76,598				74,853				74,189				75,288				75,774
Consumer indirect			783,321				841,830				775,732				779,336				795,107				823,521				838,026
Other consumer			33,137				39,802				31,650				32,723				35,074				36,917				37,741
Total loans			4,704,961				4,533,834				4,794,372				4,679,920				4,638,883				4,630,695				4,566,164
Total interest-earning assets			5,783,070				5,653,182				5,837,535				5,785,900				5,724,534				5,745,942				5,656,869
Goodwill and other intangible assets, net			60,207				60,610				60,112				60,207				60,305				60,404				60,505
Total assets			6,270,963				6,198,689				6,312,602				6,271,961				6,227,388				6,261,856				6,159,886
Interest-bearing liabilities:
Interest-bearing demand			703,121				721,179				691,497				701,768				716,370				713,033				687,978
Savings and money market			1,954,029				1,936,765				1,977,954				1,976,903				1,906,445				1,924,952				1,881,445
Time deposits			1,687,635				1,613,532				1,702,746				1,676,759				1,683,185				1,692,138				1,643,342
Short-term borrowings			118,654				97,165				122,337				125,331				108,138				79,913				110,011
Long-term borrowings, net			85,489				118,737				78,732				78,659				99,302				133,242				114,976
Total interest-bearing liabilities			4,548,928				4,487,378				4,573,266				4,559,420				4,513,440				4,543,278				4,437,752
Noninterest-bearing demand deposits			951,090				936,854				958,502				944,037				950,644				955,880				960,089
Total deposits			5,295,875				5,208,330				5,330,699				5,299,467				5,256,644				5,286,003				5,172,854
Total liabilities			5,632,286				5,603,129				5,668,894				5,633,343				5,593,794				5,629,101				5,549,575
Shareholders’ equity			638,677				595,560				643,708				638,618				633,594				632,755				610,311
Common equity			621,392				578,275				626,423				621,333				616,309				615,470				593,026
Tangible common equity (2)			561,185				517,665				566,311				561,126				556,004				555,066				532,521
Common shares outstanding:
Basic			19,650				20,101				19,620				19,687				19,642				20,093				20,122
Diluted			19,922				20,306				19,902				19,941				19,922				20,347				20,336
SELECTED AVERAGE YIELDS: (Tax equivalent basis)
Investment securities (3)			4.47	%			4.35	%			4.46	%			4.46	%			4.48	%			4.48	%			4.45	%
Loans			6.07	%			6.25	%			6.08	%			6.07	%			6.07	%			6.20	%			6.29	%
Total interest-earning assets			5.77	%			5.87	%			5.79	%			5.76	%			5.76	%			5.86	%			5.93	%
Interest-bearing demand			1.06	%			1.15	%			1.07	%			1.08	%			1.04	%			1.20	%			1.09	%
Savings and money market			2.34	%			2.68	%			2.39	%			2.33	%			2.29	%			2.46	%			2.62	%
Time deposits			3.45	%			4.09	%			3.43	%			3.38	%			3.53	%			3.73	%			3.88	%
Short-term borrowings			2.57	%			2.13	%			2.66	%			2.62	%			2.40	%			1.77	%			2.41	%
Long-term borrowings, net			6.93	%			5.28	%			6.98	%			6.99	%			6.84	%			6.31	%			5.53	%
Total interest-bearing liabilities			2.64	%			3.00	%			2.67	%			2.61	%			2.65	%			2.83	%			2.92	%
Net interest rate spread			3.13	%			2.87	%			3.12	%			3.15	%			3.11	%			3.03	%			3.01	%
Net interest margin			3.69	%			3.50	%			3.70	%			3.70	%			3.67	%			3.62	%			3.65	%

(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 21%.

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)

		Nine Months Ended								2026												2025
		September 30,								Third				Second				First				Fourth				Third
ASSET QUALITY DATA:		2026				2025				Quarter				Quarter				Quarter				Quarter				Quarter
Allowance for Credit Losses – Loans
Beginning balance		$	47,386			$	48,041			$	47,497			$	44,661			$	47,386			$	47,292			$	47,291
Net loan charge-offs (recoveries):
Commercial business			3,311				2,083				344				(23	)			2,990				46				123
Commercial mortgage–construction			963				(357	)			963				-				-				(10	)			(357	)
Commercial mortgage–multifamily			-				-				-				-				-				-				-
Commercial mortgage–non-owner occupied			(3	)			594				(1	)			(1	)			(1	)			-				(1	)
Commercial mortgage–owner occupied			(2	)			(3	)			(1	)			-				(1	)			-				(1	)
Residential real estate loans			8				108				(11	)			-				19				(4	)			(25	)
Residential real estate lines			27				27				-				30				(3	)			-				-
Consumer indirect			5,000				5,017				2,010				1,140				1,850				2,239				1,926
Other consumer			1,098				1,011				721				151				226				140				396
Total net charge-offs (recoveries)			10,402				8,480				4,025				1,297				5,080				2,411				2,061
Provision for credit losses–loans			11,030				7,731				4,542				4,133				2,355				2,505				2,062
Ending balance		$	48,014			$	47,292			$	48,014			$	47,497			$	44,661			$	47,386			$	47,292
Net charge-offs (recoveries) to average loans (annualized):
Commercial business			0.59	%			0.39	%			0.18	%			-0.01	%			1.65	%			0.02	%			0.07	%
Commercial mortgage–construction			0.24	%			-0.90	%			0.64	%			0.00	%			0.00	%			-0.01	%			-0.31	%
Commercial mortgage–multifamily			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Commercial mortgage–non-owner occupied			0.00	%			0.90	%			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			0.00	%			0.02	%			-0.01	%			0.00	%			0.01	%			0.00	%			-0.02	%
Residential real estate lines			0.05	%			0.05	%			0.16	%			0.16	%			-0.03	%			0.00	%			0.00	%
Consumer indirect			0.85	%			0.80	%			1.03	%			0.59	%			0.94	%			1.08	%			0.91	%
Other consumer			4.43	%			3.40	%			9.04	%			1.85	%			2.61	%			1.50	%			4.16	%
Total loans			0.30	%			0.25	%			0.33	%			0.11	%			0.44	%			0.21	%			0.18	%
Supplemental information (1)
Non-performing loans:
Commercial business		$	6,613			$	3,799			$	6,613			$	7,677			$	6,698			$	4,709			$	3,799
Commercial mortgage–construction			19,069				19,794				19,069				20,520				20,520				20,321				19,794
Commercial mortgage–multifamily			1,019				540				1,019				540				540				540				540
Commercial mortgage–non-owner occupied			-				-				-				-				-				-				-
Commercial mortgage–owner occupied			973				1,102				973				981				983				1,095				1,102
Residential real estate loans			8,141				5,877				8,141				6,974				7,434				6,443				5,877
Residential real estate lines			266				212				266				412				431				374				212
Consumer indirect			2,331				2,482				2,331				1,772				1,767				2,155				2,482
Other consumer			130				145				130				131				102				118				145
Total non-performing loans			38,542				33,951				38,542				39,007				38,475				35,755				33,951
Foreclosed assets			3,544				142				3,544				552				552				94				142
Total non-performing assets		$	42,086			$	34,093			$	42,086			$	39,559			$	39,027			$	35,849			$	34,093
Total non-performing loans to total loans			0.79	%			0.74	%			0.79	%			0.82	%			0.83	%			0.77	%			0.74	%
Total non-performing assets to total assets			0.65	%			0.54	%			0.65	%			0.62	%			0.62	%			0.57	%			0.54	%
Allowance for credit losses–loans to total loans			0.99	%			1.03	%			0.99	%			1.00	%			0.97	%			1.02	%			1.03	%
Allowance for credit losses–loans to non-performing loans			125	%			139	%			125	%			122	%			116	%			133	%			139	%

(1) At period end.

FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)

		Nine Months Ended								2026												2025
		September 30,								Third				Second				First				Fourth				Third
		2026				2025				Quarter				Quarter				Quarter				Quarter				Quarter
Ending tangible assets:
Total assets										$	6,506,919			$	6,334,952			$	6,294,783			$	6,274,140			$	6,288,052
Less: Goodwill and other intangible assets, net											60,055				60,149				60,245				60,343				60,443
Tangible assets										$	6,446,864			$	6,274,803			$	6,234,538			$	6,213,797			$	6,227,609
Ending tangible common equity:
Common shareholders’ equity										$	601,710			$	626,156			$	614,385			$	611,569			$	604,435
Less: Goodwill and other intangible assets, net											60,055				60,149				60,245				60,343				60,443
Tangible common equity										$	541,655			$	566,007			$	554,140			$	551,226			$	543,992
Tangible common equity to tangible assets (1)											8.40	%			9.02	%			8.89	%			8.87	%			8.74	%
Common shares outstanding											19,521				19,706				19,686				19,797				20,130
Tangible common book value per share (2)										$	27.75			$	28.72			$	28.15			$	27.84			$	27.02
Average tangible assets:
Average assets		$	6,270,963			$	6,198,689			$	6,312,602			$	6,271,961			$	6,227,388			$	6,261,856			$	6,159,886
Less: Average goodwill and other intangible assets, net			60,207				60,610				60,112				60,207				60,305				60,404				60,505
Average tangible assets		$	6,210,756			$	6,138,079			$	6,252,490			$	6,211,754			$	6,167,083			$	6,201,452			$	6,099,381
Average tangible common equity:
Average common equity		$	621,392			$	578,275			$	626,423			$	621,333			$	616,309			$	615,470			$	593,026
Less: Average goodwill and other intangible assets, net			60,207				60,610				60,112				60,207				60,305				60,404				60,505
Average tangible common equity		$	561,185			$	517,665			$	566,311			$	561,126			$	556,004			$	555,066			$	532,521
Net income available to common shareholders		$	61,066			$	53,793			$	19,626			$	20,819			$	20,621			$	19,616			$	20,112
Return on average tangible common equity (3)			14.55	%			13.89	%			13.75	%			14.88	%			15.04	%			14.02	%			14.98	%

(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.

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