Group 1 - The firm Crude Value Insights, previously viewed positively, has been downgraded due to changing market conditions [1] - Crude Value Insights focuses on cash flow and the potential for value and growth in the oil and natural gas sector [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] Group 2 - A two-week free trial is available for new subscribers to explore the offerings related to oil and gas investments [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 000-26481 Financial Institutions, Inc. (Exact name of registrant as specified in its charter) N ...

Financial Institutions (FISI) Q1 2025 Earnings Call April 29, 2025 01:07 PM ET Speaker0 Hello, everyone, and thank you for joining the Financial Institutions, Inc. First Quarter twenty twenty five Earnings Call. My name is Lucy, and I will be coordinating your call today. I will now hand over to your host, Kate Croft, Director of Investor Relations, to begin. Please go ahead. Speaker1 Thank you for joining us for today's call. Providing prepared comments will be President and CEO, Marty Birmingham and CFO, ...

Financial Institutions (FISI) Q1 2025 Earnings Call April 29, 2025 08:30 AM ET Company Participants Kate Croft - Director of Investor & External RelationsMartin Birmingham - President & CEOJack Plants - Executive VP, CFO & TreasurerFrank Schiraldi - Managing DirectorDamon Delmonte - Managing Director Operator Hello, everyone, and thank you for joining the Financial Institutions, Inc. First Quarter twenty twenty five Earnings Call. My name is Lucy, and I will be coordinating your call today. I will now hand ...

Investor Presentation Nasdaq: FISI First Quarter 2025 April 28, 2025 Important Information Safe Harbor Statement & Other Information Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. (the "Company") and its subsidiaries constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe the objectives, plans or goals of the C ...

Core Viewpoint - Financial Institutions (FISI) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing significant growth from $0.11 per share a year ago, indicating a strong earnings surprise of 9.46% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [2] - Financial Institutions posted revenues of $57.24 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.23%, compared to $50.98 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is $0.79, with expected revenues of $58.74 million, and for the current fiscal year, the EPS estimate is $3.24 on revenues of $238.18 million [7] Group 2: Stock Performance and Outlook - Financial Institutions shares have declined approximately 12.6% since the beginning of the year, while the S&P 500 has decreased by 6.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] - The outlook for the industry, specifically the Banks - Northeast sector, is relatively strong, ranking in the top 23% of over 250 Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

The Company reported net income of $16.9 million in the first quarter of 2025, compared to a net loss of $82.8 million in the fourth quarter of 2024 and net income of $2.1 million in the first quarter of 2024. After preferred dividends, net income available to common shareholders was $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, compared to net loss of $83.2 million, or $(5.07) per diluted share, in the fourth quarter of 2024, and net income of $1.7 million, or $0.11 per diluted s ...

Core Insights - Financial Institutions, Inc. reported a net income of $16.9 million for Q1 2025, a significant recovery from a net loss of $82.8 million in Q4 2024 and an increase from $2.1 million in Q1 2024 [2][4][6] - The company experienced a 12.6% increase in net interest income, reaching $46.9 million, and a net interest margin expansion of 44 basis points to 3.35% [4][6][11] - Total loans increased by 1.7% quarter-over-quarter to $4.55 billion, driven by commercial business and mortgage lending [5][17][19] - Total deposits rose by 5.3% from the previous quarter to $5.37 billion, influenced by seasonal public deposit inflows [20][22] - The company declared a quarterly cash dividend of $0.31 per common share, reflecting a 3.3% increase, returning over 37% of Q1 net income to common shareholders [24] Financial Performance - Net income available to common shareholders was $16.5 million, or $0.81 per diluted share, compared to a net loss of $83.2 million, or $(5.07) per diluted share, in the previous quarter [2][4] - Noninterest income for Q1 2025 was $10.4 million, a recovery from a noninterest loss of $91.0 million in Q4 2024 [6][12] - Noninterest expense decreased to $33.7 million from $59.4 million in the previous quarter [14] Loan and Deposit Metrics - Total loans increased by $74.1 million, or 1.7%, during the quarter, with commercial business loans up 6.6% from the previous quarter [19][20] - Total deposits reached $5.37 billion, up $268.2 million from the previous quarter, with public deposit balances representing 23% of total deposits [20][22] Credit Quality - The company reported improved credit quality metrics, with net charge-offs at 0.21% of average loans, down from 0.25% in the previous quarter [29][31] - Non-performing loans were $40.0 million, or 0.88% of total loans, a slight decrease from the previous quarter [29][30] Capital Management - Total assets increased to $6.34 billion, up $223.4 million from the previous quarter [17][22] - Shareholders' equity rose to $589.9 million, driven by additional paid-in-capital from a common stock capital raise [22][23] - The company maintained strong capital ratios, with a Common Equity Tier 1 Capital Ratio of 10.38% [28][43]

Group 1 - Financial Institutions, Inc. will release its first quarter results for the period ending March 31, 2025, after market close on April 28, 2025 [1] - An earnings conference call and audio webcast will be hosted on April 29, 2025, at 8:30 a.m. Eastern Time, led by the President and CEO, Martin K. Birmingham, and CFO, W. Jack Plants II [2] - The company has approximately $6.1 billion in assets as of December 31, 2024, and offers banking and wealth management products and services [3] Group 2 - Five Star Bank, a subsidiary of Financial Institutions, Inc., provides consumer and commercial banking and lending services across Western and Central New York [3] - Courier Capital, LLC, another subsidiary, offers customized investment management, financial planning, and consulting services to a diverse clientele [3]

Financial Position - As of December 31, 2024, the Company had consolidated total assets of $6.12 billion, deposits of $5.10 billion, and shareholders' equity of $569.0 million[21]. - The Bank reported total assets of $6.08 billion, net loans of $4.43 billion, and deposits of $5.15 billion as of December 31, 2024[23]. - Courier Capital managed $3.09 billion in assets and generated total revenue of $10.3 million for the year ended December 31, 2024[24]. - As of December 31, 2024, the bank's portfolio of commercial business and commercial mortgage loans totaled $1.25 billion, representing 28% of total loans[145]. - Non-performing assets were $41.5 million, or 0.68% of total assets, as of December 31, 2024[146]. - At December 31, 2024, the bank had $3.56 billion in deposit liabilities with no fixed term, accounting for 70% of total deposits[151]. - Municipal deposits amounted to $1.07 billion, or 21% of total deposits, as of December 31, 2024[153]. - The company has $58.1 million in goodwill and $2.6 million in other intangible assets as of December 31, 2024[181]. Revenue and Income - The Company aims to increase market share within existing markets while exploring growth opportunities in non-interest income through acquisitions[31]. - The Company is committed to maintaining a diversified revenue stream and exploring strategic partnerships that align with its core competencies[32]. - The company declared dividends of $21.0 million in 2024 and $14.0 million in 2023[101]. - The company generates a significant portion of its revenue from dividends from its Bank subsidiary, which are subject to regulatory limitations[190]. - Investment advisory revenue may decrease due to poor investment performance, impacting overall revenues and net income[175]. - The company’s investment advisory business relies heavily on assets under management, which are influenced by market conditions and competition[176]. Loan Portfolio - The commercial business loan portfolio totaled $665.3 million, representing 15% of the total loan portfolio, with 21% at fixed interest rates and 79% at variable interest rates as of December 31, 2024[53]. - The commercial mortgage loan portfolio amounted to $2.20 billion, accounting for 49.1% of the total loan portfolio, with 34% at fixed interest rates and 66% at variable interest rates as of December 31, 2024[54]. - The residential real estate loan portfolio reached $650.2 million, or 15% of the total loan portfolio, with 74% at fixed interest rates as of December 31, 2024[58]. - The consumer indirect loan portfolio totaled $845.8 million, representing 19% of the total loan portfolio, primarily concentrated in indirect automobile loans as of December 31, 2024[60]. - The company exited the Pennsylvania automobile market effective January 1, 2024, to focus on its core Upstate New York market[61]. Regulatory Environment - The company is subject to extensive regulation under federal and state laws, primarily for the protection of depositors and the banking system[80]. - The company must comply with capital adequacy standards established by the Federal Reserve, based on Basel III[87]. - The company is required to maintain a leverage ratio of at least 4.0%[93]. - The company must notify the FRB prior to declaring and paying cash dividends if net earnings are insufficient to fund the dividend[100]. - The FDIC issued a special assessment in 2023 for banks with uninsured deposits exceeding $5 billion[106]. - The company did not opt into using the Community Bank Leverage Ratio and determined to comply with the Basel III Rules instead[92]. - The company is subject to a minimum capital conservation buffer of 2.5%[89]. - The most recent CRA evaluation resulted in an overall rating of "Satisfactory" for the company[109]. Risk Management - The Company is subject to various risks, including credit losses, regulatory changes, and market volatility, which could impact financial performance[19]. - The allowance for credit losses is established through charges to earnings, reflecting management's estimate of probable credit losses in the portfolio[68]. - The company has identified nine portfolio segments of loans for estimating the allowance for credit losses, including Commercial Loans/Lines and Residential Real Estate Loans[69]. - The company faces risks related to interest rate fluctuations, which can impact net interest income, loan demand, and defaults[192]. - The Federal Reserve's monetary policies have led to increased interest rates, affecting the company's financial conditions and operations[193]. - The company’s risk management framework must effectively identify and mitigate risks to avoid unexpected losses[191]. Employee and Workplace Culture - The Company prioritizes talent attraction and retention by fostering an inclusive and healthy workplace[34]. - The company was certified by Great Place To Work® for the second time in 2024, indicating a strong employee satisfaction culture[42]. - As of December 31, 2024, the company had 598 employees, a decrease of 26 employees or 4% from the previous year, primarily due to the sale of its insurance subsidiary[35]. Strategic Initiatives - The Company plans to leverage digital channels to enhance customer engagement and expand its reach into new geographies[29]. - The company aims to expand its branch network and invest in digital banking, but failure to implement these growth strategies could negatively affect loan portfolio quality and profitability[183]. - The company plans to pursue a growth strategy by expanding its branch network and considering acquisitions of various financial services firms, although competition for suitable targets may increase costs and limit options[186]. - The company has implemented a program to provide financial products and services to legal cannabis-related businesses, although exposure is expected to be tempered by the exit from the BaaS line of business[115]. Cybersecurity and Technology - The company relies heavily on information technology and internet services to process a large volume of daily transactions, increasing vulnerability to cyber-attacks and system failures[205]. - The company may need to allocate significant additional resources to enhance systems and address vulnerabilities due to evolving cyber threats[206]. - Compliance with evolving cybersecurity regulations is critical, as failure to do so could result in regulatory sanctions and reputational damage[207]. - Emerging technologies, including AI and cloud computing, present both opportunities and risks for the company, particularly regarding data security and operational efficiency[201][202]. Legal and Compliance Issues - Legal and regulatory proceedings could result in substantial costs and adversely affect the bank's financial condition and operating results[158]. - Non-compliance with the USA PATRIOT Act and Bank Secrecy Act could lead to fines and sanctions, affecting business operations[165]. - The company has adopted policies to comply with the requirements of the AMLA and related regulations, ensuring effective risk assessment processes[120]. - Regulatory authorities have increased scrutiny of the Bank Secrecy Act (BSA) and anti-money laundering programs, with potential legal and reputational consequences for non-compliance[119]. Capital and Funding - The company completed a public offering of 4,600,000 shares of common stock at $25.00 per share, resulting in net proceeds of $108.6 million[77]. - The company may need to raise additional capital in the future, which could be challenging if market conditions are unfavorable[200]. - Future capital resources may be increased through debt or equity securities, which could dilute current shareholders and affect common stock value[209]. - Provisions in the company's certificate of incorporation and bylaws may create anti-takeover effects, making acquisitions more difficult[210].