Financial Institutions Inc
NASDAQ:FISI
Financial Institutions Inc
Financial Institutions, Inc. is a holding company, which engages in the provision of financial services. The company is headquartered in Warsaw New York, New York and currently employs 625 full-time employees. The firm has six segments: Commercial Loans/Lines, Commercial Mortgage, Indirect Loans, Direct Loans, Residential Lines of Credit, and Residential Loans. The company offers a range of deposit, lending and other financial services to individuals, municipalities and businesses in Western and Central New York through its banking subsidiary, Five Star Bank (the Bank). Its indirect lending network includes relationships with franchised automobile dealers in Western and Central New York, the Capital District of New York, and Northern and Central Pennsylvania. The company offers insurance services through its subsidiary, SDN Insurance Agency, LLC. The company offers customized investment advice, wealth management, investment consulting and retirement plan services through its subsidiaries Courier Capital, LLC and HNP Capital, LLC. The company also offers banking as a service and financial technology solutions through its subsidiary Corn Hill Innovation Labs, LLC.
Financial Institutions, Inc. is a holding company, which engages in the provision of financial services. The company is headquartered in Warsaw New York, New York and currently employs 625 full-time employees. The firm has six segments: Commercial Loans/Lines, Commercial Mortgage, Indirect Loans, Direct Loans, Residential Lines of Credit, and Residential Loans. The company offers a range of deposit, lending and other financial services to individuals, municipalities and businesses in Western and Central New York through its banking subsidiary, Five Star Bank (the Bank). Its indirect lending network includes relationships with franchised automobile dealers in Western and Central New York, the Capital District of New York, and Northern and Central Pennsylvania. The company offers insurance services through its subsidiary, SDN Insurance Agency, LLC. The company offers customized investment advice, wealth management, investment consulting and retirement plan services through its subsidiaries Courier Capital, LLC and HNP Capital, LLC. The company also offers banking as a service and financial technology solutions through its subsidiary Corn Hill Innovation Labs, LLC.
Strong Results: Financial Institutions, Inc. reported a strong 2025 with net income of $73.4 million and EPS of $3.61, exceeding annual guidance on key metrics.
Margin Expansion: Net interest margin reached 3.62% in Q4 and 3.53% for the year, with management expecting further margin expansion in 2026.
Loan Growth: Total loans grew 4% year-over-year to $4.66 billion, led by commercial lending, with 2026 guidance targeting 5% annual loan growth.
Deposit Trends: Year-end deposits were $5.21 billion, up 2% year-over-year despite BaaS exit, with management focused on core deposit growth in 2026.
Capital Actions: The board raised the quarterly dividend by more than 3% and approved a new buyback plan authorizing repurchase of up to 5% of shares.
Expense Management: Noninterest expense fell to $142 million in 2025 from $178.9 million in 2024, with a continued focus on efficiency and prudent cost control.
2026 Guidance: Targets include at least 122 bps ROA, >11.9% ROE, efficiency ratio below 58%, and low single-digit expense and deposit growth.
