Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Q1 2025 Earnings Presentation
33 slides from Financial Institutions's earnings presentation, Apr 29, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation Nasdaq: FISI First Quarter 2025 Updated April 29, 2025
Slide 2: Important Information
Important Information Safe Harbor Statement & Other Information Statements contained in this presentation which are not historical facts and which pertain to future operating Table of Contents results of Financial Institutions, Inc. (the “Company”) and its subsidiaries constitute “forward-looking Co
Slide 3: Overview of Financial Institutions, Inc.
Overview of Financial Institutions, Inc. Nasdaq: FISI Financial holding company headquartered in Western New York offering banking and wealth management services through subsidiaries Five Star Bank and Courier Capital, LLC Experienced management team with extensive market knowledge and industry 1817
Slide 4: Five Star Bank Serves Financially Stable Geographies
Five Star Bank Serves Financially Stable Geographies $5.37B in deposits and $4.55B in loans at MRQ-end, focused on growth in key New York State metros Syracuse Mid-Atlantic Provides Valuable Three branches and a Diversificaiton Rochester Commercial LPO Eight branches in Rochester or its suburbs, and
Slide 5: Full Year 2025 Guidance
Full Year 2025 Guidance Noninterest income expectations increased, given COLI transaction initiated in 1Q25 Full year NIM of 3.45% to 3.55% using a spot-rate forecast as of most recent quarter-end 1% to 3% annual loan growth driven by commercial loans >1.10% Flat deposit balances as non-public depos
Slide 6: Recent Financial Results
Recent Financial Results As of or for the quarter ended 3/31/25 Diluted earnings per common share: $0.81, compared to diluted loss per common share of ($5.07) in 4Q24 $16.5MM NIM: 3.35%, up 44 bps from linked quarter Net income available to common shareholders NII: $46.9MM, up $5.2MM, or 12.6%, from
Slide 7: Recent Financial Results
Recent Financial Results Last five quarters earnings summary Earnings Summary 1Q24 2Q24 3Q24 4Q24 1Q25 Amounts in millions, except percentages and per share amounts Average interest-earning assets $5,804.9 $5,765.9 $5,611.7 $5,715.8 $5,651.2 Net interest margin (tax equivalent basis) 2.78% 2.87% 2.8
Slide 8: Strong Community Bank Deposit Base
Strong Community Bank Deposit Base Serving consumers, businesses, municipalities and non-profits in Upstate New York Total deposits were $5.37B, up $268.2MM, or 5.3%, from linked quarter-end, and down $23.8MM, or 0.4%, from one year prior • Linked quarter variance primarily due to seasonal deposit i
Slide 9: Robust Liquidity Position
Robust Liquidity Position Supported by diverse deposit gathering capabilities and eligible collateral Total Deposits Available Committed Liquidity $ in billions | 3.2% CAGR $ in billions $5.37 $5.21 $5.10 $4.83 $4.93 $0.80 $1.29 $1.31 $1.31 $1.29 $0.82 $0.75 $0.70 $0.20 $0.77 $0.08 $0.26 $0.35 $0.25
Slide 10: Diversified Loan Portfolio
Other Consumer 1% 65% Commercial of total loans are Consumer Indirect Business 19% 16% commercial, comprised of CRE, C&I & Diversified Total Loan Mix Construction Commercial BBU1 Mortgage Loan Portfolio Residential $4.55B 12% 16% Total loans have grown at Multifamily Commercial a 6.3% CAGR since yea
Slide 11: Commercial Lending
Commercial Lending Total commercial loans of $2.94B and committed credit exposure of $3.88B at 3/31/25 13.5% of commercial loans are originated Total commercial loans increased $72.5MM, or 2.5% during the through Mid-Atlantic quarter and $184.8MM, or 6.7%, year-over-year LPO Operating in financial s
Slide 12: Commercial Real Estate
Commercial Real Estate Total CRE loans of $1.92B and committed credit exposure of $2.38B at 3/31/25 ~$3.1MM ~730 >70% Multifamily weighted loans consolidated of CRE clients 43% avg. loan into ~260 lending have loan commitment relationships relationship <$10MM CRE Exposure Unsecured 3% Mix Office 16%
Slide 13: CRE: Office & Multifamily
CRE: Office & Multifamily Internal stress testing conducted on quarterly basis analyzing several largest CRE asset classes Office CRE outstanding balances of $379MM and committed credit Multifamily CRE outstanding balances of $809MM and committed exposure of $391MM credit exposure of $1.0B • Weighte
Slide 14: Residential Real Estate
Residential held portfolio decreased $7.0MM, or 1.0%, from 12/31/24 and $5.1MM, or 0.7%, from 3/31/24 High quality portfolio in stable Upstate New York market with in-market originations through mortgage loan originators, Five Star Bank branch network and digital point-of-sale technology FICO: Weigh
Slide 15: Consumer Indirect Auto
Consumer Indirect Auto $853.2MM portfolio at 3/31/25 Consumer indirect portfolio was up $7.4MM, or 0.9%, from year-end 2024 and down $67.3MM, or 7.3%, year-over-year Core competency with attractive risk-adjusted return profile and consistent results though several ~365 economic cycles new auto deale
Slide 16: Securities Portfolio
Securities Portfolio $1.04B at 3/31/25 Primarily comprised of agency wrapped MBS with intermediate durations, which provide ongoing cash flow, coupled with investment grade municipal bonds that are classified as HTM 4Q24 strategic securities portfolio restructuring improved yield ~$196MM 4.25% ~6.3
Slide 17: Balance Sheet Providing Ample Cash Flow
Avg. NTM Monthly 1Q25 1Q25 Balance at Cash 1Q25 Roll Off Roll On 3/31/25 Flow1 Select Interest Earning Assets Yield Loan Yield Loan Yield ($000s) ($000s) Commercial Real Estate 6.54% 6.38% 7.07% $1,952,388 $48,882 Commercial & Industrial 6.34% 5.76% 6.53% $866,663 $12,090 Small Business2 7.04% 7.32%
Slide 18: Net Interest Income & Margin
Net Interest Income & Margin 1Q25 NII of $46.9MM and NIM of 3.35% Quarterly NII & NIM NII of $46.9MM increased $5.2MM, or 12.6%, from the linked quarter $ in millions and $6.8MM, or 16.9%, from the year-ago quarter 7.00% $50 $46.9 $41.2 $41.6 6.00% $40.1 $40.7 NIM was 3.35% for the current quarter,
Slide 19: Diverse Noninterest Income
Diverse Noninterest Income 1Q25 noninterest income of $10.4MM Investment Advisory Income: $2.7MM Select Banking Services Fee Income: $3.4MM Up $0.2MM, or 7%, and $0.2MM, or 6%, from the linked Down $0.2MM, or 5%, from 4Q24 and flat with 1Q24 and year-ago quarters, respectively Inclusive of card inte
Slide 20: Courier Capital, LLC
Courier Capital, LLC FISI’s wholly-owned RIA subsidiary is one of the largest serving Western New York Supporting revenue diversification as the primary driver of the Company’s investment advisory income, which totaled $2.7MM in 1Q25 One of the largest RIAs serving Western New York by AUM and positi
Slide 21: Noninterest Expense
Noninterest Expense 1Q25 expense was $33.7MM Quarterly Noninterest Expense Noninterest expense was $33.7MM in MRQ, compared to $ in millions $59.4 $59.4MM in 4Q24 and $54.0MM in 1Q24 $54.0 Provision for litigation • Linked quarter variance primarily due to provision for auto lending $19.0 $23.0 sett
Slide 22: Solid Asset Quality
Solid Asset Quality Last five quarters asset quality summary Select Asset Quality Metrics1 2.00% 1.50% Elevated NPLs and NPAs relative to FISI’s historic strong asset quality metrics are primarily associated with two separate 1.00% commercial loan relationships in 0.93% 0.92% 0.88% the Bank’s Upstat
Slide 23: Solid Asset Quality
Solid Asset Quality Disciplined credit culture supports consistency of asset quality metrics Select Annual Asset Quality Metrics Since 2008 Financial Crisis1 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NPAs /Total Assets NP
Slide 24: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses - loans to total loans was 1.08% at 3/31/25 Allowance for Credit Losses – Loans $48.0 $0.5 $0.9 $49.0 -$0.4 -$0.2 Allowance for credit losses – loans Increase in specific reserves from LQ to total loans increased 1 bp on primarily driven by lin
Slide 25: Well-Capitalized to Support Future Organic Growth
Well-Capitalized to Support Future Organic Growth Exceeding well-capitalized regulatory thresholds and well-positioned to support future growth 14% 13.12% 13.09% 12% 10.38% 10.68% 10.71% CET1 ratio at 3/31/25, up 10.38% 10% 10.28% 9.24% 95 bps from one year prior 8% 8.23% 6% Well- Capital Ratio 12/3
Slide 26: Investment Thesis and Profile
Investment Thesis and Profile Nasdaq: FISI Positioned well for profitable, organic growth Investment Profile As of 3/31/25 Results-driven community bank with strong retail and commercial franchises Closing Price $24.96 52-week High $29.78 Wealth management business diversifies revenue and complement
Slide 27: Appendix
Appendix 27
Slide 28: Acronyms & Abbreviations
Acronyms & Abbreviations Definitions of acronyms and abbreviations used within this presentation • A&D: Acquisition and Development • COLI: Company Owned Life Insurance • LQ: Linked Quarter • ADC: Acquisition, Development and • CRE: Commercial Real Estate • MBS: Mortgage-Backed Securities Constructi
Slide 29: Strong Executive Leadership Team
Strong Executive Leadership Team Positioned to Drive Growth and Operational Excellence Martin K. Birmingham Samuel J. Burruano Jr. W. Jack Plants II Laurie R. Collins President & Chief Executive Officer EVP, Chief Legal Officer & Corporate EVP, Chief Financial Officer & Treasurer SVP, Chief Human Re
Slide 30: Federal Policy & DOGE Impacts
Federal Policy & DOGE Impacts Federal Government/ GSA lending not part of market strategy Six CRE loans with GSA/government tenants totaling $43.5MM, or ~1.5% Mid-Atlantic government employees predominantly in armed services of CRE loans positions, including the Navy, Army and Department of Defense,
Slide 31: Mid-Atlantic CRE: Overview
Mid-Atlantic CRE: Overview Total loans of $398MM at 3/31/25 Mid-Atlantic market provides Five Star Bank with important geographic and client diversification, leveraging decades of in-market and industry experience and deep relationships of the local CRE team • Sponsors have proven track records, acc
Slide 32: Mid-Atlantic CRE: Exposure Mix & Appetite
Mid-Atlantic CRE: Exposure Mix & Appetite Total exposure of $556MM at 3/31/25 Mid-Atlantic CRE Exposure Mix Growth Opportunities $556MM at 3/31/25 • Flex/warehouse Retail Building • Residential A&D and/or ADC loans Vacant Land 7% Other 3% • Suburban multifamily 1% Unsecured Home Builder 4% Industria
Slide 33: Thank you for your interest in Financial Institutions, Inc.
Thank you for your interest in Financial Institutions, Inc. Nasdaq: FISI Investor Relations Contacts Kate Croft Jack Plants Director of Investor & Chief Financial Officer & External Relations Corporate Treasurer Learn more at www.FISI-Investors.com FISI-Investors@Five-StarBank.com 33
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