Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Q3 2026 Earnings Presentation
30 slides from Financial Institutions's earnings presentation, Oct 30, 2026
Slide 1: Investor Presentation Third Quarter 2026
Investor Presentation Nasdaq: FISI Third Quarter 2026 October 29, 2026
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. $6.51B-asset financial holding company of Five Star Bank and Courier Capital Headquartered in Western New York, serving 15 contiguous Upstate New York counties through nearly 50 locations1 Serving financially stable markets and well-positioned for growth in k
Slide 4: Strong Execution and Momentum
Strong Execution and Momentum Strategic actions in recent years have translated to a stronger balance sheet and performance Net Interest Margin1 2025 Expanded Earnings 3.69% • Improved profitability evident in full year 2025 results 3.53% • New share repurchase plan approved in 4Q25, with active buy
Slide 5: Full Year 2026 Guidance
Full Year 2026 Guidance Noninterest income, effective tax rate and NCO ratio targets updated based on YTD performance Full year NIM expected to be approximately 370 bps using a spot-rate forecast as of MRQ-end ~5% annual loan growth, driven by commercial loans and inclusive of continued indirect run
Slide 6: Third Quarter 2026 Highlights & Key Results
Third Quarter 2026 Highlights & Key Results As of or for the quarter ended 9/30/26 Diluted EPS1: $0.99, compared to $1.04 in LQ $19.6MM ROAA (annualized): 1.26%, compared to 1.35% in LQ Net income available to NIM: 3.70%, consistent with LQ common shareholders NII: $54.3MM, up $0.9MM, or 1.7%, from
Slide 7: Recent Financial Results
Recent Financial Results Last five quarters earnings summary Earnings Summary 3Q25 4Q25 1Q26 2Q26 3Q26 Amounts in millions, except percentages and per share amounts Average interest-earning assets $5,656.9 $5,745.9 $5,724.5 $5,785.9 $5,837.5 Net interest margin (tax equivalent basis) 3.65% 3.62% 3.6
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 $5.47B, up $175.5MM, or 3.3%, from linked Total Deposits quarter-end, and up $117.1MM, or 2.2%, from one year prior $ in billions | 2.8% CAGR Granularity of commun
Slide 9: Diversified Loan Portfolio with Ample Cash Flow
68% of total loans are commercial, comprised of Other Consumer CRE, C&I & BBU1 1% Consumer Commercial Indirect Business 16% 16% Construction Diversified Loan Residential Total Loan Mix Commercial Mortgage Portfolio with 15% $4.86B 13% Ample Cash Flow Multifamily $1.2B+ Commercial Mortgage Total loan
Slide 10: Commercial Lending
Commercial Lending Total commercial loans of $3.31B and committed credit exposure of $4.22B at 9/30/26 13% of commercial loans Total commercial loans were up $95.1MM, or 3.0%, versus LQ and up Finance & Insurance outstanding are through 1% $315.8MM, or 10.6%, YoY Mid-Atlantic LPO Health Care • Growt
Slide 11: Commercial Real Estate
Commercial Real Estate Total CRE outstandings of $2.12B and committed credit exposure of $2.40B at 9/30/26 ~$4.3MM ~70% Multifamily 44% Average of clients have loan size loan relationship (exposure) <$10MM CRE Exposure Land Mix • Growth achieved without compromising strong credit culture 7% $2.40B O
Slide 12: CRE: Office & Multifamily
CRE: Office & Multifamily Internal stress testing conducted on quarterly basis analyzing several largest CRE asset classes Office CRE outstanding balances of $439MM and committed credit Multifamily CRE outstanding balances of $892MM and committed credit exposure of $494MM exposure of $1.1B • Weighte
Slide 13: Residential Real Estate
Residential held portfolio increased $1.8MM, or 0.2%, from 6/30/26 and $16.0MM, or 2.1%, from 9/30/25 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 14: Consumer Indirect Auto
Consumer Indirect Auto $779.1MM portfolio at 9/30/26 Consumer indirect loans increased $7.9MM, or 1.0%, from 6/30/26 and decreased $59.6MM, or 7.1%, YoY Core competency with attractive risk-adjusted return profile Prime lending operation with natural risk dispersion given small loan size averaging ~
Slide 15: Securities Portfolio
Securities Portfolio $1.03B at 9/30/26 Investment Securities Portfolio 47.5% Primarily comprised of agency wrapped MBS with intermediate $1,143 $ in millions | (2.7%) CAGR 42.5% durations, which provide ongoing cash flow, coupled with investment $1,036 $1,027 $1,007 $1,035 37.5% grade municipal bond
Slide 16: Net Interest Income & Margin
Net Interest Income & Margin 3Q26 NII of $54.3MM and NIM of 3.70% Quarterly NII & NIM NII of $54.3MM increased $0.9MM, or 1.7%, from the LQ and $ in millions $2.5MM, or 4.8%, from the year-ago quarter $54.3 $53.4 3.90% $53 $51.8 $52.2 $52.0 3.70% 3.70% 3.80% • LQ increase reflected impact of loan gr
Slide 17: Diverse Noninterest Income
Diverse Noninterest Income 3Q26 noninterest income of $10.5MM made up 16% of quarterly revenue Investment Advisory Income: $3.3MM Select Banking Services Fee Income: $3.7MM Up $0.1MM, or 2%, from LQ and $0.3MM, or 11%, YoY Down $0.4MM, or 9%, from 2Q26 and $0.8MM, or 18%, from 3Q25, primarily due to
Slide 18: 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 $3.3MM in 3Q26, an increase of $0.1MM, or 2%, from LQ and $0.3MM, or 11%, YoY One
Slide 19: Noninterest Expense
Noninterest Expense 3Q26 expense was $36.8MM Quarterly Noninterest Expense Noninterest expense (NIE) was $36.8MM in MRQ, up $1.2MM, or $ in millions 3%, from the LQ and $0.9MM, or 3%, from the year-ago quarter $35.9 $36.7 $35.6 $35.6 $36.8 • Salaries and employee benefits expense, the largest compon
Slide 20: Strong Asset Quality
Strong Asset Quality NPLs to total loans of 0.79% in 3Q26, down 3 bps from 2Q26 Disciplined credit culture supports consistency of asset quality metrics • Since ‘08, year-end NPAs have remained between 17 and 68 bps of total assets, while annual NCOs to avg. loans ranged from 14 to 54 bps • Thorough
Slide 21: Investment Thesis and Profile
Investment Thesis and Profile Nasdaq: FISI Results-driven community bank with strong retail and Investment Profile As of 9/30/26 commercial franchises that’s well positioned for profitable, Closing Price $38.98 organic growth 52-week High $42.97 • Steady, upward performance over the long-term with 5
Slide 22: Appendix
Appendix 22
Slide 23: Acronyms & Abbreviations
Acronyms & Abbreviations Definitions of acronyms and abbreviations used within this presentation • A&D: Acquisition and Development • EPS: Earnings Per Share • NCO: Net Charge-Off • AD&C: Acquisition, Development and Construction • FHA: Federal Housing Administration • NII: Net Interest Income • AFS
Slide 24: 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 25: Robust Liquidity Position
Available On-Balance Sheet Liquidity $ in billions $1.37 $1.31 $1.31 $1.17 $0.95 $0.81 $0.85 $0.94 Robust Liquidity $0.57 $0.92 Position $0.04 Supported by diverse $0.02 $0.05 deposit gathering $0.06 $0.29 $0.25 $0.16 $0.24 capabilities and eligible $0.04 collateral $0.16 $0.17 $0.18 $0.13 $0.20 $0.
Slide 26: Balance Sheet Providing Ample Cash Flow
3Q26 3Q26 Roll Off Loan 3Q26 Roll Total Loans On Loan at 9/30/26 $1.2B+ Select Interest Earning Assets Yield Yield Yield ($MMs) loan cash flows Commercial Real Estate Loans 6.19% 5.73% 6.50% $2,119 anticipated over next 12 months to Balance Sheet Commercial & Industrial Loans 6.07% 5.85% 6.24% $896
Slide 27: Mid-Atlantic CRE: Overview
Mid-Atlantic CRE: Overview Total loans of $443.5MM at 9/30/26 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, a
Slide 28: Mid-Atlantic CRE: Exposure Mix & Appetite
Mid-Atlantic CRE: Exposure Mix & Appetite Total exposure of $571MM at 9/30/26 Mid-Atlantic CRE Exposure Mix $571MM at 9/30/26 Growth Opportunities Retail • Flex/warehouse Building 9% Vacant Land • Residential A&D and/or ADC loans Other 3% 5% • Retail strip plazas Medical • Medical office 11% • Multi
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation contains certain non- GAAP financial measures. The Company believes that providing certain non-GAAP financial measures provides investors with inform
Slide 30: 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 IR & Chief Financial Officer & Corporate Communications Corporate Treasurer Learn more at www.FISI-Investors.com FISI-Investors@Five-StarBank.com 30
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