Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Q4 2025 Earnings Presentation
34 slides from Financial Institutions's earnings presentation, Jan 30, 2026
Slide 1: Investor Presentation
Investor Presentation Nasdaq: FISI Fourth Quarter 2025 January 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. $6.27B-asset financial holding company of Five Star Bank and Courier Capital Headquartered in Western New York, serving 15 contiguous Upstate New York counties through 50 locations1 Serving financially stable markets and well-positioned for growth in key Upst
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 3.53% • Improved profitability evident in full year 2025 results 2.94% 2.86% • New share repurchase plan approved in 3Q25, with acti
Slide 5: Full Year 2025 Highlights
Full Year 2025 Highlights As of or for the year ended 12/31/25 Diluted earnings per common share: $3.61, compared to loss of $2.75 in 2024 $73.4MM ROAA: 1.20%, compared to (0.68%) in 2024 Net income available to NIM: 3.53%, up 67 bps from prior year common shareholders NII: $200.0MM, up $0.4MM, or 2
Slide 6: Full Year 2026 Guidance
Full Year 2026 Guidance Focused on maintaining positive operating leverage and driving sustainable, organic growth Full year NIM in the mid-360s bps using a spot-rate forecast as of MRQ-end ~5% annual loan growth, driven by commercial loans and inclusive of continued indirect run-off, which is expec
Slide 7: Fourth Quarter 2025 Highlights
Fourth Quarter 2025 Highlights As of or for the quarter ended 12/31/25 Diluted earnings per common share: $0.96, compared to $0.99 in $19.6MM 3Q25 ROAA (annualized): 1.27%, compared to 1.32% in LQ Net income available to common shareholders NIM: 3.62%, down 3 bps from LQ NII: $52.2MM, up $0.4MM, or
Slide 8: Recent Financial Results
Recent Financial Results Last five quarters earnings summary Earnings Summary 4Q24 1Q25 2Q25 3Q25 4Q25 Amounts in millions, except percentages and per share amounts Average interest-earning assets $5,715.8 $5,651.2 $5,651.4 $5,656.9 $5,745.9 Net interest margin (tax equivalent basis) 2.91% 3.35% 3.4
Slide 9: Strong Community Bank Deposit Base
Strong Community Bank Deposit Base Serving consumers, businesses, municipalities and non-profits in Upstate New York Total deposits were $5.21B, down $151.5MM, or 2.8%, from linked Total Deposits quarter-end, and up $101.6MM, or 2.0%, from one year prior $ in billions | 1.9% CAGR • BaaS deposits tot
Slide 10: Diversified Loan Portfolio
Other Consumer 1% 66% Commercial of total loans are Consumer Indirect Business 17% 16% commercial, comprised of Construction CRE, C&I & Diversified Total Loan Mix Commercial Mortgage BBU1 Loan Portfolio Residential 16% $4.66B 10% Total loans have grown at Multifamily Commercial a 5.7% CAGR since yea
Slide 11: Commercial Lending
Commercial Lending Total commercial loans of $3.08B and committed credit exposure of $4.18B at 12/31/25 12% of commercial loans are originated Total commercial loans were up $90.9MM, or 3.0%, from LQ and up Finance & through Mid-Atlantic $215.7MM, or 7.5%, YOY Health Care Insurance 2% 1% LPO Operati
Slide 12: Commercial Real Estate
Commercial Real Estate Total CRE outstandings of $2.00B and committed credit exposure of $2.43B at 12/31/25 ~$4.2MM 650+ ~70% Multifamily avg. loan size loans consolidated of clients have 46% into ~250 lending loan relationship relationships <$10MM CRE Exposure Mix Land • Growth achieved without com
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 $423MM and committed credit Multifamily CRE outstanding balances of $822MM and committed exposure of $470MM credit exposure of $1.1B • Weighte
Slide 14: Residential Real Estate
Residential held portfolio increased $7.6MM, or 1.1%, from 9/30/25 and $6.4MM, or 0.9%, from 12/31/24 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 $807.3MM portfolio at 12/31/25 Consumer indirect portfolio decreased $31.4MM, or 3.7%, from 9/30/25 and $38.5MM, or 4.5%, YoY Core competency with attractive risk-adjusted return profile Prime lending operation with natural risk dispersion given small loan size averaging ~$20,
Slide 16: Securities Portfolio
Securities Portfolio $1.01B at 12/31/25 Investment Securities Portfolio Primarily comprised of agency wrapped MBS with intermediate $1,384 $ in millions | (8.3%) CAGR durations, which provide ongoing cash flow, coupled with investment $1,143 grade municipal bonds that are classified as HTM $1,036 $1
Slide 17: Balance Sheet Providing Ample Cash Flow
Avg. NTM Monthly 4Q25 Roll 4Q25 Roll Balance at Cash Off Loan On Loan 12/31/25 Flow1 Select Interest Earning Assets 4Q25 Yield Yield Yield ($MMs) ($MMs) Commercial Real Estate Loans 6.33% 6.44% 6.53% $2,068.9 $31.2 Commercial & Industrial Loans 6.38% 5.76% 6.21% $855.8 $10.8 Balance Sheet Small Busi
Slide 18: Net Interest Income & Margin
Net Interest Income & Margin 4Q25 NII of $52.2MM and NIM of 3.62% Quarterly NII & NIM NII of $52.2MM increased $0.4MM, or 0.8% from the LQ and $ in millions $10.6MM, or 25.4%, from the year-ago quarter $51.8 $52.2 $46.9 $49.1 7.00% NIM was 3.62% for the current quarter, down 3 bps from the LQ and $5
Slide 19: Diverse Noninterest Income
Diverse Noninterest Income 4Q25 noninterest income of $11.9MM made up 19% of quarterly revenue Investment Advisory Income: $3.1MM Select Banking Services Fee Income: $4.6MM Up $0.1MM, or 2%, and $0.5MM, or 20%, from the linked Up $0.2MM, or 3%, from 3Q25 and $1.0MM, or 29%, from and year-ago quarter
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 $11.7MM in 2025, an increase of $1.0MM, or 9%, YoY One of the largest RIAs servin
Slide 21: Noninterest Expense
Noninterest Expense 4Q25 expense was $36.7MM Quarterly Noninterest Expense1 Noninterest expense was $36.7MM in MRQ, compared to $ in millions $59.4 $35.9MM in 3Q25 and $59.4MM in 4Q24 • LQ variance was primarily driven by higher salaries and employee $23.0 Provision for benefits expenses, primarily
Slide 22: Solid Asset Quality
Solid Asset Quality Last five quarters asset quality summary 2.00% Select Asset Quality Metrics1 1.50% Elevated NPLs and NPAs relative 1.07% 1.08% 1.04% 1.03% 1.02% to FISI’s historic strong asset 1.00% quality metrics are primarily associated with two separate 0.92% 0.88% commercial lending relatio
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 2.00% 1.50% 1.00% 1.02% 0.77% 0.50% 0.57% 0.24% 0.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 202
Slide 24: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses - loans to total loans was 1.02% at 12/31/25 Allowance for Credit Losses – Loans $47.3 $0.5 $0.1 $0.1 $47.4 -$0.5 Allowance for credit losses – loans to total loans relatively stable on LQ basis, up 1 bp 4Q25 provision for credit losses of $3.4
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 16% 14% 13.12% 14.90% 11.11% 12% 11.43% CET1 ratio at 12/31/25, up 10.68% 11.11% 57 bps from one year prior 10% 10.28% 9.69% 8% 8.23% Well- 6% Capital Ratio
Slide 26: Investment Thesis and Profile
Investment Thesis and Profile Nasdaq: FISI Results-driven community bank with strong retail and Investment Profile As of 12/31/25 commercial franchises that’s well positioned for profitable, organic growth Closing Price $31.17 • Steady, upward performance over the long-term with 52-week High $33.00
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 • DSCR: Debt Service Coverage Ratio • MRQ: Most Recent Quarter • AD&C: Acquisition, Development and Construction • EPS: Earnings Per Share • NCO: Net Charge-Off • AFS:
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: Robust Liquidity Position
Available Committed Liquidity $ in billions $1.37 $1.29 $1.31 $1.31 $0.61 $0.95 $0.81 $0.85 $0.94 Robust Liquidity $0.03 $0.57 Position $0.20 $0.04 Supported by diverse $0.02 $0.05 $0.06 deposit gathering $0.29 $0.25 $0.16 $0.24 capabilities and eligible $0.45 collateral $0.16 $0.17 $0.18 $0.13 12/3
Slide 31: Mid-Atlantic CRE: Overview
Mid-Atlantic CRE: Overview Total loans of $398.0MM at 12/31/25 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,
Slide 32: Mid-Atlantic CRE: Exposure Mix & Appetite
Mid-Atlantic CRE: Exposure Mix & Appetite Total exposure of $564MM at 12/31/25 Mid-Atlantic CRE Exposure Mix Growth Opportunities $564MM at 12/31/25 • Flex/warehouse Vacant • Residential A&D and/or ADC loans Land Industrial Retail Building 3% 5% 6% Home • Suburban multifamily Other Builder 1% 4% • R
Slide 33: 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 34: 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 34
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