Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Q2 2025 Earnings Presentation
32 slides from Financial Institutions's earnings presentation, Jul 25, 2025
Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Nasdaq: FISI Second Quarter 2025 July 24, 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. $6.14B-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: Full Year 2025 Guidance
Full Year 2025 Guidance The Company affirms the following expectations 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 deposit growth is expected to offset the o
Slide 5: Recent Financial Results
Recent Financial Results As of or for the quarter ended 6/30/25 Diluted earnings per common share: $0.85, an increase of 4.9% $17.2MM from $0.81 in 1Q25 ROAA (annualized): 1.13%, up 3 bps from linked quarter Net income available to common shareholders NIM: 3.49%, up 14 bps from linked quarter NII: $
Slide 6: Recent Financial Results
Recent Financial Results Last five quarters earnings summary Earnings Summary 2Q24 3Q24 4Q24 1Q25 2Q25 Amounts in millions, except percentages and per share amounts Average interest-earning assets $5,765.9 $5,611.7 $5,715.8 $5,651.2 $5,651.4 Net interest margin (tax equivalent basis) 2.87% 2.89% 2.9
Slide 7: Strong Community Bank Deposit Base
Strong Community Bank Deposit Base Serving consumers, businesses, municipalities and non-profits in Upstate New York Total deposits were $5.16B, down $216.9MM, or 4.0%, from linked quarter-end, and up $22.7MM, or 0.4%, from one year prior • Linked quarter variance primarily due to seasonal public de
Slide 8: Robust Liquidity Position
Robust Liquidity Position Supported by diverse deposit gathering capabilities and eligible collateral Total Deposits Available Committed Liquidity $ in billions | 1.9% CAGR $ in billions $1.29 $1.31 $1.31 $5.21 $5.10 $5.16 $1.25 $4.83 $4.93 $0.82 $0.75 $0.81 $0.70 $0.77 $0.08 $0.26 $0.18 $0.35 $0.61
Slide 9: Diversified Loan Portfolio
Other Consumer 1% 65% Commercial of total loans are Consumer Indirect Business 18% 16% commercial, comprised of CRE, C&I & Diversified Total Loan Mix Construction Commercial BBU1 Loan Portfolio Mortgage Residential $4.55B 12% 16% Total loans have grown at Multifamily Commercial a 5.8% CAGR since yea
Slide 10: Commercial Lending
Commercial Lending Total commercial loans of $2.94B and committed credit exposure of $3.90B at 6/30/25 13.1% of commercial loans are originated Total commercial loans were flat with the linked quarter and up through Mid-Atlantic $141.6MM, or 5.1%, year-over-year LPO Operating in financial stable geo
Slide 11: Commercial Real Estate
Commercial Real Estate Total CRE outstandings of $2.16B and committed credit exposure of $2.46B at 6/30/25 ~$3.1MM ~730 >70% Multifamily weighted loans consolidated of CRE clients 45% avg. loan into ~260 lending have loan commitment relationships relationship <$10MM CRE Exposure Unsecured 3% Mix Off
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 $368MM and committed credit Multifamily CRE outstanding balances of $850MM and committed exposure of $393MM credit exposure of $1.1B • Weighte
Slide 13: Residential Real Estate
Residential held portfolio increased $4.1MM, or 0.6%, from 3/31/25 and was flat with 6/30/24 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: Weighted avg.
Slide 14: Consumer Indirect Auto
Consumer Indirect Auto $833.5MM portfolio at 6/30/25 Consumer indirect portfolio decreased $19.7MM, or 2.3%, from 3/31/25 and $61.1MM, or 6.8%, YoY Core competency with attractive risk-adjusted return profile Prime lending operation with natural risk dispersion given small loan size averaging ~$19,9
Slide 15: Securities Portfolio
Securities Portfolio $1.01B at 6/30/25 Investment Securities Portfolio Primarily comprised of agency wrapped MBS with intermediate $1,384 $ in millions | (9.5%) CAGR durations, which provide ongoing cash flow, coupled with investment $1,143 grade municipal bonds that are classified as HTM $1,036 $1,
Slide 16: Balance Sheet Providing Ample Cash Flow
Avg. NTM Monthly 2Q25 Roll 2Q25 Roll Balance at Cash Off Loan On Loan 6/30/25 Flow1 Select Interest Earning Assets 2Q25 Yield Yield Yield ($MMs) ($MMs Commercial Real Estate Loans 6.56% 7.06% 6.98% $1,959.1 $28.1 Commercial & Industrial Loans 6.40% 5.52% 6.85% $851.5 $9.5 Balance Sheet Small Busines
Slide 17: Net Interest Income & Margin
Net Interest Income & Margin 2Q25 NII of $49.1MM and NIM of 3.49% Quarterly NII & NIM NII of $49.1MM increased $2.3MM, or 4.8% from the linked quarter $ in millions and $7.9MM, or 19.2%, from the year-ago quarter $49.1 7.00% $50 $46.9 $41.2 $40.7 $41.6 6.00% NIM was 3.49% for the current quarter, up
Slide 18: Diverse Noninterest Income
Diverse Noninterest Income 2Q25 noninterest income of $10.6MM made up 18% of quarterly revenue Investment Advisory Income: $2.9MM Select Banking Services Fee Income: $3.7MM Up $0.1MM, or 5%, and $0.1MM, or 4%, from the linked Up $0.3MM, or 9%, from 1Q25 and relatively flat with 2Q24 and year-ago qua
Slide 19: 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 $2.9MM in 2Q25 One of the largest RIAs serving Western New York by AUM and positi
Slide 20: Noninterest Expense
Noninterest Expense 2Q25 expense was $35.7MM Quarterly Noninterest Expense1 Noninterest expense was $35.7MM in MRQ, compared to $ in millions $33.7MM in 1Q25 and $33.0MM in 2Q24 $59.4 • Both the linked quarter and year-over-year variances were $23 primarily driven by higher salaries and employee ben
Slide 21: 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 1.07% 1.08% quality metrics are primarily 1.01% 1.04% 0.99% associated with two separate 1.00% commercial lending relationships 0.93%
Slide 22: 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% 1.67% 1.50% 1.07% 1.00% 0.92% 0.73% 0.68% 0.50% 0.48% 0.20% 0.32% 0.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 23: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses - loans to total loans was 1.04% at 6/30/25 Allowance for Credit Losses – Loans $49.0 $0.1 $47.3 -$0.3 -$0.9 -$0.6 Allowance for credit losses – loans to total loans decreased 4 bps on linked quarter basis 2Q25 provision for credit losses of $2
Slide 24: 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% 13.27% 12% 11.17% 10.84% 10.68% 10.84% CET1 ratio at 6/30/25, up 10% 10.28% 9.45% 81 bps from one year prior 8% 8.23% 6% Well- Capital Ratio 12/3
Slide 25: Investment Thesis and Profile
Investment Thesis and Profile Nasdaq: FISI Results-driven community bank with strong retail and Investment Profile As of 6/30/25 commercial franchises that’s well positioned for profitable, organic growth Closing Price $25.68 • Steady, upward performance over the long-term with 52-week High $29.78 s
Slide 26: Appendix
Appendix 26
Slide 27: 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 28: 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 29: 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 30: Mid-Atlantic CRE: Overview
Mid-Atlantic CRE: Overview Total loans of $386.2MM at 6/30/25 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, a
Slide 31: Mid-Atlantic CRE: Exposure Mix & Appetite
Mid-Atlantic CRE: Exposure Mix & Appetite Total exposure of $536MM at 6/30/25 Mid-Atlantic CRE Exposure Mix Growth Opportunities $536MM at 6/30/25 • Flex/warehouse Retail Building 7% • Residential A&D and/or ADC loans Industrial Vacant land 6% 2% Other Unsecured • Suburban multifamily Home Builder 2
Slide 32: 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 32
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