Financial Institutions, Inc. · NASDAQ:FISI
Financial Institutions — Q2 2026 Earnings Presentation
30 slides from Financial Institutions's earnings presentation, Jul 24, 2026
Slide 1: Investor Presentation
Investor Presentation Nasdaq: FISI Second Quarter 2026 July 23, 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. $6.33B-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 3.68% • 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 NIM, Efficiency Ratio, ROAA, and ROAE guidance updated, reflecting strong YTD performance Full year NIM now expected to be approximately 370 bps using a spot-rate forecast as of MRQ-end, increased from previous guidance of upper 360s ~5% annual loan growth, driven by commerci
Slide 6: Second Quarter 2026 Highlights & Key Results
Second Quarter 2026 Highlights & Key Results As of or for the quarter ended 6/30/26 Diluted EPS1: $1.04, consistent with LQ $20.8MM ROAA (annualized): 1.35%, compared to 1.37% in LQ Net income available to NIM: 3.70%, up 3 bps from LQ common shareholders NII: $53.4MM, up $1.4MM, or 2.6%, from 1Q26 T
Slide 7: Recent Financial Results
Recent Financial Results Last five quarters earnings summary Earnings Summary 2Q25 3Q25 4Q25 1Q26 2Q26 Amounts in millions, except percentages and per share amounts Average interest-earning assets $5,651.4 $5,656.9 $5,745.9 $5,724.5 $5,785.9 Net interest margin (tax equivalent basis) 3.49% 3.65% 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 $5.30B, down $38.4MM, or 0.7%, from linked Total Deposits quarter-end, and up $143.5MM, or 2.8%, from one year prior $ in billions | 2.0% CAGR Granularity of commu
Slide 9: 68% of total loans are commercial
68% of total loans are commercial, comprised of Other Consumer CRE, C&I & BBU1 1% Commercial Consumer Indirect Business 16% 16% Construction Diversified Loan Residential Total Loan Mix Commercial Mortgage Portfolio with 16% $4.75B 12% Ample Cash Flow Multifamily Commercial Total loans have grown at
Slide 10: Commercial Lending
Commercial Lending Total commercial loans of $3.21B and committed credit exposure of $4.16B at 6/30/26 Finance & 13% of commercial loans Total commercial loans were up $132.2MM, or 4.3%, LQ and up Insurance originated through Health Care 1% $269.0MM, or 9.1%, YoY 3% Mid-Atlantic LPO Other • Growth d
Slide 11: Commercial Real Estate
Commercial Real Estate Total CRE outstandings of $2.01B and committed credit exposure of $2.37B at 6/30/26 ~$4.0MM ~70% Multifamily 44% average of clients have loan size loan relationship <$10MM CRE Exposure Mix Land • Growth achieved without compromising strong credit culture 8% $2.37B Office 22% •
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 $445MM and committed credit Multifamily CRE outstanding balances of $848MM and committed credit exposure of $511MM exposure of $1.1B • Weighte
Slide 13: Residential Real Estate
Residential held portfolio increased $11.0MM, or 1.5%, from 3/31/26 and $15.8MM, or 2.2%, from 6/30/25 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: Weig
Slide 14: Consumer Indirect Auto
Consumer Indirect Auto $771.1MM portfolio at 6/30/26 Consumer indirect portfolio decreased $16.8MM, or 2.1%, from 3/31/26 and $62.3MM, or 7.5%, YoY Core competency with attractive risk-adjusted return profile Prime lending operation with natural risk dispersion given small loan size averaging ~$20,0
Slide 15: Securities Portfolio
Securities Portfolio $989.8MM at 6/30/26 Investment Securities Portfolio Primarily comprised of agency wrapped MBS with intermediate $ in millions | (4.2%) CAGR 47.5% $1,143 42.5% durations, which provide ongoing cash flow, coupled with investment $1,036 $1,027 $1,007 $990 37.5% grade municipal bond
Slide 16: Net Interest Income & Margin
Net Interest Income & Margin 2Q26 NII of $53.4MM and NIM of 3.70% Quarterly NII & NIM NII of $53.4MM increased $1.4MM, or 2.6%, from the LQ and $ in millions $4.2MM, or 8.6%, from the year-ago quarter $51.8 $52.2 $52.0 $53.4 $49.1 3.90% • LQ increase reflected impact of loan growth and additional da
Slide 17: Diverse Noninterest Income
Diverse Noninterest Income 2Q26 noninterest income of $11.0MM made up 17% of quarterly revenue Investment Advisory Income: $3.3MM Select Banking Services Fee Income: $4.0MM Up $0.2MM, or 7%, from LQ and $0.4MM, or 14%, YoY Up $0.6MM, or 17%, from 1Q26, in part due to higher level of swap fees in the
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 2Q26, an increase of $0.2MM, or 7%, from LQ and $0.4MM, or 14%, YoY One
Slide 19: Noninterest Expense
Noninterest Expense 2Q26 expense was $35.6MM Quarterly Noninterest Expense Noninterest expense was $35.6MM in MRQ, flat with the linked and $ in millions year-ago quarters $35.7 $35.9 $36.7 $35.6 $35.6 • On LQ basis, salaries and employee benefits expense increased $0.6MM, or 3.0%, while computer an
Slide 20: Strong Asset Quality
Strong Asset Quality NCOs to average loans of 0.11% in 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 credit review exerc
Slide 21: Investment Thesis and Profile
Investment Thesis and Profile Nasdaq: FISI Results-driven community bank with strong retail and Investment Profile As of 6/30/26 commercial franchises that’s well positioned for profitable, Closing Price $38.97 organic growth 52-week High $39.27 • 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 • 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 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 $1.15 $0.95 $0.81 $0.85 $0.94 Robust Liquidity $0.57 $0.90 Position $0.04 Supported by diverse $0.02 $0.05 $0.06 deposit gathering $0.29 $0.25 $0.16 $0.24 $0.04 capabilities and eligible $0.18 collateral $0.16 $0.17 $0.18 $0.13 $0.
Slide 26: 2Q26 Roll
2Q26 2Q26 Roll Off Loan 2Q26 Roll Total Loans On Loan at 6/30/26 $500MM+ Select Interest Earning Assets Yield Yield Yield ($MMs) loan cash flows Commercial Real Estate Loans 6.15% 5.52% 6.26% $2,133 anticipated in remainder of 2026 Balance Sheet Commercial & Industrial Loans 6.14% 6.01% 5.67% $915 t
Slide 27: Mid-Atlantic CRE: Overview
Mid-Atlantic CRE: Overview Total loans of $406.1MM at 6/30/26 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 $575MM at 6/30/26 Mid-Atlantic CRE Exposure Mix $575MM at 6/30/26 Growth Opportunities Retail Building • Flex/warehouse Other 8% Vacant Land 1% 2% • Residential A&D and/or ADC loans • Retail strip plazas Medical 11% • Medical office • 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
Financial Institutions — Q2 2026 Earnings Presentation on 6ix