Supplemental cash flow information is summarized as follows for the nine months ended September 30, 2023 and 2022 (in thousands): | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------|-------|--------|-------|--------| | | | | | | | Supplemental information: | | | | | | Cash paid for interest | $ | 95,913 | $ | 15,613 | | Cash paid for income taxes | | 6,298 | | 1,128 | | Noncash investing and financing activities: | | | | | | Real estate and other ...

FINANCIAL INSTITUTIONS, INC. Form 10-Q For the Quarterly Period Ended June 30, 2023 Table of Contents FINANCIAL INSTITUTIONS, INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition (Unaudited) See accompanying notes to the consolidated financial statements. Table of Contents 5 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------|--------------------------------|-------|------------- ...

Financial Data and Key Metrics Changes - Second quarter net income available to common shareholders was $14 million or $0.91 per diluted share, up from $11.7 million or $0.76 per share in the first quarter of 2023, but down from $15.3 million or $0.99 per share in the prior year period [4] - Net interest income of $42.3 million was up $522,000 from the first quarter of 2023, with an overall cost of funds in the quarter at 203 basis points, up 41 basis points from the late first quarter [10][11] - The tangible common equity (TCE) ratio at June 30, 2023, was 5.53%, with a tangible common book value per share of $21.79 [13] Business Line Data and Key Metrics Changes - Total loans were $4.4 billion at June 30, reflecting an increase of $154.5 million or 3.6% from March 31, led by commercial lending, which was up 5.7% during the second quarter [22] - Investment advisory income of $2.8 million was 104,000 lower than the previous quarter, primarily due to lower transaction-based fees [39] - The commercial pipeline, which includes commitments secured but not yet funded, is down considerably from previous quarters, with the overall commercial pipeline at June 30, 2023, less than half of what it was at year-end 2022 [6][30] Market Data and Key Metrics Changes - Public deposits decreased by $106.4 million or 2.1% from March 31, primarily due to normal seasonal outflows [119] - Non-public deposits increased from the linked quarter, indicating a shift from lower-cost demand and savings deposits into higher-cost time deposit accounts [5] - The average portfolio FICO score of the indirect portfolio continues to exceed 700, with new production during the quarter coming on a weighted average coupon of 9.31% [104] Company Strategy and Development Direction - The company is focused on deposit gathering and expanding its reach, launching a new marketing campaign for money market accounts [101] - The merger of two investment managers aims to create more focus on high-net-worth managed accounts and reduce reliance on retail broker-dealer relationships [56] - The company expects full-year loan growth to be concentrated in the first half of the year, adjusting its outlook to low double-digit growth from previous high single-digit expectations [109] Management's Comments on Operating Environment and Future Outlook - Management noted that competition for deposits is strong, similar to the rest of the country, and emphasized the importance of defending the deposit base [101] - The company remains confident in the overall performance and health of its loan portfolio despite a challenging economic environment [9] - Management expects annualized return on assets (ROA) to fall in a range of 85 to 95 basis points for 2023, reflecting margin pressures from higher funding costs [110] Other Important Information - The provision for credit losses on loans was $3.2 million in the second quarter, supporting an allowance for credit losses to total loans ratio of 113 basis points [9] - The company reported a net gain of $489,000 on tax credit investments placed in service during the quarter, contributing to lower income tax expenses [28][29] - The accumulated other comprehensive loss stood at $134.5 million at June 30, 2023, impacting the TCE ratio and tangible common book value per share [13] Q&A Session Summary Question: What is driving the smaller pipeline for loan growth? - Management indicated that the smaller pipeline is a combination of slowing demand from borrowers and a more selective approach to credit quality [16][113] Question: Can you provide insight on the margin outlook and asset repricing? - Management discussed the asset side of the balance sheet and indicated that they expect to see benefits from increases in Fed funds rates, with a focus on managing cash flows [17][114] Question: What is the duration of the securities portfolio and comfort level with AOCI recovery? - The modified duration of the securities portfolio was reported at 5.9%, with management expressing comfort in waiting for recovery while optimizing the balance sheet [73] Question: How are BaaS deposits performing and what are the costs associated? - Management confirmed that they are still expecting $150 million in BaaS deposits by year-end, viewing them as an attractive alternative to high-cost wholesale funding [67][75] Question: What is the contribution of the tax credit business to EPS this quarter? - The benefit from tax credit investments was about $0.08 per share for the quarter, with a focus on community development activities [77]

Financial Highlights 7 Expense Management & Operating Leverage 23 Management Team 28 Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. (the "Company") and its subsidiaries constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe the objectives, plans or goals of the Company are forward-looking. These forward-lookin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 000-26481 Financial Institutions, Inc. | --- | --- | |----------------------------------------- ...

Financial Institutions, Inc. (NASDAQ:FISI) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Kate Croft - Director of Investor Relations Marty Birmingham - President & Chief Executive Officer Jack Plants - Executive Vice President & Chief Financial Officer Sean Willett - Chief Administrative Officer Conference Call Participants Alex Twerdahl - Piper Sandler Erik Zwick - Hovde Group Matt Rank - KBW Operator Hello, everyone, and welcome to the Financial Institutions, Inc. First Q ...

Table of Contents Risks Related to Non-Banking Activities services industry and market volatility. Table of Contents The value of our goodwill and other intangible assets may decline in the future. Identifiable intangible assets other than goodwill consist of core deposit intangibles and other intangible assets (primarily customer relationships). Adverse events or circumstances could impact the recoverability of these intangible assets including loss of core deposits, significant losses of customer accounts ...

| --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | Investor | | | | | | Presentation Financial Institutions, Inc. (NASDAQ: FISI) Fourth Quarter 2022 Earnings Presentation January 30, 2023 | | | | | Company Overview 3 Revenue 20 Appendix 26 Securities and Deposits 18 Non-GAAP Reconciliation 29 Statements contained in this presentation whic ...

Financial Performance & Key Metrics - As of September 30, 2021, Financial Institutions, Inc had total assets of $56 billion, loans of $37 billion, and deposits of $50 billion[4] - Shareholders' equity stood at $4940 million, with a Return on Average Common Equity (ROACE) of 1533% and a Return on Average Tangible Common Equity (ROATCE) of 1829%[4] - The company's Net Interest Income for Q3 2021 was $383 million, a 78% increase compared to Q3 2020[18] - Total loans at the end of Q3 2021 were $365 billion, up 24% from September 30, 2020; excluding PPP loans, the increase was 70%[18] Strategic Initiatives & Market Opportunities - The company is focused on growth in Buffalo and Rochester urban markets, where its market share is currently less than 2% in a combined $96 billion deposit market[6] - A digital transformation and Banking as a Service (BaaS) strategy is underway, with a focus on fintech partnerships and new revenue streams[29] - SDN Insurance Agency, LLC acquired Landmark Group and North Woods Capital Benefits LLC in 2021 to diversify revenue[23, 25] Portfolio Composition & Asset Quality - Consumer Indirect Lending portfolio was $9405 million as of September 30, 2021, representing 257% of total loans[50] - The company has a diversified commercial loan portfolio, with significant exposure in Commercial Real Estate ($13 billion), Commercial & Industrial ($11 billion), and Business Banking ($196 million)[46, 47] - Non-Performing Assets (NPAs) represented 012% of total assets as of September 30, 2021[4] Capital & Liquidity - The company's Tangible Common Equity to Tangible Assets ratio was 725% as of September 30, 2021[63] - The cost of deposits was 018% for the year-to-date period ending September 30, 2021[59] - The company maintains a strong liquidity position, supported by diverse deposit gathering capabilities and eligible collateral[61]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 000-26481 Financial Institutions, Inc. (Exact name of registrant as specified in its charte ...