Financial Performance - Net income decreased to $2,070 thousand for Q1 2024, down from $12,089 thousand in Q1 2023, reflecting a decline of 82.9%[12] - Earnings per common share decreased to $0.11 for Q1 2024, down from $0.76 in Q1 2023, a decline of 85.5%[12] - The company reported a net income of $2,070 thousand for the three months ended March 31, 2024, down from $12,089 thousand in the same period of 2023[183] - The total other comprehensive loss for the three months ended March 31, 2024, was $6.3 million, compared to a gain of $10.1 million in the same period of 2023[114] Asset and Deposit Growth - Total assets increased to $6,298,598 thousand as of March 31, 2024, up from $6,160,881 thousand at December 31, 2023, representing a growth of 2.24%[10] - Total deposits increased to $5,396,757 thousand as of March 31, 2024, compared to $5,212,912 thousand at December 31, 2023, marking a growth of 3.53%[10] - Cash and due from banks increased to $237,038 thousand as of March 31, 2024, up from $124,442 thousand at December 31, 2023, a growth of 90.5%[10] - Non-maturity deposits amounted to $3,836,171 thousand as of March 31, 2024, compared to $3,808,216 thousand on December 31, 2023[177] Credit Losses and Provisions - The provision for credit losses showed a benefit of $5,456 thousand in Q1 2024, compared to a provision of $4,214 thousand in Q1 2023, indicating improved credit quality[12] - The provision for credit losses was $5,456 thousand for the three months ended March 31, 2024, compared to a benefit of $4,214 thousand in the same period of 2023[183] - The allowance for credit losses on loans was $43.1 million as of March 31, 2024, compared to $51.1 million as of December 31, 2023[57] - The allowance for credit losses on loans decreased to $43.075 million as of March 31, 2024, from $47.528 million as of March 31, 2023, reflecting a reduction of approximately 9.6%[83] Expenses and Income - Noninterest expense surged to $54,013 thousand in Q1 2024, up from $33,661 thousand in Q1 2023, indicating a significant increase of 60.5%[12] - Cash paid for interest increased significantly to $46,143,000 in Q1 2024 from $28,666,000 in Q1 2023, an increase of 61.0%[28] - The charge-offs for the three months ended March 31, 2024, totaled $6.511 million, compared to $5.108 million for the same period in 2023, indicating an increase of about 27.5%[83] - Recoveries for the same period increased to $3.390 million in 2024 from $3.019 million in 2023, representing a growth of approximately 12.3%[83] Investment Securities - The total fair value of available-for-sale securities is $923.761 million, down from $887.730 million as of December 31, 2023, reflecting a decrease of approximately 3.8%[40] - The total fair value of held-to-maturity securities is $131.269 million as of March 31, 2024, compared to $137.030 million as of December 31, 2023, indicating a decline of about 4.2%[43] - The total investment securities pledged as collateral increased to $1.02 billion at March 31, 2024, from $845.2 million at December 31, 2023, representing a rise of approximately 20.7%[44] - The amortized cost of total available-for-sale securities was $1,083.669 million as of March 31, 2024, with unrealized losses amounting to $160.846 million[40] Loan Portfolio - The total loan portfolio amounted to $4.4 billion as of March 31, 2024, with a net amount of $4.4 billion after accounting for the allowance for credit losses[57] - As of March 31, 2024, total loans gross amounted to $4,397,860 thousand, with a past due amount of $21,053 thousand[62] - The performing residential real estate loans amounted to $641,363,000, while non-performing loans totaled $6,797,000[79] - The total residential real estate loans reached $648,160,000, with a significant portion being performing loans[79] Strategic Initiatives - The company exited the Pennsylvania automobile market effective January 1, 2024, to focus on its core Upstate New York market[23] - The company announced the sale of SDN Insurance Agency to NFP Property & Casualty Services, Inc. on April 1, 2024[24] - The Company focuses on increasing market share within existing markets while exploring growth opportunities in noninterest income lines through acquisitions[201] - The Company emphasizes a community bank philosophy, aiming to provide personalized service to small- to medium-sized businesses and individuals[196] Market Conditions and Competition - The company operates in a highly competitive industry, which may impact its financial performance and results of operations[189] - The Company faces competition in technological advancements and must adapt to changing customer preferences for banking services[194] - The Company has implemented a program to provide financial products and services to legal cannabis-related businesses, navigating regulatory risks[204] - The Company relies on dividends from subsidiaries for most of its revenue, highlighting the importance of effective risk management[194]

Financial Institutions (FISI) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -83.33%. A quarter ago, it was expected that this holding company for Five Star Bank would post earnings of $0.73 per share when it actually produced earnings of $0.61, delivering a surprise of -16.44%.Over ...

Exhibit 99.1 FINANCIAL INSTITUTIONS, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS WARSAW, N.Y., April 25, 2024 – Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), parent company of Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), today reported financial and operational results for the first quarter ended March 31, 2024. Net income was $2.1 million in the first quarter of 2024, compared to $9.8 million in the fourth quarter of 2023 and $12.1 million in the firs ...

WARSAW, N.Y., March 14, 2024 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ:FISI) (the "Company"), the parent company of Five Star Bank (the "Bank"), SDN Insurance Agency, LLC and Courier Capital, LLC, today announced that Wednesday, June 5, has been established as the date of its 2024 Annual Meeting of Shareholders. The meeting will be held in a virtual format only, via live webcast, beginning at 10:00 am Eastern Time. The record date for voting at the Annual Meeting will be April 10, 2024. Furth ...

- 24 - Table of Contents The value of our goodwill and other intangible assets may decline in the future. - 26 - We may be unable to successfully implement our growth strategies, including the integration and successful management of newly-acquired businesses. Our current growth strategy is multi-faceted. We seek to expand our branch network into nearby areas, continue to invest in our digital banking strategy, develop new sustainable revenue streams through BaaS, make strategic acquisitions of loans, portf ...

Financial institutions’ net income dropped 43.9% in the fourth quarter of 2023.The net income of commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. (FDIC) totaled $38.4 billion in the fourth quarter of 2023, down $30 billion from the previous quarter, the FDIC said in a Thursday (March 7) press release.Their net income for the full year was down 2.3%, or $6 billion, compared to 2022, according to the release.The quarter-to-quarter drop was driven by nonrecurring, nonint ...

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 Performance - Net income available to common shareholders was $140 million in 2Q '23, compared to $153 million in 2Q '22[27] - Net interest income (NII) was $423 million in 2Q '23, up 18% from 2Q '22[28] - Noninterest income was $115 million in 2Q '23, up 09% from 2Q '22[28] - Total loans reached $440 billion, reflecting an increase of 168% from June 30, 2022[17] - Total deposits were $503 billion, up 44% from one year prior[22] Asset Quality - Annualized net charge-offs (NCOs) to average loans for the current quarter was 006%[4, 22] - Non-performing loans to total loans was 023%[22] - Non-performing assets to total assets was 016%[22] Strategic Initiatives - The company is well-positioned for growth in Buffalo and Rochester[3] - Launched commercial lending platforms in Baltimore, MD in early 2022 and in Syracuse, NY in early 2023[3] - Banking-as-a-Service (BaaS) presents additional fee-based revenue opportunities[10]