Financial Institutions, Inc. Reports Third Quarter 2025 Results, Including Net Income Available to Common Shareholders of $20.1 million, or $0.99 per Diluted Share

Core Insights - The company reported strong financial results for Q3 2025, with significant growth in net interest income, noninterest income, and overall profitability, indicating robust performance across its banking and wealth management sectors [1][4][6]. Financial Performance - Net income for Q3 2025 was $20.5 million, an increase from $17.5 million in Q2 2025 and $13.5 million in Q3 2024. Net income available to common shareholders was $20.1 million, or $0.99 per diluted share, compared to $17.2 million, or $0.85 per diluted share in Q2 2025, and $13.1 million, or $0.84 per diluted share in Q3 2024 [2][4]. - Record net interest income reached $51.8 million, up $2.7 million (5.4%) from Q2 2025 and $11.1 million (27.3%) from Q3 2024. The net interest margin expanded to 3.65%, reflecting a 16 basis point increase from the previous quarter and a 76 basis point increase year-over-year [6][8][11]. - Noninterest income was reported at $12.1 million, an increase of $1.4 million (13.6%) from Q2 2025 and $2.6 million (27.7%) from Q3 2024, driven by higher investment advisory income and swap fees [12][14]. Loan and Deposit Growth - Total loans increased by $54.4 million (1.2%) from Q2 2025 and $187.4 million (4.3%) from Q3 2024, reaching $4.59 billion, primarily due to strong commercial loan growth [6][18][21]. - Total deposits were $5.36 billion, up $201.8 million (3.9%) from Q2 2025 and $51.2 million (1.0%) from Q3 2024, supported by seasonal public deposit inflows and growth in nonpublic deposits [19][22]. Capital Management - The company announced a share repurchase program for up to 1,006,379 shares, approximately 5% of its outstanding common shares, to enhance shareholder value [5][7]. - Regulatory and tangible capital ratios improved significantly, with the common equity to assets ratio at 9.61% and tangible common equity to tangible assets ratio at 8.74% as of September 30, 2025 [24][30]. Credit Quality - Non-performing loans were stable at $34.0 million (0.74% of total loans), down from $40.7 million (0.93%) a year earlier. Net charge-offs were $2.1 million (0.18% of average loans), a decrease from $4.1 million (0.36%) in Q2 2025 [27][28][32].