Investor Presentation Nasdaq: FISI Fourth Quarter 2025 January 29, 2026 Important Information Safe Harbor Statement & Other Information 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 th ...

Core Points - James Beckwith, President and CEO of Five Star Bancorp, has been named Sacramentan of the Year by the Sacramento Metropolitan Chamber of Commerce for his two decades of leadership and community investment [1][2] - Under Beckwith's leadership, Five Star Bank has received multiple awards, including the Sacramento Business Journal's Corporate Champion of the Year and the Greater Sacramento Economic Council's Sustainability Award [3] - Five Star Bank has expanded its operations into San Francisco's Financial District in 2024 and Walnut Creek in 2025, enhancing its business banking services [5] Company Achievements - Five Star Bank has been recognized as one of S&P Global Market Intelligence's Top 3 Best-Performing Community Banks in the nation, with assets between $3 billion and $10 billion [7] - The bank received the 2024 Raymond James Community Bankers Cup and was listed among Piper Sandler's Sm-All Stars for 2023 and 2024 [7] - In 2025, Five Star Bank ranked 4 among U.S. banks with assets less than $5 billion by Bank Director Magazine's RankingBanking [7] Community Involvement - Beckwith has significantly supported non-profit organizations in the Greater Sacramento Region, including Saint John's Program for Real Change and Sacramento Regional Conservation Corps [4] - The bank has invested in local educational institutions, such as Cristo Rey High School and Capital College & Career Academy, to foster the next generation of leaders [4] - Beckwith serves on several boards, including the Greater Sacramento Economic Council and the California Bankers Association, advocating for economic development [4]

Financial Performance & Guidance - The company reported strong Q3 2025 financial results, with a net income available to common shareholders of $20.1 million[13] - Diluted earnings per common share increased by 16.5% from $0.85 in 2Q25 to $0.99 in 3Q25[14] - The company's full-year NIM is expected to be between 3.50% and 3.55%, and noninterest income is expected to exceed $42 million in 2025[9] - The efficiency ratio is expected to be below 59% for the year, and the effective tax rate is projected to be between 18% and 19%[9] - The company anticipates approximately 3% annual loan growth, driven by commercial loans[9] Balance Sheet & Portfolio - Total deposits were $5.36 billion, up 3.9% from the linked quarter and 1.0% from the previous year[14, 16] - Total loans reached $4.59 billion, a 1.2% increase during the quarter[14] - The securities portfolio stood at $1.01 billion as of 9/30/25[43] - Commercial loans totaled $2.99 billion with committed credit exposure of $3.97 billion at 9/30/25[23] Asset Quality - NCOs to average loans decreased to 18 bps, down from 36 bps in the linked quarter[14] - Allowance for credit losses to total loans was 1.03% at 9/30/25[74]

Core Insights - Five Star Bancorp has opened a new full-service office in Walnut Creek, California, on September 29, 2025, to enhance its concierge banking services for local businesses [1][4] - The new location aims to capitalize on Walnut Creek's growth as a regional commerce hub, with nearly 55,000 jobs and a vibrant business environment [2][5] - The expansion is part of Five Star Bank's strategy to deepen relationships with East Bay businesses and provide personalized banking services [6] Company Overview - Five Star Bancorp operates through its wholly owned banking subsidiary, Five Star Bank, and has eight branches in Northern California [7] - The bank has been recognized as a Top Three Best-Performing Community Bank in the nation for banks with assets between $3 billion to $10 billion by S&P Global Market Intelligence [5] Strategic Importance of Walnut Creek - Walnut Creek is emerging as a premier destination for businesses due to its central location, high quality of life, and strong community management [2][5] - The city is experiencing economic momentum, making it an attractive location for Five Star Bank to establish its presence [3][5] - The new branch is expected to serve various sectors, including technology, nonprofit, professional services, and construction [5][6]

Core Insights - Five Star Bancorp is expanding its presence in the Bay Area with a new office in Walnut Creek, reflecting its commitment to providing concierge commercial banking services to local businesses and non-profits [1][2][3] Group 1: Expansion Strategy - The new Walnut Creek office, approximately 4,128 square feet, is set to open in the third quarter of 2025, enhancing Five Star Bank's ability to serve a growing client portfolio in the East Bay [2][3] - This expansion follows the opening of a San Francisco office in September 2024, indicating a broader growth strategy in Northern California [2][3] Group 2: Market Opportunity - Walnut Creek has seen steady commercial growth and increased demand for high-tech financial services, driven by post-pandemic migration and a vibrant small business sector [2] - Existing client relationships in Walnut Creek, including local businesses like Original Joe's and Calicraft Brewing Co., position Five Star Bank to effectively meet the needs of East Bay clients [2] Group 3: Community Commitment - The new office is described as a natural extension of Five Star Bank's commitment to the East Bay communities, emphasizing personalized, relationship-based banking [3] - The location is chosen for its thriving business landscape, skilled workforce, and strong community values, aligning with the bank's strategic investment goals [3]

Core Viewpoint - Five Star Bancorp is expanding its presence in the Bay Area by opening a new office in Walnut Creek, which reflects the company's commitment to strategic growth in Northern California [1][2][3] Company Expansion - The new Walnut Creek office will be approximately 4,128 square feet and is expected to open in the third quarter of 2025 [2] - This expansion follows the opening of a San Francisco office in September 2024, indicating a broader growth strategy [2] Market Opportunity - Walnut Creek has seen steady commercial growth and increased demand for financial services, driven by post-pandemic migration and a vibrant small business sector [2] - The new office aims to serve a diverse client base, including family-owned businesses and professional service firms [2][3] Community Commitment - The location is chosen for its thriving business landscape, skilled workforce, and strong community values, aligning with the company's goal of delivering personalized banking solutions [3] - Approximately one-third of Five Star Bank's Bay Area employees are already based in the East Bay, highlighting the regional focus [2]