FISI

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Commercial lending momentum in core Western and Central New York markets drove a 2.7% sequential loan increase, specifically benefiting from industrial activity surrounding the Micron semiconductor campus in Syracuse. Net interest margin expanded by 3 basis points from the first quarter as the company effectively managed funding costs, and management has raised the full-year NIM guidance to approximately 370 basis points. The wealth management subsidiary reached a $4 billion AUM milestone, fueled by a combination of positive net flows from recent talent investments and market-driven gains. Management maintained strict credit discipline in the consumer indirect auto portfolio, intentionally allowing runoff to outpace originations to prioritize prime credit mix and spreads. A strategic shift toward off-balance sheet residential mortgage servicing supported a 45% increase in loan servicing income, enhancing the company's fee income profile. Efficiency ratio improved to nearly 55% as revenue growth outpaced flat non-interest expenses, demonstrating strong operating leverage. Full-year 2026 loan growth target remains at 5%, with strong commercial pipelines expected to offset continued runoff in the indirect auto portfolio. Management raised full-year profitability guidance, now targeting a return on average assets (ROA) of at least 1.3% and a return on average equity (ROE) of at least 12.5%. Net interest margin guidance was upgraded to approximately 370 basis points, assuming a stable interest rate environment and moderated deposit rate expansion. The company expects to achieve a full-year efficiency ratio below 57% through continued prudent expense management and the elimination of recurring vendor costs. Deposit growth is targeted at low single digits for the full year, with a focus on retaining core non-public deposits despite a competitive regional CD market. Public deposit seasonality caused a 9% sequential decline in investment securities, reflecting the typical peak and trough cycles of municipal tax collections. Computer and data processing expenses fell 11.3% following the exit of a vendor relationship and the associated one-time contract termination costs incurred in Q1. The effective tax rate was 17.3% in the second quarter, up from 15.5% in the first quarter, which had been lower due to stock price appreciation that positively impacted tax deductions for stock-based compensation vesting in that period. Commercial loan payoffs in the Baltimore LPO, while muting net growth, were cited as indicators of healthy liquidity and strong credit quality. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that while commercial pipelines are ramping up due to six new hires, they anticipate continued softness and runoff in the indirect auto portfolio. The 5% growth target accounts for runoff in the indirect portfolio, which is being supplemented by strong commercial originations. CFO Jack Plants stated the balance sheet is fairly insensitive to a 25 basis point adjustment in either direction. Interest rate risk modeling supports the current margin guidance regardless of minor FOMC activity. Management views the franchise as undervalued based on price-to-earnings and tangible book value multiples relative to peers. Share buybacks remain an efficient use of capital given the company's current market positioning and strong capital levels.

Interested in Financial Institutions, Inc.? Here are five stocks we like better. Earnings and profitability improved in Q2, with net income up 21% year over year to $20.8 million and diluted EPS at $1.04. Financial Institutions also raised its full-year targets for ROA to at least 1.3%, ROE to at least 12.5%, and efficiency ratio to below 57%. Commercial lending drove loan growth, as total loans rose 2.7% sequentially and commercial loans climbed 4.3%. Management said momentum in Upstate New York, including the Syracuse market, is benefiting from new industrial and infrastructure activity tied to Micron’s planned investment. Margin and fee income strengthened as funding costs declined, lifting net interest margin by 3 basis points sequentially and prompting a full-year margin forecast of about 370 basis points. Non-interest income also rose, helped by wealth management growth, higher swap fees, and stronger loan servicing revenue. Financial Institutions (NASDAQ:FISI) reported higher second-quarter earnings, loan growth and net interest margin, while raising several full-year profitability targets as commercial lending momentum strengthened across its core Upstate New York markets. Net income available to common shareholders totaled $20.8 million, up 1% from the first quarter and 21% from the prior-year quarter. Diluted earnings per share were $1.04, unchanged from the first quarter and up from $0.85 a year earlier. Tangible book value per share rose 2% sequentially and more than 10% year over year to $28.72. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? President and CEO Marty Birmingham said the quarter reflected “diversified revenue, well-managed expenses, and sustained earnings and profitability.” The company’s quarterly efficiency ratio improved to nearly 55%, supported by revenue growth and flat non-interest expenses. Total loans increased 2.7% from the end of the first quarter and 4.8% from a year earlier. Commercial loans rose 4.3% sequentially and 9.1% year over year, led by commercial and industrial lending, with contributions from commercial real estate and business banking. → GE Vernova Just Sent a Mixed AI Signal to Investors Birmingham said activity in the Syracuse market has increased among industrial suppliers and contractors following the groundbreaking earlier this year for Micron’s semiconductor campus. He said Financial Institutions sees opportunities tied to the company’s planned $100 billion investment as the region supports further development and population growth. The company also said it has added six commercial lending professionals during the past eight to 10 months, with those employees beginning to build pipelines. Birmingham said its Baltimore loan production office remained stable at approximately $400 million in outstanding loans, though the business experienced earlier-than-expected payoffs and paydowns. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Residential mortgage lending also gained momentum. On-balance-sheet residential loans increased 1.5% from the prior quarter and 2.2% from the prior year. Sold and serviced residential mortgages reached $302 million, rising 1.4% sequentially and more than 7% year over year as the company shifted more production toward its off-balance-sheet servicing portfolio. Consumer indirect loans, however, declined 2.1% from the first quarter and 7.5% from a year earlier. Management attributed the decline to its emphasis on spreads and prime-credit borrowers, which has allowed runoff to exceed originations. The indirect portfolio’s second-quarter net charge-off ratio improved to 59 basis points, aided by recoveries. Despite stronger commercial activity, Financial Institutions maintained its target for full-year loan growth of 5%. Chief Financial Officer Jack Plants II said commercial production is offsetting greater-than-anticipated runoff in the indirect portfolio, where the company is not pursuing lower credit tiers. Net interest income increased to $53.4 million in the second quarter, helped by loan growth and an additional day in the quarter. Net interest margin expanded 3 basis points from the first quarter and 21 basis points from the year-ago period. Average loan yields were 6.07% in both the first and second quarters, while investment securities yields declined 2 basis points sequentially to 4.46%. Plants said lower interest-bearing liability costs drove the margin improvement and that, absent Federal Reserve activity, deposit rates appear to have reached a low point. The company raised its full-year net interest margin forecast to approximately 370 basis points from previous guidance in the upper 360-basis-point range. Plants said the bank is relatively insensitive to a 25-basis-point move in either direction, based on its interest-rate risk modeling. Period-end deposits were $5.3 billion, down 0.7% from March 31 but up 2.8% from June 30, 2025. The linked-quarter decline reflected seasonal movements in public deposits tied to tax collections and state aid. Management continues to target low-single-digit deposit growth for the full year and described the market for certificates of deposit as competitive. Non-interest income rose 2.6% from the first quarter to $11 million. Investment advisory revenue increased 7.4% to $3.3 million, as assets under management at wealth subsidiary Courier Capital reached $4 billion, up 13% during the quarter and 19% year over year. Plants said asset growth reflected positive net flows, market gains and investments in talent. Courier Capital also continued to develop relationships in Florida after opening a smaller office in late 2025 to serve seasonal residents and retirees. Banking services fee income and service charges increased $596,000, or 17%, from the prior quarter. Swap fee income more than doubled as back-to-back swap volume increased alongside lending activity, while loan servicing income rose nearly 45% due to the company’s off-balance-sheet residential mortgage strategy. Company-owned life insurance revenue increased 4% sequentially to $2.9 million. Based on first-half results, Financial Institutions now expects at least $11 million of company-owned life insurance income for the full year, compared with prior guidance of $10.5 million. Non-interest expense was $35.6 million, consistent with both the first quarter and the year-ago quarter. Salaries and benefits rose 3% sequentially, reflecting annual merit increases and an additional business day, while computer and data processing costs declined 11.3% following first-quarter vendor contract termination costs. Credit costs also improved. Net charge-offs totaled 11 basis points of average loans, compared with 44 basis points in the first quarter. The allowance for credit losses increased 3 basis points to 1% of total loans. Capital ratios continued to rise, with the common equity Tier 1 ratio reaching 11.44%, up 7 basis points sequentially and 60 basis points year over year. The tangible common equity ratio was 9.02%, up 13 basis points from the first quarter and 41 basis points from a year earlier. Management raised its full-year return on average assets target to at least 1.3% from 1.22% and increased its return on average equity target to at least 12.5% from 11.9%. It also expects a full-year efficiency ratio below 57%. When asked about share repurchases, Plants said management continues to view buybacks as an efficient use of capital, citing the company’s valuation relative to its profitability metrics and peer group. Financial Institutions, Inc (NASDAQ: FISI) is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax. In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Financial Institutions Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

The Company's community bank subsidiary delivered strong loan growth of 2.7% during the quarter and its wealth manager's assets under management surpassed a new milestone of $4.0 billion WARSAW, N.Y., July 23, 2026 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us") today reported financial and operational results for the second quarter ended June 30, 2026, reflecting strong performance by subsidiaries Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), including healthy loan growth, all-time-high assets under management ("AUM") and sustained profitability. Second Quarter 2026 Highlights and Key Developments Total loans of $4.75 billion at June 30, 2026 grew 2.7% from March 31, 2026, driven by robust commercial lending, while deposits of $5.30 billion were down modestly quarter-over-quarter, reflecting public deposit seasonality. Net interest income reached a new quarterly high of $53.4 million and net interest margin of 3.70% reflected expansion of 3 and 21 basis points from the linked and year-ago quarters, respectively. Noninterest income of $11.0 million was up 2.6% and 3.2% from the linked and year-ago quarters, respectively, supported by increased investment advisory fees as Courier Capital's AUM surpassed $4.0 billion. The efficiency ratio improved to 55%, reflecting both strong revenue generation and disciplined expense management, as noninterest expense of $35.6 million held flat with the linked quarter. Net charge-offs were 0.11% of average loans in the second quarter of 2026, while the ratio of allowance for credit losses on loans to total loans increased to 1.00% at June 30, 2026. "We delivered another quarter of strong and profitable results, highlighted by annualized loan growth of more than 10%, healthy revenue generation and prudent expense management," said President and Chief Executive Officer Martin K. Birmingham. "Commercial loan growth was robust, driven by our core Western and Central New York markets, and our pipelines are healthy heading into the second half of the year. In our wealth business, assets under management grew to more than $4.0 billion as of June 30, 2026, as new business activity complemented market performance. Overall, our results continue to reflect disciplined execution by each of our business lines and our commitment to sustainable profitability and long-term value creation." Chief Financial Officer and Treasurer W. Jack Plants II added, "Our disciplined approach to managing funding costs supported further net interest margin expansion to 3.70% for the second quarter. Given current rate dynamics, we are beginning to see deposit costs level off and remain focused on preserving margin stability amid a competitive environment. Heading into the third quarter, we remain focused on deposit retention and acquisition, credit disciplined loan growth and effective expense management. Capital strength remains a key pillar of our financial performance, with a tangible common equity ratio(1) of 9.02%, a common equity Tier 1 ratio of 11.44%, and a return on average tangible common equity(1) of 14.88%." Net Interest Income and Net Interest Margin Net interest income was $53.4 million, up $1.4 million from the linked quarter and up $4.2 million from the second quarter of 2025. Net interest margin of 3.70% reflected expansion of 3 and 21 basis points from the linked and year-ago quarters, respectively, driven by lower interest-bearing liability costs. Average interest earning assets of $5.79 billion were up $61.4 million from the first quarter of 2026 and up $134.5 million from the second quarter of 2025. The linked quarter variance reflected increases in both average loans and investment securities, partially offset by a small decrease in the average balance of Federal Reserve interest-earning cash. The year-over-year variance reflected a $139.2 million increase in average balance of loans, partially offset by a $10.7 million decrease in the average balance of Federal Reserve interest-earning cash, as average balances of investment securities remained relatively consistent. The yield on interest-earning assets was 5.76% in both the first and second quarters of 2026, compared to 5.88% in the second quarter of 2025. Average interest-bearing liabilities of $4.56 billion were up $46.0 million from the first quarter of 2026 and up $41.1 million from the second quarter of 2025. The linked quarter variance was due to increases in the average balances of savings and money market deposits and short-term borrowings, partially offset by decreases in long-term borrowings, average interest-bearing demand deposits and time deposits. The year-over-year variance reflected increases in the average balances of time deposits, short-term borrowings and savings and money market deposits, partially offset by decreases in average long-term borrowings and average interest-bearing demand deposits. The cost of interest-bearing liabilities was 2.61%, reflecting decreases of 4 and 39 basis points from the linked and year-ago quarters, respectively. Noninterest Income Noninterest income was $11.0 million in the second quarter of 2026, versus $10.7 million in the first quarter of 2026 and $10.6 million in the second quarter of 2025. The linked quarter and year-over-year variances were driven by a variety of factors, including increased investment advisory income, reflecting both new business and market performance, and increased income from derivative instruments, net, which is based on the number and value of interest rate swap transactions executed during the quarter. Detail on other select categories with notable variances follows: A loss on investments in limited partnerships, which are primarily small business investment companies, of $140 thousand was recognized in the second quarter of 2026, compared to gains of $224 thousand and $307 thousand in the linked and year-ago quarters, respectively. Income from these investments, which we account for under the equity method, fluctuates based on the maturity and performance of the underlying investments. A net gain on other assets of $27 thousand was recognized in the second quarter of 2026, compared to a net loss of $481 thousand in the first quarter of 2026 related to the write-down of two branch locations that were held for sale as of March 31, 2026. No gain or loss was recorded in the second quarter of 2025. Other noninterest income of $1.2 million was down from both the linked and year-ago quarters. The linked quarter variance was driven by a variety of factors, including insurance recoveries recorded in the first quarter of 2026 related to a previously disclosed deposit-related charge-off. Noninterest Expense and Income Taxes Noninterest expense was $35.6 million in both the first and second quarters of 2026 and $35.7 million in the second quarter of 2025. Detail on select categories with notable variances follows: Salaries and employee benefits expense was $564 thousand higher than the first quarter of 2026, primarily driven by the timing of annual merit increases as well as the impact of an additional business day in the recent quarter, and $1.1 million higher than the second quarter of 2025, reflecting a combination of factors, including annual merit increases, incentive compensation and investments in personnel. Computer and data processing expense was $699 thousand and $367 thousand lower than the linked and year-ago quarters, respectively, due in part to the termination of a vendor relationship in the first quarter of 2026. Income tax expense was $4.4 million for the second quarter of 2026, compared to $3.8 million in the first quarter of 2026 and $4.0 million in the second quarter of 2025. Income tax expense reflects federal and state tax benefits that the Company recognized related to tax credit investments placed in service and/or amortized during each period, as outlined above. The effective tax rate, which was 17.3% for the second quarter of 2026, fluctuates on a quarterly basis primarily due to the level of pre-tax earnings or loss and may differ from statutory rates due to interest income from tax-exempt securities, earnings on COLI and the impact of repositionings, the tax impact of restricted stock award vesting, and the impact of tax credit investments. Balance Sheet Composition and Liquidity Total loans of $4.75 billion at June 30, 2026 were up $125.4 million from the end of the linked quarter and up $217.0 million from June 30, 2025. Strong commercial lending activity in the Bank's Western and Central New York markets drove both the linked quarter and year-over-year growth. Total deposits were $5.30 billion at June 30, 2026, down $38.4 million from March 31, 2026, and up $143.5 million from June 30, 2025. The linked quarter variance was primarily due to seasonally lower public deposit balances, while the year-over-year increase reflected increases in public, nonpublic and reciprocal deposit balances, partially offset by a decrease in brokered deposits. Public deposits represented 22% of total deposits at June 30, 2026, 23% at March 31, 2026, and 21% at June 30, 2025. The Company maintains liquidity, both on and off-balance sheet, to meet customer demand. As outlined in the table above, at June 30, 2026, the Company had approximately $1.15 billion in available liquidity, excluding brokered deposit capacity, in addition to cash and cash equivalents of $99.2 million and available unsecured lines of credit totaling $155.0 million. Capital Strength and Shareholder Returns The Company's regulatory capital ratios at June 30, 2026 continued to exceed all regulatory capital requirements to be considered well capitalized. Shareholders' equity grew to $643.4 million at June 30, 2026, compared to $631.7 million at March 31, 2026, and $601.7 million at June 30, 2025, primarily due to net income, net of dividends, retained. The increase in shareholders' equity supported significant year-over-year expansion of both the common equity to assets ratio, which was 9.88% at June 30, 2026, and the tangible common equity to tangible assets ratio(1), or the TCE ratio, which was 9.02% at June 30, 2026. The Company declared a common stock dividend of $0.32 per common share in the second quarter of 2026, consistent with the linked quarter and reflecting an increase of $0.01, or 3.2%, over the year-ago quarter, returning 30% of second quarter net income to common shareholders. As of June 30, 2026, 503,313 shares, or approximately half of the amount authorized by the Board of Directors, remained available under the repurchase program that was approved in September 2025. The Company did not repurchase shares of its common stock under the share repurchase program in the second quarter of 2026. Credit Quality The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. Non-performing loans were $39.0 million, or 0.82% of total loans, at June 30, 2026. The increase from one year prior primarily reflects one well-collateralized commercial business loan that moved to nonaccrual status in the first quarter of 2026, offset in part by the partial charge-off of a previously disclosed nonaccrual commercial business relationship for which a specific reserve was in place. Provision for credit losses was $3.1 million in the second quarter of 2026 and was driven by a combination of factors, including loan growth and fluctuation in the balance of unfunded commitments. The provision for credit losses on unfunded commitments, which is included in the provision for credit losses as required by the current expected credit loss standard ("CECL"), totaled a credit of $1.0 million in the second quarter of 2026, compared to a credit of $116 thousand in the first quarter of 2026 and a provision of $185 thousand in the second quarter of 2025. Subsequent Events The Company is required, under U.S. generally accepted accounting principles ("GAAP"), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2026 on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2026, and will adjust amounts preliminarily reported, if necessary, in its Form 10-Q as filed with the Securities and Exchange Commission (the "SEC"). Conference Call The Company will host an earnings conference call and audio webcast on July 24, 2026, at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. Within the United States, participants may access the call by dialing 1-877-425-9470 and requesting the “Financial Institutions, Inc. Second Quarter 2026 Earnings Conference Call.” A live webcast will also be available at https://viavid.webcasts.com/starthere.jsp?ei=1767913&tp_key=12f3894d15 in listen-only mode. A replay of the webcast will be available on the Company’s IR website, www.FISI-Investors.com, for at least 30 days. About Financial Institutions, Inc. Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.3 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Its Courier Capital, LLC subsidiary offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at FISI-Investors.com. Non-GAAP Financial Information In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document. The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Safe Harbor Statement This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "anticipate," "believe," "continue," "estimate," "expect," "focus," "forecast," "intend," "may," "plan," "preliminary," "should," "target" or "will." Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; inflation; tariffs; changes in deposit flows and the cost and availability of funds; fraudulent deposit activity; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company's customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company's compliance with regulatory requirements; general economic and credit market conditions nationally and regionally; and macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release. (1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.(2) Calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%. FINANCIAL INSTITUTIONS, INC.Selected Financial Information (Unaudited)(Amounts in thousands, except per share amounts) (1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure. FINANCIAL INSTITUTIONS, INC.Selected Financial Information (Unaudited)(Amounts in thousands, except per share amounts) (1) See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.(2) The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (tax-equivalent basis assuming a Federal income tax rate of 21%) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP. FINANCIAL INSTITUTIONS, INC.Selected Financial Information (Unaudited)(Amounts in thousands) (1) Includes investment securities at adjusted amortized cost.(2) See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.(3) The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%. FINANCIAL INSTITUTIONS, INC.Selected Financial Information (Unaudited)(Amounts in thousands) (1) At period end. FINANCIAL INSTITUTIONS, INC.Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)(In thousands, except per share amounts) (1) Tangible common equity divided by tangible assets.(2) Tangible common equity divided by common shares outstanding.(3) Net income available to common shareholders (annualized) divided by average tangible common equity. CONTACT: For additional information contact: Kate Croft Director of Investor Relations and Corporate Communications (716) 817-5159 [email protected]

Financial Institutions (FISI) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.83%. A quarter ago, it was expected that this holding company for Five Star Bank would post earnings of $0.92 per share when it actually produced earnings of $1.04, delivering a surprise of +13.04%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Financial Institutions, which belongs to the Zacks Banks - Northeast industry, posted revenues of $64.32 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $59.74 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Financial Institutions shares have added about 24.8% since the beginning of the year versus the S&P 500's gain of 9.6%. While Financial Institutions has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Financial Institutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.01 on $66.37 million in revenues for the coming quarter and $3.96 on $260.19 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, First Commonwealth Financial (FCF), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This financial holding company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. First Commonwealth Financial's revenues are expected to be $137.23 million, up 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Financial Institutions, Inc. (FISI) : Free Stock Analysis Report First Commonwealth Financial Corporation (FCF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Financial Institutions (FISI), which belongs to the Zacks Banks - Northeast industry, could be a great candidate to consider. When looking at the last two reports, this holding company for Five Star Bank has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 7.05%, on average, in the last two quarters. For the last reported quarter, Financial Institutions came out with earnings of $1.04 per share versus the Zacks Consensus Estimate of $0.92 per share, representing a surprise of 13.04%. For the previous quarter, the company was expected to post earnings of $0.95 per share and it actually produced earnings of $0.96 per share, delivering a surprise of 1.05%. Thanks in part to this history, there has been a favorable change in earnings estimates for Financial Institutions lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Financial Institutions currently has an Earnings ESP of +4.30%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 23, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Financial Institutions, Inc. (FISI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Financial Institutions (FISI) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for Five Star Bank is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of +9.4%. Revenues are expected to be $63.55 million, up 6.4% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Financial Institutions, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.30%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Financial Institutions will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Financial Institutions would post earnings of $0.92 per share when it actually produced earnings of $1.04, delivering a surprise of +13.04%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Financial Institutions appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Northeast industry, Norwood Financial Corp. (NWFL), is soon expected to post earnings of $0.87 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +29.9%. This quarter's revenue is expected to be $28.4 million, up 33.3% from the year-ago quarter. The consensus EPS estimate for Norwood Financial has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.15%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Norwood Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Financial Institutions, Inc. (FISI) : Free Stock Analysis Report Norwood Financial Corp. (NWFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research