Financial Institutions, Inc.
- Open
- 39.41
- Day high
- 39.48
- Day low
- 39.06
- Prev close
- 39.32
- Volume
- 99K
- Mkt cap
- $774M
- P/E (TTM)
- 10.1
- EPS (TTM)
- $3.88
- P/B
- 1.2
- P/S
- 2.0
- Yield
- 3.21%
- Per share
- $1.26
Financial Institutions, Inc. (FISI) is a Financial Services company listed on NASDAQ. The stock is up 44% over the past year.
Financial Institutions, Inc. (FISI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FISI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 24, 2026 | $0.92 | $1.04 | +13.0% | $63M | -0.2% |
| Mar 9, 2026 | — | $0.98 | — | $97M | — |
| Oct 23, 2025 | $0.94 | $0.99 | +5.3% | $64M | +0.9% |
| Jul 24, 2025 | $0.88 | $0.85 | -3.4% | $59M | -1.7% |
| Jan 30, 2025 | $0.74 | $0.54 | -27.0% | $-14M | -126.5% |
| Oct 24, 2024 | $0.76 | $0.84 | +10.5% | $50M | +17.9% |
| Jul 25, 2024 | $2.01 | $1.62 | -19.4% | $64M | +42.8% |
| Apr 25, 2024 | $0.59 | $0.11 | -81.4% | $51M | +26.6% |
| Jan 29, 2024 | $0.71 | $0.84 | +18.3% | $55M | +36.1% |
| Oct 26, 2023 | $0.83 | $0.88 | +6.0% | $52M | +22.0% |
| Jul 27, 2023 | $0.75 | $0.91 | +21.3% | $53M | +27.8% |
| Jan 30, 2023 | $0.81 | $0.76 | -6.2% | $54M | -0.1% |
FISI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 21, 2026 | VanGelder Kim Edirector | Grant | 1,282 | — |
| May 21, 2026 | PANZARELLA ANGELA Jdirector | Grant | 1,282 | — |
| May 21, 2026 | Finch Steven C.director | Grant | 391 | $35.10 |
| May 21, 2026 | HOLLIDAY SUSAN Rdirector | Grant | 1,282 | — |
| May 21, 2026 | Glaser Robert Mdirector | Grant | 1,282 | — |
| May 21, 2026 | Burlew Dawn Hdirector | Grant | 1,282 | — |
| May 21, 2026 | Schrader Robert L.director | Grant | 1,282 | — |
| May 21, 2026 | Latella Robert Ndirector | Grant | 1,282 | — |
| May 21, 2026 | Finch Steven C.director | Grant | 1,282 | — |
| May 21, 2026 | PANZARELLA ANGELA Jdirector | Grant | 925 | $35.10 |
| May 21, 2026 | Bovenzi Daviddirector | Grant | 391 | $35.10 |
| May 21, 2026 | Burlew Dawn Hdirector | Grant | 313 | $35.10 |
| May 21, 2026 | Bovenzi Daviddirector | Grant | 1,282 | — |
| May 21, 2026 | HARTING BRUCE Wdirector | Grant | 1,282 | — |
| May 21, 2026 | DORN ANDREW W JRdirector | Grant | 1,282 | — |
Source: FISI SEC Form 4 filings, latest May 21, 2026. For informational purposes only — not investment advice.
See the full FISI insider & 13F page →Financial Institutions, Inc. company profile
Overview
Financial Institutions, Inc. (NASDAQ:FISI) is a regional bank holding company founded in 1817 and headquartered in Warsaw, New York. The company operates primarily through its subsidiary Five Star Bank, which provides traditional banking and financial services across 17 counties in upstate New York through a network of 48 banking offices. With over 200 years of history, Financial Institutions has evolved from a local community bank into a diversified financial services provider, though it has faced significant challenges in recent years including strategic repositioning and operational setbacks that have impacted profitability.
Business
Financial Institutions operates in the regional banking sector, providing comprehensive financial services to individuals, small businesses, municipalities, and commercial clients throughout upstate New York. The company's business is structured around several key segments: Commercial Banking (approximately 53% of loan portfolio): This segment includes commercial business loans for working capital and equipment purchases, commercial mortgage loans for real estate investments, and specialized agricultural lending. The bank focuses on relationship-based lending with local businesses and has recently expanded into the Mid-Atlantic region including Baltimore and Washington D.C. markets. Residential Banking: Offers traditional consumer banking products including checking and savings accounts, certificates of deposit, money market accounts, and individual retirement accounts. The mortgage division provides one-to-four family residential mortgages, home equity loans and lines of credit, and home improvement financing. Consumer Lending (approximately 22% of loan portfolio): Primarily consists of indirect auto lending through dealer networks, along with personal loans and secured installment lending. The company has been strategically reducing this portfolio in recent years. Insurance and Wealth Management: Previously offered personal and commercial insurance products through its SDN Insurance Agency subsidiary, which was sold in 2024. The company continues to provide investment advisory services, wealth management, retirement planning, and operates a real estate investment trust focused on residential mortgages and commercial real estate loans. Banking-as-a-Service (BaaS): A newer initiative that provided banking infrastructure to fintech companies, though the company announced plans to wind down this offering in 2024 due to strategic refocusing on core community banking operations.
Revenue model
Financial Institutions generates revenue through traditional banking operations, primarily earning money through the net interest margin - the difference between interest earned on loans and investments versus interest paid on deposits and borrowings. The bank's loan portfolio of approximately $4.5 billion generates interest income, while customer deposits of around $5.1 billion provide relatively low-cost funding. Fee-based income represents a secondary revenue stream, including service charges on deposit accounts, loan origination fees, wealth management fees, and historically insurance commissions (until the 2024 sale of the insurance subsidiary). The company also generates income from its real estate investment trust operations. The bank's paying customers include individual consumers seeking banking services, small and medium-sized businesses requiring commercial lending and cash management, municipalities needing public deposit services, and previously, fintech partners utilizing the BaaS platform. Several factors significantly impact the company's profitability margins. Interest rate environment is the most critical factor - rising rates generally benefit net interest margins as loan yields increase faster than deposit costs, while falling rates can compress margins. Credit quality directly affects profitability through loan loss provisions and charge-offs. Deposit competition from larger banks and online institutions can increase funding costs. Regulatory compliance costs represent a significant fixed expense burden for smaller regional banks. The company's recent strategic repositioning, including the securities portfolio restructuring and BaaS wind-down, reflects management's efforts to optimize these margin drivers while focusing on core profitable operations.
Competitive moat
Financial Institutions operates in the highly competitive regional banking sector with limited sustainable competitive advantages. The company's primary moat lies in its local market relationships and deep community presence across upstate New York, built over more than two centuries of operation. This provides some customer stickiness and local market knowledge that larger national banks may lack. However, this moat is relatively weak compared to other industries. Geographic concentration in upstate New York creates vulnerability to regional economic downturns and limits growth opportunities. The banking industry faces intense competition from larger regional banks with greater resources, credit unions offering tax advantages, and increasingly sophisticated online banking platforms that can offer higher deposit rates and more convenient services. Regulatory barriers provide some protection by making it difficult for new competitors to enter the banking sector, but existing competitors can expand into the company's markets relatively easily. The company's recent struggles, including the $18.4 million fraud-related charge-off and strategic pivots away from BaaS and insurance operations, suggest operational vulnerabilities that could erode whatever competitive positioning exists. The most significant competitive threats come from larger regional banks with superior technology platforms, broader product offerings, and lower cost structures, as well as fintech disruption in payments, lending, and deposit gathering. The company's small scale (approximately $6.1 billion in assets) limits its ability to invest in technology and compete on pricing, making it vulnerable to continued market share erosion in an increasingly consolidated banking industry.
Risks & safety
The company presents moderate financial risk with several concerning factors: Overall Assessment: Adequate liquidity but elevated risk from recent losses and operational challenges. • Cash and Liquidity: $55 million in cash and short-term investments with $966 million in current assets versus $125 million in current liabilities, providing reasonable short-term liquidity • Debt and Solvency: Debt-to-equity ratio of 5.73 is high but typical for banking operations; Common Equity Tier 1 ratio above 10% meets regulatory requirements • Profitability Concerns: 2024 net loss of $41.6 million and negative ROE of -7.3% indicate operational stress • Valuation Metrics: Trading at 0.75x book value suggests market skepticism; negative earnings make P/E ratio meaningless • Capital Adequacy: Recent $115 million equity raise strengthened capital position but diluted existing shareholders • Credit Risk: Loan loss reserves at 1.07% of total loans appear adequate, though recent fraud losses raise operational risk concerns
Recent development
Over the past few years, Financial Institutions has undergone significant strategic repositioning while facing operational challenges. The company expanded geographically into the Mid-Atlantic region with new commercial lending offices in Baltimore, Washington D.C., and Syracuse, representing a departure from its traditional upstate New York focus. The bank made a major strategic pivot away from diversification by selling its SDN Insurance Agency subsidiary in 2024 for $27 million, generating an $11.2 million after-tax gain while eliminating $11.3 million in goodwill. Similarly, management announced the wind-down of its Banking-as-a-Service initiative, which had failed to meet growth targets and was consuming resources without generating adequate returns. Portfolio restructuring became a key focus in 2024, with management selling $653.5 million in low-yielding securities and reinvesting in higher-yielding agency securities to improve net interest margins. The company also completed a $115 million equity offering to strengthen its capital position following significant losses. Operational challenges included an $18.4 million fraud-related charge-off in Q1 2024, highlighting internal control weaknesses. Management responded with leadership realignment to reduce management layers and improve operational efficiency. The company has also been strategically reducing its consumer indirect auto lending portfolio while focusing growth efforts on higher-margin commercial lending relationships. These moves reflect a broader strategy to simplify operations, improve profitability metrics, and focus on core community banking strengths rather than pursuing diversified growth initiatives.
FISI company profile · for informational purposes only — not investment advice.
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