$FIISO

FINANCIAL INSTITUTIONS INC

CIK:0000862831|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Interest and fees on loans	$ 70,840	$ 70,886	$ 140,335	$ 139,676
Interest and dividends on investment securities	11,975	11,571	23,760	23,058
Other interest income	261	410	544	1,184
Total interest income	83,076	82,867	164,639	163,918
Interest expense:
Deposits	27,523	31,803	54,755	63,939
Short-term borrowings	818	386	1,458	877
Long-term borrowings	1,374	1,556	3,072	3,116
Total interest expense	29,715	33,745	59,285	67,932
Net interest income	53,361	49,122	105,354	95,986
Provision for credit losses	3,108	2,562	5,347	5,490
Net interest income after provision for credit losses	50,253	46,560	100,007	90,496
Noninterest income:
Service charges on deposits	1,083	1,089	2,127	2,141
Card interchange income	2,063	1,937	3,955	3,777
Investment advisory	3,287	2,885	6,348	5,622
Company owned life insurance	2,884	2,965	5,656	5,742
Investments in limited partnerships	(140)	307	84	722
Loan servicing	201	180	352	303
Income from derivative instruments, net	518	339	757	589
Net gain on sale of loans held for sale	181	140	306	257
Net gain on sale of investment securities	0	3	328	3
Net loss on other assets	27	0	(454)	0
Net loss on tax credit investments	(350)	(512)	(802)	(1,026)
Other	1,200	1,284	2,970	2,860
Total noninterest income	10,954	10,617	21,627	20,990
Noninterest expense:
Salaries and employee benefits	19,165	18,070	37,766	34,968
Occupancy and equipment	3,941	3,982	7,806	7,572
Professional services	1,263	1,451	2,613	3,142
Computer and data processing	5,512	5,879	11,723	11,366
FDIC assessments	987	1,392	1,973	2,859
Advertising and promotions	592	495	1,116	837
Amortization of intangibles	96	105	194	212
Deposit-related charged-off items expense (recoveries)	126	233	235	(61)
Other	3,923	4,075	7,774	8,472
Total noninterest expense	35,605	35,682	71,200	69,367
Income before income taxes	25,602	21,495	50,434	42,119
Income tax expense	4,418	3,963	8,265	7,709
Net income	21,184	17,532	42,169	34,410
Preferred stock dividends	365	364	729	729
Net income available to common shareholders	$ 20,819	$ 17,168	$ 41,440	$ 33,681
Earnings per common share (Note 2):
Basic	$ 1.06	$ 0.85	$ 2.11	$ 1.68
Diluted	1.04	0.85	2.08	1.66
Cash dividends declared per common share	$ 0.32	$ 0.31	$ 0.64	$ 0.62

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 42,169	$ 34,410
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,684	3,825
Net accretion of discounts on securities	(4,229)	(2,235)
Provision for credit losses	5,347	5,490
Share-based compensation	2,173	1,460
Deferred income tax expense	3,698	843
Proceeds from sale of loans held for sale	22,198	16,049
Originations of loans held for sale	(21,029)	(15,868)
Income on company owned life insurance	(5,656)	(5,742)
Net gain on sale of loans held for sale	(306)	(257)
Net gain on investment securities	(328)	(3)
Net loss on other assets	454	0
Decrease in other assets	3,187	15,854
Decrease in other liabilities	(5,013)	(49,546)
Net cash provided by operating activities	46,349	4,280
Cash flows from investing activities:
Purchases of available for sale securities	(267,583)	(93,434)
Purchases of held to maturity securities	(1,229)	(2,045)
Proceeds from principal payments, maturities and calls on available for sale securities	259,199	40,833
Proceeds from principal payments, maturities and calls on held to maturity securities	6,637	25,868
Proceeds from sales of securities available for sale	18,379	64,955
Net increase in loans	(101,476)	(63,217)
Purchase of company owned life insurance	(29)	(72,905)
Proceeds received from surrender of company owned life insurance	0	73,958
Purchases of premises and equipment	(1,498)	(2,412)
Net cash used in investing activities	(87,600)	(28,399)
Cash flows from financing activities:
Net increase in deposits	93,117	51,283
Net increase in short-term borrowings	73,000	2,000
Repayment of long-term borrowings	(115,000)	(10,000)
Purchases of common stock for treasury	(6,195)	(481)
Cash dividends paid to common and preferred shareholders	(13,248)	(12,970)
Net cash provided by financing activities	31,674	29,832
Net (decrease) increase in cash and cash equivalents	(9,577)	5,713
Cash and cash equivalents, beginning of period	108,751	87,321
Cash and cash equivalents, end of period	$ 99,174	$ 93,034

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 59,552	$ 57,138
Interest-bearing deposits in other banks	39,622	51,613
Total cash and cash equivalents	99,174	108,751
Securities available for sale, at fair value (amortized cost of $959,631 and $958,142, respectively)	910,466	922,472
Securities held to maturity, at amortized cost (net of allowance for credit losses of $2) (fair value of $70,899 and $76,256, respectively)	79,298	84,708
Loans held for sale	2,502	3,365
Loans (net of allowance for credit losses of $47,497 and $47,386, respectively)	4,705,468	4,610,480
Company owned life insurance	182,013	176,394
Premises and equipment, net	38,058	39,894
Goodwill	58,121	58,121
Other intangible assets, net	2,028	2,222
Other assets	257,824	267,733
Total assets	6,334,952	6,274,140
Deposits:
Noninterest-bearing demand	950,510	962,724
Interest-bearing demand	712,124	672,323
Savings and money market	1,964,402	1,884,801
Time deposits	1,672,429	1,686,500
Total deposits	5,299,465	5,206,348
Short-term borrowings	182,000	109,000
Long-term borrowings, net of issuance costs of $1,306 and $1,347, respectively	78,694	193,653
Other liabilities	131,352	136,285
Total liabilities	5,691,511	5,645,286
Shareholders’ equity:
Total preferred equity	17,285	17,285
Common stock, $0.01 par value; 50,000,000 shares authorized; 20,699,556 shares issued	207	207
Additional paid-in capital	233,455	234,398
Retained earnings	465,996	437,139
Accumulated other comprehensive loss	(43,349)	(33,030)
Treasury stock, at cost; 993,196 and 902,149 shares, respectively	(30,153)	(27,145)
Total shareholders’ equity	643,441	628,854
Total liabilities and shareholders’ equity	6,334,952	6,274,140
Series A 3% Preferred Stock [Member]
Shareholders’ equity:
Total preferred equity	143	143
Series B-1 8.48% Preferred Stock [Member]
Shareholders’ equity:
Total preferred equity	$ 17,142	$ 17,142