Financial Institutions, Inc. Reports Net Income Available to Common Shareholders of $19.6 million, or $0.99 per Diluted Share, for the Third Quarter of 2026
Key Highlights
- ➤Net income available to common shareholders $19.6 million; diluted EPS $0.99
- ➤Total loans reached $4.86 billion, up 5.8% year-over-year
- ➤Total deposits reached $5.47 billion, up 3.3% quarter-over-quarter
- ➤Net interest income hit quarterly record $54.3 million, up 4.8% year-over-year
- ➤FISI repurchased 185,833 shares at average price of $40.92
Expert Statements
Martin K. Birmingham, President and Chief Executive Officer of Financial Institutions, Inc.
“Our third quarter results underscore the strength of our relationship-driven business model and our unwavering commitment to disciplined execution”
Martin K. Birmingham, President and Chief Executive Officer of Financial Institutions, Inc.
“Our commercial franchise continues to be the primary driver of loan growth and was supported by increases in consumer indirect and residential mortgage lending during the third quarter.”
Martin K. Birmingham, President and Chief Executive Officer of Financial Institutions, Inc.
“While our quarterly net charge-off ratio was up from lower-than-typical levels in the linked and year-ago quarters, it remains within our full-year guidance.”
Martin K. Birmingham, President and Chief Executive Officer of Financial Institutions, Inc.
“At the same time, the ratio of non-performing loans to total loans decreased by 3 basis points.”
Martin K. Birmingham, President and Chief Executive Officer of Financial Institutions, Inc.
“Overall, we remain focused on credit-disciplined loan production in our core Upstate New York markets.”
W. Jack Plants II, Chief Financial Officer and Treasurer of Financial Institutions, Inc.
“Third quarter performance benefited from continued growth in average earning assets and effective balance sheet management, supporting a 3.70% net interest margin and a nearly 5% increase in net interest income from the prior year period.”
W. Jack Plants II, Chief Financial Officer and Treasurer of Financial Institutions, Inc.
“Our balance sheet remains a source of strength, reflected in a tangible common equity ratio((1)) of 8.40%, a common equity Tier 1 ratio of 11.36%, and a return on average tangible common equity((1)) of 13.75%.”
W. Jack Plants II, Chief Financial Officer and Treasurer of Financial Institutions, Inc.
“These strong capital levels provide us flexibility to support loan growth and thoughtful investments in our business, while continuing to return capital to shareholders through share buybacks, as we did during the third quarter with the repurchase of 185,833 shares.”
WARSAW, N.Y., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us") today reported financial and operational results for the third quarter ended September 30, 2026, reflecting strong performance by subsidiaries Five Star Bank (the "Bank") and Courier Capital, LLC ("Courier Capital"), including healthy loan and deposit growth and sustained profitability.
KEY FINANCIAL METRICS Quarter-over-Quarter ("QoQ") Year-over-Year ("YoY") Dollars in thousands, except per share data Return metrics annualized Q3 2026 Q2 2026 Q3 2025 Variance % Variance % Net income $ 19,990 $ 21,184 $ 20,477 $ (1,194 ) -5.6 % $ (487 ) -2.4 % Net income available to common shareholders 19,626 20,819 20,112 (1,193 ) -5.7 % (486 ) -2.4 % Diluted earnings per common share $ 0.99 $ 1.04 $ 0.99 $ (0.05 ) -4.8 % $ - 0.0 % Return on average assets 1.26 % 1.35 % 1.32 % (9 ) bps (6 ) bps Return on average equity 12.32 % 13.31 % 13.31 % (99 ) bps (99 ) bps Return on average tangible common equity ((1)) 13.75 % 14.88 % 14.98 % (113 ) bps (123 ) bps Efficiency ratio 56.84 % 55.33 % 56.78 % 151 bps 6 bps Total loans (end of period) $ 4,855,827 $ 4,752,965 $ 4,590,423 $ 102,862 2.2 % $ 265,404 5.8 % Total deposits (end of period) $ 5,474,936 $ 5,299,465 $ 5,357,809 $ 175,471 3.3 % $ 117,127 2.2 % Third Quarter 2026 Highlights and Key Developments * Total loans grew 2.2% from the end of the linked quarter and 5.8% from September 30, 2025, to reach $4.86 billion at September 30, 2026, driven by robust commercial lending. * Total deposits increased 3.3% quarter-over-quarter and 2.2% year-over-year to $5.47 billion at September 30, 2026. Growth was broad-based across all deposit categories, led by seasonal support in public deposits. * Net interest income reached a new quarterly high of $54.3 million and net interest margin of 3.70% was stable with the linked quarter and up 5 basis points from the year-ago quarter. * Investment advisory income, the Company's leading contributor of noninterest income, increased 1.7% and 10.6% from the linked and year-ago quarters, respectively. * The efficiency ratio remained below 57% for the quarter, reflecting the Company's focus on sustained profitability. * The Company's strong capital position enabled the repurchase of 185,833 shares of common stock at an average price of $40.92 per share during the quarter. "Our third quarter results underscore the strength of our relationship-driven business model and our unwavering commitment to disciplined execution," said President and Chief Executive Officer Martin K. Birmingham. "Our commercial franchise continues to be the primary driver of loan growth and was supported by increases in consumer indirect and residential mortgage lending during the third quarter. While our quarterly net charge-off ratio was up from lower-than-typical levels in the linked and year-ago quarters, it remains within our full-year guidance. At the same time, the ratio of non-performing loans to total loans decreased by 3 basis points. Overall, we remain focused on credit-disciplined loan production in our core Upstate New York markets."
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