Financial Institutions : 2024 Fourth Quarter Earnings Presentation Update

Published: 2025-03-10 16:19:06 ET FISI

Investor Presentation

Financial Institutions, Inc. (Nasdaq: FISI) Fourth Quarter 2024 Earnings Presentation

Updated March 10, 2025

Company Overview

Overview of Financial Institutions, Inc.

NASDAQ: FISI

$548M

Market cap

$6.11B

Total assets

$4.48B

Total loans

$5.10B

Total deposits

1 48 branches and 1 motor branch in Olean, NY

Note: Information on this slide is as of December 31, 2024 unless noted otherwise

3

Company Overview

Why FISI

Strategic focus designed to deliver long-term value

10.54%

CET1 ratio at year-end 2024, up 111 bps from one year prior

2 bps

margin expansion during the fourth quarter of 2024

1 Non-performing assets, or NPAs, include nonaccrual loans, loans past due 90 days or more and still accruing, and foreclosed assets

Note: Information on this slide is as of December 31, 2024 unless noted otherwise

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Company Overview

Q4 '24 Common Equity Raise and

Securities Portfolio Restructuring

Strategic actions to accelerate profitability in meaningful way

Securities Sold:

$653.5M

(Market Value)

AFS

Pre-Tax Loss:

$100.2M

Weighted Avg. Yield

1.74%

on Securities Sold:

Securities Bought:

$566.2M

(Market Value)

Weighted Avg. Yield

5.16%

on Securities Bought:

Additional ~$75M of securities

yielding 5.45% purchased

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Company Overview

Full Year 2025 Guidance

Strategic fourth quarter 2024 actions expected to enhance profitability

Full-year net interest margin

1-3% full year loan

Flat deposit balances

of 3.45%-3.55%

growth

as non-public deposit growth is

using a spot-rate forecast as

driven by commercial

expected to offset the outflow of

of quarter-end

loans

BaaS-related deposits

Noninterest income of

Noninterest expense of

Efficiency ratio below

$9.5M-$10M

~$35M per quarter

60%

per quarter1

In 2025

for full year 2025

2025 effective tax rate of 17-19%

25-35 bps annual net charge-offs to full

including the impact of the amortization of

year average assets

tax credit investments placed in service in

reflective of credit-disciplined lending and

recent years

strong fundamental underwriting processes

>1.10%

Return on average assets

>11.25%

Return on average equity

1 Noninterest income excluding gains/losses on securities, impairment of investment tax credits, limited partnership income,

insurance income, and gains/losses on assets, including the previously disclosed insurance sale gain

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Financial Highlights

Fourth Quarter 2024 Key Results

As of December 31, 2024

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Financial Highlights

Recent Earnings Performance

Last five quarters

Earnings Summary(1)

Q4 '23

Q1 '24

Q2 '24

Q3 '24

Q4 '24

Average interest-earning assets

$5,726.6

$5,804.9

$5,765.9

$5,611.7

$5,715.8

Net interest margin (tax equivalent basis)

2.78%

2.78%

2.87%

2.89%

2.91%

Net interest income

39.9

40.1

41.2

40.7

41.6

Noninterest income (loss)

15.4

10.9

24.0

9.4

(91.0)

Total revenue (loss)

$55.3

$51.0

$65.2

$50.1

$(49.4)

Noninterest expense

(35.0)

(54.0)

(33.0)

(32.5)

(59.4)

(Provision) benefit for credit losses

(5.3)

5.5

(2.0)

(3.1)

(6.5)

Income (loss) before income taxes

14.9

2.4

30.1

14.5

(115.3)

Income tax (expense) benefit

(5.2)

(0.4)

(4.5)

(1.1)

32.5

Net income (loss)

$9.8

$2.1

$25.6

$13.5

$(82.8)

Preferred stock dividends

(0.4)

(0.4)

(0.4)

(0.4)

(0.4)

Net income (loss) available to common shareholders

$9.4

$1.7

$25.3

$13.1

$(83.2)

Earnings (loss) per share - diluted

$0.61

$0.11

$1.62

$0.84

$(5.07)

Weighted average common shares outstanding - diluted

15.5

15.5

15.6

15.6

16.4

1 Amounts in millions, except percentages and per share amounts.

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High Quality Lending

Average yield of 6.28% in the fourth quarter of 2024

6%

Diversified Loan

11%

20%

Portfolio

13%

Total

Total loans have grown at a 5.3% CAGR since year-end 2020

Loans

$4.48B 19%

16%

15%

Consumer Indirect & Other Consumer

Non-Owner Occupied Commercial Mortgage

Commercial Business

Residential Real Estate

Construction Commercial Mortgage

Multifamily Commercial Mortgage

Owner Occupied Commercial Mortgage

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High Quality Lending

Commercial Lending

Commercial loans of $2.86B at December 31, 2024

• Commercial loans increased $104.8M, or 3.8%, during the fourth quarter of 2024

and increased $123.9M, or 4.5%, year-over-year

• Commercial loans made up 64% of total loan portfolio at December 31, 2024, and

are comprised of Commercial Real Estate (CRE), Commercial & Industrial (C&I)

and Business Banking Unit (BBU)1

◦ CRE makes up 67% of commercial loans and 43% of total loans

◦ C&I makes up 29% of commercial loans and 19% of total loans

◦ BBU makes up 4% of commercial loans and 3% of total loans

• The vast majority of the commercial loan portfolio is within the Bank's footprint,

which operates in Upstate New York and the Mid-Atlantic region

Billions

$3.5

Total Commercial Loans

8.1% CAGR

$3.0

$2.86

$2.74

$2.5

$2.34

$0.66

$0.73

$2.05

$2.05

>$0.01

$2.0

$0.66

>$0.01

$0.55

$0.58

>$0.01

$1.5

$0.06

$0.25

$2.20

$1.0

$2.01

$1.68

• Disciplined approach to credit and risk management supports strong asset quality

metrics

$1.25

$0.5

$1.41

$0.0

12/31/2020

12/31/2021

12/31/2022

12/31/2023

12/31/2024

Commercial Mortgage Loans

PPP Loans

Commercial Business Loans (ex. PPP)

1 Business Banking Unit refers to small business lending through commercial franchise

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Disclaimer

Financial Institutions Inc. published this content on March 10, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 10, 2025 at 20:18:43.670.