Financial Institutions (FISI) AI Stock Analysis

• Market Cap: $531.70M
• Dividend Yield: 4.69%
• Average Volume (3M): 134.07K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.03
• Revenue Growth: -23.31%
• EPS Growth: -169.87%
• Country: US
• Employees: 598
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 20,109,713
• 10 Day Avg. Volume: 228,935
• 30 Day Avg. Volume: 134,073
• PEG Ratio: -0.37
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.04
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 13.92
• 1Y Price Target: $33.00
• Price Target Upside: 22.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $26.00 ▼(-3.45%Downside)

Financial Institutions, Inc. faces significant challenges with declining profitability and an unfavorable valuation. However, improved financial performance in the recent quarter and strong cash flow generation bolster confidence. The stock's high dividend yield and positive corporate events further support its appeal amidst economic uncertainties.

Financial Institutions Business Overview & Revenue Model

Company Description

Financial Institutions, Inc. operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company offers checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company also provides personal insurance products, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services comprising life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. The company operates a network of 48 banking offices in Allegany, Cattaraugus, Cayuga, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Schuyler, Steuben, Wayne, Wyoming, and Yates counties, New York. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.

How the Company Makes Money

FISI generates revenue primarily through interest income from loans and mortgages offered to customers, as well as fees and commissions from banking services such as account maintenance, transaction processing, and financial advisory services. Additionally, the company earns income from its investment portfolio, which includes securities and other financial instruments. FISI's earnings are also supplemented by wealth management services, where they provide investment advice and manage assets on behalf of clients. Key revenue streams include personal and commercial loan interest, service fees, and investment income. The company also benefits from strategic partnerships with financial technology firms to enhance its digital banking offerings, which contributes to customer acquisition and retention.

Financial Institutions Financial Statement Overview

Summary

The company faces significant challenges with negative revenue growth and profitability, compounded by a fragile balance sheet with past negative equity. Though cash flow efficiencies have improved, these are overshadowed by broader financial difficulties.

Income Statement

The company experienced a negative revenue growth rate of approximately -12.5% from 2022 to 2023 and further negative growth from 2023 to 2024. The gross profit margin remained consistent but the net profit margin turned negative in 2024 due to substantial net losses. These factors indicate significant challenges in revenue generation and profitability.

Balance Sheet

The debt-to-equity ratio is concerning due to negative equity in previous years, indicating financial instability. Although the equity ratio improved to a positive figure in 2024, previous years show negative equity, reflecting a fragile balance sheet. The return on equity is negative in 2024 due to net losses, which highlights profitability issues.

Cash Flow

Cash flow from operations improved in 2024 compared to 2023, but the free cash flow growth rate is negative over the period. The operating cash flow to net income ratio is positive, indicating decent cash generation relative to net income, despite the negative net income affecting financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.95M	264.17M	332.59M	241.09M	212.03M	204.37M
Gross Profit	105.31M	88.03M	197.29M	198.25M	207.89M	154.87M
EBITDA	-42.39M	-60.47M	71.14M	79.08M	105.27M	53.62M
Net Income	-26.84M	-41.65M	50.26M	56.57M	77.70M	38.33M
Balance Sheet
Total Assets	6.34B	6.12B	6.16B	5.80B	5.52B	4.91B
Cash, Cash Equivalents and Short-Term Investments	167.35M	87.33M	1.01B	1.08B	1.26B	721.94M
Total Debt	212.55M	256.61M	343.32M	312.45M	103.91M	78.92M
Total Liabilities	5.75B	5.55B	5.71B	5.39B	5.02B	4.44B
Stockholders Equity	589.93M	568.98M	454.80M	405.61M	505.14M	468.36M
Cash Flow
Free Cash Flow	70.23M	72.15M	7.90M	125.20M	63.56M	39.19M
Operating Cash Flow	74.84M	77.13M	10.89M	133.57M	72.96M	43.45M
Investing Cash Flow	-129.36M	-8.23M	-310.09M	-325.16M	-633.42M	-531.07M
Financing Cash Flow	-15.17M	-106.02M	293.17M	242.94M	545.69M	468.55M

Financial Institutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FISI, the sentiment is Positive. The current price of 26.93 is above the 20-day moving average (MA) of 25.46, above the 50-day MA of 25.45, and above the 200-day MA of 25.50, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 84.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FISI.

Financial Institutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCNE	77 Outperform	$497.21M	10.17	8.83%	3.04%	8.67%	-1.65%
CBNK	74 Outperform	$567.16M	13.78	12.19%	1.17%	18.85%	6.74%
FMNB	74 Outperform	$545.79M	11.28	11.69%	4.69%	6.53%	-10.99%
PGC	68 Neutral	$514.16M	16.12	5.31%	0.69%	6.72%	-17.45%
NPB	59 Neutral	$483.17M	―		―	―	―
FISI	58 Neutral	$531.70M	8.52	-5.18%	4.69%	-23.31%	-169.87%
Sector *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%

Financial Institutions Corporate Events

Financial Institutions Shareholders Approve Key Decisions at Annual Meeting

On May 28, 2025, Financial Institutions, Inc. held its Annual Meeting of Shareholders where several key decisions were made. Shareholders approved the Second Amended and Restated 2015 Long-Term Incentive Plan, which increases the shares available for issuance by 400,000, extends the plan’s term until 2035, and adjusts compensation limits for directors. Additionally, the election of directors, approval of executive compensation, and ratification of the appointment of RSM US LLP as the independent registered public accounting firm for 2025 were confirmed.

The most recent analyst rating on (FISI) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Financial Institutions stock, see the FISI Stock Forecast page.

Financial Institutions Declares Quarterly Cash Dividend

On May 28, 2025, Financial Institutions, Inc. announced the declaration of a quarterly cash dividend of $0.31 per common share, along with dividends of $0.75 per share on Series A 3% Preferred Stock and $2.12 per share on Series B-1 8.48% Preferred Stock. These dividends are set to be paid on July 2, 2025, to shareholders recorded by June 13, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may influence investor perceptions and market positioning.

The most recent analyst rating on (FISI) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Financial Institutions stock, see the FISI Stock Forecast page.

Financial Institutions Reports Strong Q1 2025 Turnaround

Financial Institutions, Inc. reported a significant turnaround in its financial performance for the first quarter of 2025, with a net income of $16.9 million compared to a net loss in the previous quarter. This improvement was driven by strategic restructuring of its investment portfolio, leading to expanded net interest margin and income. The company also saw growth in total loans and deposits, improved credit quality metrics, and an increase in its quarterly cash dividend, reflecting confidence in its long-term growth strategy. The restructuring efforts and focus on performance have positioned the company well for sustainable growth amid a challenging economic environment.