Financial Institutions (FISI) AI Stock Analysis

• Market Cap: $552.56M
• Dividend Yield: 4.48%
• Average Volume (3M): 123.06K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.06
• Revenue Growth: -29.94%
• EPS Growth: -178.36%
• Country: US
• Employees: 598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 20,129,633
• 10 Day Avg. Volume: 127,661
• 30 Day Avg. Volume: 123,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: -14.01
• 1Y Price Target: $31.50
• Price Target Upside: 14.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $29.00 ▲(5.65% Upside)

Financial Institutions, Inc. faces significant financial challenges with declining revenue and profitability, which heavily impacts its overall score. However, positive technical indicators and a favorable earnings call sentiment provide some optimism. The attractive dividend yield and recent corporate events further support the stock's appeal to income-focused investors. Addressing operational inefficiencies and improving profitability remain crucial for enhancing financial health.

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 through multiple streams, including interest income from loans and mortgages, fees from banking services such as account maintenance and transaction fees, and commissions from investment services. The company also earns premiums from its insurance products and may receive investment income from its asset management activities. Strategic partnerships with fintech companies and other financial institutions enhance FISI's service offerings, allowing for cross-selling opportunities and expanding its customer base, which contributes significantly to its overall earnings.

Financial Institutions Financial Statement Overview

Summary

Financial Institutions is facing challenges with declining revenue and profitability, as evidenced by negative profit margins and a diminishing return on equity. Although leverage appears manageable, the low equity ratio could pose risks. Cash flow generation remains a relative strength, showcasing operational efficiency, but the inability to convert this into positive net income points to underlying operational issues that need addressing.

Income Statement

The income statement reflects declining revenue and profitability. The TTM revenue growth rate is marginal at 0.68%, indicating stagnant growth. Gross profit margin has fallen to 39.58% from previous highs, while net profit margin is negative at -10.09%, underscoring substantial losses. Additionally, negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio of 0.36, suggesting manageable leverage. However, the return on equity has turned negative due to losses. The equity ratio is 9.30%, indicating a low proportion of equity relative to assets, which could present risks if market conditions worsen.

Cash Flow

The cash flow statement shows resilience with positive operating cash flow in the TTM period, though free cash flow has slightly decreased. The operating cash flow to net income ratio is strong at 2.79, suggesting efficient cash generation from operations despite net losses. However, the free cash flow to net income ratio is negative, reflecting challenges in converting income into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.13M	264.17M	332.59M	241.09M	212.03M	204.37M
Gross Profit	99.98M	88.03M	197.29M	198.25M	207.89M	154.87M
EBITDA	-50.99M	-60.47M	71.14M	79.08M	105.27M	53.62M
Net Income	-34.94M	-41.65M	50.26M	56.57M	77.70M	38.33M
Balance Sheet
Total Assets	5.65B	6.12B	6.16B	5.80B	5.52B	4.91B
Cash, Cash Equivalents and Short-Term Investments	1.08B	87.33M	1.01B	1.08B	1.26B	721.94M
Total Debt	90.64M	256.61M	343.32M	312.45M	103.91M	78.92M
Total Liabilities	4.51B	5.55B	5.71B	5.39B	5.02B	4.44B
Stockholders Equity	1.14B	568.98M	454.80M	405.61M	505.14M	468.36M
Cash Flow
Free Cash Flow	28.18M	72.15M	7.90M	125.20M	63.56M	39.19M
Operating Cash Flow	33.44M	77.13M	10.89M	133.57M	72.96M	43.45M
Investing Cash Flow	-83.53M	-8.23M	-310.09M	-325.16M	-633.42M	-531.07M
Financing Cash Flow	-3.23M	-106.02M	293.17M	242.94M	545.69M	468.55M

Financial Institutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.45 is above the 20-day moving average (MA) of 27.02, above the 50-day MA of 26.32, and above the 200-day MA of 25.71, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 59.55 is Neutral, 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
FMNB	81 Outperform	547.38M	10.89	11.52%	4.68%	6.15%	-1.27%
CCNE	75 Outperform	734.82M	10.57	8.94%	2.89%	7.40%	2.01%
CBNK	71 Outperform	532.33M	12.15	11.39%	1.31%	22.14%	12.06%
NPB	70 Outperform	615.13M	―	11.93%	0.28%	―	―
PGC	64 Neutral	496.63M	15.52	5.14%	0.71%	7.35%	-2.65%
FISI	60 Neutral	$552.56M	8.52	-6.53%	4.48%	-29.94%	-178.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Financial Institutions Corporate Events

Financial Institutions Declares Quarterly Dividend Announcement

On August 25, 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 payable on October 2, 2025, to shareholders of record as of September 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by enhancing investor confidence.

Financial Institutions Reports Q2 2025 Financial Results

Financial Institutions, Inc. reported its second quarter 2025 results, showing a net income of $17.5 million, an increase from the previous quarter but a decrease from the same period last year. The company experienced growth in net interest income and margin, despite a reduction in total loans and deposits, partly due to the wind-down of its Banking-as-a-Service offering. The results reflect the company’s focus on profitability and efficient balance sheet management, with expectations for continued growth in loan production and disciplined credit practices.

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.

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.