Financial Institutions Inc (FISI)
NASDAQ:FISI
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Financial Institutions
(NASDAQ:FISI)
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Rating:66Neutral
Price Target:
$37.00
▲(8.66% Upside)
Action:ReiteratedDate:03/10/26
The score is driven by a solid but uneven financial profile (strong 2025 rebound but historically volatile earnings/cash flow) and attractive valuation (low P/E and ~4% dividend). These positives are partially offset by weak near-term technicals (negative MACD and price below key moving averages), while the latest earnings call guidance was supportive overall.
Positive Factors
Earnings rebound (2025)
A material recovery in 2025 with +41.7% revenue and return to profitability demonstrates the franchise can generate healthy earnings when market conditions normalize. This improves sustainable earnings capacity, supports dividends and capital rebuilding over multiple quarters.
Negative Factors
Volatile cash generation
Material year-to-year swings in operating and free cash flow reduce predictability for reinvestment, dividends and buybacks. A 21.7% FCF decline in 2025 highlights execution sensitivity and could constrain capital deployment if volatility persists across economic cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings rebound (2025)
A material recovery in 2025 with +41.7% revenue and return to profitability demonstrates the franchise can generate healthy earnings when market conditions normalize. This improves sustainable earnings capacity, supports dividends and capital rebuilding over multiple quarters.
Read all positive factors
Financial Institutions (FISI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$668.54M
Dividend Yield3.89%
Average Volume (3M)141.67K
Price to Earnings (P/E)8.4
Beta (1Y)1.01
Revenue Growth-28.00%
EPS Growth-174.60%
CountryUS
Employees598
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.96
Shares Outstanding19,634,210
10 Day Avg. Volume155,015
30 Day Avg. Volume141,667
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.00
Price to Sales (P/S)1.66
P/FCF Ratio46.06
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit3.84
Enterprise Value/Ebitda9.19
Forecast
1Y Price Target
$37.00Price Target Upside8.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.84
Revenue Forecast (FY)$258.49M
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 ac...
How the Company Makes Money
null...
Financial Institutions Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operating and financial developments — solid profitability, year-over-year margin expansion, loan and AUM growth, disciplined capital actions, and constructive 2026 guidance (higher ROA target, NIM expansion and efficiency goals). Offsetting items include short-term margin sensitivity to rate/timing effects, intentional runoff in the indirect auto portfolio, deposit seasonality and BaaS wind-down, and expected higher personnel/medical costs in 2026. On balance, the company’s fundamentals, improved capital position, and upward guidance outweigh the headwinds.Positive Updates
Strong Profitability
Net income available to common shareholders of $19.6 million in Q4 (EPS $0.96) and $73.4 million for FY2025 (EPS $3.61). Return on average assets of 120 bps and return on average equity of 12.38%, both above annual guidance.
Negative Updates
Quarterly Margin Compression and Rate Sensitivity
Quarterly NIM was down 3 bps Q/Q and average loan yields decreased ~9 bps vs Q3 due in part to timing of the October rate cut and sub-debt activity. Management notes margin guidance excludes potential future rate cuts.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability
Net income available to common shareholders of $19.6 million in Q4 (EPS $0.96) and $73.4 million for FY2025 (EPS $3.61). Return on average assets of 120 bps and return on average equity of 12.38%, both above annual guidance.
Read all positive updates
Company Guidance
The company guided to a strong 2026 performance, targeting return on average assets of at least 122 basis points and return on average equity above 11.9%, with an efficiency ratio below 58% and a full‑year NIM in the mid‑3.60s; they expect about 5% loan growth (driven by commercial), low single‑digit deposit growth, and low single‑digit noninterest expense growth (with mid‑single‑digit salary & benefit increases). Key 2025 metrics cited as context include net income available to common of $19.6 million ($0.96 diluted) in Q4 and $73.4 million ($3.61) for the year, ROA of 120 bps, ROE of 12.38%, NII of $200 million, noninterest income of $45 million, full‑year margin of 3.53% (Q4 3.62%), total loans of $4.66 billion (up 1.5% Q/Q and 4% YoY), period‑end deposits of $5.21 billion (down 2.8% Q/Q, up 2% YoY), ACL/total loans of 102 bps, net charge‑offs budgeted at 25–35 bps (24 bps in 2025), CET1 at ~11.1% with an expected 40–50 bps build, $80 million of five‑year sub‑debt issued at 6.5%, Q4 buybacks of ~1.7% of shares (~$11 million; ~337k shares), AUM of $3.6 billion (up $500.4 million, 16%), COLI income expected to normalize to ~$10.5 million, and swap fees guided to $1–2 million.Financial Institutions Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 377.94M | 264.17M | 332.59M | 241.09M | 212.03M |
| Gross Profit | 233.31M | 88.03M | 197.29M | 198.25M | 207.89M |
| EBITDA | 91.35M | -60.47M | 71.14M | 79.08M | 105.27M |
| Net Income | 74.87M | -41.65M | 50.26M | 56.57M | 77.70M |
Balance Sheet | |||||
| Total Assets | 6.27B | 6.12B | 6.16B | 5.80B | 5.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 87.33M | 1.01B | 1.08B | 1.26B |
| Total Debt | 334.23M | 256.61M | 343.32M | 312.45M | 103.91M |
| Total Liabilities | 5.65B | 5.55B | 5.71B | 5.39B | 5.02B |
| Stockholders Equity | 628.85M | 568.98M | 454.80M | 405.61M | 505.14M |
Cash Flow | |||||
| Free Cash Flow | 13.60M | 72.15M | 7.90M | 125.20M | 63.56M |
| Operating Cash Flow | 18.80M | 77.13M | 10.89M | 133.57M | 72.96M |
| Investing Cash Flow | -140.04M | -8.23M | -310.09M | -325.16M | -633.42M |
| Financing Cash Flow | 142.67M | -106.02M | 293.17M | 242.94M | 545.69M |
Financial Institutions Technical Analysis
Positive
34.05
Price Trends
32.22
Positive
31.55
Positive
28.94
Positive
Market Momentum
0.62
Negative
70.59
Negative
90.14
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 34.05 is above the 20-day moving average (MA) of 31.71, above the 50-day MA of 32.22, and above the 200-day MA of 28.94, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 70.59 is Negative, neither overbought nor oversold. The STOCH value of 90.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FISI.
Financial Institutions Risk Analysis
Financial Institutions disclosed 47 risk factors in its most recent earnings report. Financial Institutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Financial Institutions Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $559.62M | 8.95 | 17.76% | 1.08% | 11.38% | 36.10% | |
71 Outperform | $679.54M | 7.91 | 13.12% | ― | 9.12% | 45.83% | |
70 Outperform | $516.80M | 8.13 | 14.79% | 1.53% | 24.90% | 28.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $823.99M | 9.18 | 12.01% | 4.95% | 3.93% | 17.48% | |
66 Neutral | $668.54M | 8.37 | -4.98% | 3.89% | -28.00% | -174.60% | |
62 Neutral | $587.82M | 14.04 | 7.42% | 3.92% | 4.26% | -16.52% |
* Financial Sector Average
FISI
Financial Institutions
34.05
13.10
62.56%
BHB
Bar Harbor Bankshares
35.11
8.51
32.00%
FMNB
Farmers National Banc Oh
13.89
2.49
21.79%
UNTY
Unity Bancorp
55.87
16.51
41.95%
CBNK
Capital Bancorp
31.57
5.47
20.96%
TCBX
Third Coast Bancshares
41.22
13.18
47.00%
Financial Institutions Corporate Events
Executive/Board Changes
Financial Institutions Announces Planned Retirement of Longtime Director
Neutral
Mar 10, 2026
On March 4, 2026, Financial Institutions, Inc. announced that longtime director Donald K. Boswell will retire from the boards of both the company and its wholly owned subsidiary, Five Star Bank, after nine years of service, effective immediately f...
Business Operations and StrategyDividendsFinancial Disclosures
Financial Institutions Increases Quarterly Dividend, Signals Earnings Confidence
Positive
Feb 12, 2026
Financial Institutions, Inc., parent of Five Star Bank and Courier Capital, reported on February 12, 2026, that its board approved a 3.2% increase in the quarterly common stock dividend to $0.32 per share, citing strong 2025 profitability, a solid...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Financial Institutions Posts Strong Q4 2025 Earnings Turnaround
Positive
Jan 29, 2026
On January 29, 2026, Financial Institutions, Inc. reported that net income available to common shareholders reached $19.6 million, or $0.96 per diluted share, for the fourth quarter of 2025 and $73.4 million, or $3.61 per diluted share, for full-y...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.