Financial Institutions (FISI) AI Stock Analysis

• Market Cap: $644.78M
• Dividend Yield: 3.87%
• Average Volume (3M): 141.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -28.00%
• EPS Growth: -174.60%
• Country: US
• Employees: 598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.99
• Shares Outstanding: 20,130,547
• 10 Day Avg. Volume: 155,015
• 30 Day Avg. Volume: 141,667
• PEG Ratio: 0.06
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 5.93
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: -13.34
• 1Y Price Target: $34.50
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $34.00 ▲(10.17% Upside)

Financial Institutions, Inc. faces significant financial performance challenges, particularly in revenue and profitability, which weigh heavily on the overall score. However, strong technical indicators and positive corporate events provide a counterbalance, suggesting potential for recovery. The optimistic earnings call sentiment and strategic financial maneuvers further support a moderate outlook, despite valuation concerns due to negative earnings.

Positive Factors

Loan and Deposit Growth

The growth in loans and deposits indicates strong demand for FISI's banking services, suggesting a robust market position and potential for future revenue expansion.

Improved Net Interest Margin

An improved net interest margin enhances profitability by increasing the spread between interest earned and interest paid, supporting long-term financial health.

Capital Management

This strategic capital management move strengthens FISI's balance sheet, improving its capital ratios and financial stability, which is crucial for long-term growth.

Negative Factors

Declining Revenue Growth

A persistent decline in revenue growth indicates potential operational challenges and market pressures, which could hinder future profitability and expansion.

Negative Margins

Sustained negative margins reflect operational inefficiencies and profitability challenges, posing risks to financial health and long-term viability.

Elevated Noninterest Expense

High noninterest expenses can erode profitability and limit the company's ability to invest in growth initiatives, impacting long-term financial performance.

Financial Institutions Business Overview & Revenue Model

Company Description

Financial Institutions, Inc. (FISI) operates as a diversified financial services company, primarily focusing on community banking, insurance, and asset management. Headquartered in the United States, FISI serves a broad spectrum of clients, including individuals, businesses, and institutions, by offering a range of core products such as checking and savings accounts, loans, investment management, and insurance products. The company aims to provide personalized financial solutions while maintaining a strong commitment to customer service and community engagement.

How the Company Makes Money

FISI generates revenue through multiple streams, including interest income from loans and mortgages, fees from deposit accounts, and commissions from investment and insurance products. A significant portion of its earnings comes from the interest spread between the interest it pays on deposits and the interest it earns from its loan portfolio. Additionally, FISI earns income from service fees charged on various banking services and transaction fees related to investment management. The company also benefits from partnerships with insurance providers and investment firms, which enhance its product offerings and provide additional revenue through referral fees and commissions. These diverse revenue sources help FISI maintain a stable financial position and support its growth initiatives.

Financial Institutions Financial Statement Overview

Summary

Financial Institutions faces significant challenges, particularly in terms of revenue and profitability, as evidenced by the negative margins and declining revenue growth. The balance sheet remains stable with low leverage, but the negative ROE raises concerns about future profitability. Cash flow generation is relatively strong, but the declining free cash flow growth and low operating cash flow conversion are areas to watch.

Income Statement

The income statement shows significant volatility. The TTM data indicates a severe decline in revenue and profitability, with negative margins across the board. Historical data reveals a downward trend in revenue growth and profitability since 2022, with the most recent period showing a drastic revenue drop of over 92%. This suggests potential operational challenges or market conditions impacting the company's performance.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.08 in the TTM period, indicating conservative leverage. However, the negative return on equity in recent periods highlights profitability challenges. The equity ratio remains healthy, suggesting a solid capital structure, but the declining ROE is a concern for future profitability.

Cash Flow

Cash flow analysis reveals mixed results. The TTM period shows a decline in free cash flow growth, but the company maintains a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.69M	264.17M	332.59M	241.09M	212.03M	204.37M
Gross Profit	114.52M	88.03M	197.29M	198.25M	207.89M	154.87M
EBITDA	-40.26M	-60.47M	71.14M	79.08M	105.27M	53.62M
Net Income	-27.92M	-41.65M	50.26M	56.57M	77.70M	38.33M
Balance Sheet
Total Assets	6.29B	6.12B	6.16B	5.80B	5.52B	4.91B
Cash, Cash Equivalents and Short-Term Investments	185.94M	87.33M	1.01B	1.08B	1.26B	721.94M
Total Debt	202.15M	256.61M	343.32M	312.45M	103.91M	78.92M
Total Liabilities	5.67B	5.55B	5.71B	5.39B	5.02B	4.44B
Stockholders Equity	621.72M	568.98M	454.80M	405.61M	505.14M	468.36M
Cash Flow
Free Cash Flow	24.01M	72.15M	7.90M	125.20M	63.56M	39.19M
Operating Cash Flow	24.41M	77.13M	10.89M	133.57M	72.96M	43.45M
Investing Cash Flow	-212.72M	-8.23M	-310.09M	-325.16M	-633.42M	-531.07M
Financing Cash Flow	124.68M	-106.02M	293.17M	242.94M	545.69M	468.55M

Financial Institutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.86
• 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 30.86 is below the 20-day moving average (MA) of 31.15, above the 50-day MA of 29.22, and above the 200-day MA of 26.24, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 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
UNTY	80 Outperform	$549.36M	10.36	17.46%	1.06%	11.38%	36.10%
FMNB	77 Outperform	$527.90M	9.71	12.00%	4.85%	3.93%	17.48%
BHB	76 Outperform	$541.04M	13.97	7.37%	3.89%	4.26%	-16.52%
CBNK	76 Outperform	$479.77M	9.85	14.72%	1.52%	24.90%	28.06%
TCBX	73 Outperform	$561.46M	12.28	12.88%	―	9.12%	45.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FISI	61 Neutral	$644.78M	-13.25	-4.98%	3.87%	-28.00%	-174.60%

Financial Institutions Corporate Events

Financial Institutions Completes $80M Subordinated Notes Placement

On December 11, 2025, Financial Institutions, Inc. completed a private placement of $80 million in subordinated notes due 2035, with a fixed-to-floating interest rate structure. The proceeds will be used to redeem $65 million of higher-interest outstanding debt and for general corporate purposes. This strategic move is expected to temporarily elevate the company’s Total Risk-Based Capital ratio by approximately 150 basis points at year-end, reflecting improved profitability and capital position. The notes received a BBB- rating from Kroll Bond Rating Agency, indicating a stable long-term outlook for the company.

Financial Institutions Declares Quarterly Cash Dividend

On November 14, 2025, Financial Institutions, Inc.’s Board of Directors declared a quarterly cash dividend of $0.31 per common share, alongside 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 scheduled for payment on January 2, 2026, to shareholders recorded by December 15, 2025. This announcement underscores the company’s commitment to returning value to its shareholders and may enhance its attractiveness to investors seeking income through dividends.

Financial Institutions Reports Strong Q3 2025 Results

On October 23, 2025, Financial Institutions, Inc. reported strong financial results for the third quarter of 2025, with net income available to common shareholders reaching $20.1 million, or $0.99 per diluted share. The company experienced significant growth in net interest margin and income, alongside increases in loans and deposits. The results highlight robust performance across its business lines, with a notable expansion in regulatory and tangible capital ratios. The company also announced a new share repurchase program, reflecting confidence in its financial health and future prospects.

Financial Institutions Announces New Share Repurchase Program

On September 22, 2025, Financial Institutions, Inc. announced the approval of a new share repurchase program by its Board of Directors, effective September 18, 2025. This program allows for the repurchase of up to 1,006,379 shares, approximately 5% of the company’s outstanding common shares, replacing the previous program from June 2022. The initiative reflects the Board’s confidence in the company’s financial performance and strategic priorities, offering flexibility to return capital to investors while continuing to invest in its business lines. The program, which has no expiration date, permits repurchases via open market or private transactions, with management discretion on timing and pricing based on market conditions and company performance.