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Financial Institutions
(NASDAQ:FISI)
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Rating:76Outperform
Price Target:
$44.00
▲(25.25% Upside)
Action:Reiterated
Date:05/22/26
The score is driven by attractive valuation (low P/E with a healthy dividend) and improving fundamentals, reinforced by positive earnings-call guidance on margin and growth plus ongoing capital returns. The main constraint is historical earnings and cash-flow volatility, which keeps the financial quality from scoring in the top tier.
Positive Factors
Strong recent revenue growth and healthy margins
Sustained TTM revenue growth with robust net and EBIT margins indicates improving core franchise profitability and pricing power. Over a 2–6 month horizon this underpins durable cash generation capacity, supports reinvestment and shareholder returns, and signals competitive traction in core markets.
Negative Factors
Historical earnings and cash‑flow volatility
Material swings including a 2024 loss and inconsistent operating cash flow weaken predictability of free cash flow and make capital planning harder. Even with strong recent FCF conversion, inconsistent OCF relative to revenue increases the risk of earnings reversals and constrains durable forecasting.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recent revenue growth and healthy margins
Sustained TTM revenue growth with robust net and EBIT margins indicates improving core franchise profitability and pricing power. Over a 2–6 month horizon this underpins durable cash generation capacity, supports reinvestment and shareholder returns, and signals competitive traction in core markets.
Read all positive factors
Financial Institutions (FISI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$740.99M
Dividend Yield3.89%
Average Volume (3M)141.67K
Price to Earnings (P/E)10.0
Beta (1Y)0.99
Revenue Growth41.30%
EPS GrowthN/A
CountryUS
Employees634
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.88
Shares Outstanding19,686,370
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 Ratio47.27
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda8.54
Forecast
1Y Price Target
$37.50Price Target Upside6.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.02
Revenue Forecast (FY)$258.32M
Financial Institutions Business Overview & Revenue Model
Company Description
Financial Institutions, Inc., through its subsidiaries, provides banking and financial services to consumer, commercial, and municipal customers in New York. The company provides checking and savings account programs, including money market accoun...
How the Company Makes Money
null...
Financial Institutions Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and capital story: strong first-quarter profitability, modest NIM outperformance with upgraded guidance, disciplined capital returns (debt refinancing, buybacks, dividend increase), a sizable loan pipeline and continued expense discipline. Headwinds include near-term deposit competitiveness and a modest year-over-year deposit decline driven by the BaaS wind-down, a temporary increase in quarterly net charge-offs due to a previously known commercial relationship, reduced swap-related noninterest income, branch write-downs, and runoff in the indirect auto portfolio. Management communicated confidence in loan pipeline conversion, margin stability, and guidance for efficiency and tax rate, which together suggest that the positive items meaningfully outweigh the transitory and manageable negatives.Positive Updates
Net Income and EPS Improvement
Net income available to common shareholders of $20.6 million, or $1.04 per diluted share, representing improvement versus both the linked quarter and year-ago quarter.
Negative Updates
Deposit Pressure and Year-over-Year Decline
Period-end total deposits were $5.34 billion, up 2.5% from December 31 but down about 1% from March 31, 2025. The year-over-year decline was driven largely by the wind-down of Banking-as-a-Service deposits (offboarded the remaining $7 million in Q1 from approximately $55 million at March 31, 2025). Management notes competitive pressure on deposit pricing.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Income and EPS Improvement
Net income available to common shareholders of $20.6 million, or $1.04 per diluted share, representing improvement versus both the linked quarter and year-ago quarter.
Read all positive updates
Company Guidance
Management raised guidance modestly, now expecting full‑year net interest margin in the "upper 360s" (Q1 NIM was 367 bps) with modest incremental NIM expansion for the rest of 2026; cost of interest‑bearing liabilities ended March at 2.49% and cost of funds fell 15 bps linked‑quarter, investment securities yield was 4.48%, average loan yield was down 13 bps, and ~40% of loans reprice within a month. They continue to target 5% loan growth for the year (commercial‑driven) supported by a roughly $950M pipeline (up from ~$650M at year‑end), expect low single‑digit deposit growth (period‑end deposits $5.34B) while allowing some higher‑rate CDs to roll off, and reaffirm full‑year charge‑off guidance of 25–35 bps despite a Q1 NCO run rate of 44 bps (which included a previously reserved commercial loss). Operational and capital guidance includes a full‑year efficiency ratio approaching 57% (Q1 was 57%), a 2026 effective tax rate at the lower end of the guided 16.5%–17.5% range (Q1 was 15.5%), an ACL of 97 bps of loans, a CET1 floor around 11%, continued buybacks (≈163K shares repurchased in Q1, ≈500K since December — half of the 5% authorization) and a 3.2% dividend increase to $0.32 per share.Financial Institutions Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 378.23M | 377.94M | 264.17M | 332.59M | 241.09M | 212.03M |
| Gross Profit | 240.76M | 233.31M | 88.03M | 197.29M | 198.25M | 207.89M |
| EBITDA | 101.63M | 99.24M | -60.47M | 71.14M | 79.08M | 105.27M |
| Net Income | 78.97M | 74.87M | -41.65M | 50.26M | 56.57M | 77.70M |
Balance Sheet | ||||||
| Total Assets | 6.29B | 6.27B | 6.12B | 6.16B | 5.80B | 5.52B |
| Cash, Cash Equivalents and Short-Term Investments | 185.24M | 108.75M | 87.33M | 1.01B | 1.08B | 1.26B |
| Total Debt | 224.64M | 334.23M | 256.61M | 343.32M | 312.45M | 103.91M |
| Total Liabilities | 5.66B | 5.65B | 5.55B | 5.71B | 5.39B | 5.02B |
| Stockholders Equity | 631.67M | 628.85M | 568.98M | 454.80M | 405.61M | 505.14M |
Cash Flow | ||||||
| Free Cash Flow | 27.10M | 13.25M | 72.15M | 7.90M | 125.20M | 63.56M |
| Operating Cash Flow | 32.48M | 18.80M | 77.13M | 10.89M | 133.57M | 72.96M |
| Investing Cash Flow | -48.54M | -140.04M | -8.23M | -310.09M | -325.16M | -633.42M |
| Financing Cash Flow | -65.85M | 142.67M | -106.02M | 293.17M | 242.94M | 545.69M |
Financial Institutions Technical Analysis
Positive
35.13
Price Trends
36.31
Positive
34.18
Positive
31.85
Positive
Market Momentum
0.71
Positive
57.94
Neutral
23.30
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 35.13 is below the 20-day moving average (MA) of 38.25, below the 50-day MA of 36.31, and above the 200-day MA of 31.85, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.30 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $561.94M | 10.42 | 13.94% | 1.53% | 15.54% | 33.70% | |
79 Outperform | $555.66M | 9.31 | 17.87% | 1.08% | 15.59% | 39.40% | |
76 Outperform | $740.99M | 9.98 | 12.72% | 3.89% | 41.30% | ― | |
72 Outperform | $837.89M | 9.84 | 10.62% | 4.95% | 7.00% | 12.93% | |
71 Outperform | $644.77M | 8.68 | 12.61% | ― | 12.81% | 35.69% | |
70 Outperform | $614.94M | 15.07 | 7.81% | 3.92% | 10.98% | -14.11% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FISI
Financial Institutions
38.72
12.52
47.80%
BHB
Bar Harbor Bankshares
37.08
6.24
20.25%
FMNB
Farmers National Banc Oh
14.27
0.49
3.55%
UNTY
Unity Bancorp
56.32
2.97
5.56%
CBNK
Capital Bancorp
34.92
0.11
0.31%
TCBX
Third Coast Bancshares
39.75
4.42
12.51%
Financial Institutions Corporate Events
Executive/Board ChangesShareholder Meetings
Financial Institutions Shareholders Endorse Governance and Auditor Continuity
Positive
May 21, 2026
Financial Institutions, Inc. held its Annual Meeting of Shareholders on May 20, 2026, where investors voted on the election of directors, executive compensation, and the ratification of its independent auditor. Shareholders re-elected five directo...
Business Operations and StrategyDividends
Financial Institutions Declares Quarterly Dividends on Common, Preferred
Positive
May 20, 2026
On May 20, 2026, Financial Institutions, Inc., parent of Five Star Bank and Courier Capital, reported that its Board of Directors had approved a quarterly cash dividend of $0.32 per outstanding common share. The announcement underscores the compan...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Financial Institutions Posts Strong First-Quarter 2026 Results
Positive
Apr 23, 2026
Financial Institutions, Inc. reported strong first-quarter 2026 results on April 23, 2026, posting net income available to common shareholders of $20.6 million, or $1.04 per diluted share, a 28.4% year-over-year increase in earnings per share. Pro...
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.