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Financial Institutions Inc (FISI)
NASDAQ:FISI
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Financial Institutions
(NASDAQ:FISI)
Rating:57Neutral
Price Target:
$27.00
▲(2.31% Upside)
Financial Institutions (FISI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$531.22M
Dividend Yield4.62%
Average Volume (3M)132.02K
Price to Earnings (P/E)8.5
Beta (1Y)1.07
Revenue Growth-29.94%
EPS Growth-178.36%
CountryUS
Employees598
SectorFinancial
Sector Strength71
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.85
Shares Outstanding20,129,633
10 Day Avg. Volume118,334
30 Day Avg. Volume132,024
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit6.78
Enterprise Value/Ebitda-16.85
Forecast
1Y Price Target
$31.00Price Target Upside17.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Financial Institutions Business Overview & Revenue Model
Company DescriptionFinancial Institutions (FISI) is a diversified financial services company that operates primarily in the banking and insurance sectors. The company offers a range of products and services, including commercial and retail banking, mortgage lending, investment services, and various insurance products. FISI aims to provide comprehensive financial solutions to individuals, businesses, and institutions, focusing on customer service and innovative financial technologies.
How the Company Makes MoneyFISI 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 Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: 0.27%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a mostly positive outlook with significant growth in net income, earnings per share, and net interest margin. The company demonstrated strong credit metrics and robust performance in commercial and home equity lending. However, challenges included a decrease in total deposits and increased noninterest expenses. Overall, the highlights indicate a positive trajectory with some manageable challenges.Q2-2025 Updates
Positive Updates
Increase in Net Income and Earnings Per Share
Net income available to common shareholders increased by 4% to $17.2 million and diluted earnings per share increased by 5% compared to the linked quarter.
Expansion of Net Interest Margin
Net interest margin expanded by 14 basis points from the linked quarter and 62 basis points year-over-year.
Durable Noninterest Income
Noninterest income increased to $10.6 million, up 2.4% from $10.4 million in the first quarter.
Strong Commercial Loan Portfolio
Nonperforming commercial loans declined by $7 million from March 31 to June 30, and commercial business loans increased by 2.4% during the quarter.
Improved Credit Metrics in Consumer Indirect Portfolio
Consumer indirect net charge-off ratio was 45 basis points, down from 103 basis points in the first quarter, with nonperforming loans falling by 12% on a linked-quarter basis.
Robust Home Equity Lending
Year-to-date closed home equity loans and lines of credit are up 44% compared to the same period in 2024.
Negative Updates
Decrease in Total Deposits
Total deposits decreased by about 4% from March 31, 2025, due to seasonality and continued outflow of Banking-as-a-Service deposits.
Higher Noninterest Expenses
Noninterest expense rose to $35.7 million from $33.7 million in the linked quarter due to timing and some higher costs that are expected to be nonrecurring.
Challenges in Mid-Atlantic Loan Growth
Loan growth in the Mid-Atlantic region is tapered due to high competition and increased refinance activity for construction loans.
Company Guidance
During the Financial Institutions, Inc. Second Quarter 2025 Earnings Call, the company provided guidance affirming their full year 2025 targets, highlighting a 4% increase in net income to $17.2 million and a 5% rise in diluted earnings per share compared to the previous quarter. The net interest margin expanded by 14 basis points from the linked quarter, reaching between 345-355 basis points. Total loans were stable at approximately $4.54 billion, with a 1% increase in average loans driven by commercial business and mortgage loans. Noninterest income rose to $10.6 million, while the annualized return on average assets improved to 113 basis points. Total deposits decreased by 4% from March 31, 2025, due to seasonality and banking-as-a-service deposit outflows. The provision for credit losses was $2.6 million, and the company maintained its net charge-off expectation of 25 to 35 basis points for the year. Noninterest expenses were on track for their full year guidance of approximately $140 million, including several technology-related projects. The effective tax rate was anticipated to be between 17% to 19%. The company expressed confidence in achieving its targets, bolstered by strong regional commercial lending opportunities and a strategic focus on managing funding costs.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.35
Negative
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.45
Neutral
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.50
Neutral
| 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
Positive
26.39
Price Trends
25.98
Positive
25.27
Positive
25.76
Positive
Market Momentum
-0.15
Negative
56.28
Neutral
91.27
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 26.39 is above the 20-day moving average (MA) of 25.90, above the 50-day MA of 25.98, and above the 200-day MA of 25.76, indicating a bullish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 91.27 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $707.70M | 10.10 | 9.27% | 2.86% | 7.40% | 2.01% | |
75 Outperform | $547.26M | 12.33 | 13.36% | 1.27% | 22.14% | 12.06% | |
73 Outperform | $538.72M | 10.67 | 12.08% | 4.75% | 6.15% | -1.27% | |
70 Outperform | $537.12M | ― | 0.33% | ― | ― | ||
69 Neutral | $470.68M | 14.64 | 5.31% | 0.74% | 7.35% | -2.65% | |
68 Neutral | $17.53B | 11.67 | 10.43% | 3.82% | 9.93% | 1.66% | |
57 Neutral | $531.22M | 8.52 | -6.53% | 4.62% | -29.94% | -178.36% |
* Financial Sector Average
Performance Comparison
FISI
Financial Institutions
26.39
2.87
12.20%
CCNE
Cnb Financial
25.21
2.73
12.14%
FMNB
Farmers National Banc Oh
14.31
0.57
4.15%
PGC
Peapack-Gladstone Financial
26.79
0.34
1.29%
CBNK
Capital Bancorp
33.00
9.19
38.60%
NPB
Northpointe Bancshares, Inc.
16.35
1.81
12.45%
Financial Institutions Corporate Events
Business Operations and StrategyFinancial Disclosures
Financial Institutions Reports Q2 2025 Financial Results
Neutral
Jul 24, 2025
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.
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.
Executive/Board ChangesShareholder Meetings
Financial Institutions Shareholders Approve Key Decisions at Annual Meeting
Neutral
May 29, 2025
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.
Dividends
Financial Institutions Declares Quarterly Cash Dividend
Positive
May 28, 2025
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.
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.