1. Think of it as a regional Bank of America or J.P. Morgan Chase specifically for New York, providing a comprehensive range of banking, insurance, and wealth management services.

2. It's like a one-stop financial shop, similar to a local Wells Fargo or PNC Bank for individuals and businesses across New York.

• Deposit Accounts: Offers various checking, savings, money market, certificate of deposit, and individual retirement accounts.
• Commercial Loans: Provides term loans, lines of credit, and mortgages for businesses, including agricultural, working capital, expansion, and equipment needs.
• Residential Mortgages & Home Equity: Delivers one-to-four family residential mortgage loans, home improvement loans, and home equity loans and lines of credit.
• Consumer Loans: Offers personal financing solutions such as automobile, secured installment, and general personal loans.
• Personal Insurance: Provides a range of personal coverage including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella insurance.
• Commercial Insurance: Supplies business-focused insurance products such as property, liability, automobile, workers compensation, bonds, and crop insurance.
• Investment & Wealth Management: Delivers customized investment advisory, wealth management, investment consulting, retirement plan services, annuities, and mutual funds.
• Real Estate Investment Trust (REIT): Operates a REIT that holds residential mortgages and commercial real estate loans as an investment vehicle.

Financial Institutions, Inc. (FISI) primarily serves a diverse customer base rather than a few specific companies. Based on the provided description, its major customer categories are:

1. Individuals: This category includes a broad spectrum of retail banking customers. They utilize services such as checking and savings accounts (including money market, CDs, IRAs), residential mortgage loans, home equity loans, consumer loans (e.g., automobile, personal), personal insurance products (e.g., auto, home, boat), and a range of financial services including life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. Individuals also benefit from customized investment advisory, wealth management, and investment consulting services.

2. Businesses: The company provides banking and financial services to various businesses. This includes term loans and lines of credit for working capital, business expansion, and equipment purchases. It also offers commercial business loans, specifically noting the agricultural industry, and commercial mortgage loans. Businesses are also served with commercial insurance products (e.g., property, liability, workers compensation, crop) and financial services such as investment advisory, wealth management, and retirement plan services.

3. Municipalities: Financial Institutions, Inc. explicitly states that it provides banking and financial services to municipalities in New York. While specific services for municipalities are not detailed beyond the general statement, this represents a distinct and important customer segment for the bank.

Martin K. Birmingham, President and Chief Executive Officer

Mr. Birmingham has served as President and Chief Executive Officer of Financial Institutions, Inc. and Five Star Bank since 2013, having joined Five Star Bank in 2005. He began his banking career in 1989 with Fleet Financial Group, holding several corporate banking roles, and became President of the Rochester Market after its acquisition by Bank of America. Prior to his current role, he was President and CEO of The National Bank of Geneva, a former subsidiary, in 2005, and held positions such as Commercial Banking Executive and Rochester Region President, and President and Chief of Community Banking at Five Star Bank.

W. Jack Plants II, Executive Vice President, Chief Financial Officer and Treasurer

Mr. Plants was named Chief Financial Officer and Treasurer of Financial Institutions, Inc. and Five Star Bank in 2021, and was promoted to Executive Vice President in 2022. He joined Five Star Bank in December 2019 as Senior Vice President, Corporate Treasurer. Before joining Five Star, he served as Senior Vice President and Treasurer of United Bank for seven years, having progressed from Treasury Manager to Treasurer. His prior experience includes various treasury and credit roles at GE Capital, GE Commercial Finance, and Five Star Bank.

Samuel J. Burruano, Jr., Executive Vice President, Chief Legal Officer and Corporate Secretary

Mr. Burruano has served as Executive Vice President, Chief Legal Officer and Corporate Secretary of Financial Institutions, Inc. and Five Star Bank since February 2021. He joined Five Star Bank in October 2016 as Assistant General Counsel and Director of Regulatory Compliance. Before his tenure at Five Star, Mr. Burruano practiced law since 1993, including serving as an attorney and partner at Hiscock & Barclay, LLP from 1993 to 2011, and holding various legal and compliance positions at First Niagara Bank, NA.

Kevin B. Quinn, Senior Vice President, Chief Commercial Banking Officer

Mr. Quinn has been Chief Commercial Banking Officer of Five Star Bank since 2021. He joined the Bank in 2020 as Senior Vice President, Commercial Banking Executive. Previously, he spent 15 years in leadership roles with HSBC Bank USA, NA, including Managing Director and Regional Head of Corporate Banking. Mr. Quinn began his career as an attorney with Jones Day and later spent 10 years in commercial banking at M&T Bank.

Blake G. Jones, Senior Vice President, Chief Marketing Officer

Ms. Jones has served as Senior Vice President, Chief Marketing Officer of Five Star Bank since July 2023, and was also appointed to the executive leadership team. She joined the Company from Arrow Financial Corporation, where she held roles of increasing responsibility for 11 years, most recently as Senior Vice President, Marketing Director. Earlier in her career, Ms. Jones worked as a journalist and editor for news publications.

• Profitability and Interest Rate Volatility: Financial Institutions, Inc., like other regional banks, faces significant challenges from interest rate volatility, which can impact its net interest margins and deposit costs. The company experienced a "profitability crisis" with a Return on Equity (ROE) falling to -14.5% in Q4 2024 from +2.7% in Q3 2024, reflecting operational challenges largely tied to interest rate fluctuations impacting regional banks. This led to significant losses in 2024, including an $82.8 million loss in Q4 2024, highlighting its vulnerability to economic downturns. Interest-rate risks are explicitly identified as key risks for 2025 in the company's SEC filings.
• Credit Risk: As a lending institution, Financial Institutions, Inc. is inherently exposed to credit risk, which is the risk that borrowers may default on their loans. While the company has reported strong credit quality with non-performing loans at a low 0.06% as of June 30, 2025, economic uncertainties could still impact borrowers and lead to increased loan default rates. The company's strategy involves diversified lending across commercial, residential, and consumer indirect portfolios, alongside disciplined credit administration under a CECL-based allowance framework to manage this ongoing risk.
• Cybersecurity and Technology Risk: Financial Institutions, Inc. faces evolving cybersecurity and technology risks. Reports indicate that Five Star Bank's data is potentially at high risk of being leaked, and its security risk is below recommended benchmarks. Cybercrime poses a constant threat, and without robust, contemporary cybersecurity systems, financial institutions are vulnerable to malicious actors. The company acknowledges the importance of addressing cybersecurity threats, which are heightened by rapid technological adoption and an increased reliance on digital services.

For Financial Institutions, Inc. (symbol: FISI), the addressable markets for some of its main products and services in New York State are as follows:

Banking and Lending Services

• Total Deposits: The total deposits in New York-based financial institutions exceeded $3.4 trillion as of 2023. (Region: New York State)
• Commercial Real Estate (CRE) Loans: New York banks held approximately $450 billion in commercial real estate exposure (outstanding loans) as of 2023. (Region: New York State)
• Residential Mortgage Originations: Total mortgage originations in New York reached $85 billion in 2023. (Region: New York State)
• Small Business Loans (under $1 million): New York banks provided $18 billion in small business loans under $1 million in 2023. (Region: New York State)

Insurance Products

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Financial Services and Wealth Management

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Financial Institutions, Inc. (FISI) anticipates several key drivers to fuel its revenue growth over the next two to three years:

1. Expansion of Commercial Lending in Upstate New York: The company maintains a strategic focus on expanding its commercial lending operations within its established Upstate New York markets. This focus is expected to continue contributing to robust loan growth, with management forecasting approximately 5% annual loan growth, primarily driven by the commercial sector.
2. Growth in Wealth Management Services and Other Non-Interest Income: FISI is projecting continued growth in its non-interest income streams. This includes the expansion of its wealth management services, exemplified by the opening of a new wealth management office in Sarasota, Florida, and positive net flows into its Courier Capital, LLC subsidiary. Banking services fees are also a significant contributor to non-interest income.
3. Net Interest Margin (NIM) Expansion: Management anticipates incremental improvement in its net interest margin, a critical measure of lending profitability. This improvement is expected to be driven by favorable changes in the earning asset mix through loan growth, coupled with active management of funding costs. The company targets a full-year NIM in the mid-360s for 2026.
4. Leveraging Regional Economic Development in Upstate New York: A significant external driver of future revenue growth is the anticipated economic expansion resulting from Micron Technologies' $100 billion semiconductor investment in Syracuse. This investment is projected to create thousands of jobs and substantial economic activity in the region, leading to meaningful lending opportunities in infrastructure, housing, and healthcare that FISI expects to capitalize on starting in 2026.

Share Repurchases

• A new share repurchase program was approved effective September 18, 2025, authorizing the buyback of up to 1,006,379 shares, representing approximately 5% of its outstanding common stock. This program replaced a prior one from June 2022.
• In the fourth quarter of 2025, the company repurchased 1.7% of its outstanding shares, totaling $11 million.
• A stock repurchase program for up to 766,447 shares, or approximately 5% of outstanding common shares, was approved on June 13, 2022.

Share Issuance

• The company successfully completed a public equity offering in the fourth quarter of 2024.

Inbound Investments

• JPMorgan Chase & Co. increased its stake in Financial Institutions, Inc. by 10.2% during the third quarter (prior to March 07, 2026), holding 377,740 shares valued at approximately $10,275,000.
• In December 2025, the company completed a private placement of $80.0 million of fixed-to-floating rate subordinated notes.

Capital Expenditures

• Capital expenditures peaked in December 2021 at $9.403 million.
• Capital expenditures were $8.369 million in 2022, $2.992 million in 2023, and $4.974 million in 2024.
• In 2025, a primary focus of capital expenditures included costs associated with the company's ATM conversion and upgrade project.