Financial Institutions, Inc. reported a net income of $20.985 million for the first quarter of 2026, reflecting a 24.8% increase from $16.878 million in the same period of 2025. This translates to earnings of $1.04 per diluted share, up from $0.81 per diluted share a year earlier. The company's net interest income rose to $51.993 million, a 10.4% increase compared to $46.864 million in the prior year, driven by a higher volume of loans and a decrease in interest expenses. The net interest margin improved to 3.67%, up from 3.35% in the first quarter of 2025, primarily due to lower costs of interest-bearing liabilities.
Total assets increased slightly to $6.295 billion as of March 31, 2026, compared to $6.274 billion at the end of 2025. The company's loan portfolio decreased to $4.628 billion, down from $4.658 billion at the end of the previous year, with a notable decline in consumer indirect loans. The allowance for credit losses on loans decreased to $44.661 million from $47.386 million, attributed to a reduction in loans outstanding and improved loss rates. Non-performing loans increased to $38.475 million, representing 0.83% of total loans, up from 0.77% at the end of 2025.
In terms of strategic developments, Financial Institutions, Inc. has been focusing on enhancing its digital banking capabilities while maintaining a community bank approach. The company has also initiated a share repurchase program, authorizing the buyback of up to 1,006,379 shares, with 163,197 shares repurchased at an average price of $31.50 during the first quarter. The company continues to explore organic growth opportunities and potential acquisitions to expand its service offerings.
Operationally, the company reported a total deposit increase to $5.338 billion, up from $5.206 billion at the end of 2025, driven by seasonal public deposit balances. The composition of deposits included a rise in interest-bearing demand deposits and savings accounts, while time deposits slightly decreased. The company’s capital ratios remain strong, with a Tier 1 Capital Ratio of 11.70% and a Total Risk-Based Capital Ratio of 14.16%, both exceeding regulatory requirements.
Looking ahead, Financial Institutions, Inc. anticipates continued growth in net interest income and a focus on managing credit risk amid changing economic conditions. The company remains committed to maintaining a diversified revenue stream and enhancing its competitive position in the market through strategic investments in technology and customer service.
About FINANCIAL INSTITUTIONS INC
Financial Institutions, Inc. is a community-focused financial holding company operating through its subsidiaries, including Five Star Bank and Courier Capital. It provides banking services, commercial and consumer loans, wealth management, and investment advisory services primarily in New York and surrounding regions. The company emphasizes personalized customer relationships, community engagement, and diversified financial products, leveraging digital channels and strategic growth to serve small to medium-sized businesses, individuals, and municipalities.
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