Financial Institutions Inc 2025年度报告

2025 ANNUAL REPORT TABLE OF CONTENTS Letter to Shareholders ......................................................... Pages 2-6Leadership ................................................................................... Page 7Board of Directors ......................................................................Page 8Form 10-K..............................................................Begins After Page 8Investor Information ............................................... Inside Back Cover InvestmentConsiderations Results-drivencommunity bankwith strong commercialand retail franchises Positioned well forprofitable, organicgrowth Executing with discipline. In 2025, Financial Institutions, Inc. (Nasdaq: FISI)demonstrated the power of disciplined execution.We delivered strong financial performance, continuedstrengthening our balance sheet and advanced our strategicpriorities. Our teams remained focused on the fundamentalsof credit-disciplined lending, prudent capital managementand strong operational performance. This mindset enabledus to outperform key profitability targets, deepen customerrelationships across our markets and position our Companyfor sustained success. As we look to 2026, we will continue toexecute with discipline against our strategic plan, designedto deliver simple, connected and trusted experiences to ourcustomers and communities in support of long-term valuecreation for our shareholders. Disciplinedcredit culturewith strong creditquality Experienced managementteam committed to rewardingshareholders,including throughmeaningful dividend yield andlong-standing dividend history Wealth managementbusiness diversifies revenueand complements corebanking franchise To our shareholders, customers,associates and partners, a return on average assets (ROAA) of 1.20% and a return onaverage equity (ROAE) of 12.38% for the year. These metricssolidly surpassed our original guides of 1.10% and 11.25%for ROAA and ROAE, respectively. Net interest margin of3.53% for 2025 was toward the high end of our guidedrange of 3.45% to 3.55%. We became a more efficientinstitution, pushing our efficiency ratio down to 58%, belowour original target of 60%. Annual loan growth similarlyexceeded our guidance of up to 3%, reaching 4% on strongcommercial demand. Your company delivered strong financialresults throughout 2025, reflecting disciplinedexecution and profitable growth across ourenterprise. Our results, which included net incomeavailable to common shareholders of $73.4 million, or $3.61per diluted share, were bolstered by a stronger earningasset profile coming out of 2024 and momentum fromsolid performance across each of our core business linesthroughout 2025. Our team worked together to advanceour strategy, which is rooted in community bankingexcellence, organic growth in Western and Central NewYork, prudent risk management and operational integrity.As we look ahead to 2026, we remain committed todisciplined execution against this strategy, to deliver asimple, connected and trusted banking experience to ourcustomers and communities, in support of sustainable,long-term value creation for our shareholders. Behind these metrics is a solid community bankfranchise that is well-positioned in the markets it serves,complemented by a growing wealth management firm thatsupports revenue diversification and provides opportunitiesto further deepen customer relationships. Enhanced Earning Asset Base Our 2024 investment securities restructuring allowed usto better optimize our balance sheet, providing us witha stronger earning asset base heading into 2025. Theyield on our investment securities portfolio, which totaledapproximately $1.0 billion at the end of both 2025 and 2024,increased 218 basis points year-over-year to 4.38%. Thisreflected both the 2024 restructuring and our active balancesheet management during 2025. Liquidity, Capital and Earnings Through the past several years, we have focused onstrengthening three foundational areas: liquidity, capitaland earnings. Amidst the bank failures of 2023, weenhanced our available liquidity position to above $1.2billion by December 31, 2023 – a level we’ve comfortablymaintained since then, as liquidity exceeded $1.3 billionat year-end 2025. Our capital position was meaningfullystrengthened in 2024, including through the sale of ourinsurance subsidiary in the second quarter that generateda $13.7 million gain and our fourth quarter public equityoffering. The oversubscribed offering raised net proceedsof $108.5 million, allowing us to complete a transformativeinvestment securities restructuring that meaningfullyincreased the yield on that portfolio. This brings us to 2025,a year focused on earnings, and one in which we deliveredthrough continued momentum in core profitability. At the same time, we further improved our earningasset mix through solid organic loan growth. Total loanswere $4.66 billion at December 31, 2025, reflecting anincrease of $178.7 million, or 4.