Financial Institutions (FISI) AI Stock Analysis

• Market Cap: $578.95M
• Dividend Yield: 4.19%
• Average Volume (3M): 141.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -28.00%
• EPS Growth: -174.60%
• Country: US
• Employees: 598
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.99
• Shares Outstanding: 20,130,547
• 10 Day Avg. Volume: 155,015
• 30 Day Avg. Volume: 141,667
• PEG Ratio: 0.06
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 5.93
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 27.85
• Enterprise Value/Gross Profit: -9.42
• Enterprise Value/Ebitda: -12.68
• 1Y Price Target: $35.00
• Price Target Upside: 19.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $30.00 ▲(2.28% Upside)

The overall stock score reflects a mixed outlook. The most significant factor is the challenging financial performance, with declining revenue and profitability. However, technical analysis shows positive momentum, and the earnings call provided an optimistic outlook with upward guidance revisions. The valuation is a concern due to the negative P/E ratio, but the high dividend yield offers some compensation.

Financial Institutions Business Overview & Revenue Model

Company Description

Financial 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 Money

FISI 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 Financial Statement Overview

Summary

The financial performance is challenged by significant revenue and profitability declines, as indicated by negative margins and a drastic revenue drop. The balance sheet is stable with low leverage, but the negative ROE is concerning. Cash flow generation is strong, yet declining free cash flow growth and low operating cash flow conversion are issues.

Income Statement

The income statement shows significant volatility. The TTM data indicates a severe decline in revenue and profitability, with negative margins across the board. Historical data reveals a downward trend in revenue growth and profitability since 2022, with the most recent period showing a drastic revenue drop of over 92%. This suggests potential operational challenges or market conditions impacting the company's performance.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.08 in the TTM period, indicating conservative leverage. However, the negative return on equity in recent periods highlights profitability challenges. The equity ratio remains healthy, suggesting a solid capital structure, but the declining ROE is a concern for future profitability.

Cash Flow

Cash flow analysis reveals mixed results. The TTM period shows a decline in free cash flow growth, but the company maintains a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.29M	264.17M	332.59M	241.09M	212.03M	204.37M
Gross Profit	-57.05M	88.03M	197.29M	198.25M	207.89M	154.87M
EBITDA	-42.35M	-60.47M	71.14M	79.08M	105.27M	53.62M
Net Income	-27.92M	-41.65M	50.26M	56.57M	77.70M	38.33M
Balance Sheet
Total Assets	6.29B	6.12B	6.16B	5.80B	5.52B	4.91B
Cash, Cash Equivalents and Short-Term Investments	1.01B	87.33M	1.01B	1.08B	1.26B	721.94M
Total Debt	202.15M	256.61M	343.32M	312.45M	103.91M	78.92M
Total Liabilities	5.67B	5.55B	5.71B	5.39B	5.02B	4.44B
Stockholders Equity	621.72M	568.98M	454.80M	405.61M	505.14M	468.36M
Cash Flow
Free Cash Flow	24.01M	72.15M	7.90M	125.20M	63.56M	39.19M
Operating Cash Flow	24.41M	77.13M	10.89M	133.57M	72.96M	43.45M
Investing Cash Flow	-212.72M	-8.23M	-310.09M	-325.16M	-633.42M	-531.07M
Financing Cash Flow	124.68M	-106.02M	293.17M	242.94M	545.69M	468.55M

Financial Institutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 29.33 is above the 20-day moving average (MA) of 27.91, above the 50-day MA of 27.38, and above the 200-day MA of 25.94, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 69.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FISI.

Financial Institutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBX	77 Outperform	$508.52M	11.16	12.88%	―	9.12%	45.83%
BHB	69 Neutral	$480.80M	12.44	7.37%	4.20%	4.26%	-16.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNTY	67 Neutral	$453.19M	8.55	17.46%	1.20%	11.38%	36.10%
CBNK	67 Neutral	$468.07M	9.58	14.72%	1.48%	24.90%	28.06%
FMNB	67 Neutral	$489.87M	9.01	12.00%	5.18%	3.93%	17.48%
FISI	60 Neutral	$578.95M	-11.89	-4.98%	4.19%	-28.00%	-174.60%

Financial Institutions Corporate Events

Financial Institutions Inc. Reports Strong Q3 Earnings

The recent earnings call for Financial Institutions Inc. painted a largely optimistic picture, with strong financial performance underscored by significant growth in net income, loan growth, and an improved net interest margin. The company also experienced positive momentum in noninterest income and credit quality. However, challenges such as an increase in nonperforming loans and elevated noninterest expenses were noted. Despite these hurdles, the overall sentiment was upbeat, buoyed by upward revisions in guidance.

Financial Institutions Reports Strong Q3 2025 Results

On October 23, 2025, Financial Institutions, Inc. reported strong financial results for the third quarter of 2025, with net income available to common shareholders reaching $20.1 million, or $0.99 per diluted share. The company experienced significant growth in net interest margin and income, alongside increases in loans and deposits. The results highlight robust performance across its business lines, with a notable expansion in regulatory and tangible capital ratios. The company also announced a new share repurchase program, reflecting confidence in its financial health and future prospects.

The most recent analyst rating on (FISI) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Financial Institutions stock, see the FISI Stock Forecast page.

Financial Institutions Announces New Share Repurchase Program

On September 22, 2025, Financial Institutions, Inc. announced the approval of a new share repurchase program by its Board of Directors, effective September 18, 2025. This program allows for the repurchase of up to 1,006,379 shares, approximately 5% of the company’s outstanding common shares, replacing the previous program from June 2022. The initiative reflects the Board’s confidence in the company’s financial performance and strategic priorities, offering flexibility to return capital to investors while continuing to invest in its business lines. The program, which has no expiration date, permits repurchases via open market or private transactions, with management discretion on timing and pricing based on market conditions and company performance.

The most recent analyst rating on (FISI) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Financial Institutions stock, see the FISI Stock Forecast page.

Financial Institutions Declares Quarterly Dividend Announcement

On August 25, 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 payable on October 2, 2025, to shareholders of record as of September 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by enhancing investor confidence.

The most recent analyst rating on (FISI) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Financial Institutions stock, see the FISI Stock Forecast page.