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Financial Institutions
(NASDAQ:FISI)
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Rating:63Neutral
Price Target:
$43.00
▲(5.39% Upside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by financial risk from negative stockholders’ equity and shrinking revenue, despite strong profitability and improved TTM cash generation. Offsetting these risks are attractive valuation (low P/E and solid yield) and a positive earnings call with raised profitability and margin guidance; technicals are mixed with short-term softness but a longer-term uptrend.
Positive Factors
Commercial Lending Growth
Strong commercial lending in core Western and Central New York markets supports durable balance-sheet growth, deepens local customer relationships, and indicates the bank is gaining share in its target markets through disciplined origination.
Negative Factors
Negative Stockholders’ Equity
Negative reported equity is a major structural balance-sheet weakness for a regional bank. It can constrain strategic flexibility, complicate leverage assessment, and increase sensitivity to credit losses or asset-value deterioration.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial Lending Growth
Strong commercial lending in core Western and Central New York markets supports durable balance-sheet growth, deepens local customer relationships, and indicates the bank is gaining share in its target markets through disciplined origination.
Read all positive factors
Financial Institutions (FISI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$800.47M
Dividend Yield3.09%
Average Volume (3M)141.67K
Price to Earnings (P/E)10.0
Beta (1Y)0.97
Revenue Growth46.45%
EPS GrowthN/A
CountryUS
Employees631
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.09
Shares Outstanding19,706,360
10 Day Avg. Volume155,015
30 Day Avg. Volume141,667
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.00
Price to Sales (P/S)1.66
P/FCF Ratio47.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.00Price Target Upside10.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.07
Revenue Forecast (FY)$259.95M
Financial Institutions Business Overview & Revenue Model
Company Description
Financial Institutions, Inc., through its subsidiaries, provides banking and financial services to consumer, commercial, and municipal customers in New York. The company provides checking and savings account programs, including money market accoun...
Financial Institutions Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive performance: solid loan growth (especially commercial), expanding net interest income and margin guidance, improved profitability (higher ROA/ROE guidance), strong capital metrics, growing AUM, and better credit metrics (notably lower net charge-offs). Headwinds were relatively contained and largely structural or seasonal (indirect loan runoff, investment securities decline tied to seasonality, modest tax rate increase, and a small limited partnership loss). Given the breadth and magnitude of positive indicators and manageable lowlights, the overall tone is constructive.Positive Updates
Quarterly and Year-over-Year Loan Growth
Total loans increased 2.7% sequentially and 4.8% year-over-year, driven by commercial lending in core Western and Central New York markets.
Negative Updates
Decline in Consumer Indirect Loans
Consumer indirect loans decreased 2.1% sequentially and 7.5% year-over-year, reflecting intentional discipline on spreads and a shift toward higher-FICO originations that allowed runoff to outpace originations.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly and Year-over-Year Loan Growth
Total loans increased 2.7% sequentially and 4.8% year-over-year, driven by commercial lending in core Western and Central New York markets.
Read all positive updates
Company Guidance
Management updated full‑year 2026 guidance and related targets: net interest margin was raised from the upper 360s to approximately 370 basis points; full‑year loan growth is targeted at 5% with low single‑digit deposit growth expected; full‑year efficiency ratio is now expected to be below 57% (Q2 efficiency nearly 55%); return on average assets guidance was raised from 1.22% to at least 1.3% and return on average equity to at least 12.5% (from 11.9%), with year‑to‑date return on average tangible common equity about 15%; company‑owned life insurance income is now expected to be at least $11.0 million (up from $10.5M); prior guidance for the full‑year charge‑off ratio, tax rate, non‑interest expense growth and non‑interest income remains unchanged; management cited strong capital supporting optionality with CET1 at 11.44% and TCE at 9.02%, an ACL of 1.00% of loans (up 3 bps), total net charge‑offs of 11 bps of average loans in Q2 (indirect portfolio NCO 59 bps).Financial Institutions Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 315.61M | 377.94M | 264.17M | 332.59M | 241.09M | 212.03M |
| Gross Profit | 182.88M | 233.31M | 88.03M | 197.29M | 198.25M | 207.89M |
| EBITDA | 51.59M | 99.24M | -60.47M | 71.14M | 79.08M | 105.27M |
| Net Income | 82.63M | 74.87M | -41.65M | 50.26M | 56.57M | 77.70M |
Balance Sheet | ||||||
| Total Assets | 6.34B | 6.27B | 6.12B | 6.16B | 5.80B | 5.52B |
| Cash, Cash Equivalents and Short-Term Investments | 59.55M | 108.75M | 87.33M | 1.01B | 1.08B | 1.26B |
| Total Debt | 290.97M | 334.23M | 256.61M | 343.32M | 312.45M | 103.91M |
| Total Liabilities | 5.69B | 5.65B | 5.55B | 5.71B | 5.39B | 5.02B |
| Stockholders Equity | 643.44M | 628.85M | 568.98M | 454.80M | 405.61M | 505.14M |
Cash Flow | ||||||
| Free Cash Flow | 56.24M | 13.25M | 72.15M | 7.90M | 125.20M | 63.56M |
| Operating Cash Flow | 60.87M | 18.80M | 77.13M | 10.89M | 133.57M | 72.96M |
| Investing Cash Flow | -199.24M | -140.04M | -8.23M | -310.09M | -325.16M | -633.42M |
| Financing Cash Flow | 144.51M | 142.67M | -106.02M | 293.17M | 242.94M | 545.69M |
Financial Institutions Technical Analysis
Positive
40.80
Price Trends
40.04
Positive
37.44
Positive
34.25
Positive
Market Momentum
0.21
Positive
49.23
Neutral
12.99
Positive
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 40.8 is below the 20-day moving average (MA) of 41.54, above the 50-day MA of 40.04, and above the 200-day MA of 34.25, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 12.99 is Positive, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $660.42M | 13.24 | 9.22% | 3.33% | 18.94% | 14.83% | |
75 Outperform | $925.45M | 10.88 | 9.53% | 4.48% | 16.77% | 9.64% | |
75 Outperform | $592.16M | 10.61 | 13.85% | 1.33% | 11.76% | 26.80% | |
72 Outperform | $756.97M | 9.41 | 12.56% | ― | 16.80% | 24.02% | |
71 Outperform | $588.70M | 9.97 | 16.64% | 1.07% | 10.15% | 16.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $800.47M | 9.98 | 13.09% | 3.10% | 46.45% | ― |
* Financial Sector Average
FISI
Financial Institutions
40.80
14.27
53.76%
BHB
Bar Harbor Bankshares
39.31
8.38
27.08%
FMNB
Farmers National Banc Oh
15.66
1.20
8.31%
UNTY
Unity Bancorp
58.33
6.57
12.68%
CBNK
Capital Bancorp
36.39
2.42
7.13%
TCBX
Third Coast Bancshares
44.34
4.33
10.82%
Financial Institutions Corporate Events
Business Operations and StrategyDividends
Financial Institutions Announces Quarterly Cash Dividend Increase
Positive
Aug 26, 2026
On August 26, 2026, Financial Institutions, Inc. announced that its Board of Directors approved a quarterly cash dividend of $0.32 per outstanding common share, reinforcing its capital-return policy to common shareholders. The decision underscores...
Business Operations and StrategyFinancial Disclosures
Financial Institutions Posts Strong Q2 2026 Earnings Performance
Positive
Jul 23, 2026
Financial Institutions, Inc. reported net income available to common shareholders of $20.8 million, or $1.04 per diluted share, for the second quarter ended June 30, 2026, with return on average assets at 1.35% and an efficiency ratio improved to ...
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.