Financial Institutions Q4 net income recovers to $20 mln from last year's loss

Overview

• U.S. financial holding company's Q4 net income reached $20 mln, recovering from last year's loss

• Net interest income hit a quarterly record of $52.2 mln

• Company completed $80 mln subordinated notes issuance and repurchased 336,869 shares

Outlook

• Financial Institutions focuses on prudent balance sheet and expense management in 2026

• Company aims for credit-disciplined organic loan growth in 2026

Result Drivers

• COMMERCIAL LOAN GROWTH - Strong demand from commercial borrowers in Upstate New York drove full year loan growth of 4% and annualized fourth quarter growth of 6%

• SUBORDINATED NOTES IMPACT - Net interest margin decreased slightly due to the impact of the December 2025 subordinated debt offering, which increased interest expenses

• NONINTEREST INCOME DRIVERS - Noninterest income benefited from robust swap activity, growth in investment advisory income, and company-owned life insurance income from a new strategy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Financial Institutions Inc is $34.50, about 7.9% above its January 28 closing price of $31.97

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX9b5qRK

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