Financial Institutions (NASDAQ:FISI) Posts Earnings Results, Beats Estimates By $0.01 EPS

Financial Institutions (NASDAQ:FISI) posted its quarterly earnings results on Thursday. The bank reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.01, Zacks reports. Financial Institutions had a return on equity of 12.75% and a net margin of 19.81%.The company had revenue of $64.12 million during the quarter, compared to the consensus estimate of $62.99 million.

Financial Institutions Stock Up 0.0%

Shares of NASDAQ FISI opened at $32.94 on Friday. Financial Institutions has a 12 month low of $20.97 and a 12 month high of $33.73. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $663.08 million, a price-to-earnings ratio of 9.12 and a beta of 0.70. The business has a 50-day moving average of $31.70 and a 200-day moving average of $28.76.

Financial Institutions Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were given a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date was Monday, December 15th. Financial Institutions’s dividend payout ratio (DPR) is -90.51%.

Financial Institutions News Summary

Here are the key news stories impacting Financial Institutions this week:

• Positive Sentiment: Q4 beat on EPS and revenue; profitability restored — FISI reported Q4 net income of ~$20.0M and EPS of $0.96, modestly topping consensus and marking a sharp turnaround from a large loss a year earlier. The result reinforces the company’s return to profitability and supports analyst confidence. Business Insider: Net Income Report
• Positive Sentiment: Full‑year turnaround, record net interest income and margin expansion — FY2025 net income available to common shareholders was ~$73.4M vs. a FY2024 loss; net interest income hit record quarterly and annual levels and full‑year NIM expanded materially year‑over‑year. Those trends improve core earnings durability. QuiverQuant: Q4 & FY2025 Results
• Positive Sentiment: Capital and rating improvement via subordinated notes; buybacks and dividend raise — The company completed an $80M private placement of subordinated notes (BBB‑/Stable from Kroll), used proceeds to redeem older debt, repurchased ~336,869 shares in Q4 and raised the quarterly dividend ~3%. These moves signal stronger capital flexibility and shareholder returns. QuiverQuant: Capital/Dividend/Buyback Details
• Neutral Sentiment: Management remarks and investor materials available — The full earnings presentation and call transcript were posted (useful for detail on strategy, guidance and deposit/loan trends). Review management commentary for color on deposit retention and 2026 priorities. Seeking Alpha: Q4 Presentation Seeking Alpha: Call Transcript
• Neutral Sentiment: Short‑interest data shows essentially no reported short interest (data appears anomalous); not currently a clear driver. (Report dated Jan 28.)
• Negative Sentiment: Quarterly deposit decline and higher short‑term borrowings — Total deposits fell ~$151.5M QoQ (seasonality and fewer brokered deposits), and short‑term borrowings rose; deposit retention/acquisition is flagged as a 2026 focus area and could pressure funding costs if trends continue. QuiverQuant: Deposit/Funding Details
• Negative Sentiment: Credit costs and allowance movements — Net charge‑offs and provision levels ticked up modestly (net charge‑offs annualized ~0.24% for 2025) while the allowance for credit losses on loans edged down to ~1.02% of loans. Investors should monitor credit trending as loans grow. QuiverQuant: Asset Quality

Hedge Funds Weigh In On Financial Institutions

A number of institutional investors have recently made changes to their positions in the stock. Larson Financial Group LLC lifted its holdings in shares of Financial Institutions by 3,150.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,170 shares of the bank’s stock worth $32,000 after acquiring an additional 1,134 shares during the last quarter. Comerica Bank raised its position in Financial Institutions by 39.8% during the third quarter. Comerica Bank now owns 1,647 shares of the bank’s stock valued at $45,000 after purchasing an additional 469 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Financial Institutions by 679.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,738 shares of the bank’s stock worth $45,000 after purchasing an additional 1,515 shares during the last quarter. Advisory Services Network LLC purchased a new position in shares of Financial Institutions in the 3rd quarter worth about $53,000. Finally, BNP Paribas Financial Markets increased its position in shares of Financial Institutions by 461.5% during the 2nd quarter. BNP Paribas Financial Markets now owns 6,042 shares of the bank’s stock valued at $155,000 after purchasing an additional 4,966 shares during the last quarter. Institutional investors own 60.45% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on FISI shares. Zacks Research upgraded shares of Financial Institutions to a “hold” rating in a research report on Thursday, December 18th. Piper Sandler reaffirmed a “neutral” rating and issued a $34.00 price objective on shares of Financial Institutions in a report on Wednesday, December 17th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Financial Institutions in a research note on Monday, December 29th. Wall Street Zen downgraded Financial Institutions from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Keefe, Bruyette & Woods lifted their price target on Financial Institutions from $34.00 to $35.00 and gave the company an “outperform” rating in a research report on Monday, October 27th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $33.67.

About Financial Institutions

Financial Institutions, Inc (NASDAQ: FISI) is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.