WARSAW, N.Y. — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank, recently reported net income of more than $17.5 million in the second quarter of this year, down 31.6 percent from $25.6 million in the second quarter of 2024. After preferred dividends, Financial Institutions’ net income available to common shareholders was almost […]
WARSAW, N.Y. — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank, recently reported net income of more than $17.5 million in the second quarter of this year, down 31.6 percent from $25.6 million in the second quarter of 2024.
After preferred dividends, Financial Institutions’ net income available to common shareholders was almost $17.2 million, or 85 cents per share, in the second quarter of 2025, down 33 percent from nearly $25.3 million, or $1.62 a share, in last year’s second quarter.
The banking company recorded a provision for credit losses of $2.6 million in the second quarter, compared to a provision of $2 million in the year-ago quarter.
Financial Institutions posted a net interest margin of 3.49 percent for second quarter of 2025, up from 2.87 percent from last year’s second quarter. Year-over-year margin expansion was driven by an increase in the average yield on investment securities, following the restructuring of the available-for-sale securities portfolio in December 2024, which supported an increase in the average yield on interest-earning assets, the banking company said.
Financial Institutions reported net interest income of $49.1 million in this year’s second quarter, up more than 19 percent, from $41.6 million in the second quarter of 2024.
Noninterest income at the company came in at $10.6 million in the second quarter of 2025, down 56 percent from
$24 million in the year-earlier quarter, when its results benefited from a $13.5 million pre-tax gain associated with the sale of the company’s insurance business, per the earnings report issued on July 24.
Income-tax expense at Financial Institutions was $4 million for this year’s second quarter, compared to $4.5 million in the second quarter of 2024. The company also recognized federal and state tax benefits related to tax-credit investments placed in service and/or amortized during both the second quarter of 2025 and last year’s second quarter, resulting in income-tax expense reductions of $1.1 million and $1.3 million, respectively.
The banking company’s effective tax rate was 18.4 percent for this year’s second quarter versus 15 percent for the second quarter of 2024. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on corporate-owned life insurance (COLI), the tax impact of the COLI repositioning, and the impact of tax-credit investments, the company noted.
Financial Institutions is a financial holding company, based in Warsaw in New York’s Wyoming County, with about $6.1 billion in assets, offering banking and wealth-management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities, and businesses through banking locations spanning Western and Central New York and a commercial-loan production office serving the Mid-Atlantic region. Five Star Bank’s Central New York offices include a commercial-loan production office in Syracuse and retail branches in Auburn, Waterloo, and Geneva.
