Citizens survey finds AI investment accelerating as companies capture greater efficiency gains

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The momentum behind AI adoption and investment continues to grow, according to Citizens Financial Group’s third annual AI Trends in Financial Management Survey. It found that 82 percent of middle-market companies say they plan to boost AI spending over the next five years — up from 58 percent in 2023 and 69 percent in 2024. […]

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The momentum behind AI adoption and investment continues to grow, according to Citizens Financial Group’s third annual AI Trends in Financial Management Survey.

It found that 82 percent of middle-market companies say they plan to boost AI spending over the next five years — up from 58 percent in 2023 and 69 percent in 2024.

The growing enthusiasm is supported by tangible efficiency gains and measurable returns. The survey found 61 percent of middle market CFOs reporting that AI has made financial processes easier, an increase from prior years. On average, businesses are seeing a 35 percent return on investment, closing in on the 41 percent threshold that CFOs say would define success.

Investing in AI capabilities also makes strategic sense for companies considering a future sale. The survey found that private-equity firms are increasingly prioritizing AI when evaluating portfolio companies. Ninety-seven percent say a successful AI strategy is an attractive trait in potential acquisitions.

“Artificial intelligence isn’t just a buzzword, it’s a transformative technology that is delivering measurable results and shaping valuations,” Mark Lehmann, vice chair of Citizens Commercial Bank, said in the survey report. “Private equity firms are actively seeking companies with strong AI strategies. Businesses must carefully consider how to navigate this transition so they can maximize their value and attract the right partners.”

The Citizens survey of 134 CFOs at middle-market businesses (those generating $50 million to $1 billion in annual revenue) and 153 financial leaders at PE firms (fund size less than $1.5 billion) was conducted in October 2025 and focused on how companies and private-equity firms are thinking about AI processes and utilizing the technology to increase efficiencies within their organizations.

More survey results are available at: https://www.citizensbank.com/corporate-finance/insights/ai-trends-financial-management-2026.aspx

Citizens Financial Group (NYSE: CFG) is one of the nation’s oldest and largest financial institutions, with $223 billion in assets as of Sept. 30, 2025. Headquartered in Providence, Rhode Island, Citizens offers a range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. Citizens operates 1,000 branches in 14 states and the District of Columbia. That includes 10 branches in the 16-county Central New York region, where it has a nearly 2.1 percent share of total market deposits, according to CNYBJ Research, citing FDIC data.

Digital entrepreneur acquires Finger Lakes Radio Group

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GENEVA, N.Y. — The Finger Lakes Radio Group, which is based in Geneva, is now under new ownership. Alan Bishop, who owned the company for

State gives final approval for wind facility in Madison County

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ALBANY, N.Y. — New York State has issued a final siting permit for Albany–based Liberty Renewables, Inc. to develop, operate, and decommission Hoffman Falls Wind,

Wendy’s to open new restaurant inside Destiny USA

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SYRACUSE, N.Y. — Wendy’s is planning to open a new location inside Destiny USA, near the Dick’s Sporting Goods location in the complex’s Canyon area. Additional details, including the fast-food restaurant’s official opening date and ribbon cutting, will be announced soon, per the Destiny USA announcement. Wendy’s is known for its made-to-order square hamburgers, salads,

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Centro awarded federal funding to purchase nine low-emission buses for BRT system

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SYRACUSE, N.Y. — The Central New York Regional Transportation Authority (Centro) will use a federal grant of more than $9 million to buy about nine

TC3, Hobart and William Smith Colleges sign transfer agreement

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DRYDEN, N.Y. — Tompkins Cortland Community College (TC3) and Hobart and William Smith Colleges (HWS) in Geneva on Thursday, Dec. 18 announced a new transfer agreement. It provides TC3 graduates guaranteed acceptance and scholarship into bachelor’s degree programs at HWS, per the TC3 announcement. Amy Kremenek, president of Tompkins Cortland Community College, and Sarah Kirk,

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Otis Technology set for new leadership to begin 2026

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LYONS FALLS, N.Y. — Otis Technology in Lewis County has promoted the company’s executive VP to serve as CEO, beginning Jan. 1, 2026. Brad McIntyre has worked for Otis for more than 25 years, per the firm’s Dec. 9 announcement. Otis Technology, which specializes in gun maintenance, is located at 6987 Laura St. in Lyons

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LYONS FALLS, N.Y. — Otis Technology in Lewis County has promoted the company’s executive VP to serve as CEO, beginning Jan. 1, 2026.

Brad McIntyre has worked for Otis for more than 25 years, per the firm’s Dec. 9 announcement. Otis Technology, which specializes in gun maintenance, is located at 6987 Laura St. in Lyons Falls.

McIntyre will succeed Bill Kleftis, who has served as CEO since 2022. Kleftis will remain with the company in an advisory capacity through the first quarter of 2026 to “ensure a seamless transition,” Otis Technology said.

Throughout his time with Otis, McIntyre has been instrumental in developing and strengthening Otis Technology’s relationships with government/military and international partners, the company says.

“His deep understanding of these markets and his strategic leadership have helped position Otis as a trusted provider of mission-critical solutions across the globe,” per the email.

“Brad’s promotion is a natural evolution for Otis,” Kleftis said in the announcement. “He’s not a newcomer; we’ve grown together, and he’s helped shape the company into what it is today. His ability to inspire teams and execute strategy has been instrumental in our success. I am confident that under Brad’s leadership, Otis will continue to thrive and evolve while staying true to our roots.”

Otis Technology is known for manufacturing advanced gun-cleaning systems and accessories. Doreen Williams founded the business in 1985 as a teenager. The company has about 100 employees.

“When I hear the word Otis, I feel family. Brad has been part of the Otis family for many years, and his promotion is not just a milestone for the company, but a reflection of the culture we’ve nurtured since day one,” Williams, who also serves as chairwoman of its board of directors, said in the announcement. “His leadership is grounded in integrity, mutual respect, and a deep commitment to our employees, customers, and the communities we serve. His leadership will carry Otis forward with strength and purpose.”

Griffiss Institute generated $15.4M impact on Mohawk Valley in FY24, study found

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ROME, N.Y. — In fiscal year 2024 (FY24), Rome’s Griffiss Institute generated a more than $15 million impact on the economy of the Mohawk Valley. That includes supporting 164 direct and indirect jobs and delivering $3.2 million to scholars and professionals to live, learn, and work alongside regional industry partners in the Mohawk Valley. For

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ROME, N.Y. — In fiscal year 2024 (FY24), Rome’s Griffiss Institute generated a more than $15 million impact on the economy of the Mohawk Valley.

That includes supporting 164 direct and indirect jobs and delivering $3.2 million to scholars and professionals to live, learn, and work alongside regional industry partners in the Mohawk Valley.

For every $1 the Griffiss Institute spent on labor in the Mohawk Valley, the community received $1.33 in wealth creation from Griffiss Institute activities, 96 percent of which were fueled by federal sources in FY24.

The findings are part of GI’s inaugural Economic Impact Report for NY2024 that was developed in collaboration with Hamilton College student researchers through the Levitt Public Affairs Center.

Working with the Griffiss Institute and Heather Hage, the institute’s president and CEO, the students conducted extensive economic modeling and data analysis to measure how GI’s technology transfer, workforce development, and startup initiatives contribute to the region’s prosperity, per the GI.

“The Griffiss Institute is a driving force in the Mohawk Valley, fueling innovation, empowering talent, and creating measurable economic impact,” Patricia Baskinger, chair of the Griffiss Institute board of directors, said in the announcement. “This year’s results demonstrate how intentional investment in people, partnerships, and purpose delivers tangible value for our community and the nation.”

In FY2024, the Griffiss Institute invested $800,000 in early-stage dual-use technology startups developing solutions for national security. It also supported 197 high-tech internships and 313 regional students to participate in STEM (science, technology, engineering, mathematics) camps.

It is also facilitating 228 partnerships for the Air Force Research Laboratory (AFRL) Information Directorate to collaborate with 130 industrial firms and 98 universities, in service to national-defense priorities, per its announcement.

In addition to its direct impact on the regional economy, the Griffiss Institute generated an estimated $4.9 million in federal, state, and local tax revenue.

“This report is about how government investments in science, research, education, and technology transfer can translate into significant social and economic outcomes for our communities. Beyond the policy and finance layers of economic analysis, it’s the people — the hundreds of interns and scholars, entrepreneurs, academic and government scientists, and our industry partners, who bring real-world challenges to the table and work together, through the Griffiss Institute, to drive innovation forward to the benefit of our country and community,” Heather Hage, president and CEO of Griffiss Institute, said. “Their collaboration is what drives our impact. We are proud to be part of a region that works together to create opportunities that strengthen both our local economy and our national security.”

The FY2024 Griffiss Institute Economic Impact Report was researched and authored by Hamilton College student researchers from the Levitt Public Affairs Center. They included Luke Hanson, Delaney Patterson, Samuel Low, and Ton Somnug, who worked under the mentorship of Hage. The student researchers analyzed real Griffiss Institute data, built economic models, and collected local insights to trace how each dollar invested circulates through the Mohawk Valley economy.

Five Star Bank parent company completes $80 million subordinated debt offering

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WARSAW, N.Y. — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank, announced that it has recently completed a private placement of $80 million in aggregate principal amount of fixed-to-floating rate subordinated notes (maturing in 10 years) to qualified institutional buyers and accredited institutional investors. The notes have a maturity date of Dec.

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The notes have a maturity date of Dec. 15, 2035 and bear interest, payable semi-annually, at the rate of 6.5 percent per year, until Dec. 15, 2030, the banking company said in its announcement. Starting on that date, the interest rate will reset quarterly to an interest rate per annum equal to the then-current, three-month Secured Overnight Financing Rate (SOFR) plus 312 basis points, payable quarterly until maturity.

Financial Institutions is entitled to prepay the notes in whole or in part at any time on or after Dec. 15, 2030, and to prepay the notes at any time upon certain other specified events. The notes received a BBB- rating from Kroll Bond Rating Agency, which recently revised the banking company’s long-term outlook to Stable, reflecting sustained improvement in its profitability and enhanced capital position.

Financial Institutions said it intends to use the net proceeds to redeem the $65 million in outstanding-debt issuances from 2015 and 2020, as well as for general corporate purposes. The $65 million in outstanding debt includes $35 million that began repricing quarterly on Oct. 15, 2025, and which currently bears interest of 8.17 percent, in addition to $30 million that began repricing quarterly on April 15, 2025, and which currently bears interest of 8.11 percent.

“We are pleased with the successful completion of this subordinated debt offering, which allows us to refinance existing issuances at more attractive rates, while providing additional capital for thoughtful deployment as we remain focused on creating long-term value for our shareholders,” Martin K. Birmingham, president and CEO of Financial Institutions, said in the company’s Dec. 11 announcement. “Given the additional $80.0 million of capital that will be on our balance sheet at year-end and our intent to call the outstanding $65.0 million in the first quarter, we do expect the Company’s Total Risk-Based Capital ratio to be temporarily elevated by approximately 150 basis points at year-end.”

Piper Sandler & Co. — headquartered in Minneapolis, Minnesota — served as sole placement agent for the subordinated debt offering. Washington, D.C.–based Luse Gorman, PC was legal counsel to Financial Institutions, and Hogan Lovells US LLP — whose U.S. headquarters is in Washington, D.C. — served as legal counsel to Piper Sandler & Co.

Financial Institutions is a financial holding company, based in Warsaw in New York’s Wyoming County, with about $6.3 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.

New York manufacturing index ends 2025 in negative territory

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Respondents to the monthly Empire State Manufacturing Survey indicated unexpected contraction in the manufacturing sector with the general-business conditions index plunging 23 points to -3.9 in December. This breaks a run of several strong months, as the index had climbed 8 points to 18.7 in November, its fourth positive reading in the past five months

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This breaks a run of several strong months, as the index had climbed 8 points to 18.7 in November, its fourth positive reading in the past five months and highest in a year.

Based on firms responding to the survey, the December reading indicates business activity “declined slightly” in New York state, the Federal Reserve Bank of New York said in its Dec. 15 report. The consensus expectations of analysts was a December index number of 10.0, according to Seeking Alpha.

A negative reading on the index indicates a decline in the sector, while a positive index number points to expansion or growth in manufacturing activity.

The December survey found new orders held steady while shipments decreased modestly, the New York Fed said. Delivery times quickened, unfilled orders declined, and supply availability worsened.

However, going forward, New York manufacturing firms grew “increasingly optimistic” and expect conditions to improve in the months ahead.

Survey details

New orders held steady, with about one-third of firms reporting an increase and about one-third reporting a decrease, and shipments were modestly lower, with the index dropping 23 points to -5.7, the New York Fed said.

The inventories index came in at 4.0, pointing to a small increase in inventories. The delivery-times index fell below zero to -5.9, and the unfilled-orders index decreased to -14.9, its lowest level since January 2024, indicating quicker delivery times and fewer unfilled orders.

The supply-availability index edged up but remained negative at -6.9, suggesting worsening supply availability.

The index for number of employees ticked up to 7.3, its sixth positive reading in seven months, while the average-workweek index edged down to 3.5, suggesting a modest increase in employment levels and a small increase in hours worked.

Both price indexes remained elevated but declined for a second straight month: the prices-paid index dropped 11 points to 37.6 — its lowest level since January — and the prices-received index dipped 4 points to 19.8.

Optimism about the future

The index for future business conditions soared 17 points to 35.7, its highest level since January, suggesting firms have become more optimistic that conditions will improve over the next six months. The indexes for future new orders and shipments both reached their highest levels of 2025. Supply availability is expected to be little changed.

Firms continue to anticipate elevated price increases. Inventories are expected to continue to expand. The capital-expenditures index came in at 6.9, pointing to a small increase in capital-spending plans, the New York Fed said.

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.

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Survey details

Optimism about the future

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