Report|29 Mar 2024

Financial Institutions, Inc. Surveillance Report

Company Profile

  • Financial Institutions, Inc. (NASDAQ: FISI) (“the company”) is a $6.2 billion-asset bank holding company founded roughly 200 years ago. With approximately 50 branches located throughout Western and Central New York, FISI offers a wide range of commercial and retail services through its New York chartered banking subsidiary, Five Star Bank (“the bank”). Furthermore, FISI also has LPOs in suburban Maryland and Syracuse, NY.
  • The company also offers insurance and wealth management services through its nonbanking subsidiaries that include SDN Insurance and Courier Capital, LLC (wealth management firm). As of 4Q23, FISI reflected AUM of ~$3 billion.

Key Credit Considerations

  • The change to Negative Outlook considers the uncertainty around the bank’s ability to sustain peer like earnings in 2024 as well as rebuild the weakened capital position, hampered by the associated loss stemming from transactions occurring in 1Q24 as disclosed in an SEC…
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