Financial Institutions, Inc. (NASDAQ: FISI) reported fourth quarter 2025 net income of $20.0 million, down from $20.5 million in Q3 2025 and a net loss of $82.8 million in Q4 2024. Full year 2025 net income was $74.9 million, up from a net loss of $41.6 million in 2024. Net interest income reached $52.2 million for Q4 2025, with a net interest margin of 3.62%.

The Company completed a private placement of $80.0 million in subordinated notes in December 2025, received a BBB- rating, and used proceeds to redeem $65.0 million in outstanding debt from 2015 and 2020. Total loans were $4.66 billion at year-end 2025, and total deposits were $5.21 billion. The Company’s strong capital position enabled the repurchase of 336,869 common shares during the quarter.

Full year 2025 saw the Company’s net interest income at $200.0 million, with a net interest margin of 3.53%. Noninterest income was $45.0 million, benefiting from various sources including investment advisory income and company-owned life insurance. Noninterest expense was $142.0 million, down from $178.9 million in 2024, reflecting prudent expense management strategies.

Income tax expense for Q4 2025 was $4.0 million, with an effective tax rate of 16.7%. The Company’s regulatory capital ratios at year-end exceeded all requirements for being considered well capitalized. Leverage ratio was 9.69%, common equity Tier 1 capital ratio was 11.11%, and total risk-based capital ratio was 14.90%.

The Company’s non-performing loans were $35.8 million at December 31, 2025, with an allowance for credit losses on loans at 1.02% of total loans. Provision for credit losses was $3.4 million in Q4 2025. The allowance for credit losses to non-performing loans ratio was 133%. The Company’s focus on credit discipline and risk management has contributed to maintaining a strong asset quality position.

Read more at GlobeNewswire: Financial Institutions, Inc. Reports Net Income Available