FINANCIAL INSTITUTIONS Business Summary

Financial Institutions, Inc. (FISI) is a financial holding company that generates revenue primarily through its subsidiary, Five Star Bank, via net interest income from a $4.66 billion loan portfolio and non-interest income from wealth management fees. The company’s business model is organized into two primary segments: Banking, which provides consumer and commercial lending, deposit products, and municipal banking across New York and the Mid-Atlantic; and Wealth Management, which operates through Courier Capital, LLC, providing investment advisory and financial planning services. Following the strategic divestiture of its insurance arm in late 2024, FISI has focused on a capital-efficient model centered on commercial relationship banking, with assets under management reaching $3.6 billion as of early 2026. FISI competes directly with regional peers such as Community Bank System (CBU), First Busey (BUSE), and First Merchants (FRME). It distinguishes itself as a high-touch community institution that leverages a sophisticated digital infrastructure to serve small-to-mid-sized businesses, positioning itself as a localized alternative to large regional and national players. The executive leadership is headed by President and CEO Martin K. Birmingham, who has led the organization since 2013 and brings over 30 years of banking experience, including previous roles at Bank of America and Fleet Bank. Supporting him is Executive Vice President and CFO W. Jack Plants II, who oversees the company’s financial strategy, capital management, and treasury operations. The strategic direction of the firm is overseen by a Board of Directors chaired by Dawn H. Burlew, a seasoned executive from Corning Incorporated. FISI maintains a stable institutional investor base, with significant positions held by BlackRock, Inc., The Vanguard Group, and Dimensional Fund Advisors. As of February 2026, the leadership team is focused on a strategic outlook of disciplined commercial loan growth and net interest margin expansion, supported by the recent redemption of legacy subordinated debt and a robust common equity tier one capital ratio of 11.11%.