Financial Institutions (FISI) investor relations material

Executive summary

• Net income available to common shareholders was $20.6 million ($1.04 per diluted share) for Q1 2026, up 28% year-over-year and 8% sequentially, with improved profitability and efficiency ratio at 57%.

• Return on average assets reached 1.37%, and return on average equity was 13.43% for Q1 2026.

• Net interest margin expanded to 3.67%, up 32 basis points year-over-year and 5 basis points sequentially.

• Tangible book value per share increased to $28.15, with strong earnings offsetting share repurchases and AOCI pressure.

• Strategic actions included refinancing $65 million of legacy subordinated debt and repurchasing approximately 500,000 shares since December.

Financial highlights

• Net interest income was $52.0 million, up $5.1 million year-over-year but down slightly sequentially.

• Noninterest income totaled $10.7 million, up year-over-year but down sequentially, with investment advisory income contributing positively.

• Noninterest expense was $35.6 million, up year-over-year but down from Q4, with reductions in some categories.

• Efficiency ratio improved to 57%, reflecting disciplined expense management.

• Provision for credit losses was $2.2 million, down from Q4 and prior year.

Outlook and guidance

• Management reaffirmed a 5% full-year 2026 loan growth target, driven by commercial lending and healthy pipelines.

• Full-year NIM is expected in the upper 360s basis points, with modest incremental expansion anticipated.

• Efficiency ratio is projected to approach 57% for the full year.

• Net charge-offs are expected to remain within the 25-35 basis points guidance range.

• Deposit growth is targeted at low single digits for the year.