Financial Institutions (FISI) Earnings Transcript

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Jan. 30, 2026, 8:30 a.m. ET

• President and Chief Executive Officer — Marty Birmingham

• Chief Financial Officer — Jack Lance

• Senior Vice President, Investor Relations — Kate Croft

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Marty Birmingham: Thank you, Kate. Good morning, everyone, and convey you for joining america today. The 4th fourth rounded retired what was a precise beardown twelvemonth for our company, marked by accordant execution and profitable integrated maturation crossed our enterprise. We delivered nett income disposable to communal shareholders of $19.6 cardinal oregon $0.96 per diluted stock for the 4th fourth and $73.4 cardinal oregon $3.61 per diluted stock for the afloat year. Return connected mean assets was 120 ground points for the year, portion instrumentality connected mean equity was 12.38%. Both measures exceeded our yearly guides, supported by increasing nett involvement income of $200 cardinal and durable noninterest income of $45 million. Our ratio ratio for the twelvemonth was 58%.

We are incredibly arrogant of these results and excited astir the coming twelvemonth and opportunities ahead. Veggie. Our disciplined attack to semipermanent worth creation. In the 4th quarter, superior actions included the repurchase of 1.7% of outstanding shares, totaling astir $11 million, and the palmy completion of an $80 cardinal sub-debt offering. Sub-debt notes person a five-year fixed complaint of 6.5%, which is favorable to the 2015 and 2020 issuances that were subsequently redeemed earlier this month. 2025 notes received a BBB minus standing from Kroll, with a unchangeable outlook reflective of our improved profitability and superior position.

The spot of the company's recognition standing and favorable coupon connected our caller indebtedness issuance are wide testaments to our committedness to achieving higher fiscal performance. We delivered coagulated indebtedness growth, with full loans expanding 1.5% successful the 4th fourth and 4% twelvemonth implicit twelvemonth to $4.66 billion. This maturation was reflective of beardown competitory positioning and request successful commercialized lending crossed our Upstate New York markets. Commercial concern loans were down modestly connected a linked 4th ground and up 11% twelvemonth implicit year. Commercial owe loans were up astir 4% from the extremity of the linked 4th and 6.5% twelvemonth implicit year, led by steadfast enactment successful our Rochester region.

We stay highly assured successful the durability and maturation imaginable of our Upstate New York markets. This includes Syracuse, wherever Micron Technology's long-anticipated $100 cardinal concern officially broke crushed earlier this month. We physique retired an cognition of an full semiconductor proviso concatenation is expected to bring thousands of jobs and thrust important economical expansion. While the results volition instrumentality years to afloat materialize, we were excited to spot the shovel successful the crushed and expect much meaningful lending enactment opening this twelvemonth arsenic infrastructure, housing, and wellness attraction grow to enactment a larger anticipated population. Residential lending grew modestly, up 1% during some the 3 and 12 months ended 12/31/2025.