Financial Institutions : 2022 Fourth Quarter Earnings Presentation

Investor Presentation

Financial Institutions, Inc. (NASDAQ: FISI) Fourth Quarter 2022 Earnings Presentation

January 30, 2023

Important Information

Safe Harbor Statement

Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. (the "Company") and its subsidiaries constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that

describe the objectives, plans or goals of the Company are forward-looking. These forward-looking statements can generally be identified as such by the context of the statements, including words such as "believe," "continues," "expect," "anticipate," "plan," "may," "would," "intend," "estimate," "guidance" and other similar expressions, whether in the negative or affirmative. These forward-looking statements involve significant risks and uncertainties and are subject to change. All forward-looking statements made herein are qualified by the cautionary language in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission. These documents contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Except as required by law, the Company assumes no obligation to update any information presented herein. This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of those non-GAAP financial measures to GAAP financial measures are provided in the Appendix to this presentation.

Table of Contents

Company Overview	3	Revenue	20	Appendix	26
Financial Highlights	7	Expense Management & Operating Leverage	22	Management Team	27
High Quality Lending	11	Capital Management & Investment Considerations	23	Strategy Map	28
Securities and Deposits	18			Non-GAAP Reconciliation	29

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Company Overview

Overview of Financial Institutions, Inc.

NASDAQ: FISI

• Innovative financial holding company headquartered in Western New York offering banking, insurance and wealth management services through a network of subsidiaries
• • Five Star Bank
  • SDN Insurance Agency, LLC
  • Courier Capital, LLC and HNP Capital, LLC
• Positioned for growth through key initiatives, including Banking-as-a-Service
• Financially stable geography, with 49 banking locations1 in 14 contiguous counties in Western and Central New York and a commercial loan production office in the Baltimore and Washington, D.C. region
• Experienced management team with extensive market knowledge and industry experience
• Generating consistent, strong operating results

$374M

Market cap

$5.8B

Total assets

$4.1B

Total loans

$4.9B

Total deposits

1 48 branches and 1 motor branch in Olean, NY
Note: Information on this slide is as of December 31, 2022 unless noted otherwise	3

Company Overview

Why FISI

Strategic focus designed to deliver long-term value

Results-driven community bank with strong retail and commercial franchises

• Serving financially stable Upstate New York markets and well-positioned for growth in Buffalo and Rochester
• Launched commercial lending platform serving Baltimore and Washington, D.C. region in early 2022

Disciplined credit culture with strong credit quality

• From 2008 through 2022, year-endnon-performing assets1 ranged from 0.17% to 0.58% of total loans, while annual net charge-offs to average loans ranged from 0.14% to 0.54%
• Indirect auto lending is a core competency with attractive risk-adjusted return profile and consistent results though several economic cycles

Fee-based businesses diversify revenue and complement core banking franchise

• Leading full-service insurance agency and two well-regarded investment advisory firms support noninterest income and have been enhanced by bolt-on acquisitions in recent years
• Banking-as-a-Service,or BaaS, presents additional fee-based revenue opportunities

Complementary fintech and digital partnerships driving exceptional digital experiences

• BaaS enables fintechs to offer banking products and services to their end customers
• Creating new fee-based revenue opportunities through service, interchange and other fees

1.01%

annualized return on average assets for trailing twelve months

10.1%

2022 total loan growth

1 Non-performing assets, or NPAs, include nonaccrual loans, loans past due 90 days or more and still accruing, and foreclosed assets

Note: Information on this slide is as of December 31, 2022 unless noted otherwise

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Company Overview

Our Digital Evolution

Leveraging our digital and infrastructure investments to deliver value to customers, communities and fintech partners

• Five Star Bank Digital Banking launched in 2020, enhancing user experience through sophisticated online and mobile platform
• Our fintech partnerships and investments are helping us identify best solutions for quick integration to benefit our customers and generate new revenue opportunities
• • Connectivity to the fintech ecosystem
  • Curated introduction to best-in-class,bank-ready fintechs
  • Extensive engagement and interaction with fintechs
  • Access to BaaS opportunities
  • Market intelligence and insight

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