Financial Institutions, Inc. closed the second quarter of 2026 with net income of $21.2 million, up $3.7 million from $17.5 million a year earlier. Net income available to common shareholders reached $20.8 million, or $1.04 per diluted share, against $0.85 in the prior-year quarter. The gain came from a cleaner funding mix and disciplined expense control rather than from a jump in loan yields. Management guided to the strength as a function of both revenue generation and cost management, and the numbers back that framing.
Net interest income climbed $4.2 million to $53.4 million as average interest-earning assets rose $134.5 million. The margin engine shifted from the asset side to the liability side. Average interest-bearing deposits repriced lower and cut deposit interest expense by $4.8 million, even though average loan yield slipped 19 basis points to 6.07%. The net effect pushed net interest margin up 21 basis points to 3.70%, the quarter's standout metric.
Credit costs stayed contained, with net charge-offs of $1.3 million, or 0.11% of average loans on an annualized basis, down from 0.36% a year ago. The provision for credit losses ticked up modestly to $3.1 million from $2.6 million. The efficiency ratio improved to 55.33% from 59.68%, and the Courier Capital wealth arm crossed $4.0 billion in assets under management. With the stock at $41.20 against a 52-week range of $25.61 to $42.97, the shares trade near the top of their range on the back of this margin and efficiency inflection.