FINANCIAL INSTITUTIONS INC Segments Disclosure
(22.) SEGMENT REPORTING
The Company’s Executive Management Team, which consists of the has been designated as its Chief Operating Decision Maker (“CODM”). The CODM determined the Company has one reportable segment, Banking, based upon information provided about the Company’s products and services offered. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and customers are similar. The CODM evaluates the financial performance of the Company’s business components by evaluating revenue streams, significant expenses, and budget to actual results when assessing the Company’s segment and in the determination of allocating resources. The CODM has determined that net income is the reportable measure of segment profit or loss that is regularly reviewed and used to allocate resources and assess performance. Loans and investments provide the interest income in the banking operation, while deposits and borrowings account for the interest expense. The CODM also considers provisions for credit losses a significant expenses in the banking operation. All operations are domestic.
Accounting policies for the segment are the same as those described in Note 1, Summary of Significant Accounting Policies. Segment performance is evaluated using net income. Information reported internally for performance assessment by the CODM follows, inclusive of reconciliations of significant segment totals to the consolidated financial statements.
The following table presents balance sheet information of the Company’s segment as of December 31, (in thousands):
|
|
2025 |
|
|
2024 |
|
||
Goodwill |
|
$ |
48,536 |
|
|
$ |
48,536 |
|
Segment assets |
|
|
6,235,223 |
|
|
|
6,080,731 |
|
Reconciliation of consolidated total assets: |
|
|
|
|
|
|
||
Goodwill - Courier Capital |
|
|
9,585 |
|
|
|
9,585 |
|
Intangible assets - Courier Capital |
|
|
2,222 |
|
|
|
2,637 |
|
Other assets |
|
|
27,110 |
|
|
|
24,735 |
|
Elimination of intercompany receivables |
|
|
- |
|
|
|
(603 |
) |
Consolidated total assets |
|
$ |
6,274,140 |
|
|
$ |
6,117,085 |
|
(22.) SEGMENT REPORTING (Continued)
The following table presents information regarding the Company’s segment for the years ended December 31, (in thousands).
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Interest income |
|
$ |
332,989 |
|
|
$ |
313,231 |
|
|
$ |
286,133 |
|
Interest expense |
|
|
128,221 |
|
|
|
145,400 |
|
|
|
116,176 |
|
Segment net interest income |
|
|
204,768 |
|
|
|
167,831 |
|
|
|
169,957 |
|
Noninterest income (loss) |
|
|
33,642 |
|
|
|
(72,025 |
) |
|
|
31,893 |
|
Segment noninterest expense |
|
|
129,482 |
|
|
|
143,502 |
|
|
|
121,822 |
|
Income (loss) before provision for credit losses and income taxes |
|
|
108,928 |
|
|
|
(47,696 |
) |
|
|
80,028 |
|
Provision for credit losses |
|
|
(11,626 |
) |
|
|
(6,150 |
) |
|
|
(13,681 |
) |
Income (loss) before income taxes |
|
|
97,302 |
|
|
|
(53,846 |
) |
|
|
66,347 |
|
Income tax (expense) benefit |
|
|
(18,114 |
) |
|
|
22,988 |
|
|
|
(13,618 |
) |
Segment net income (loss) |
|
$ |
79,188 |
|
|
$ |
(30,858 |
) |
|
$ |
52,729 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of consolidated net interest income: |
|
|
|
|
|
|
|
|
|
|||
Interest expense (1) |
|
|
4,782 |
|
|
|
4,242 |
|
|
|
4,242 |
|
Consolidated net interest income |
|
|
199,986 |
|
|
|
163,589 |
|
|
|
165,715 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of consolidated net income (loss): |
|
|
|
|
|
|
|
|
|
|||
Gain on sale of assets of subsidiary |
|
|
- |
|
|
|
13,658 |
|
|
|
- |
|
Insurance income (2) |
|
|
- |
|
|
|
2,130 |
|
|
|
6,692 |
|
Investment advisory income (3) |
|
|
11,553 |
|
|
|
10,276 |
|
|
|
10,117 |
|
Other fees and income |
|
|
(240 |
) |
|
|
(720 |
) |
|
|
(458 |
) |
Other noninterest expense |
|
|
(12,479 |
) |
|
|
(35,404 |
) |
|
|
(15,403 |
) |
Income (loss) before income tax benefit |
|
|
73,240 |
|
|
|
(45,160 |
) |
|
|
49,435 |
|
Income tax benefit |
|
|
1,627 |
|
|
|
3,514 |
|
|
|
829 |
|
Consolidated net income (loss) |
|
$ |
74,867 |
|
|
$ |
(41,646 |
) |
|
$ |
50,264 |
|
____________________________________________
(1) Interest expense represents interest on the subordinated notes, held at the Parent.
(2) Insurance income represents income from our former subsidiary, SDN, which we sold the assets of on April 1, 2024.
(3) Investment advisory income represents income from our subsidiary Courier Capital.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 7, 2017 | |
| 2015 | Mar 8, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.