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Financial Institutions , Inc. Exhibit 99.1 NEWS RELEASE For Immediate Release FINANCIAL INSTITUTIONS , INC . ANNOUNCES FIRST QUARTER RESULTS WARSAW , N.Y. , April 28 , 2021 - Financial Institutions , Inc. ( NASDAQ : FISI ) ( the “ Company ” “ we ” or “ us ” ) , parent company of Five Star Bank ( the " Bank ” ) , SDN Insurance Agency , LLC ( “ SDN " ) , Courier Capital , LLC ( " Courier Capital " ) and HNP Capital , LLC ( “ HNP Capital ” ) , today reported financial and operational results for the first quarter ended March 31 , 2021 . Net income for the quarter was $ 20.7 million compared to $ 1.1 million in the first quarter of 2020. After preferred dividends , net income available to common shareholders was $ 20.3 million , or $ 1.27 per diluted share , compared to $ 762 thousand , or $ 0.05 per diluted share , in the first quarter of 2020 . Net income for both periods was significantly impacted by provision for credit losses . In the first quarter of 2020 , provision of $ 13.9 million was driven by the adoption of the current expected credit loss standard ( " CECL " ) and the impact of the COVID - 19 pandemic on the economic environment . The designated loss driver for the Company's CECL model is the national unemployment forecast , which spiked in early 2020 at the onset of the pandemic . In the first quarter of 2021 , provision was a benefit of $ 2.0 million due to continued improvement in the national unemployment forecast and positive trends in qualitative factors , resulting in a release of credit loss reserves . Pre - tax pre - provision income ( 1 ) for the quarter was the highest in Company history at $ 24.1 million , an increase of $ 8.7 million from the first quarter of 2020 . " We are very pleased to report another solid quarter for our Company , reflecting strong underlying performance across our businesses , ” said President and Chief Executive Officer Martin K. Birmingham . “ In addition to the positive provision impact , we reported continued growth in net interest income and noninterest income . We are also benefitting from cost savings as an outcome of the enterprise standardization program . These positive factors contributed to an efficiency ratio below 53 % and record pre - tax pre - provision income for the quarter . " The pace of activity has not slowed in 2021. We continue to assist new and existing customers with the Paycheck Protection Program ( " PPP ” ) , helping them obtain approximately $ 96 million of new loans and completing the forgiveness process for approximately $ 87 million of loans in the first quarter . We completed the acquisition of Landmark Group , significantly increasing awareness of our insurance offerings in the Rochester market and supporting our strategy of diversifying revenue . We also repurchased more than 230 thousand shares of common stock under our stock repurchase program at favorable pricing . " As infection rates decline in our markets and vaccination rates rise , we are seeing signs of an expanded re - opening of the economy . I remain cautiously optimistic about the strength and timing of the economic recovery . We believe that our strong balance sheet , diversified business model and talented associates position us to perform well in this environment . The continued health , safety and financial well - being of our customers , associates and communities remains a key focus of the Company . " Chief Financial Officer and Treasurer W. Jack Plants II added , " Net interest margin was 3.29 % for the quarter . Net interest income and net interest margin ( " NIM " ) benefited from the positive impact of PPP loan forgiveness and recognition of approximately $ 2.9 million of deferred fees in the quarter . Excluding all impacts of PPP loans , NIM was 3.15 % for the first quarter of 2021 compared to 3.14 % for the fourth quarter of 2020. NIM continues to be pressured by the interest rate environment and the lower respective yield of our excess liquidity position , driven by the increase in total deposits , up $ 929 million from the year earlier period . " Stock Repurchase Program On November 4 , 2020 , the Company announced a stock repurchase program for up to 801,879 shares of common stock , or approximately 5 % of the Company's outstanding common shares . Shares may be repurchased in open market transactions and pursuant to any trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and number of shares repurchased will depend on a variety of factors including price , corporate and regulatory requirements , market conditions , and other corporate liquidity requirements and priorities . The repurchase program does not obligate the Company to purchase any shares and it may be extended , modified or discontinued at any time . No shares were repurchased in 2020 under this program . Year - to - date , the Company has repurchased 238,439 shares for an average repurchase price of $ 24.30 per share , inclusive of transaction costs . Page 1