Financial Institutions 8K Investor Conference | FISI 13 Feb 14

Delivering

On Our

Promise

NASDAQ: FISI

Sterne Agee

Financial Institutions Investor Conference

February 12-14, 2014

Exhibit 99.1

Forward Looking Statements

Statements contained in this presentation which are not historical facts and which

pertain to future operating results of Financial Institutions, Inc. and its subsidiaries

constitute “forward looking statements”

within the meaning of the Private Securities

Litigation Reform Act of 1995. These forward looking statements involve significant

risks and uncertainties. We refer you to the documents the Company files from time to

time with the Securities and Exchange Commission, specifically the Company’s last

filed Form 10-K and Form 10-Q. 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. The Company assumes no obligation to

update any information presented herein.

Key Investment Considerations

Experienced leadership

Attractive footprint in Upstate NY, uniquely positioned to seize

market opportunities

…and Delivering on our Promise to All Stakeholders

Sustainable, scalable business model

Effective enterprise risk management

Solid capital structure

Investments in people and infrastructure

Consistent, strong operating results

and favorable trends

Low cost and streamlined

operating emphasis

Positioned

Achieve

Long

Term

Growth…

Martin K. Birmingham

President & CEO

Kevin B. Klotzbach

EVP, CFO & Treasurer

Who We Are

Regional community bank headquartered in

Warsaw, NY with $2.9 billion in assets

10,000 square-mile operating footprint with 50

banking locations in 15 contiguous counties

concentrated in Upstate NY

Top 20 bank of those headquartered in NY based

on asset size

Experienced management team with extensive

market knowledge

Franchise is a diversified mix of consumer and

business customers, products and revenue

sources; generating consistent, strong operating

results

Supplemental to banking business, Five Star

Investment Services, offers products and services

in:

Brokerage

Investment advisory services

Assets:

Loans:

Deposits:

Revenue:

FTE’s:

Shareholder’s Equity:

Market Capitalization:

Annualized Dividend:

Dividend Yield:

NASDAQ:

# Analyst Coverage:

$2.93 billion

$1.83 billion

$2.32 billion

$116 million

+600

$255 million

$312 million

$0.76

3.37%

FISI

Corporate Overview

Key Corporate Statistics

Note: Financials as of December 31, 2013. Market data as of 1/22/2014.

Management Team

Average Years:

Name

Title

Years with

FISI

Years in

Banking

Martin K. Birmingham

President & CEO

Richard J. Harrison

EVP, Chief Operating Officer

Jeffrey P. Kenefick

EVP, Commercial Banking

Kevin B. Klotzbach

EVP, Chief Financial Officer

R. Mitchell McLaughlin

EVP, Chief Information Officer

Kenneth V. Winn

EVP, Chief Risk Officer

Paula D. Dolan

SVP, Human Resources

Sonia M. Dumbleton

SVP, Controller

Michael D. Grover

SVP, Chief Accounting Officer

Charles J. Guarino

SVP, Marketing

Sound Risk

Management

Our Strategy and Approach

Balance between volume

and risk; maintain our

credit discipline

Diversified loan portfolio

through retail and

commercial exposures

Effective risk management

committee structures

Uphold rigorous expense

management practices

Attract, retain and cultivate

top talent

Hire

Evaluate

Reward

Comprehensive incentive

compensation structure

supports

cross-functional focus

Satisfied employees =

satisfied customers

Continue to capitalize on

banking dislocation in our

region; uniquely positioned

to seize market

opportunities and achieve

scale in growth markets

Invest in people, product

development and

infrastructure, especially

potential growth segments

Continue non-interest

income growth

Agreement with Welch

ATM/Rite Aid for Free

ATM access.

Principled, growth oriented

approach guided by our

commitment to enhance:

Shareholder value

Customer experience

Employee experience

Productivity measures per

FTE

Smart Growth

Maintain our

Culture

Focus on Value

Key lending hires in

Buffalo and Rochester, new

e-banking services (mobile

banking, web apps) and

product offerings

Five Star Investment

Services

Promote from within,

create career

opportunities

Focus on the Five Star

Bank Experience;

dictates how we:

Our Strategic Initiatives have Driven Growth and

Performance

Initiatives

Outcomes

Optimization and consolidation of

branches offices

Investment in asset classes which offer

excellent risk adjusted returns and

duration

Continuous reinvestment in people,

processes and infrastructure

Positioning ourselves for market

expansion through key group hires and

branch purchases

Keen focus on expense control, efficiency

improvements and risk management

Consistent, strong operating results

Meaningful organic loan growth

Increased positive operating leverage

Pristine asset quality

Attractive market position

Record earnings per share

Strong

year

total

shareholder

return

A Dominant, Established Franchise…

Deposit Market Share: Counties of Operation

10,000 square-mile operating

footprint

50 banking offices in 15 contiguous

counties concentrated in Upstate NY

Top 3 market share in 11 counties

Top 5 bank in counties of operation

Significant opportunities exist to

gain market share

Key Highlights

Source:

SNL

Financial.

Deposits

County

June

30,

2013

for

comparative

purposes

Rank

Institution

Branches

2013

Deposits

Market

($MM)

Market

(%)

Manufacturers and Traders Trust Co.

116

19,562

32.1%

First Niagara Bank NA

9,726

16.0%

KeyBank NA

4,362

7.2%

RBS Citizens NA

2,891

4.7%

Five Star Bank

2,332

3.8%

JPMorgan Chase Bank NA

2,026

3.3%

Community Bank NA

2,000

3.3%

Bank of America NA

1,791

2.9%

Canandaigua

National

Bank

and

Trust

Co.

1,696

2.8%

Bank of Castile

885

1.5%

Evans Bank NA

698

1.1%

Northwest Savings Bank

625

1.0%

Chemung Canal Trust Co.

569

0.9%

Lake Shore Savings Bank (MHC)

396

0.7%

Steuben Trust Co.

349

0.6%

…Uniquely Positioned For Future Growth

Capitalizing on banking dislocation due to larger

institutions divesting in our markets

Acquired 4 former First Niagara Offices on June 22,

2012

$129.6 million in deposits

Entered Orleans County

Strengthened presence in Genesee and Seneca

Counties

Acquired 4 former HSBC Offices on August 17, 2012

$157.2 Million in deposits

Gained Significant Market Share in Chemung

County

Consolidated 4 of the 8 acquired branches into

existing FISI offices

Rochester MSA

Buffalo MSA

Over 50 NY banks (non-MHC) under $1 billion in

assets located in non-NYC Metro area

Market Footprint

Source: SNL Mapping

Erie County

Deposit Market:

$30.5 Bln

Monroe County

Deposit Market:

$11.4 Bln

Chemung County

Deposit Market:

$1.0 Bln

Source: SNL Financial

Opportunity to fuel organic growth exists in attractive

markets where we have less than 2% of collective market

At $2.93 billion in assets, we believe we have the

capacity to consolidate smaller banks in our footprint

Balance Sheet Growth

Loan Growth

Loan Portfolio Composition

Lending Strategy

Emphasis on driving quality loan growth by

balancing between volume and risk along with

maintaining a diversified portfolio

Our largest concentration, indirect auto at 35% of

total loans, is an excellent asset class as it offers

low duration (approx. 2.4 years), good credit risk

(average FICO 720) and relatively high risk-

adjusted yields

Balancing organic and acquisition loan growth

initiatives

C&I and HELOC have become key areas of

focus for growth

C&I effort to be targeted at Buffalo and

Rochester

Recently hired local talent away from

competitors to gain traction

HELOC growth strategy positioned as

alternative to mortgages -

most HELOCs are

in first lien position, but are more attractive

from interest rate risk prospective

Large and fragmented market

Favorable competitive conditions and risk-

adjusted returns

Natural risk dispersion that comes with retail

loans

Relatively short duration loans

Necessary expertise available

Underwriting Manager

25 years of experience

Credit Administration

35 years of experience

Sales Manager

25 years of experience

Collections Manager

30 years of experience

Underwriting Supervisor

15 years of experience

Loan Processing Supervisor

20 years of experience

Market Dynamics

Our Team

Most key personnel have auto finance experience

from Charter One Auto Finance (originated over $2

Bln /year in 21 states and had a serviced portfolio in

excess of $6.5 Bln)

Indirect Lending as a Core Business

Our Portfolio

Indirect Net Charge-Off %

Originating prime loans –

average credit score is

720

Originate through approximately 420 franchised

automobile dealerships

No independent used car dealerships

All dealers are within Upstate New York and

Pennsylvania

Deposit Portfolio

Deposit Strategy

Cost of Total Deposits

Deposit Composition

Consistent emphasis on growing core (non-

time) deposits, which equated to 74% of the

total deposit portfolio at 12/31/13

Strong growth in our non-interest bearing

deposits, currently at 23% of our deposit

base or $535 million (growth in excess 85%

since 2007)

Overall cost of deposits at 0.28% as of

December 31, 2013

Revenue Growth

Net Interest Income and Noninterest Income

Note: All periods exclude OTTI & Securities Gains

Operating Leverage by Successful Growth Strategies

and Effective Expense Management

Growing Net Interest Income

Increasing Fee Income

Improving Efficiency

Noninterest Income

Revenue and Expenses

Revenue grew by 25% since 2009 while

expenses increased by only 11%

Source: SNL Financial

(1)

All periods exclude OTTI & Securities Gains

(2)

2012 excludes acquisition and CEO transition expenses

Note: Peers include all US Banks and Thrifts in the Mid-Atlantic region from $1 Bln -

$5 Bln in assets. Peer data reflects median values for the component companies

within the group.

Asset Quality Overview

Nonperforming Assets Trends

Asset quality remains a top priority

Disciplined oversight of risk in lending

portfolio

Asset quality metrics continue to

outperform peer levels

Key Highlights

Source: SNL Financial

Note:

Peers

include

all

Banks

and

Thrifts

the

Mid-Atlantic

region

from

Bln

assets.

Peer data reflects median values for the component companies within the group

Investment Portfolio

Low risk security portfolio

High percentage of the portfolio consists

of securities backed by the U.S.

government and agencies

Approximately $850 million in total

securities and the majority are utilized

for various pledging purposes

Data as of December 31,2013

Low Risk Security Portfolio

Capital Management

Capital Ratios

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

Tang. Common Equity / Tang. Assets

8.01%

7.93%

7.64%

7.20%

7.05%

6.86%

6.74%

6.49%

6.40%

6.51%

Tier 1 Leverage

8.67%

8.63%

8.80%

8.27%

7.67%

7.71%

7.46%

7.59%

7.68%

7.63%

Tier 1 Risk-Based Capital Ratio

12.23%

12.20%

12.22%

11.39%

10.91%

10.73%

10.84%

10.96%

10.94%

10.82%

Total Risk Based Capital

13.49%

13.45%

13.47%

12.64%

12.16%

11.98%

12.09%

12.21%

12.19%

12.08%

Planning and Investing For the Future

We are constantly investing and adapting our scalable infrastructure to strengthen our competitive

position

Our infrastructure’s strength is in state of the art technology and motivated human

resources

Smart investments in technology have enabled us to be competitive with even the largest

banking institutions. Investments include:

Mobile banking

•

102% increase in Mobile banking users since January 2013

Enhanced Web Presence (online account opening, updated online banking, emphasis on e-statements)

•

200% increase in e-statement penetration since January 2013

New product offerings allow us to remain nimble vs. competition

Enhanced Retail Checking Products (debit card rewards)

•

5% increase in debit card transaction since January 2013

Expanded Indirect Lending

How Do We Compare?

Price/ MRQ EPS

Price/ TTM EPS

Note: Market data as of 1/22/2014. Peer data as of 9/30/13 and reflects median values for the

component companies within each respective index.

Dividend Yield

Total Shareholder Return

5-Year Total Shareholder Return

Note: Market data as of 1/22/2014. Peer data reflects median values for the

component companies within each respective index

Shareholder Composition

Top 20 Institutional Investors

Source: SNL Financial. Market data as of 1/22/2014

Diversified Shareholder Base

Holder

Held

Market Value

($mm)

Out (%)

Wellington Management Co. LLP

1,034,658

23,321,191

7.49

BlackRock Fund Advisors

844,868

19,043,325

6.12

Bryn Mawr Capital Management Inc

632,825

14,263,876

4.58

Canandaigua National Bank and Trust Co.

625,045

14,088,514

4.53

Dimensional Fund Advisors LP

612,114

13,797,050

4.43

Columbia Management Investment Advisers LLC

524,523

11,822,748

3.80

JPMorgan Chase Bank NA

481,540

10,853,912

3.49

Putnam Investment Management Inc.

358,390

8,078,111

2.60

Vanguard Group Inc.

343,010

7,731,445

2.48

Investment Counselors of Maryland LLC

305,300

6,881,462

2.21

LSV Asset Management

301,813

6,802,865

2.19

Northern Trust Global Investments Ltd.

262,466

5,915,984

1.90

SSgA Funds Management Inc.

218,231

4,918,927

1.58

AlphaOne Investment Services LLC

206,376

4,651,715

1.49

JPMorgan Asset Management

200,729

4,524,432

1.45

Kennedy Capital Management Inc.

198,016

4,463,281

1.43

Castine Capital Management LLC

117,252

2,642,860

0.85

Aberdeen Asset Management Inc.

108,677

2,449,580

0.79

Bridgeway Capital Management Inc.

95,900

2,161,586

0.69

FSI Group LLC

71,626

1,614,450

0.52

Key Investment Considerations

Experienced leadership

Positioned to Achieve Long-Term Growth…

Attractive footprint in Upstate NY, uniquely positioned to seize

market opportunities

…and Delivering on our Promise to All Stakeholders

Sustainable, scalable business model

Effective enterprise risk management

Solid capital structure

Investments in people and infrastructure

Consistent, strong operating results

and favorable trends

Low cost and streamlined

operating emphasis

Delivering

On Our

Promise

NASDAQ: FISI

Sterne Agee

Financial Institutions Investor Conference

February 12-14, 2014

Financial Institutions (FISI) 8-KFinancial Institutions Investor Conference