FINANCIAL INSTITUTIONS, INC. (Nasdaq: FISI) Presentation May 2019 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,” “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. 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. Certain of the information contained herein may be derived from information provided by industry sources. The Company believes that such information is accurate and that the sources from which it has been obtained are reliable. FISI cannot guarantee the accuracy of such information, however, and has not independently verified such information. 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.

2 Overview of Financial Institutions, Inc.

Corporate Overview Key Statistics as of March 31, 2019

▪ Diversified financial services holding company Assets: $4.3 billion headquartered in Western New York Loans: $3.1 billion ▪ Subsidiaries include: Deposits: $3.5 billion ─ Five Star Bank (regional community bank) Shareholders’ : $408.3 million ─ SDN Insurance Agency, LLC (full-service (1) insurance agency) NPAs /Total Assets: 0.14% ─ Courier Capital, LLC (investment advisory firm) Employees: ~ 700 ─ HNP Capital, LLC (investment advisory firm) ROACE (TTM): 10.72% ▪ 53 banking locations in 15 contiguous counties in ROATCE(2) (TTM): 13.49% Western and Central New York ROAA (TTM): 0.99% ▪ Experienced management team with extensive Annualized Per Share: $1.00 market knowledge and industry experience Market and Valuation Data as of May 9, 2019 ▪ Franchise offers products and services to a Closing Price Per Share: $28.61 diversified mix of consumer, business, municipal, healthcare and not-for-profit customers : $457.3 million ▪ Generating consistent, strong operating results Dividend : 3.5% (3) ▪ Positioned for growth through key initiatives Price/Tangible Common Book Value : 145% Price/NTM Consensus EPS(3): 10.6x

(1) NPAs include nonaccrual loans, loans past due 90 days or more and still accruing, and foreclosed assets (2) Refer to “Non-GAAP Reconciliation” in Appendix 3 (3) Per S&P Global Market Intelligence; NTM = next twelve months Successfully Executing Our Strategy

Our Promise: We Put Our Customers’ Financial Well-Being at the Heart of Everything We Do

➢ Maximize Community Bank Model Opportunities ─ Offering responsive personal service, local leadership and local decision-making ─ Leverage Five Star Bank brand to expand in the larger markets of Buffalo and Rochester ─ Continue to acquire strategic talent throughout the organization to support growth

➢ Generate Above-Peer-Average Growth / Results ─ Targeting mid-to-high single digit loan growth ─ Sustain disciplined credit culture ─ Generate deposit growth sufficient to fund loan growth ─ Drive continued improvement in ROAA and ROAE ─ Targeting efficiency ratio in the top one-third of peers ─ Provide dividend growth

➢ Increase Fee-Based Revenue to Diversify Our Revenue Streams ─ Targeting noninterest income at 25%-30% of total revenue ─ Maximize synergies between bank, insurance and wealth management platforms

4 5 Two Distinct Opportunities → Urban MSAs and Core Legacy Markets

Market Footprint Growth Opportunities

Buffalo and Rochester Urban MSAs ▪ Current market share of 3.3%(1) in attractive $40 billion combined local deposit markets − Five Star Bank presence and brand awareness is increasing − Capitalizing on our community banking model • Personal service with local-leadership and decision-making power • Agile in responding to customer needs − Capacity and capability to meet credit needs of community banking marketplace ▪ 53 branches and 700 employees(2) Our Core Legacy Markets ▪ High growth potential in Buffalo and Rochester urban ▪ No. 1 or No. 2 market share in 9 counties markets − Top 3 in 11 counties ▪ Market share leader in core legacy markets – valuable core deposits ▪ Stable/reliable core deposits ▪ 5th largest bank in counties of operation ▪ Our role as trusted banker creates opportunity for fee-based services

(1) 6/30/18 data; Buffalo and Rochester MSAs represent total deposit market of $61 billion (FISI share = 2.2%); excluding impact of estimated national account relationship deposits of $21 billion, combined MSAs represent $40 billion in local deposits 6 (2) Includes all FISI subsidiaries Buffalo and Rochester Economic Environment

Buffalo, New York Rochester, New York NY State’s 2nd Largest City NY State’s 3rd Largest City Population: 259,000 Population: 208,000 MSA Population: 1.14 million MSA Population: 1.08 million

▪ Financially stable with positive outlook ▪ Economy is transforming from manufacturing-based to a more diversified economy including healthcare, higher education, small business, technology and professional services − Significant college and university presence, including academic medical centers with robust research and development activities − For example, the University of Rochester is Rochester’s largest employer, the largest private employer in upstate New York and the fifth largest private employer in the state of New York with 27,000 full-time equivalent workers; subsequent spending by these employees creates more than 25,900 additional jobs in New York ▪ Strong collaboration between public and private sectors − New York Regional Economic Development Council (REDC) Awards ▪ Buffalo and Rochester downtown redevelopments underway

7 Experienced Leadership Team & Addition of Talent

▪ Martin K. Birmingham was named CEO in March of 2013 − Birmingham has more than 29 years of Western New York banking experience ▪ Leadership teams of all subsidiaries have significant experience in Western New York − Five Star Bank / SDN Insurance Agency / Courier Capital / HNP Capital ▪ Taking advantage of market disruption to add talent across all segments of our banking business − Hiring experienced professionals from competing institutions − Talent recognizing opportunities in the community banking environment vs. big bank experience − Bringing market experience, knowledge and relationships ▪ Added lenders in all categories including experienced leaders of C&I, CRE and residential lending ▪ Hired a team of highly-skilled and experienced residential mortgage professionals ▪ Added credit and risk management professionals to support loan growth ▪ 2018 Additions: − Director of Treasury Services manages cash management business for commercial customers/prospects while developing new cash management products and services − Commercial Market Executive for Central New York focused on C&I lending and responsible for building commercial relationships, growing the commercial loan portfolio and increasing awareness of our Bank − Successfully executed executive succession plans and transitioned to new CFO and CHRO within the last year

8 Branch Transformation – Evolving to Meet Customer Needs

▪ Staff transformation from traditional tellers and platform roles to a universal banker role – our Certified Personal Banker, or CPB − CPBs are Five Star Bank experts trained to meet a broad array of customer needs − Cross-trained CPBs improve staffing efficiencies and enhance customer experience ▪ The Five Star Bank financial solution center concept illustrates our evolution − Solutions fit customer preferences for interactions, removing barriers and offering new technologies − High level of personalized banking provided by expert CPBs − Smaller footprint than a traditional branch ▪ Traditional branches are being remodeled to provide new technologies and remove barriers

Downtown Rochester Financial Solution Center Remodeled/Updated Warsaw branch

9 Five Star Experience: Defining a Strong Culture to Power Employee and Customer Engagement

10 Branding Initiative ― Launched February 2018

▪ Campaign designed to create a more recognized brand across all the communities we serve and increase understanding of the depth of products and services offered under the Five Star Bank umbrella ▪ Metrics used to measure campaign impact correlate with our success across each step of the path to purchase model – from awareness to consideration, evaluation, purchase and advocacy ▪ Multi-year program; current campaign focuses on awareness, where effectiveness is measured by unaided awareness ─ Target metrics were exceeded in 2018 with a nearly 40% increase in unaided awareness of Five Star Bank ▪ Website was redesigned to incorporate design elements of the brand and enhance functionality and navigation, improving the user experience on computers, tablets and mobile phones ─ 20% increase in unique visitors (unpaid) and 20% increase in new user traffic (unpaid) in 2018

11 First Quarter 2019 Highlights

▪ Net income of $11.5 million was the second highest in the Company’s history and $2.2 million, or 24%, higher than the first quarter of 2018

▪ Diluted of $0.70 was $0.14, or 25.0%, higher than the first quarter of 2018

▪ Pre-tax pre-provision income of $15.7 million(1) was the highest in the Company’s history, $1.2 million, or 8.5%, higher than the first quarter of 2018

▪ Net interest income of $31.8 million was $2.1 million, or 7.0%, higher than the first quarter of 2018

▪ Net interest expanded to 3.24% from 3.18% in the first quarter of 2018

▪ Return on average assets was 1.09%, up from 0.92% in the first quarter of 2018

▪ Non-performing loans declined to $5.8 million at quarter-end, down $4.9 million from March 31, 2018

▪ Capital ratios improved – 30 basis point increase in common equity to assets and tangible common equity to tangible assets (TCE ratio) (1)

▪ As previously announced, the Company declared a quarterly cash dividend of $0.25 per common share, a 4.2% increase from the most recent dividend.

(1) Refer to “Non-GAAP Reconciliation” in Appendix 12 Net Income, Earnings and

▪ First quarter dividend $38.1 – 3/31/19 annualized yield 3.73% $32.1 $30.5 – Payout ratio 35.71% $27.9 $26.9 $2.39 ▪ 2014 to 2018 CAGR $2.10 $2.13 $2.00 $1.90 – Net income available to common shareholders 8.1%

$0.96 – EPS 4.6% $0.85 $0.77 $0.80 $0.81 $11.1 – Dividends 5.7% $8.9 $0.70 $0.56 ▪ 1Q’18 to 1Q’19 growth $0.24 $0.25 – Net income available to common shareholders 25% 2014 2015 2016 2017 2018 1Q'18 1Q'19 – EPS 25% Net Income Available to Common Shareholders (in millions) Diluted Earnings per Share ("EPS") – Dividends 4.2% Cash Dividends Declared per Share

13 Securities Portfolio ▪ Converting low-yield, low-risk-weighted investment securities into higher yielding, higher-risk-weighted loans − Securities portfolio decreased $149 million in 2018: $143 million of net proceeds used to fund loan growth − Securities portfolio decreased $26 million in 1Q’19: $33 million of net proceeds used to fund loan growth and pay down -term borrowings ▪ Entire portfolio 0% or 20% risk weighted − Comprised of New York State municipals and government agency issued MBS, CMO and debentures ▪ 20.1% of total assets at 3/31/19 − Level of securities must be maintained to collateralize public/municipal deposits (28% of total deposits at 3/31) ▪ Average yield at 3/31/19: 2.37%(1)

$1,200 $1,083 $1,030 $1,041 $1,000 $917 $892 $867 30.5% $800 29.7% 29.2%

$600 25.4%

$400 20.7% 20.1%

$200 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19

Marketable Securities (in millions) % of Total Assets

(1) 1Q’19 annualized yield (tax equivalent basis) 14 Total Deposits

▪ Deposits increased at a compound annual growth rate of 8.8% from year-end 2014 to 3/31/19 ▪ Non-public deposits at 3/31/19 were $2.5 billion ▪ Average cost of deposits for 1Q’19 annualized was 0.80%

$3,509 $3,367 $3,210 $2,995 $1,052 $2,731 $1,020 $852 $2,451 $702 $637 $593

$2,457 $2,293 $2,358 $2,347 $2,094 $1,858

12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19

Transactional deposits (in millions) Time deposits (in millions)

15 Total Loans

▪ Growth driven by addition of key lenders ▪ 1Q’19 loan growth reflected lower indirect loan production (as focus intensifies on profitability of new loan originations in this portfolio) along with seasonal softness in commercial lending ▪ Average yield at 3/31/19 was 4.77%(1)

($ in millions) $3,087 $3,109 CAGR 12.1% $2,735 $920 $903 $2,340 $877 $2,084 $1,912 $752 $634 $643 $677 $637 $582 $17 $16

$550 $18 $508 $487 $17 $19 $21 $1,516 $1,547 $1,259 $1,020 $880 $742

12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19

Commercial Consumer Other Residential Real Estate Consumer Indirect

(1) 1Q’19 annualized 16 Commercial Banking

▪ Year-over-year growth in commercial mortgage loans of 21.0% and commercial business loans of 19.3% − Includes growth in higher-yielding Small Business Commercial Lending ▪ 1Q’19 growth reflects seasonal softness ▪ Over the course of the past 2+ years, we have made strategic hires, adding lenders in nearly all categories − Hiring experienced professionals from competing institutions − They bring market experience, knowledge and relationships − Attracting new customers and generating new loan business as well as noninterest income

($ in millions) $1,547 CAGR 18.9% $1,516 $1,500 $558 $554 $1,300 $1,259 $450 $1,100 $1,020 $880 $900 $350 $993 $742 $958 $314 $700 $809 $267 $670 $500 $566 $475 $300 0.02% 0.24% 0.09% 0.26% 0.20% 0.00%

$100 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19 Comm Mortgage Comm Business NCOs/Avg Loans (1)

(1) Annualized 17 Residential Real Estate Loans and Lines

▪ In-market originations through mortgage loan originators and Five Star Bank branch network ▪ Full product menu featuring competitive portfolio and saleable products including government loan programs ▪ Continuing the build-out of residential mortgage production capabilities − In 2017, added 8 mortgage loan officers (“MLOs”) and back-office support personnel to underwrite and process production; 6 incremental MLOs hired in 2018 ▪ CRA product origination nearly three times higher in 2018 than 2017 ▪ Line of business provides opportunity to establish relationships with new customers: loan and deposit relationships as well as opportunity to provide wealth management and insurance services ▪ Increased mortgage lending is expected to result in positive balance sheet impact as well as fee generation

$700 CAGR 6.8% $643 $650 $634

$600 $582 $550 $550 $508 $500 $487

$450

$400

$350 0.09% 0.09% 0.04% 0.06% 0.01% 0.01%

$300 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19

Residential Real Estate (in millions) NCOs/Avg Loans(1)

(1) Annualized 18 Consumer Indirect Lending

▪ $903 Million Portfolio at March 31, 2019 − Portfolio represents 29% of total loans, down from peak of 35% at 12/31/13 − 1Q’19 decline reflected lower loan production, as focus intensifies on profitability of new originations ▪ Prime Lending Operation with average portfolio FICO score of 730 and less than 2.5% under 630 ▪ Dealer network of nearly 500 franchised new automobile dealerships ▪ Relatively Short Duration Allows for Rapid Re-pricing − Weighted average interest rate of new loan production increasing due to upward rate movement ▪ Natural Risk Dispersion – Small Loan Size ▪ Demonstrated track record of consistent performance through economic expansions, recessions and stagnation

$1,000

$920 $903 $900 $877

$800 $752

$700 $677 $662

0.87% $600 0.74% 0.64% 0.70% 0.65% 0.69%

$500 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19 (1) Consumer Indirect (in millions) NCOs/Avg Loans

(1) Annualized 19 Diversification → Growing Noninterest Income

Noninterest Income Commentary ($ in millions) ▪ Insurance subsidiary SDN acquired 8/14 − Organizational changes made and progress continues on -term conversion of SDN from an entrepreneurial agency focused primarily on commercial property and casualty to a bank- owned agency with emphasis on expanding $35.8 $34.7 $36.5 $30.3 personal lines division offering auto, homeowners $25.4 and life insurance $9.1 − Employee Benefits practice growing as well ▪ Wealth management subsidiary Courier Capital 2014 2015 2016 2017 2018 3/31/19 acquired 1/16 YTD − Furthering this strategy was the 8/17 acquisition of Excluding the net gain (loss) on investment securities assets of Buffalo-based Robshaw & Julian from all periods, noninterest income was: Associates and the 6/18 acquisition of Rochester- 2014 $23.3 million based HNP Capital 2015 $28.3 million ▪ Anticipate increase in mortgage-related fees as a 2016 $33.1 million result of addition of mortgage loan officers and 2017 $33.5 million support staff 2018 $36.6 million ▪ Synergies increasing from offering of: YTD ’19 $9.2 million − Insurance products to residential mortgage, indirect consumer loan and commercial loan CAGR (‘14-’18): 11.9% customers − Wealth management products to residential mortgage and commercial loan customers

20 Asset Quality

▪ Credit quality reflects knowledge of our markets and customer base as well as our disciplined credit culture ▪ Allowance for loan losses to total loans was 1.07% at 3/31/19, down 3 basis points from 12/31/18 ▪ Allowance for loan losses was 574% of non-performing loans, up from 475% at 12/31/18 – among the highest levels in the industry

Nonperforming Assets (“NPAs”)(1) Net Charge-Offs

($ in millions) ($ in millions)

$14.0 $12.0 $12.7

$12.0 $10.0 $9.6 $9.7 $10.3 $10.0 $7.9 $8.6 $8.0 $6.9 $8.0 $7.4 $5.8 $6.4 $6.0 $5.8 $6.0

$4.0 0.33% 0.31% $4.0 0.25% 0.40% 0.37% 0.38% $1.8 $2.0 0.33% $2.0 0.17% 0.17% 0.26% 0.23% 0.14%

$- $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19 2014 2015 2016 2017 2018 1Q'19

NPAs NPAs/Total Assets Net Charge-offs Net Charge-offs / Average Loans

(1) NPAs include nonaccrual loans, loans past due 90 days or more and still accruing, and foreclosed assets 21 Historical Capital

Consolidated Capital Ratios

14.00% 7.60% 7.45% 13.35% 13.19% 12.97% 13.00% 7.40% 12.38% 12.50% 7.17% 7.15% 7.20% 12.00% 11.72% 7.00% 11.00% 10.74% 10.47% 10.50% 10.26% 10.37% 10.21% 6.80% 10.00% 6.60% 9.00% 6.41% 6.32% 8.36% 6.40% 6.25% 8.13% 8.16% 8.00% 7.35% 7.41% 7.36% 6.20% 7.00% 6.00%

6.00% 5.80%

5.00% 5.60% 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/19

Leverage Ratio Tier 1 Capital Ratio Total Risk-Based Capital Ratio Tangible Common Equity / Tangible Assets (1)

March 31, 2019 Tangible Common Equity / Tangible Assets (1) 7.45% Leverage Ratio 8.36% Tier 1 Capital Ratio 10.37% Total Risk-Based Capital Ratio 12.50%

(1) Refer to “Non-GAAP Reconciliation” in Appendix 22 Perceived Challenges vs. Reality FISI Presents a Compelling Investment Opportunity When Perceived Franchise Challenges are Put in Context

Perceived Challenge In Reality Bottom Line

• FISI’s indirect business is a Prime Lending Operation • While current management team inherited asset class with avg. portfolio FICO score of 730 (<3% below 630) concentration, indirect remains a core competency, with Indirect Auto Loans • Strong network of 500 franchised new auto dealers attractive risk-adjusted return profile are a Risky Asset • Natural risk dispersion – many units and small loan size • Short credit duration allows for strategic optionality in Class/FISI Portfolio is • Consistent results through several economic cycles reinvesting cash flows Oversized ‒ ‘08 to ‘18: charge-offs ranged from 0.60% to 0.87% • Indirect portfolio concentration is on the decline as • YTD NCOs/Average Loans (annualized) = 0.69% focus on profitability of new loan originations is reducing • Concentration declining production

• Diversified among 300+ municipalities • Five Star Bank is a market share leader in core legacy Large Municipal ‒ No single relationship greater than $39 million counties, providing a unique competitive edge in Deposits Portfolio • NY MULOC program allows for collateralization of servicing municipal entities that super regionals and deposits with LOCs backed by loans, rather than lower- smaller competitors do not/cannot Limits Yield on yielding securities • Capitalizing on a valuable deposit base that spans our Interest-Earnings • Allows for reduction of investment securities portfolio 15-county footprint, limiting individual concentrations Assets ‒ Funding higher-yielding loan growth with proceeds • MULOC program helps reconstitute earnings asset mix while managing liquidity

• HQ’d in Warsaw with regional offices and leadership in • Ability to utilize low cost deposits from rural franchise to Sleepy Upstate NY Rochester (ROC) and Buffalo (BUF); Community Market fund higher growth metro franchise Focus Results in Low Executive added in ‘18 for CNY (Syracuse and Ithaca) • More than 50 strategic talent hires since 2016, many • With less than 4% market share in ROC and BUF, from key competitors, leveraging market disruption Growth and Minimal focused on expanding in these markets and opened 4 • Impressive growth since Q3’16 Value Creation innovative financial solution centers since 2015 –Comm Bus: +58% –Comm Mtg: +56% –Residential: +17% • #3 SBA lender in ROC/BUF and #62 in US(1) –CBVPS: +15% –TCBVPS: +23%

• FISI historically manages to total, overall capital • Well capitalized across all regulatory capital metrics Low TCE Ratio • TCE(2) increased 30 bps in Q1’19 • Strong asset quality metrics with 0.14% NPAs/Assets, • Expect continued improvement in ratios as capital is 1.07% ALL/Loans and 574% ALL/NPL generated through retention of earnings

(1) For 2018 SBA year (2) Refer to “Non-GAAP Reconciliation” in Appendix 23 Reasons to Invest Dividends & Tangible Common Book Value $20.00 $19.01 $18.16 ➢ Taking Advantage of Growth $18.00 $0.97 $15.62 $16.00 $14.77 Opportunities $13.71 $0.96 $14.00 $0.92 $12.00 ➢ Market Leadership in Core Legacy $0.87 $10.00 Markets Provides Valuable Core Deposits $8.00 $0.85 $0.82 $6.00 ➢ $0.81 Addition of Talent is Fueling Activity and $4.00 $0.80 $0.77 Driving Growth $2.00 $0.77 $- $0.72 2014 2015 2016 2017 2018 ➢ Securities Rotation into Higher-Yielding (1) Tangible Common Book Value (per share) Cash Dividends Declared (per share) Loans is Enhancing Margin

Relative Valuation ➢ Reducing Consumer Indirect Production as Price/Tangible Common Price/NTM Consensus Book Value(2) EPS(2) Focus on Profitability of New Loan Originations Intensifies FISI 145% 10.6x AROW 194% 13.2x ➢ Superior Credit Quality and Solid Capital CCNE 182% 11.5x Position FCF 189% 11.8x NBTB 225% 14.7x ➢ Experienced Leadership STBA 210% 13.2x ➢ Compelling Valuation TMP 222% 14.8x

(1) Refer to “Non-GAAP Reconciliation” in Appendix 24 (2) As of May 9, 2019; per S&P Global Market Intelligence; NTM = next twelve months Appendix

25 Non-GAAP Reconciliation

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company believes that providing certain non-GAAP financial measures provides with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

GAAP to Non-GAAP Reconciliation Year Ended Qtr Ended TTM Ended ($ in thousands, except per share data) 2014 2015 2016 2017 2018 3/31/2019 3/31/2019

Computation of ending tangible common equity: Common shareholders' equity $ 262,192 $ 276,504 $ 302,714 $ 363,848 $ 378,965 $390,925 $ 390,925 Less: Goodwill and other intangible assets, net 68,639 66,946 75,640 74,703 76,173 75,850 75,850 Tangible common equity 193,553 209,558 227,074 289,145 302,792 315,075 315,075 Computation of ending tangible assets: Total assets $ 3,089,521 $ 3,381,024 $ 3,710,340 $ 4,105,210 $ 4,311,698 $ 4,302,541 $ 4,302,541 Less: Goodwill and other intangible assets, net 68,639 66,946 75,640 74,703 76,173 75,850 75,850 Tangible assets 3,020,882 3,314,078 3,634,700 4,030,507 4,235,525 4,226,691 4,226,691 Tangible common equity to tangible assets(1) 6.41% 6.32% 6.25% 7.17% 7.15% 7.45% 7.45% Common 14,118 14,191 14,538 15,925 15,929 15,941 15,941 Tangible common book value per share(2) $ 13.71 $ 14.77 $ 15.62 $ 18.16 $ 19.01 $ 19.77 $ 19.77 Computation of average tangible common equity: Average common equity $ 254,533 $ 272,367 $ 301,666 $ 331,184 $ 371,023 $ 383,630 $ 375,980 Less: Average goodwill and other intangible assets, net 57,039 68,138 76,170 74,818 76,990 76,033 77,349 Average tangible common equity 197,494 204,229 225,496 256,366 294,033 307,597 298,631 Computation of average tangible assets: Average assets $ 2,994,604 $ 3,269,890 $ 3,547,105 $ 3,896,071 $ 4,171,972 $ 4,282,991 $ 4,220,389 Less: Average goodwill and other intangible assets, net 57,039 68,138 76,170 74,818 76,990 76,033 77,349 Average tangible assets 2,937,565 3,201,752 3,470,935 3,821,253 4,094,982 4,206,958 4,143,040 Net income available to common shareholders 27,893 26,875 30,469 32,064 38,065 11,156 40,298 Return on average tangible common equity(3) 14.12% 13.16% 13.51% 12.51% 12.95% 14.51% 13.49% Pre-tax pre-provision income: Net income $ 29,355 $ 28,337 $ 31,931 $ 33,526 $ 39,526 $ 11,521 Add: Income tax expense 9,625 10,539 12,210 9,945 10,006 3,027 Add: Provision for loan losses 7,789 7,381 9,638 13,361 8,934 1,193 Pre-tax pre-provision income 46,769 46,257 53,779 56,832 58,466 15,741

Source: Company filings. (1) Tangible common equity divided by tangible assets. 26 (2) Tangible common equity divided by common shares outstanding. (3) Net income available to common shareholders (annualized) divided by average tangible common equity. Our Rochester regional administrative center ‒ comprised of administrative, finance, lending, management and marketing associates ‒ was moved to two-plus floors at Five Star Bank Plaza, an existing 20-story building in downtown Rochester, in 2017. This downtown office increases Five Star Bank’s presence and visibility in Rochester. Financial Institutions, Inc. and Five Star Bank headquarters remain in Warsaw, where significant administrative, board and management functions continue. Approximately 140 employees are based in Warsaw.