What Financial Institutions, Inc. told the SEC could break it.

Federal Reserve policies affecting loan/deposit availability and interest rates could have a material effect on the bank's earnings.

“These methods are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits. For that reason, the policies of the FRB could have a material effect on our earnings.”

Indirect automobile loans originated through franchised dealers totaled $807.3M (17% of the loan portfolio) at year-end 2025, concentrating exposure to auto-credit performance across a range of borrower creditworthiness.

“As of December 31, 2025, our consumer indirect portfolio totaled $807.3 million, or 17% of our total loan portfolio. Outstanding consumer loan balances were concentrated in indirect automobile loans.”

Five Star Bank's lending — including indirect auto from dealers across Western, Central and Capital District New York and Northern/Central Pennsylvania — concentrates exposure to those regional economies.

“A portion of our lending involves the purchase of consumer automobile installment sales contracts from automobile dealers located in Western, Central and the Capital District of New York, and Northern and Central Pennsylvania prior to our planned exit from the Pennsylvania automobile market in 2024.”

Financial Institutions relies on third parties for critical business services and data confidentiality/integrity; service disruptions or replacing providers could materially impact operations.

“We rely on third parties to provide critical business services and protect the confidentiality, integrity, and availability of confidential data; We, or our service providers, may experience a cyber-attack, system failure, natural disaster, or other uncontrollable event that may disrupt business operat”