10-Q · May 4, 2026
Five Star (FISI) reported a robust Q1 2026 with net income rising to $21.0 million, significantly higher than $16.9 million in Q1 2025, driven by increased net interest income. Total revenue decreased slightly to $62.67…
Earnings analysis · 10-Q
FISI earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
FISI delivered stronger Q2 profitability, with diluted EPS up 22% year over year to $1.04, tax-equivalent net interest income up $4.2 million to $53.4 million, and NIM expanding 21 bp to 3.70%. Loan and deposit growth,…
Read full summary
FISI delivered stronger Q2 profitability, with diluted EPS up 22% year over year to $1.04, tax-equivalent net interest income up $4.2 million to $53.4 million, and NIM expanding 21 bp to 3.70%. Loan and deposit growth, advisory-fee gains, and flat quarterly operating expense supported the improved 55.33% efficiency ratio. The principal offsets are rising non-performing assets, substantial CRE exposure, a larger $49.2 million AFS unrealized loss, and higher uninsured-deposit exposure.
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Reported figures
- Earnings per share
- $1.04
What stood out
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EPS rose 22% year over year
Q2 diluted EPS was $1.04, up $0.19, or 22%, from $0.85 in Q2 2025; it was unchanged from $1.04 in Q1 2026. Net income rose $3.7 million to $21.2 million year over year.
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NII and margin expanded
Reported net interest income was $53.4 million on a tax-equivalent basis, up $4.2 million from $49.2 million in Q2 2025. Net interest margin expanded 21 bp to 3.70%, as the 39-bp decline in interest-bearing funding cost more than offset a 12-bp decline in earning-asset yield.
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Commercial lending and deposits grew
Loans increased $95.1 million to $4.75 billion from $4.66 billion at December 31, 2025, led by a $99.6 million increase in commercial mortgages to $2.44 billion. Deposits increased $93.1 million to $5.30 billion over the same period.
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Wealth-management fees supported income
Noninterest income increased $337 thousand, or 3.2%, to $11.0 million, with investment-advisory fees rising $402 thousand, or 14%, to $3.3 million. Courier Capital assets under management reached $4.02 billion at June 30, 2026.
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Expense discipline improved efficiency
Noninterest expense was essentially flat at $35.6 million versus $35.7 million a year earlier, improving the efficiency ratio to 55.33% from 59.68%. Operating cash flow was $46.3 million for the first six months of 2026; the filing does not disclose free cash flow.
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Liquidity and core capital remain solid
The company reported $1.24 billion of additional collateralized wholesale borrowing capacity, a $20.0 million unused parent credit line, and $643.4 million of shareholders' equity at June 30, 2026. CET1 improved to 11.44% from 11.11% at year-end.
What to watch
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Non-performing assets increased
Credit quality weakened sequentially: non-performing assets increased $3.7 million to $39.6 million, or 0.62% of total assets, from $35.8 million at December 31, 2025. Non-performing loans rose to $39.0 million, or 0.82% of loans, from $35.8 million, or 0.77%.
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CRE concentration and provision pressure
Commercial real estate remains a concentration risk: CRE loans were 45% of total loans, with approximately 22% of CRE committed exposure in office properties. The allowance for credit losses was 1.00% of total loans, versus 1.04% a year earlier, while the Q2 provision increased to $3.1 million from $2.6 million.
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Rate sensitivity and securities losses
Available-for-sale securities carried a $49.2 million net unrealized loss at June 30, 2026, up from $35.7 million at December 31, 2025. A 300-bp rate decline is modeled to reduce 12-month net interest income by $11.9 million, or 5.66%.
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Uninsured-deposit and funding risk
Funding sensitivity increased as estimated uninsured deposits rose to $2.46 billion, or 46% of deposits, from $2.26 billion, or 43%, at year-end. Brokered deposits also increased to $164.7 million from $125.2 million.
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No material risk-factor updates
The company reported 0 material changes to risk factors during the quarter ended June 30, 2026 versus its 2025 Form 10-K. Accordingly, there is no newly disclosed risk-factor change to flag in this filing.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS outlook; management instead discusses continued organic growth, selective acquisition evaluation, deposit-cost management and liquidity capacity.
Earlier filings 4
10-K · March 9, 2026
Five Star (FISI) presents a community-bank strategy focused on organic growth in Western and Central New York supported by a 48-branch network, expanding digital channels, and selective M&A. Balance-sheet scale is…
10-Q · August 4, 2025
Q2 2025 results show improved net interest performance but a sharp drop in noninterest income versus prior year, driving lower net income and EPS year-over-year. Net interest income was $49,122,000 and total noninterest…
10-K · March 12, 2025
Five Star (FISI) positions itself as a community bank focused on Western and Central New York with a full-service branch network, complementary digital capabilities, and an active M&A posture. The company reports…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.