Exhibit 99.1

Financial Institutions, Inc.

FINANCIAL INSTITUTIONS, INC. ANNOUNCES SECOND QUARTER 2016 RESULTS

WARSAW, N.Y., July 26, 2016 – Financial Institutions, Inc. (Nasdaq: FISI), today reported financial results for the second quarter ended June 30, 2016. Financial Institutions, Inc. (the “Company”) is the parent company of Five Star Bank, Scott Danahy Naylon Insurance, LLC (“Scott Danahy Naylon”) and Courier Capital, LLC (“Courier Capital”). The Company’s financial results since January 5, 2016 include the results of operations of Courier Capital, our wealth management subsidiary whose business we acquired from Courier Capital Corporation on that date.

Second Quarter 2016 Highlights:

Successful proxy contest defense against Clover Partners, L.P.; Financial Institutions’ director nominees elected with overwhelming shareholder support

Strong contributions from all three business platforms resulted in return on average tangible common equity of 12.22% ⁽¹⁾ for the quarter

Total earning assets reach new record of $3.3 billion, up 6% from a year ago

Total assets increased to $3.6 billion, up $226.1 million or 7% from a year ago

Grew total loans $202.6 million or 10% from a year ago to a record of $2.2 billion

Increased total deposits by $202 million or nearly 8% from a year ago

Quarterly cash dividend of $0.20 per common share represented a 3.09% dividend yield as of June 30, 2016 and a return of 43% of second quarter net income to common shareholders

Shareholders’ equity reached a new record of $322.2 million at June 30, 2016

Common book value per share increased to $20.98 at June 30, 2016

Total risk-based capital remained above 13%, enabling a strong capital position to support future growth

Credit quality remains solid with total non-performing loans to total loans reducing to .30% in the second quarter from .53% last year

Net income for the second quarter 2016 was $7.2 million, compared to $7.6 million for the first quarter 2016, and $6.6 million for the second quarter 2015. After preferred dividends, second quarter 2016 net income available to common shareholders was $6.8 million or $0.47 per diluted share, compared with $7.3 million or $0.50 per diluted share for the first quarter 2016, and $6.2 million or $0.44 per diluted share for the second quarter 2015.

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The Company’s President and Chief Executive Officer Martin K. Birmingham stated, “We are committed to continuing to deliver results for our customers and shareholders, and in the second quarter of 2016, we did just that. Financial Institutions delivered very solid results in the quarter, with all of our major businesses performing well, despite the distraction and expense of the successfully concluded proxy contest defense. Organic loan production initiatives resulted in strong commercial and residential real estate portfolio growth in the second quarter, with commercial loans and residential real estate loans increasing by 16% and 12% from the second quarter last year, respectively. New records were set for total assets, total earning assets and total loans.

“We feel strongly that our strategic plan is delivering its intended results. Beyond the progress and improvements achieved to date, we continue to have robust opportunities in our markets to further expand as a diversified financial services provider. Our branch expansion initiatives are moving forward with the opening of another Rochester branch later in the year and we continue to assess opportunities in Rochester and Buffalo, resulting from local market disruption. We believe Financial Institutions is primed for continued growth with the right plan, marketplace, people, service and products.”

Kevin B. Klotzbach, the Company’s Chief Financial Officer noted that, “We implemented several initiatives designed to reduce operating expenses late in the first quarter of 2016 and the savings were reflected in the second quarter, although those savings were more than offset by the proxy contest expenses.

“We have adeptly been managing our results despite the current interest rate environment. Our strong loan growth has had an offsetting effect on margin compression. Along with our growing loan portfolio, it is important to observe the Company’s strategic imperative to maintain strong credit quality. In the second quarter we continued to hold up to this high standard. Total loans grew to a record $2.2 billion as we reported a 6% increase from year-end. Since year-end, total non-performing assets have declined to $6.8 million, the allowance for loan losses to non-performing loans has increased to 435% and year-to-date net charge-offs are down from prior year at 0.27%.”

Net Interest Income and Net Interest Margin

Net interest income was $25.2 million in the second quarter 2016 compared to $24.7 million in the first quarter 2016 and $23.4 million in the second quarter 2015. Average earning assets were up $98.7 million, led by a $50.8 million increase in loans in the second quarter of 2016 compared to the first quarter of 2016. When comparing the second quarter 2016 to the same quarter in 2015, average earning assets increased $236.9 million, including increases of $191.1 million and $45.6 million in loans and investment securities, respectively. Second quarter 2016 net interest margin was 3.23%, down 4 basis points from 3.27% for the first quarter of 2016 and down slightly from 3.24% for the second quarter of 2015.

Noninterest Income

Noninterest income was $8.9 million for the second quarter 2016 compared to $9.2 million for the first quarter 2016 and $6.5 million in the second quarter 2015. Included in noninterest income for the first quarter 2016 is $911 thousand of death benefit proceeds from company owned life insurance. Net gain on sale of investment securities totaled $613 thousand and $1.4 million in the first and second quarters of 2016, respectively. Exclusive of these items, noninterest income was $7.5 million in the second quarter 2016 compared to $7.7 million in the first quarter 2016 and $6.5 million in the second quarter 2015. The main factor contributing to the lower noninterest income in the second quarter 2016 compared to the first quarter 2016, other than the decrease in death benefit proceeds from corporate owned life insurance, was a decrease in insurance income. Compared to first quarter 2016, the lower second quarter 2016 insurance income was due in part to contingent commission revenue that is generally received during the first quarter of each year, coupled with the variable nature of the annual renewals of our customers’ insurance policies which causes our quarterly revenue to fluctuate. The higher noninterest income in the second quarter 2016 compared to the second quarter 2015 was primarily the result of an $824 thousand increase in investment advisory income, reflecting the contribution from Courier Capital as part of our strategy to diversify our business lines and increase noninterest income through additional fee-based services.

Noninterest Expense

Noninterest expense was $22.1 million for the second quarter 2016 compared to $21.2 million for the first quarter 2016 and $19.2 million for the second quarter 2015. The increase in noninterest expense in second quarter 2016 compared to first quarter 2016 was primarily a result of professional services associated with responding to the proxy contest with Clover Partners, L.P. The professional services incurred in connection with the proxy contest totaled $360 thousand and $1.7 million in the first and second quarters of 2016, respectively. The higher professional fees in the second quarter 2016 were partly offset by lower salaries and employee benefits as a result of cost reduction initiatives implemented late in the first quarter of 2016. The increase in noninterest expense during the second quarter 2016 compared to the second quarter 2015 was largely due to the higher professional services expense incurred in connection with the proxy contest coupled with higher salaries and employee benefits and occupancy and equipment expenses. The higher year-over-year operating expenses are primarily a result of the Courier Capital acquisition and organic growth initiatives, partly offset by the cost reduction strategies implemented late in the first quarter of 2016.

Income Taxes

Income tax expense was $2.9 million in the second quarter 2016, compared to $2.7 million in the first quarter 2016 and $2.8 million in the second quarter 2015. The effective tax rate was 28.8% for the second quarter 2016, compared with 26.4% for the first quarter of 2016 and 29.5% in the second quarter 2015. The lower effective tax rate in the first quarter of 2016 is a result of the non-taxable death benefit proceeds on corporate owned life insurance received in that quarter.

Balance Sheet and Capital Management

Total assets were $3.59 billion at June 30, 2016, up $69.0 million from $3.52 billion at March 31, 2016 and up $226.1 million from $3.36 billion at June 30, 2015. The increases were attributable to loan growth and higher investment security balances that were funded by deposit growth.

Total loans were $2.21 billion at June 30, 2016, up $96.8 million or 5% from March 31, 2016 and up $202.6 million or 10% from June 30, 2015. The increase in loans is primarily attributable to organic commercial and residential real estate loan growth. Commercial loans totaled $963.6 million as of June 30, 2016, an increase of $55.5 million or 6% from March 31, 2016 and an increase of $134.2 million or 16% from June 30, 2015. Residential real estate loans increased $25.9 million or 7% from March 31, 2016 and $43.2 million or 12% from June 30, 2015.

Total deposits were $2.86 billion at June 30, 2016, a decrease of $102.2 million from March 31, 2016 and an increase of $201.8 million from June 30, 2015. The decrease during the second quarter of 2016 was mainly due to seasonal outflows of municipal deposits, while the year-over-year increase was due to higher municipal deposits and successful business development efforts in both municipal and retail banking. Public deposit balances represented 27% of total deposits at June 30, 2016, compared to 30% at March 31, 2016 and 26% at June 30, 2015.

Short-term borrowings were $338.3 million at June 30, 2016, up $159.1 million from March 31, 2016 and down $12.3 million from June 30, 2015. Short-term borrowings are typically utilized to manage the seasonality of municipal deposits.

Shareholders’ equity was $322.2 million at June 30, 2016, compared with $314.0 million at March 31, 2016 and $284.4 million at June 30, 2015. Common book value per share was $20.98 at June 30, 2016, an increase of $0.52 or 3% from $20.46 at March 31, 2016 and $2.15 or 11% from $18.83 at June 30, 2015. The increases in shareholders’ equity and the common book value per share are attributable to net income, stock issued for the acquisition of Courier Capital and higher net unrealized gains on securities available for sale, a component of accumulated other comprehensive income.

During the second quarter 2016, the Company declared a common stock dividend of $0.20 per common share. The second quarter 2016 dividend returned 43% of second quarter net income to common shareholders.

The Company’s leverage ratio was 7.39% at June 30, 2016, compared to 7.46% at March 31, 2016 and 7.31% at June 30, 2015. The decrease in the leverage ratio from March 31, 2016 was primarily due to an increase in average quarterly assets. The increase in the leverage ratio from June 30, 2015 was due to higher regulatory capital, which excludes changes in accumulated other comprehensive income.

Credit Quality

Non-performing loans were $6.6 million at June 30, 2016, compared to $8.6 million at March 31, 2016 and $10.7 million at June 30, 2015. The $4.1 million decrease from the second quarter 2015 was due to lower commercial non-performing loans resulting from the payoff of one $2.5 million relationship during the third quarter of 2015 and pay-downs on two relationships totaling $1.8 million during the second quarter of 2016. The ratio of non-performing loans to total loans was 0.30% at June 30, 2016 compared with 0.41% at March 31, 2016, and 0.53% at June 30, 2015.

The provision for loans losses for the second quarter 2016 was $2.0 million, a decrease of $416 thousand from the prior quarter and an increase of $664 thousand from the second quarter 2015. Net charge-offs were $1.0 million during the second quarter 2016, an $890 thousand decrease compared to the prior quarter and a $16 thousand increase from the second quarter 2015. The ratio of annualized net charge-offs to total average loans was 0.19% in the current quarter, compared to 0.36% in the prior quarter and 0.20% in the second quarter 2015.

The ratio of allowance for loans losses to total loans was 1.29% at June 30, 2016, compared with 1.30% at March 31, 2016, and 1.37% at June 30, 2015. The ratio of allowance for loans losses to non-performing loans was 435% at June 30, 2016, compared with 322% in the prior quarter and 257% at June 30, 2015.

About Financial Institutions, Inc.

Financial Institutions, Inc. provides diversified financial services through its subsidiaries, Five Star Bank, Scott Danahy Naylon and Courier Capital. Five Star Bank provides a wide range of consumer and commercial banking services to individuals, municipalities and businesses through a network of over 50 offices and more than 60 ATMs throughout Western and Central New York State. Scott Danahy Naylon provides a broad range of insurance services to personal and business clients across 44 states. Courier Capital provides customized investment management, investment consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans.  Financial Institutions, Inc. and its subsidiaries employ approximately 700 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI and is a member of the NASDAQ OMX ABA Community Bank Index. Additional information is available at the Company’s website: www.fiiwarsaw.com.

Non-GAAP Financial Information

This news release contains financial information, such as tangible common equity, determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that non-GAAP financial measures provide a meaningful comparison of the underlying operational performance of the Company, and facilitate investors’ assessments of its business and performance trends. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. Where non-GAAP disclosures are used in this news release, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in Appendix A to this document.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: the Company’s ability to implement its strategic plan, the Company’s ability to redeploy investment assets into loan assets, whether the Company experiences greater credit losses than expected, whether the Company experiences breaches of its, or third party, information systems, the attitudes and preferences of the Company’s customers, the Company’s ability to successfully integrate and profitably operate Scott Danahy Naylon and Courier Capital, the competitive environment, fluctuations in the fair value of securities in its investment portfolio, changes in the regulatory environment and the Company’s compliance with regulatory requirements, changes in interest rates, general economic and credit market conditions nationally and regionally. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and 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 SEC.  Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

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FINANCIAL INSTITUTIONS, INC.
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FINANCIAL INSTITUTIONS, INC.
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FINANCIAL INSTITUTIONS, INC.
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FINANCIAL INSTITUTIONS, INC.
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FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
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