Exhibit 99.1

Financial Institutions, Inc.

FINANCIAL INSTITUTIONS, INC. ANNOUNCES THIRD QUARTER 2016 RESULTS

WARSAW, N.Y., October 25, 2016 – Financial Institutions, Inc. (NASDAQ: FISI), today reported financial results for the third quarter ended September 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 acquired on that date.

Net income for the quarter was $8.5 million compared to $7.2 million for the second quarter of 2016 and $8.3 million for the third quarter of 2015. After preferred dividends, net income available to common shareholders was $8.1 million, or $0.56 per diluted share, compared to $6.8 million, or $0.47 per diluted share, for the second quarter of 2016 and $8.0 million, or $0.56 per diluted share, for the third quarter of 2015.

The Company’s President and Chief Executive Officer Martin K. Birmingham stated, “Our core bank franchise is delivering strong results as demonstrated by continued growth in loans and deposits, resulting in higher revenue and net income. Our non-bank subsidiaries are also performing well and we are experiencing synergies between our banking, insurance and wealth management platforms. I am very proud of our team and their commitment to our strategy.

“We are actively investing in our footprint and are committed to continuing to grow our market share. Our third financial solution center is expected to open mid-December in the newly renamed Five Star Bank Plaza located in downtown Rochester. In addition, we recently received regulatory approval for our fourth financial solution center. This branch will be located in the City of Buffalo at 40-50 Fountain Plaza and is expected to open in the first quarter of 2017.

“Our investment in the region has also resulted in strengthened leadership. We recently hired Ted Oexle as Buffalo Regional President of Five Star Bank. Ted is a highly-respected banker with more than 25 years of commercial banking experience in Buffalo. He will lead our effort to grow Five Star’s commercial banking business by delivering comprehensive financial solutions to borrowers of all sizes.”

Third Quarter 2016 Highlights:

Diluted earnings per share (“EPS”) of $0.56 was $0.09 higher than the second quarter of 2016

Net interest income of $26.1 million increased $851 thousand, or 3.4%, as compared to the second quarter of 2016

Noninterest income of $8.5 million was $377 thousand, or 4.2%, lower than the second quarter of 2016

Excluding the net gain on investment securities, noninterest income was $8.1 million, 7.8% higher than the second quarter of 2016, primarily as a result of higher deposit service charges and insurance income

Return on average common equity was 10.45%

Return on average tangible common equity was 13.87% (computation of this non-GAAP measure provided in Appendix A)

Net interest margin was 3.23%, unchanged from the previous quarter

Total interest-earning assets, assets, loans and deposits all increased to record-high levels in the third quarter:

Total interest-earning assets increased $65 million to $3.4 billion

Total assets increased $102 million to $3.7 billion

Total loans increased $72 million to $2.3 billion

Total deposits increased $205 million to $3.1 billion

Quarterly cash dividend of $0.20 per common share represented a 2.93% dividend yield as of September 30, 2016, and a return of 36% of third quarter net income to common shareholders

Total risk-based capital was 12.98% at quarter-end, representing a strong capital position to support future growth

Credit quality remains strong with total non-performing loans to total loans of 0.27% at quarter-end

Kevin B. Klotzbach, the Company’s Chief Financial Officer noted that, “We delivered strong earnings through base revenue growth and ongoing, disciplined expense management. There were no significant non-recurring items in the third quarter to detract from our results.

“A strong credit culture is a key component of our long-term strategy as we balance volume and risk. Our asset quality exceeds that of many of our peers as illustrated by our ratio of non-performing assets to total assets of 0.17% at quarter-end.”

Net Interest Income and Net Interest Margin

Net interest income was $26.1 million for the third quarter of 2016, $851 thousand higher than the second quarter of 2016 and $1.9 million higher than the third quarter of 2015.

Average interest-earning assets for the quarter were $3.3 billion, $87.1 million higher than the second quarter of 2016 and $224.6 million higher than the third quarter of 2015.

The primary driver of the increase was loans, which were $93.8 million higher in the third quarter of 2016 than the second quarter of 2016 and $223.6 million higher than the third quarter of 2015.

Third quarter 2016 net interest margin was 3.23%, unchanged from the second quarter of 2016 and three basis points higher than the third quarter of 2015.

Noninterest Income

Noninterest income was $8.5 million for the third quarter of 2016 as compared to $8.9 million in the second quarter of 2016 and $7.0 million in the third quarter of 2015.

Excluding the net gain on investment securities from all periods, noninterest income was $8.1 million in the third quarter of 2016, $584 thousand higher than $7.5 million in the second quarter of 2016, and $1.4 million higher than $6.7 million in the third quarter of 2015.

For the third quarter of 2016 as compared to the second quarter of 2016, insurance income increased by $224 thousand due to the timing of customer renewals; service charges on deposits, which historically are higher in the third quarter, increased by $158 thousand; and income from the Company’s investments in limited partnerships, which fluctuates based on the performance of the underlying investments, increased by $125 thousand.

Higher noninterest income in the third quarter of 2016 as compared to the third quarter of 2015 was primarily the result of an $803 thousand increase in investment advisory income, reflecting the contribution from Courier Capital, and amortization of a historic tax investment in a community-based project that reduced noninterest income by $390 thousand in the third quarter of 2015.

Noninterest Expense

Noninterest expense was $20.6 million for the third quarter of 2016 as compared to $22.1 million in the second quarter of 2016 and $19.3 million in the third quarter of 2015.

Salaries and employee benefits for the third quarter of 2016 includes a one-time cash bonus of $323 thousand. The bonus is payable to all employees during the fourth quarter in recognition of their contributions to the Company’s revenue growth and expense control in 2016.

The decrease in noninterest expense as compared to the second quarter of 2016 was primarily the result of $1.7 million of professional services in the second quarter associated with the Company’s successful proxy contest defense.

The increase in noninterest expense as compared to the third quarter of 2015 was primarily the result of higher salaries and employee benefits and occupancy and equipment expenses. The higher year-over-year operating expenses are largely the result of the Courier Capital acquisition and organic growth initiatives.

Income Taxes

Income tax expense was $3.5 million for the third quarter of 2016 as compared to $2.9 million in the second quarter of 2016 and $2.7 million in the third quarter of 2015. The effective tax rate was 29.5% for the third quarter of 2016, 28.8% in the second quarter of 2016, and 24.8% in the third quarter of 2015. The lower effective tax rate in the third quarter of 2015 was a result of historic tax credits, as discussed in the noninterest income section above.

Balance Sheet and Capital Management

Total assets were $3.7 billion at September 30, 2016, up $101.8 million from $3.6 billion at June 30, 2016, and up $329.8 million from $3.4 billion at September 30, 2015. The increases were largely the result of loan growth.

Total loans were $2.3 billion at September 30, 2016, up $72.2 million, or 3.3%, from June 30, 2016, and up $247.8 million, or 12.2%, from September 30, 2015.

Commercial business loans totaled $350.6 million, up $1.2 million, or 0.3%, from June 30, 2016, and up $52.7 million, or 17.7%, from September 30, 2015.

Commercial mortgage loans totaled $636.3 million, up $22.2 million, or 3.6%, from June 30, 2016, and up $87.8 million, or 16.0%, from September 30, 2015.

Residential real estate loans totaled $425.9 million, up $17.5 million, or 4.3%, from June 30, 2016, and up $49.3 million, or 13.1%, from September 30, 2015.

Consumer indirect loans totaled $729.6 million, up $32.7 million, or 4.7%, from June 30, 2016, and up $63.9 million, or 9.6%, from September 30, 2015.

Total deposits were $3.1 billion at September 30, 2016, an increase of $205.4 million from June 30, 2016, and an increase of $309.9 million from September 30, 2015. The increase from June 30, 2016, was primarily due to public deposit seasonality. The increase from September 30, 2015, was primarily the result of successful business development efforts in both municipal and retail banking. Public deposit balances represented 29% of total deposits at September 30, 2016, compared to 27% at June 30, 2016 and 27% at September 30, 2015.

Short-term borrowings were $230.2 million at September 30, 2016, down $108.1 million from June 30, 2016, and down $11.2 million from September 30, 2015. Short-term borrowings are typically utilized to manage the seasonality of public deposits.

Shareholders’ equity was $326.3 million at September 30, 2016, compared to $322.2 million at June 30, 2016, and $295.4 million at September 30, 2015. Common book value per share was $21.26 at September 30, 2016, an increase of $0.28 or 1.3% from $20.98 at June 30, 2016, and an increase of $1.66 or 8.5% from $19.60 at September 30, 2015. The increases in shareholders’ equity and common book value per share as compared to September 30, 2015, 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 loss.

During the third quarter 2016, the Company declared a common stock dividend of $0.20 per common share. The third quarter 2016 dividend returned 36% of third quarter net income to common shareholders.

Regulatory capital ratios at September 30, 2016, remained steady with slight downward pressure a result of strong loan growth and higher asset levels associated with seasonal public deposits:

Leverage Ratio was 7.39%, unchanged from June 30, 2016, and up ten basis points from 7.29% at September 30, 2015.

Common Equity Tier 1 Ratio was 9.58%, compared to 9.63% and 9.74% at June 30, 2016, and September 30, 2015, respectively.

Tier 1 Risk-Based Capital was 10.27%, compared to 10.33% and 10.49% at June 30, 2016, and September 30, 2015, respectively.

Total Risk-Based Capital was 12.98%, compared to 13.08% and 13.37% at June 30, 2016, and September 30, 2015, respectively.

Credit Quality

Non-performing loans were $6.1 million at September 30, 2016, compared to $6.6 million at June 30, 2016, and $8.5 million at September 30, 2015. The $2.4 million decrease from September 30, 2015, was due to lower commercial non-performing loans resulting from pay-downs on two relationships totaling $1.8 million during the second quarter of 2016, as well as improvements in the residential real estate loan and consumer loan portfolios.

The ratio of non-performing loans to total loans was 0.27% at September 30, 2016, compared to 0.30% at June 30, 2016, and 0.42% at September 30, 2015.

The provision for loans losses for the third quarter of 2016 was $2.0 million, relatively unchanged from the prior quarter and an increase of $1.2 million from the third quarter 2015.

Net charge-offs were $1.1 million during the third quarter of 2016, a $141 thousand increase compared to the prior quarter and a $663 thousand decrease from the third quarter of 2015.

The ratio of annualized net charge-offs to total average loans was 0.20% in the current quarter, compared to 0.19% in the prior quarter and 0.35% in the third quarter of 2015.

The ratio of allowance for loans losses to total loans was 1.29% at both September 30, and June 30, 2016, and 1.30% at September 30, 2015.

The ratio of allowance for loan losses to non-performing loans was 481% at September 30, 2016, 435% at June 30, 2016, and 311% at September 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 disclosure regarding tangible common equity, tangible common equity to tangible assets, tangible common book value per share, average tangible common equity and return on average tangible common equity, which are determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP measures are useful to our investors as measures of the strength of the Company’s capital and ability to generate earnings on tangible common equity invested by our shareholders. These non-GAAP measures provide supplemental information that may help investors to analyze our capital position without regard to the effects of intangible assets. Non-GAAP financial measures have inherent limitations and are not uniformly applied by issuers. Therefore, these non-GAAP financial measures should not be considered in isolation, or as a substitute for comparable measures prepared in accordance with GAAP. The comparable GAAP financial measures and reconciliation to the comparable GAAP financial measures 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.

*****

1

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)

(Amounts in thousands)

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)

2

FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)

3