WARSAW, N.Y. - Financial Institutions, Inc. (NASDAQ:FISI), the parent company of Five Star Bank and Courier Capital, LLC, has commenced an underwritten public offering of its common stock shares. The company also plans to offer the underwriters a 30-day option to purchase additional shares. According to InvestingPro data, FISI has seen remarkable momentum with a nearly 60% price increase over the past six months, trading at a modest P/E ratio of 8.4x.
The net proceeds from the offering are intended for general corporate purposes. These may include restructuring the company's balance sheet by repositioning a significant part of its available-for-sale debt securities portfolio and repaying indebtedness. The restructuring is aimed at supporting continued growth.
Keefe, Bruyette & Woods, Inc., a Stifel Company, is the sole bookrunner of the offering, with Piper Sandler & Co. acting as the co-manager.
This offering is pursuant to a registration statement on Form S-3, which the Securities and Exchange Commission (SEC) declared effective on December 4, 2024. Interested investors are directed to read the preliminary prospectus supplement, the final prospectus supplement when available, and other documents filed with the SEC for more complete information about the company and the offering.
Financial Institutions, Inc., with approximately $6.2 billion in assets, is a financial holding company offering a range of banking and wealth management services. Its subsidiary, Five Star Bank, provides consumer and commercial banking services across Western and Central New York, while Courier Capital, LLC offers investment management and consulting services. The company, currently valued at $420.75 million in market capitalization, maintains a strong dividend tradition with a 4.49% yield and has increased its dividend for 13 consecutive years, as highlighted in InvestingPro's analysis.
The company has cautioned that this press release contains forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated. For detailed insights and additional ProTips about FISI's financial health and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro.
This news is based on a press release statement from Financial Institutions, Inc.
In other recent news, Financial Institutions, Inc. has announced a quarterly cash dividend of $0.30 per common share and declared dividends for preferred stockholders. This move underlines the company's commitment to providing value to its shareholders. The company also reported a decrease in net income for the third quarter of 2024, totaling $13.1 million, attributed to the absence of a one-time gain from the sale of its insurance business. Despite this, the company's net interest margin saw an increase, and optimism remains regarding its core financial performance.
In parallel, Financial Institutions, Inc. has seen an increase in total deposits, although total loans experienced a slight decrease. Analysts have adjusted the company's projected annual loan growth for 2024 to the lower end of the 1% to 3% range. Additionally, the company has announced the appointment of Christopher Campise as the new Senior Vice President and Chief Information Officer of Five Star Bank, highlighting his role in leading the bank's technological development and enhancing its IT infrastructure. These are recent developments that investors should take note of.
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