Financial Institutions, Inc. Announces Closing of $40 Million Subordinated Notes Offering
April 15 2015 - 10:08AM
Financial Institutions, Inc. (the "Company") (Nasdaq:FISI)
announced today that it has successfully completed the sale of $40
million in aggregate principal amount of its 6.00% fixed to
floating rate subordinated notes due 2030 (the "Notes").
Financial Institutions, Inc.'s President and Chief Executive
Officer Martin K. Birmingham stated, "The successful completion of
this financing transaction provides a measure of financial
flexibility to capitalize on potential opportunities. These may
include organic growth initiatives and potential acquisitions to
expand our banking and complementary non-banking businesses, as
well as to strengthen our financial position."
The Company intends to treat the Notes as Tier 2 regulatory
capital. The Company plans to use the net proceeds of the offering
for general corporate purposes, including but not limited to,
contributing capital to Five Star Bank, its wholly-owned
subsidiary, organic growth initiatives, potential acquisitions to
expand its banking and other complementary non-banking businesses
should accretive opportunities arise and the payment of
dividends.
Sterne, Agee & Leach, Inc. is acting as sole book-running
manager for the offering and Sandler O'Neill + Partners, L.P. is
acting as co-manager for the offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
Notes in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful.
The Notes were offered and sold pursuant to an effective shelf
registration statement (File No. 333-202791), the prospectus
included in the registration statement, and a final prospectus
supplement relating to the offering of the Notes filed with the
Securities and Exchange Commission (the "SEC"). Copies of the final
prospectus supplement and accompanying base prospectus relating to
the offering can be obtained without charge by visiting the SEC's
website at www.sec.gov, or may be obtained from Sterne, Agee &
Leach, Inc. by calling 212.338.4708 or by emailing
prospectusrequest@sterneagee.com.
About Financial Institutions, Inc.
Financial Institutions, Inc. provides diversified financial
services through its subsidiaries, Five Star Bank and Scott Danahy
Naylon. 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 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. Financial Institutions, Inc. and its
subsidiaries employ over 625 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.
Safe Harbor Statement
This news release may contain "forward-looking statements,"
within the meaning of federal securities laws 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:
changes in interest rates; changes in accounting principles,
policies, or guidelines; changes in the Company's dividend policy;
significant changes in the economic scenario: significant changes
in regulatory requirements; and significant changes in securities
markets. 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
news release.
CONTACT: Kevin B. Klotzbach
Executive VP, Chief Financial Officer & Treasurer
585.786.1130
KBKlotzbach@five-starbank.com
Jordan Darrow
Darrow Associates
631.367.1866
jdarrow@darrowir.com
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