Financial Institutions, Inc. Announces Stock Repurchase Program

Rhea-AI Summary

Financial Institutions, Inc. (NASDAQ:FISI) has announced a stock repurchase program allowing for the buyback of up to 801,879 shares, which represents about 5% of its outstanding common stock. The repurchase will be executed in open market transactions according to the rules of the Securities Exchange Act. The timing and volume of shares repurchased will depend on various factors, including market conditions and liquidity requirements. This program demonstrates the company's commitment to enhancing shareholder value while retaining flexibility in capital management.

Positive

• Approval of a repurchase program for 801,879 shares, enhancing shareholder value.
• Repurchase represents approximately 5% of outstanding common stock, signaling company confidence.

Negative

• None.

WARSAW, N.Y., Nov. 04, 2020 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ:FISI) (the “Company”), parent company of Five Star Bank (the “Bank”), SDN Insurance Agency, LLC (“SDN”), Courier Capital, LLC (“Courier Capital”) and HNP Capital, LLC (“HNP Capital”), today announced that its Board of Directors has approved a stock repurchase program for up to 801,879 shares of its common stock, or approximately 5% of the Company’s outstanding common shares.

The repurchase program permits shares to be repurchased in open market transactions and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.  

The timing and number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Company to purchase any shares and it may be extended, modified or discontinued at any time.

About Financial Institutions, Inc.

Financial Institutions, Inc. provides diversified financial services through its subsidiaries Five Star Bank, SDN, Courier Capital and HNP Capital. Five Star Bank provides a wide range of consumer and commercial banking and lending services to individuals, municipalities and businesses through a network of approximately 50 offices throughout Western and Central New York State. SDN provides a broad range of insurance services to personal and business clients. Courier Capital and HNP Capital provide 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 630 individuals. The Company’s stock is listed on the Nasdaq Global Select Market under the symbol FISI. Additional information is available at www.fiiwarsaw.com.

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. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Statements herein are based on certain assumptions and analyses by the Company and 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 complete the exchange of subordinated notes recently sold in a private placement for registered notes, the impact of the COVID-19 pandemic on the Company’s customers, business, and results of operations as well as the economy in Western New York and the United States, the Company’s ability to implement its strategic plan, 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 SDN, Courier Capital, HNP Capital and other acquisitions, 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, and 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.

For additional information contact:

Shelly J. Doran
(585) 627-1362
sjdoran@five-starbank.com

FAQ

What is the purpose of the stock repurchase program for FISI?

The stock repurchase program aims to enhance shareholder value by buying back up to 801,879 shares, about 5% of the outstanding common stock.

When will Financial Institutions, Inc. start buying back shares?

The timing of the share repurchases under the program will depend on market conditions and other corporate priorities.

How much of its stock is Financial Institutions, Inc. planning to repurchase?

Financial Institutions, Inc. plans to repurchase up to 801,879 shares of its common stock.

What factors will influence the share repurchase program for FISI?

Factors include price, corporate and regulatory requirements, market conditions, and corporate liquidity needs.