Financial Institutions, Inc. Settles Auto Lending Litigation
Financial Institutions Inc (NASDAQ: FISI) has reached a settlement in a civil litigation case regarding its auto loan notification process. The lawsuit, pending since 2017 in Pennsylvania state court, concerned repossession notice language issued to defaulting borrowers between 2011 and 2021.
The settlement agreement was executed on March 7, 2025, pending Court approval. As a result, the company will record a $23.0 million litigation accrual ($17.1 million after tax) in Q4 2024 financial statements. The company maintains its 2025 guidance unchanged and does not expect additional accruals for this matter in future periods.
Financial Institutions Inc (NASDAQ: FISI) ha raggiunto un accordo in una causa civile riguardante il processo di notifica dei prestiti auto. La causa, pendente dal 2017 presso il tribunale statale della Pennsylvania, riguardava il linguaggio delle notifiche di pignoramento emesse ai mutuatari inadempienti tra il 2011 e il 2021.
L'accordo di transazione è stato firmato il 7 marzo 2025, in attesa dell'approvazione del tribunale. Di conseguenza, l'azienda registrerà un accantonamento per contenzioso di 23,0 milioni di dollari (17,1 milioni di dollari dopo le tasse) nei bilanci finanziari del quarto trimestre 2024. L'azienda mantiene le previsioni per il 2025 invariate e non prevede ulteriori accantonamenti per questa questione in periodi futuri.
Financial Institutions Inc (NASDAQ: FISI) ha llegado a un acuerdo en un caso de litigio civil relacionado con su proceso de notificación de préstamos para automóviles. La demanda, pendiente desde 2017 en el tribunal estatal de Pennsylvania, concernía el lenguaje de las notificaciones de recuperación emitidas a los prestatarios morosos entre 2011 y 2021.
El acuerdo de conciliación fue firmado el 7 de marzo de 2025, a la espera de la aprobación del tribunal. Como resultado, la empresa registrará un acumulado por litigios de 23,0 millones de dólares (17,1 millones de dólares después de impuestos) en los estados financieros del cuarto trimestre de 2024. La empresa mantiene su guía para 2025 sin cambios y no espera acumulaciones adicionales para este asunto en futuros períodos.
Financial Institutions Inc (NASDAQ: FISI)는 자동차 대출 통지 프로세스와 관련된 민사 소송에서 합의에 도달했습니다. 이 소송은 2017년부터 펜실베니아 주 법원에서 진행 중이며, 2011년에서 2021년 사이에 채무 불이행 대출자에게 발송된 압류 통지의 언어에 관한 것이었습니다.
합의 계약은 2025년 3월 7일에 체결되었으며, 법원의 승인을 기다리고 있습니다. 그 결과, 회사는 2024년 4분기 재무제표에 2300만 달러의 소송 적립금 (세후 1710만 달러)을 기록할 예정입니다. 회사는 2025년 가이드를 변경하지 않으며, 향후 기간에 이 문제에 대한 추가 적립금을 예상하지 않습니다.
Financial Institutions Inc (NASDAQ: FISI) a conclu un accord dans une affaire de litige civil concernant son processus de notification de prêts automobiles. Le procès, en cours depuis 2017 devant le tribunal de l'État de Pennsylvanie, concernait le langage des avis de saisie émis aux emprunteurs défaillants entre 2011 et 2021.
L'accord de règlement a été signé le 7 mars 2025, en attente de l'approbation du tribunal. En conséquence, la société enregistrera un provision pour litige de 23,0 millions de dollars (17,1 millions de dollars après impôts) dans les états financiers du quatrième trimestre 2024. La société maintient ses prévisions pour 2025 inchangées et ne s'attend pas à d'autres provisions pour cette affaire dans les périodes futures.
Financial Institutions Inc (NASDAQ: FISI) hat eine Einigung in einem zivilrechtlichen Verfahren bezüglich seines Benachrichtigungsprozesses für Autokredite erzielt. Die Klage, die seit 2017 vor dem Staatsgerichtshof von Pennsylvania anhängig ist, betraf die Sprache der Pfändungsbenachrichtigungen, die zwischen 2011 und 2021 an säumige Kreditnehmer gesendet wurden.
Die Einigungsvereinbarung wurde am 7. März 2025 unterzeichnet, vorbehaltlich der Genehmigung durch das Gericht. Infolgedessen wird das Unternehmen einen Rückstellung für Rechtsstreitigkeiten in Höhe von 23,0 Millionen Dollar (17,1 Millionen Dollar nach Steuern) in den Finanzberichten für das 4. Quartal 2024 verbuchen. Das Unternehmen hält an seiner Prognose für 2025 fest und erwartet in Zukunft keine weiteren Rückstellungen zu diesem Thema.
- Resolution of long-standing litigation uncertainty dating back to 2017
- No additional settlement accruals expected in 2025 or future periods
- 2025 guidance remains unchanged despite settlement impact
- One-time litigation charge of $23.0 million ($17.1 million after tax) impacting Q4 2024 results
- Settlement of class action lawsuit related to deficient auto loan repossession notices spanning 2011-2021
WARSAW, N.Y., March 10, 2025 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the “Company”), parent company of Five Star Bank (the “Bank”), announced that it has settled civil litigation in connection with the Bank’s auto loan notification process.
The legal action, which had been pending in Pennsylvania state court since 2017, related to language in repossession notices issued between 2011 and 2021 to defaulting borrowers. The Company executed a settlement agreement in connection with the class action lawsuit on March 7, 2025, subject to Court approval. Accordingly, the Company is recording a litigation accrual in the Company’s fourth quarter 2024 consolidated financial statements of
Management will host an investor conference call on March 10, 2025, at 4:45 p.m. Eastern Time. Participants may access the call toll-free by dialing 1-833-470-1428 and providing the access code 310636. A replay of the call will be available for at least seven days and may be accessed toll-free by dialing 1-866-813-9403 and providing the access code 538758.
About Financial Institutions, Inc.
Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately
Safe Harbor Statement
This press release contains 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 "believe," "continue," "estimate," "expect," "forecast," "intend," "plan," "preliminary," "should," or "will." 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 Court’s approval of the settlement referenced herein; changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; 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; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; 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; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to the impact of public health emergencies or global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included 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:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com
FAQ
What is the financial impact of FISI's auto lending litigation settlement?
When was the auto lending lawsuit against FISI filed and what was it about?
Will the FISI settlement affect the company's 2025 guidance?
When did Financial Institutions Inc settle the auto lending litigation?
