Financial Institutions, Inc. Announces Completion of $80.0 Million Private Placement of Subordinated Notes

Core Viewpoint - Financial Institutions, Inc. successfully completed a private placement of $80.0 million in fixed-to-floating rate subordinated notes, which will be used to refinance existing higher-interest debt and support general corporate purposes [1][3][4]. Group 1: Notes Details - The subordinated notes have a maturity date of December 15, 2035, and bear an interest rate of 6.50% for the first five years, after which the rate will reset quarterly based on the three-month Secured Overnight Financing Rate (SOFR) plus 312 basis points [2]. - The notes received a BBB- rating from Kroll Bond Rating Agency, which has revised the company's long-term outlook to Stable due to improved profitability and capital position [2]. Group 2: Use of Proceeds - The net proceeds from the notes will be used to redeem $65.0 million of outstanding debt, which includes $35.0 million with an interest rate of approximately 8.17% and $30.0 million with an interest rate of approximately 8.11% [3]. - The company expects the Total Risk-Based Capital ratio to be temporarily elevated by approximately 150 basis points at year-end due to the additional capital from the notes [4]. Group 3: Company Overview - Financial Institutions, Inc. is a financial holding company with approximately $6.3 billion in assets as of September 30, 2025, offering banking and wealth management products and services [6]. - 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 financial planning services [6].