Five Star Bank's parent company is taking another shot at selling up to $40 million in common stock to support its growth.
Warsaw-based Financial Institutions on Tuesday announced an "at-the-market" offering, meaning the shares will be offered at market price, rather than at a discount. The stock was trading at $30.80 per share on Tuesday morning on Nasdaq, after closing at $31.10 on Friday, the last day of trading before the holiday weekend.
Earlier this month, Financial Institutions announced a public offering of $40 million in common stock. But the bank withdrew that offer just three days later, citing "unstable conditions in U.S. capital markets."
Financial Institutions says it plans to use proceeds of the offering to support organic growth and other purposes, including contributing capital to its Five Star banking subsidiary. Five Star is targeting growth in the Buffalo and Rochester markets. In a supplement to its prospectus, the bank says it could use the proceeds to acquire branches or other banks, or to diversify into other banking-related subsidiaries, among other possibilities.
Financial Institutions will pay its sales agent, Sandler O'Neill and Partners, a commission of up to 3 percent of the gross sales price per share agreed upon at the time of the stock sale. The bank also estimates its total expenses related to the stock offering will be $430,000.