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Five Star stock sale generates $16.7 million in net proceeds

Five Star Bank's parent company said it generated net proceeds of $16.7 million from a stock offering during the second quarter.

Warsaw-based Financial Institutions in late May announced an "at-the-market" program under which it could sell up to $40 million worth of stock, to support its growth and other corporate purposes. The bank sold about 572,000 shares during the quarter, with a weighted average price of $30.59.

Financial Institutions' second-quarter net income was $6.2 million, down from $7.2 million a year ago. The bank blamed the drop in part on a $925,000 provision for loan losses, connected to the downgrade of an unidentified commercial credit relationship.

Five Star's new branches in downtown Buffalo and Rochester "continue to gain traction" and are "prime locations," said Martin K. Birmingham, the bank's president and CEO.

 

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