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Five Star Bank's parent surpasses $4 billion in assets

Five Star Bank's parent company has reached a milestone: surpassing $4 billion in assets.

Financial Institutions reported total assets of $4.02 billion in the third quarter. As of June 30, only 197 U.S.-chartered banks had at least $4 billion in assets, according to the Federal Deposit Insurance Corp.

Banks of larger size are better equipped to handle the cost of compliance requirements, said Kevin B. Klotzbach, the Warsaw-based bank's chief financial officer. Klotzbach recalled when he started at Financial Institutions in 2001, the bank had just two compliance employees; it now has a team of 13. "Scale allows you to afford those people and adequately protect your shareholders and your customers," he said.

The larger size also gives a bank the resources to compete in the market and offer products customers want, he said.

Financial Institutions reported third quarter net income of $8.3 million, down from $8.5 million a year ago.



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