Five Star Bank's parent company generated net proceeds of $38.3 million from a stock offering that is now complete.
Warsaw-based Financial Institutions said it sold about 1.4 million common shares at an average price of $29.33 per share, for gross proceeds of about $40 million. The shares were offered through Sandler O'Neill and Partners as the sales agent.
Financial Institutions in late May announced the "at-the-market" offering — meaning shares would be offered at market price instead of a discount — of up to $40 million of common stock in late May. Earlier that month, the bank pulled the plug on a public offering of $40 million in common stock, just three days after it was announced, citing "unstable conditions in U.S. capital markets."
The bank said it would use proceeds of the offering to support organic growth and other purposes, including contributing capital to its Five Star banking subsidiary.