WARSAW, N.Y. - Financial Institutions, Inc. (NASDAQ:FISI), the parent company of Five Star Bank and Courier Capital, LLC, has announced a quarterly cash dividend for its shareholders. The company's Board of Directors has approved a dividend of $0.30 per outstanding common share. Additionally, dividends for preferred stockholders have been declared, with Series A 3% preferred stock receiving $0.75 per share and Series B-1 8.48% preferred stock receiving $2.12 per share.
These dividends will be payable on January 2, 2025, to shareholders who are on record as of December 13, 2024. This move reflects the company's ongoing commitment to providing value to its shareholders.
Financial Institutions, Inc. is a financial holding company with assets totaling approximately $6.2 billion. It operates primarily through its subsidiary, Five Star Bank, which offers a range of consumer and commercial banking services, including lending to individuals, municipalities, and businesses. Its services span across Western and Central New York, with an additional commercial loan production office that serves the Mid-Atlantic region.
Courier Capital, LLC, another subsidiary of Financial Institutions, Inc., provides investment management, financial planning, and consulting services tailored to meet the needs of individuals, families, businesses, institutions, non-profits, and retirement plans.
The announcement of these dividends is based on a press release statement from Financial Institutions, Inc. The company has not provided any forward-looking statements regarding future dividends or financial performance. This financial event is strictly an update on the upcoming dividend payments for shareholders of Financial Institutions, Inc.
In other recent news, Financial Institutions, Inc. has experienced significant developments. The company has announced the appointment of Christopher Campise as the new Senior Vice President and Chief Information Officer (CIO) of Five Star Bank. Campise will lead the bank's technological development and enhance its IT infrastructure, aligning with the company's long-term goals.
Simultaneously, Financial Institutions, Inc. reported a decrease in net income for the third quarter of 2024, amounting to $13.1 million. This dip is attributed to the absence of a one-time gain from the sale of its insurance business in the previous quarter. However, the company's net interest margin (NIM) saw an increase, and optimism remains regarding its core financial performance and market opportunities.
In addition, the company's total deposits grew by $173.3 million, despite a slight decrease in total loans. Analysts have noted a downward adjustment in the company's projected annual loan growth for 2024, now expected to be at the lower end of the 1% to 3% range. These are recent developments that investors should keep an eye on.
InvestingPro Insights
Financial Institutions, Inc.'s recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 4.55%, making it an attractive option for income-focused investors. This commitment to shareholder value is further underscored by an InvestingPro Tip, which reveals that FISI has raised its dividend for 13 consecutive years and has maintained dividend payments for 26 consecutive years.
The company's financial health appears robust, with a P/E ratio of 8.19, suggesting that it may be undervalued compared to its peers. This valuation metric, combined with the company's consistent profitability over the last twelve months, as noted in another InvestingPro Tip, indicates a solid financial foundation supporting its dividend policy.
Investors should also note the significant price appreciation FISI has experienced, with a 47.54% total return over the past six months and a 57.06% return over the last year. This performance aligns with the InvestingPro Tip highlighting a large price uptick over the last six months.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips that could provide further insights into FISI's financial outlook and market position.
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