Financial Institutions, Inc. Announces Sale of the Assets of SDN Insurance Agency to NFP

• $27.0 million all cash transaction, representing ~4.0x 2023 insurance income, supports Financial Institutions, Inc.’s earnings and capital position and allows for reinvestment to support its core banking franchise
• Transaction eliminates $11.3 million of goodwill and other intangible assets and has 43 basis point positive impact on pro forma year-end 2023 common equity tier 1 capital ratio

WARSAW, N.Y., April 01, 2024 (GLOBE NEWSWIRE) -- Financial Institutions, Inc. (NASDAQ: FISI) (the "Company," "we" or "us"), a diversified financial services company and parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today announced and closed the sale of the assets of its wholly-owned subsidiary SDN Insurance Agency, LLC (“SDN”) to NFP Property & Casualty Services, Inc. (“NFP”), a subsidiary of NFP Corp. and leading property and casualty broker and benefits consultant. As part of the transaction, the SDN team joins NFP, including President William E. Gallagher.

“In the nearly 10 years since we entered the insurance space, it has proven to be a valuable line of business that supported revenue diversification. This transaction allows us to capture strong value premium in this business at an important time, strengthen our capital position and support our continued focus on driving earnings in our core banking business,” said Martin K. Birmingham, President and Chief Executive Officer of the Company and the Bank. “Since 2014, we enhanced SDN’s capabilities and scale through two additional in-market acquisitions and as a result, it has grown into a leading insurance agency in our Western New York market with national reach. We are extremely confident in NFP as the right company to steward SDN’s continued growth for the benefit of its employees and our shared customers.”

Established in 1999, NFP’s more than 8,000 colleagues in the US, Canada, UK and Ireland serve a diversity of clients, industries and communities through its global capabilities, specialized expertise and customized solutions across property and casualty insurance, benefits, and more.

SDN is a full-service insurance agency serving business and personal insurance customers. In addition to traditional business insurance policies, its team has grown in recent years to specialize in the areas of property and casualty coverage, surety bonding and employee benefits.

“In its 100-year history, SDN has established itself as a well-respected partner to commercial and personal insurance customers throughout Western New York,” said Mr. Gallagher. “We are excited to partner with NFP’s global network of insurance and employee benefits professionals and benefit from its robust and sophisticated solutions. We also look forward to continuing to partner with Five Star Bank, which we have found to be an exceptional and supportive partner in our decade of shared history.”