Financial Institutions (FISI) Settles Auto Lending Litigation

Financial Institutions, Inc. (NASDAQ: FISI) (the “Company”), parent company of Five Star Bank (the “Bank”), announced that it has settled civil litigation in connection with the Bank’s auto loan notification process.

The legal action, which had been pending in Pennsylvania state court since 2017, related to language in repossession notices issued between 2011 and 2021 to defaulting borrowers. The Company executed a settlement agreement in connection with the class action lawsuit on March 7, 2025, subject to Court approval. Accordingly, the Company is recording a litigation accrual in the Company’s fourth quarter 2024 consolidated financial statements of $23.0 million, or $17.1 million after tax. Details on the settlement agreement and the financial impact of the litigation accrual on fourth quarter and full-year 2024 results were included in Current Reports on Form 8-K filed today with the Securities and Exchange Commission. The Company does not anticipate that additional amounts will be accrued for this matter in 2025 or other future periods, and it does not expect any changes to its previously published 2025 guidance as a result of the settlement.

Management will host an investor conference call on March 10, 2025, at 4:45 p.m. Eastern Time. Participants may access the call toll-free by dialing 1-833-470-1428 and providing the access code 310636. A replay of the call will be available for at least seven days and may be accessed toll-free by dialing 1-866-813-9403 and providing the access code 538758.

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