Financial Institutions Inc. in Warsaw, N.Y., increased the size of its debt offering by 14% due to high demand.
The $3 billion-asset parent of Five Star Bank said in a press release Friday that it issued $40 million of subordinated notes; its original plan was to issue $35 million.
The debt has a 6% annual yield until April 15, 2025, when it will convert to a floating rate.
Financial Institutions said it will use the funds raised for contributing capital to its bank, organic growth, acquisitions and other general corporate purposes. The offering is set to close on Tuesday.