Financial Institutions Inc. in Warsaw, N.Y., plans to raise $40 million of fresh capital through a public stock offering.

The $2.2 billion-asset company, the parent of Five Star Bank, said Wednesday that it would sell 2.4 million shares of common stock at $16.35 a share, a 10% discount to Tuesday's closing price.

The net proceeds are expected to total $37.3 million. The company plans to use a portion of that to repurchase the remaining preferred stock and warrants it issued to the Treasury Department under the Troubled Asset Relief Program.

The deal is expected to close March 15.

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