Workflow
Financial Institutions, Inc. Settles Auto Lending Litigation
FISIFinancial Institutions(FISI) GlobeNewswire·2025-03-10 20:05

Core Viewpoint - Financial Institutions, Inc. has settled civil litigation related to its auto loan notification process, which had been ongoing since 2017, and will record a litigation accrual of 23.0millioninitsfourthquarter2024financialstatements[2].Group1:LegalSettlement−Thelegalactionwasrelatedtolanguageinrepossessionnoticesissuedtodefaultingborrowersbetween2011and2021[2].−ThesettlementagreementwasexecutedonMarch7,2025,andissubjecttocourtapproval[2].−Thecompanydoesnotexpecttoaccrueadditionalamountsforthismatterin2025orfutureperiodsandanticipatesnochangestoitspreviouslypublished2025guidance[2].Group2:FinancialImpact−Thelitigationaccrualof23.0 million in its fourth quarter 2024 financial statements [2]. Group 1: Legal Settlement - The legal action was related to language in repossession notices issued to defaulting borrowers between 2011 and 2021 [2]. - The settlement agreement was executed on March 7, 2025, and is subject to court approval [2]. - The company does not expect to accrue additional amounts for this matter in 2025 or future periods and anticipates no changes to its previously published 2025 guidance [2]. Group 2: Financial Impact - The litigation accrual of 23.0 million will result in an after-tax impact of 17.1million[2].−Detailsregardingthefinancialimpactofthelitigationaccrualonfourthquarterandfull−year2024resultswereincludedinCurrentReportsonForm8−KfiledwiththeSEC[2].Group3:CompanyOverview−FinancialInstitutions,Inc.isafinancialholdingcompanywithapproximately17.1 million [2]. - Details regarding 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 with the SEC [2]. Group 3: Company Overview - Financial Institutions, Inc. is a financial holding company with approximately 6.1 billion in assets as of December 31, 2024 [4]. - The company offers banking and wealth management products and services through its subsidiary, Five Star Bank, which serves individuals, municipalities, and businesses in New York [4]. - Courier Capital, LLC, a subsidiary, provides customized investment management and financial planning services [4].