Financial Services Confirms Receipt Of Notice From Activist Investor, Touts Shareholder Return

Financial Institutions, Inc. FISI, a financial holding company with operations in Western and Central New York, confirmed on Wednesday it has received notice that Clover Partners is nominating Johnny Guerry and Terrell T. Philen for election to the company's Board of Directors. Clover Partners is an activist investor and approximate 5 percent shareholder of Financial Institutions. Reuters reported back in early February that activist investors, including Clover Partners are launching large number of activist campaigns against the U.S. financial sector. The publication cited low interest rates, lagging returns on equity and tough regulations which implies financial companies will need to merge to stay competitive - at a hefty valuation. In its letter to shareholders, Financial Institutions stated it has met Clover on several occasions. The company added that its stock price has grown by approximately 50 percent over the past 3 years and its total shareholder return was in excess of 66 percent over the time period. As such, "the Board and management team are confident that they are pursuing the right strategy to enhance value for all shareholders." Finally, Financial Institutions did state it welcomes constructive feedback from shareholders and remains focused on growing its business and driving long-term shareholder value.