Financial Institutions Completes Redemption of TARP Funds

Financial Institutions, Inc. FISI announced today that it has redeemed the remaining $25.0 million of its Series A Fixed Rate Cumulative Perpetual Preferred Stock, issued to the U.S. Department of the Treasury pursuant to the Troubled Asset Relief Program in December 2008. The Company, which originally received a $37.5 million investment through the program, repaid $12.5 million in February 2011. In conjunction with the company's participation in the Capital Purchase Program, the U.S. Treasury received warrants for the right to purchase up to 378,175 shares of the Company's common stock at a price of $14.88 per share. The Company also intends to repurchase the warrants in the second quarter of 2011 pursuant to the procedures set forth in the Securities Purchase Agreement between the Company and the U.S. Treasury.