Well, you certainly can't accuse Financial Institutions of wasting valuable company funds to create a snazzy name. The holding company owns Five Star Bank, which serves western and central New York through some 50 branches. Serving area businesses and consumers, it offers standard deposit products, such as checking and savings accounts, CDs, and IRAs. Subsidiary Five Star Investment Services offers brokerage and financial planning services. An area of growth for Five Star Bank, indirect consumer loans originated through agreements with area franchised car dealers account for the largest percentage of the company's loan portfolio, followed by commercial mortgages.
Growth in the bank's commercial and auto loan portfolios, coupled with its conservative underwriting standards, contributed to a 7% increase in earnings for Financial Institutions in 2011. The bank also writes direct-to-consumer and home equity loans, business loans, residential mortgages, and agricultural loans.
In 2012 Five Star Bank acquired four retail branches owned by HSBC Bank and four owned by First Niagara Bank in upstate New York. The divestitures were made to satisfy antitrust concerns regarding First Niagara's purchase of 195 branches from HSBC.
Five Star Bank was formed in 2005 when the company consolidated its four banking subsidiaries (First Tier Bank & Trust, National Bank of Geneva, Wyoming County Bank, and Bath National Bank) into a single entity. First Tier Bank & Trust absorbed the other three banks and changed its name to Five Star Bank. – less