Financial Institutions closes sale of SDN Insurance Agency assets to NFP

Financial Institutions announced and closed the sale of the assets of its wholly-owned subsidiary SDN Insurance Agency to NFP Property & Casualty Services. As part of the transaction, the SDN team joins NFP, including President William E. Gallagher. Established in 1999, NFP’s more than 8,000 colleagues in the US, Canada, UK and Ireland serve a diversity of clients, industries and communities through its global capabilities, specialized expertise and customized solutions across property and casualty insurance, benefits, and more SDN is a full-service insurance agency serving business and personal insurance customers. In addition to traditional business insurance policies, its team has grown in recent years to specialize in the areas of property and casualty coverage, surety bonding and employee benefits. $27.0 million all cash transaction, representing ~4.0x 2023 insurance income, supports Financial Institutions, Inc.’s earnings and capital position and allows for reinvestment to support its core banking franchise; Transaction eliminates $11.3 million of goodwill and other intangible assets and has 43 basis point positive impact on pro forma year-end 2023 common equity tier 1 capital ratio.