Financial Institutions FIISO

The Parent, a financial holding company, operates in the highly regulated banking and wealth management industry, serving as the parent to several specialized subsidiaries. The Company’s primary business involves operating these subsidiaries to deliver a broad range of financial services, including traditional banking, commercial lending, and customized investment advisory services. The Parent maintains its financial strength by leveraging a "community bank philosophy," which centers on understanding and meeting the individualized financial needs of local communities. Through its established network and digital channels, it supports both local businesses and residential customers across Western and Central New York and surrounding regions.

The Company generates revenue through multiple core financial streams. Five Star Bank, the primary subsidiary, generates funding primarily through deposit products, including checking accounts, savings accounts, and certificates of deposit. It earns revenue by offering diverse loan products to consumers and businesses, alongside its subsidiary, Five Star REIT, Inc., which holds commercial real estate loans. Separately, Courier Capital LLC provides fee-based income by offering investment consulting, wealth management, and retirement plan services to high-net-worth individuals and institutions. These varied sources allow the Company to maintain a diversified and stable revenue stream.

The company operates through the following segments:

• Five Star Bank: This subsidiary is a New York-chartered bank providing a full spectrum of financial services. Its activities include offering deposit products, such as checking and NOW accounts, savings accounts, and CDs, and managing various loan products, including commercial and consumer loans. It also oversees Five Star REIT, Inc., a subsidiary that specializes in holding residential mortgages and commercial real estate loans.

• Courier Capital LLC: This segment functions as an SEC-registered investment advisory and wealth management firm. It provides customized investment advice, investment consulting, and comprehensive retirement plan services.

The Parent positions itself as a community-focused financial institution with a competitive edge derived from its deep local roots and personalized customer service. While competing against large financial institutions, commercial banks, and non-traditional FinTech firms, the Company emphasizes its ability to provide a high degree of personal service that larger, more consolidated competitors often lack. Its comprehensive suite of products, covering deposits, loans, and wealth management, coupled with its established branch network and digital capabilities, allows it to be a strong competitor in its service areas.

The Company’s customer base is highly diversified, encompassing individuals, municipalities, small- to medium-sized businesses, and larger institutional clients. Through Five Star Bank, it serves consumer, commercial, and municipal customers across its primary service area. Courier Capital serves a broad clientele including individuals, businesses, institutions, foundations, and retirement plans. The Company aims to maintain relationships with the people of its service area, recognizing that its operational success relies on serving the diverse needs of local communities.