- Parent Company: Financial Institutions, Inc. (FII), parent of Five Star Bank and Courier Capital, will commence an orderly wind down of BaaS operations.
- Reason for Wind Down: FII’s executive management and board reviewed BaaS contributions to financial results, evolving regulatory expectations, and future investments in talent and technology, deciding to prioritize core community banking instead.
- CEO Statement: CEO Martin Birmingham emphasized focusing on retail banking, commercial banking, and wealth management in existing geographic markets to benefit shareholders, customers, and communities.
- Financial Impact: BaaS operations represented approximately $108 million in deposits (2% of total) and $31 million in loans (less than 1%), with an expected “immaterial” financial impact from the closure.
- BaaS Partnerships: Five Star Bank has 12 BaaS partnerships—four live, four not yet testing, two in onboarding, and two already offboarding.
- Completion Timeline: The bank plans to complete the BaaS wind down by 2025.
- Employee Impact: All BaaS personnel will be retained and refocused on supporting core banking growth.
