0000897069-16-001132.txt : 20161212 0000897069-16-001132.hdr.sgml : 20161212 20161212153621 ACCESSION NUMBER: 0000897069-16-001132 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20161212 DATE AS OF CHANGE: 20161212 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FINANCIAL INSTITUTIONS INC CENTRAL INDEX KEY: 0000862831 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 160816610 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-58385 FILM NUMBER: 162046235 BUSINESS ADDRESS: STREET 1: 220 LIBERTY STREET CITY: WARSAW STATE: NY ZIP: 14569 BUSINESS PHONE: 5857861100 MAIL ADDRESS: STREET 1: 220 LIBERTY STREET CITY: WARSAW STATE: NY ZIP: 14569 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Clover Partners, L.P. CENTRAL INDEX KEY: 0001309342 IRS NUMBER: 752842611 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 100 CRESCENT COURT STREET 2: SUITE 575 CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 214-273-5200 MAIL ADDRESS: STREET 1: 100 CRESCENT COURT STREET 2: SUITE 575 CITY: DALLAS STATE: TX ZIP: 75201 FORMER COMPANY: FORMER CONFORMED NAME: Clover Partner, L.P. DATE OF NAME CHANGE: 20041122 SC 13D/A 1 cg827.htm
CUSIP No. 317585404
Page 1 of 12 Pages

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

SCHEDULE 13D/A
(Amendment No. 3)

(Rule 13d-101)

Under the Securities Exchange Act of 1934


Financial Institutions, Inc.
(Name of Issuer)

Common Stock, par value $.01 per share
(Title of Class of Securities)

317585404
(CUSIP Number)

Clover Partners, L.P.
100 Crescent Court, Suite 575
Dallas, TX  75201
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

-with copies to-

 
Phillip M. Goldberg
Foley & Lardner LLP
321 North Clark Street
Suite 2800
Chicago, IL  60654-5313
(312) 832-4549
Peter D. Fetzer
Foley & Larder LLP
777 East Wisconsin Avenue
Suite 3800
Milwaukee, WI  53202-5306
(414) 297-5596
 

December 7, 2016
(Date of event which requires filing of this statement)


If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box £.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Act”), or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act.

CUSIP No. 317585404
Page 2 of 12 Pages


1
NAME OF REPORTING PERSON
 
MHC Mutual Conversion Fund, L.P.
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
(a)    £
(b)    £
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
WC
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
£
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
623,882
 
8
SHARED VOTING POWER
0
 
9
SOLE DISPOSITIVE POWER
623,882
 
10
SHARED DISPOSITIVE POWER
0
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
623,882
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
£
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
 
14
TYPE OF REPORTING PERSON
PN
 


CUSIP No. 317585404
Page 3 of 12 Pages


1
NAME OF REPORTING PERSON
 
Clover Partners, L.P.
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
(a)    £
(b)    £
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
OO/AF
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
£
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
0
 
8
SHARED VOTING POWER
623,882
 
9
SOLE DISPOSITIVE POWER
0
 
10
SHARED DISPOSITIVE POWER
623,882
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
623,882
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
£
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
 
14
TYPE OF REPORTING PERSON
PN, IA
 


CUSIP No. 317585404
Page 4 of 12 Pages


1
NAME OF REPORTING PERSON
 
Clover Partners Management, L.L.C.
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
(a)    £
(b)    £
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
OO/AF
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
£
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
0
 
8
SHARED VOTING POWER
623,882
 
9
SOLE DISPOSITIVE POWER
0
 
10
SHARED DISPOSITIVE POWER
623,882
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
623,882
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
£
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
 
14
TYPE OF REPORTING PERSON
CO
 


CUSIP No. 317585404
Page 5 of 12 Pages


1
NAME OF REPORTING PERSON
 
Johnny Guerry
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
(a)    £
(b)    £
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
OO/AF
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
£
6
CITIZENSHIP OR PLACE OF ORGANIZATION
USA
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
0
 
8
SHARED VOTING POWER
623,882
 
9
SOLE DISPOSITIVE POWER
0
 
10
SHARED DISPOSITIVE POWER
623,882
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
623,882
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
£
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
 
14
TYPE OF REPORTING PERSON
IN
 


CUSIP No. 317585404
Page 6 of 12 Pages


1
NAME OF REPORTING PERSON
 
Terry Philen
 
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
(a)    £
(b)    £
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
OO/AF
 
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
£
6
CITIZENSHIP OR PLACE OF ORGANIZATION
USA
 
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7
SOLE VOTING POWER
0
 
8
SHARED VOTING POWER
0
 
9
SOLE DISPOSITIVE POWER
0
 
10
SHARED DISPOSITIVE POWER
0
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
£
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
 
14
TYPE OF REPORTING PERSON
IN
 


CUSIP No. 317585404
Page 7 of 12 Pages

SCHEDULE 13D

This amended Schedule 13D (this “Schedule 13D”) is being filed on behalf of MHC Mutual Conversion Fund, L.P., a Texas limited partnership (the “Fund”), Clover Partners, L.P., a Texas limited partnership and the general partner of the Fund (the “GP”), Clover Partners Management, L.L.C., a Texas limited liability company and the general partner of the GP (“Clover”), and Johnny Guerry, the managing partner of Clover (collectively, the “MHC Mutual Conversion Fund Group”), relating to common stock ($.01 par value) (the “Common Stock”) of Financial Institutions, Inc., a New York corporation (the “Company” or “Issuer”).
 
Specifically, this Schedule 13D relates to Common Stock of the Issuer purchased by the GP through the account of the Fund.  The Fund may direct the vote and disposition of the 623,882 shares of Common Stock it holds directly.  The GP serves as the investment adviser and general partner to the Fund and may direct the vote and disposition of the 623,882 shares of Common Stock held by the Fund.  Clover serves as the general partner of the GP and may direct the GP to direct the vote and disposition of the 623,882 shares of Common Stock held by the Fund.  As the managing partner of Clover, Mr. Guerry may direct the vote and disposition of the 623,882 shares of Common Stock held by the Fund.
 
This Schedule 13D is being filed on behalf of Terry Philen to reflect the fact that Mr. Philen and the MHC Mutual Conversion Fund Group are no longer deemed to constitute a “group” for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), because the MHC Mutual Conversion Fund Group is no longer conducting a proxy solicitation.
 
With this amendment, the MHC Mutual Conversion Fund Group is amending the disclosures to report that it no longer holds more than 5% of the Common Stock of the Company.  So, upon the filing of this amendment, the MHC Mutual Conversion Fund Group, and each person that comprises the MHC Mutual Conversion Fund Group, will cease to be a reporting person with regard to the Common Stock.
 
Item 1. Security and Issuer

 
Securities acquired:
Common Stock
     
 
Issuer:
Financial Institutions, Inc.
220 Liberty Street
Warsaw, New York 14569

Item 2. Identity and Background

(a)-(b)            This Schedule 13D is jointly filed by the parties identified below.
 
The MHC Mutual Conversion Fund Group expressly disclaims beneficial ownership of Common Stock held by Mr. Philen, if any.  The Common Stock reported herein as being beneficially owned by the MHC Mutual Conversion Fund Group does not include any Common Stock held by Mr. Philen.
 

CUSIP No. 317585404
Page 8 of 12 Pages


 
The MHC Mutual Conversion Fund Group consists of the Fund, the GP, Clover and Mr. Guerry.  Because Mr. Guerry is the managing partner of Clover, which is the general partner of the GP (with Mr. Guerry, the Fund and Clover hereinafter referred to as the “Controlling Persons”), the Controlling Persons may be deemed, pursuant to Rule 13d-3 of the Exchange Act, to be the beneficial owners of all of the Common Stock held by the Fund.
 
Each of the persons identified in this Schedule 13D is sometimes referred to as a “Reporting Person” and, collectively, as the “Reporting Persons.”  Each of the Reporting Persons is a party to that certain Joint Filing Agreement attached as Exhibit 99.1 to Amendment No. 1 to this Schedule 13D, as filed with the Securities and Exchange Commission on April 5, 2016.
 
The principal place of business for each member of the MHC Mutual Conversion Fund Group is 100 Crescent Court, Suite 575, Dallas, TX 75201.
 
The principal place of business of Mr. Philen is 12001 N. Central Expressway, Suite 1120, Dallas, Texas 75243.
 
(c)            The principal occupation of Mr. Guerry is serving as the managing partner of Clover.  The principal business of Clover is acting as the general partner of the GP.  The principal business of the GP is investment management.  The principal business of the Fund is investing in securities.
 
Mr. Philen serves as the Chief Financial Officer of Custom Extrusions Holdings, LLC.
 
(d)            During the last five years, none of the Reporting Persons have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
 
(e)            During the last five years, none of the Reporting Persons have been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, were or are subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
 
(f)            The Fund, the GP and Clover are organized under the laws of the State of Texas.  Mr. Guerry and Mr. Philen are each a citizen of the United States of America.
 
Item 3. Source and Amount of Funds

As of December 8, 2016, the Fund had invested $15,757,670 (inclusive of brokerage commissions) in Common Stock of the Issuer.  The source of these funds was the working capital of the Fund.
 

CUSIP No. 317585404
Page 9 of 12 Pages


 
Item 4. Purpose of the Transaction

The MHC Mutual Conversion Fund Group purchased the Common Stock for investment purposes.  The MHC Mutual Conversion Fund Group’s intent is to influence the policies of the Issuer and assert shareholder rights, with a goal of maximizing the value of the Common Stock.
 
Consistent with its investment purpose, the MHC Mutual Conversion Fund Group has engaged and will continue to engage in communications with one or more officers of the Issuer and/or one or more members of the board of directors of the Issuer (the “Board”), and/or one or more representatives of the Issuer regarding the Issuer, including, but not limited to its business, management, operations, assets, capitalization, financial condition, governance, strategy and future plans.  The MHC Mutual Conversion Fund Group has discussed and will continue to discuss ideas that, if effectuated, may result in any of the following: a sale or transfer of a material amount of assets of the Issuer and/or changes in the Board or management of the Issuer.
 
The Reporting Persons may purchase, sell or transfer Common Stock beneficially owned by them from time to time in public transactions depending on economic considerations and, subject to the below, the results of such communications.  Any such transactions may be effected at any time or from time to time subject to any applicable limitations imposed on the sale of the Common Stock by applicable law.
 
The Reporting Persons may purchase, sell or transfer Common Stock beneficially owned by them from time to time in public transactions depending on economic considerations and, subject to the below, the results of such communications.  Any such transactions may be effected at any time or from time to time subject to any applicable limitations imposed on the sale of the Common Stock by applicable law.
 
Except to the extent the foregoing may be deemed a plan or proposal, the Reporting Persons have no plans or proposals which relate to, or could result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of the instructions to Item 4 of the Schedule 13D.  The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.
 
Item 5. Interest in Securities of the Issuer

(a) - (b) The MHC Mutual Conversion Fund Group beneficially owns 623,882 shares of Common Stock, which represents 4.3% of the Issuer’s outstanding shares of Common Stock.
 

CUSIP No. 317585404
Page 10 of 12 Pages


 
The percentage of beneficial ownership of the MHC Mutual Conversion Fund Group, as reported in this Schedule 13D, was calculated by dividing (i) the total number of shares of Common Stock beneficially owned by the MHC Mutual Conversion Fund Group as set forth in this Schedule 13D, by (ii) the 14,527,719, shares of Common Stock outstanding as of October 28, 2016, according to the Issuer’s Form 10-Q filed with the Securities and Exchange Commission on November 4, 2016.
 
The GP, in its capacity as investment manager and general partner to the Fund has power to vote the 623,882 shares of Common Stock and the power to dispose of the 623,882 shares of Common Stock held in the Fund.  Clover, in its capacity as general partner of the GP and Mr. Guerry, as the managing partner of Clover, may each be deemed to beneficially own the Common Stock held in the Fund.
 
(c)            Set forth below are all of the transactions in the Common Stock effected by the MHC Mutual Conversion Fund Group during the past 60 days:
 
Trade Date
Number of Shares Sold
Price per Share
Where and How Transaction Effected
11/14/2016
2,245
$31.17
Open Market Sale
11/15/2016
9,224
$31.01
Open Market Sale
11/16/2016
344
$31.00
Open Market Sale
11/17/2016
500
$31.00
Open Market Sale
11/22/2016
14,932
$30.76
Open Market Sale
11/23/2016
514
$30.79
Open Market Sale
11/25/2016
6,608
$30.75
Open Market Sale
11/30/2016
8,052
$30.75
Open Market Sale
12/01/2016
31,453
$30.75
Open Market Sale
12/02/2016
13,328
$30.75
Open Market Sale
12/05/2016
10,113
$32.16
Open Market Sale
12/06/2016
23,537
$32.30
Open Market Sale
12/07/2016
35,548
$32.96
Open Market Sale
12/08/2016
15,519
$33.52
Open Market Sale

 
The filing of this Schedule 13D shall not be construed as admission that the GP, Clover, or Mr. Guerry is for the purposes of Section 13(d) or 13(g) of the Exchange Act the beneficial owner of any of the 623,882 shares of Common Stock owned by the Fund.  Pursuant to Rule 13d-4, the GP, Clover, and Mr. Guerry disclaim all such beneficial ownership.
 
(d)            No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Common Stock.
 
(e)            Not applicable.
 

CUSIP No. 317585404
Page 11 of 12 Pages


 
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

With respect to the Fund, GP is entitled to (1) an allocation of a portion of profits, if any, and (2) a management fee based upon a percentage of total capital.
 
Other than the foregoing agreements and arrangements, and the Joint Filing Agreement, there are no contracts, arrangements, understandings or relationships among the persons named in Item 2 hereof and between such persons and any person with respect to any securities of the Issuer.
 
Item 7. Material to be Filed as Exhibits

Exhibit No.
Description
   
Exhibit 99.1
Joint Filing Agreement by and among the Reporting Persons.*
Exhibit 99.2
Board Letter dated December 16, 2015.*
Exhibit 99.3
Nomination Letter to Financial Institutions, Inc. dated April 1, 2016.*
Exhibit 99.4
Board Letter dated April 13, 2016.*
 
* Previously filed.

CUSIP No. 317585404
Page 12 of 12 Pages

SIGNATURES


After reasonable inquiry and to the best of their knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
 
Dated:  December 9, 2016

 
MHC Mutual Conversion Fund, L.P.
 
By:            Clover Partners, L.P.
 
By:      Clover Partners Management, L.L.C., general partner
 
By:      /s/ John Guerry
Name:            John Guerry
Title:            Managing Partner
 
 
Clover Partners, L.P.
 
By:      Clover Partners Management, L.L.C., general partner
 
By:      /s/ John Guerry
Name:            John Guerry
Title:            Managing Partner
 
 
Clover Partners Management, L.L.C.
 
By:      /s/ John Guerry
Name:            John Guerry
Title:            Managing Partner
 
 
 
 
/s/ Johnny Guerry                                                                                                        
Johnny Guerry
 
 
 
 
/s/ Terry Philen                                                                                                        
Terry Philen