Courier Capital, LLC Names Nicholas T. Norvell Director of Financial Planning 

Appointment formalizes Norvell’s leadership of the boutique wealth management firm’s growing financial planning business for individuals and families 

BUFFALO, N.Y., February 26, 2024 — Courier Capital, LLC (“Courier Capital”), an SEC-registered investment advisory firm and affiliate of Five Star Bank, today announced that Nicholas T. Norvell, CFP® has been named Director of Financial Planning. He continues to serve as Senior Vice President and Senior Portfolio Manager.

As Director of Financial Planning, Mr. Norvell will lead Courier Capital’s comprehensive and holistic financial planning for individuals and families, helping them to reach their goals. He will continue to manage investment portfolios for his longtime clients and serve on the firm’s investment management committee, which guides its active and passive strategies tailored to client needs.

“Courier Capital has long been a trusted provider of customized financial planning for individuals and families, and we’re pleased to formalize Nick’s leadership of this important and growing area of our business,” said James E. Iglewski, President of Courier Capital. “Nick’s dedicated and tailored approach to financial planning exemplifies Courier Capital’s bespoke, client-centric approach and commitment to research-driven independent guidance.”

Mr. Norvell co-founded Courier Capital’s former sister company HNP Capital in 2009. The Rochester-based wealth management firm and fellow Five Star Bank affiliate merged with Courier Capital in May 2023. With more than 25 years of experience in the financial services sector, Mr. Norvell has dedicated his career to working closely with families and individuals, formulating, implementing, monitoring, and updating their comprehensive financial plans. He earned his B.A. in Business Economics from State University of New York at Oneonta.  Mr. Norvell resides in Honeoye Falls, NY with his family.

In addition to serving individuals and families, Courier Capital serves businesses, institutions, non-profits and retirement plan sponsors. Experienced executives lead key verticals of the growing Buffalo-based firm.

  • Thomas J. Hanlon, CFA, CFP®, CEBS, is Executive Vice President of Wealth Management and Co-Chief Investment Officer. He joined the firm in 2005 and served as President for seven years. In his role, Mr. Hanlon focuses on researching and monitoring Courier Capital’s mutual fund and exchange traded fund investment platform and provides strategic direction. He is based at Courier Capital’s Buffalo headquarters.
  • Rebecca L. Westervelt, AIF®, is Senior Managing Director and Director of Retirement Services. She leads the firm’s retirement plan fiduciary oversight offering for 401(k), 403(b) and Deferred Compensation plans, including independent investment selection and monitoring, service provider due diligence and fee negotiation, and participant education and support. Ms. Westervelt joined Courier Capital in 2023 through its merger with former affiliate HNP Capital and leads its Rochester office.
  • Jason M. Stronz serves as Senior Management Director and Director of Institutional Services, leading Courier Capital’s institutional asset management and consulting offering, including customized portfolio management for foundations, endowments, or corporate accounts. Mr. Stronz serves clients across Upstate New York from the firm’s Jamestown office.

Courier Capital, a wholly-owned subsidiary of Financial Institutions, Inc. (NASDAQ: FISI), is one of the largest registered investment advisory firms in Western New York with assets under management of approximately $2.9 billion as of December 31, 2023. Learn more about the firm’s leadership, history and unique approach at couriercapital.com.

About Financial Institutions, Inc. and Courier Capital, LLC

Financial Institutions, Inc. (NASDAQ: FISI) is an innovative financial holding company with approximately $6.2 billion in assets offering banking, insurance and wealth management products and services through a network of subsidiaries. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses throughout Western and Central New York and its Mid-Atlantic commercial loan production office serves the Baltimore and Washington, D.C. region. SDN Insurance Agency, LLC provides a broad range of insurance services to personal and business clients, while Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at five-starbank.com and FISI-investors.com.

Disclosure

Courier Capital, LLC (“Courier”) is an SEC registered investment adviser located in Buffalo, NY, Rochester, NY, Jamestown, NY and Pittsburgh, PA. Courier and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC registered investment advisers by those states in which Courier maintains clients. Registration does not imply a certain level of skill or training. Investing involves gains and losses and may not be suitable for all clients. Investment products and services are not FDIC Insured, are not a deposit or bank guaranteed, are not insured by any Federal governmental agency, and are subject to investment risks, including possible loss of the principal invested. For information about Courier, including its registration, fees and services, please contact Courier or refer to the Investment Advisor Public Disclosure Website (www.adviserinfo.sec.gov).

For additional information contact:

Kate Croft

Director of Investor and External Relations

(716) 817-5159

klcroft@five-starbank.com

Courier Capital, LLC Promotes James E. Iglewski to President, Thomas J. Hanlon to Executive Vice President of Wealth Management and Co-Chief Investment Officer

New leadership structure supports the continued growth of the Five Star Bank affiliate, which is now one of the largest registered investment advisory and wealth management firms in Western New York

BUFFALO, N.Y., October 24, 2023 —  Courier Capital, LLC (“Courier Capital”), an SEC-registered investment advisory firm and wholly-owned subsidiary of Financial Institutions, Inc. (NASDAQ: FISI) (the “Company”) today announced that James E. Iglewski has been promoted to President, succeeding longtime leader Thomas J. Hanlon, CFA, CFP®, CEBS, who transitions to the role of Executive Vice President of Wealth Management and Co-Chief Investment Officer.

As President, Mr. Iglewski, who most recently served as a Senior Managing Director with Courier Capital, will assume oversight of the firm’s core operations. As Executive Vice President of Wealth Management and Co-Chief Investment Officer, Mr. Hanlon, who served as President since 2016, will continue to provide strategic direction as well as focus on researching and monitoring Courier Capital’s mutual fund and exchange traded fund investment platform. Both Mr. Iglewski and Mr. Hanlon will continue to serve on the firm’s investment committee and manage investment portfolios for institutional and high-net-worth clients.

“Courier Capital’s well-earned reputation for fiduciary excellence and personalized, high-touch service spans more than five decades,” said Martin K. Birmingham, President and Chief Executive Officer of the Company. “This new leadership structure allows Tom, Jim and rest of the Courier Capital team to continue serving our wealth management, retirement plan and institutional services clients at the highest level, while positioning us for continued growth moving forward.”

In May, Courier Capital expanded through a merger with Rochester-based affiliate HNP Capital, LLC. The merger streamlined the Company’s ability to provide innovative financial products and services to current and prospective clients, including those of Five Star Bank and SDN Insurance Agency, LLC.

“Having led Courier Capital through a successful merger earlier this year that helped us grow into one of the largest wealth management firms in Western New York, I am excited to focus more of my energy on continuing to help lead our investment strategy and, importantly, my own client relationships,” said Mr. Hanlon. “Jim has made an incredible impact since joining our firm. His more than 25 years of experience serving institutional and private endowments, high-net-worth individuals and families will benefit our team and our clients immensely as he assumes a greater leadership role.”

“Courier Capital’s boutique, client-centric approach and commitment to research-driven independent guidance are what attracted me to this firm. I’m honored to have the opportunity to support its continued growth and, more importantly, the long-term financial success of our clients,” commented Mr. Iglewski.

Mr. Hanlon joined the firm in 2005. Prior to that, he served as a Vice President, Senior Portfolio Manager and Regional Manager for M&T Bank’s Private Client Services and as a Vice President and Senior Portfolio Manager with HSBC Bank, USA. Mr. Hanlon holds a B.S. degree in Business Management from Canisius College and earned his M.B.A. in Finance from the State University of New York at Buffalo.

Mr. Iglewski joined the firm in July 2022 after more than two decades in private banking with several large U.S. banks. Prior to joining Courier Capital, Mr. Iglewski served as Western New York Market Executive with Key Private Bank from 2017 through 2022. Earlier in his career, he worked at U.S. Trust, Bank of America, Fleet Bank, M&T Bank and HSBC. Mr. Iglewski earned his B.A. in Economics from State University of New York at Buffalo and his M.B.A. in Finance from Canisius College.

In addition to Mr. Iglewski and Mr. Hanlon, other members of Courier Capital’s leadership team include:

  • Executive Vice President and Senior Portfolio Manager William H. Gurney
  • Senior Managing Director, Retirement Services Rebecca L. Westervelt AIF®
  • Senior Managing Director, Institutional Services Jason M. Stronz
  • Co-Chief Investment Officer and Senior Portfolio Manager Steven A. Gattuso, CFA, CFP®, CMA
  • Senior Director of Operations Heather L. Wisinski

As one of the largest registered investment advisory firms in Western New York with assets under management of approximately $2.7 billion, Courier Capital provides customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans.

About Financial Institutions, Inc. and Courier Capital, LLC

Financial Institutions, Inc. (NASDAQ: FISI) is an innovative financial holding company with approximately $6.1 billion in assets offering banking, insurance and wealth management products and services through a network of subsidiaries. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses throughout Western and Central New York and its Mid-Atlantic commercial loan production office serves the Baltimore and Washington, D.C. region. SDN Insurance Agency, LLC provides a broad range of insurance services to personal and business clients, while Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at five-starbank.com and FISI-investors.com.

Disclosure

Courier Capital, LLC (“Courier”) is an SEC registered investment adviser located in Buffalo, NY, Rochester, NY, Jamestown, NY and Pittsburgh, PA.  Courier and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC registered investment advisers by those states in which Courier maintains clients.  Registration does not imply a certain level of skill or training.  Investing involves gains and losses and may not be suitable for all clients.  Investment products and services are not FDIC Insured, are not a deposit or bank guaranteed, are not insured by any Federal governmental agency, and are subject to investment risks, including possible loss of the principal invested.  For information about Courier, including its registration, fees and services, please contact Courier or refer to the Investment Advisor Public Disclosure Website(www.adviserinfo.sec.gov).  

For additional information contact:

Kate Croft

Director of Investor and External Relations

(716) 817-5159

klcroft@five-starbank.com

The Impact of a Nonprofit Organization's Spending Policy on Investment Returns Over Time

Authors:
Jason M. Stronz, Sr. Managing Director and Head of Institutional Services
James E. Iglewski, Sr. Managing Director

 

Introduction:

Nonprofit organizations play a vital role in addressing social, environmental, and humanitarian issues. To sustain their operations and achieve their mission, nonprofits often rely on investment portfolios to generate income and long-term growth. However, the spending policy adopted by a nonprofit organization can significantly influence its investment returns over time. This article delves into the factors that shape a nonprofit's spending policy and explores how different approaches can impact long-term investment returns.

 

Understanding the Spending Policy:

In general, nonprofits typically rely on donations and other forms of funding to support their operations and fulfill their mission. A spending policy determines the amount a nonprofit organization can withdraw annually from its endowment or investment portfolio to support its activities. Typically, this policy sets limits to protect the organization's long-term financial sustainability while providing enough resources for its ongoing operations and programs. When a nonprofit has a lower spending rate from its investment portfolio, say an annual spend of 4% vs. a more typical 5% spend rate, it leaves a greater amount available for investment. Over time, this lower rate results in a higher base in the investment portfolio and therefore a higher amount to spend even at the lower rate.

 

The graph below presented in a recent paper by Commonfund Institute shows how three spending rates (4, 5 and 6 percent) will impact the value of an endowment over a long period of time (50 years). All things being equal, the lower spending rate is most likely to achieve long-term purchasing power parity.

It should be no surprise that due to the power of compounding, lower outlays today will result in higher values in the future, assuming investment returns follow historical patterns (though past returns are no indication of future results).

 

Factors Influencing the Spending Policy:

1. Mission and Purpose: The nature of a nonprofit's mission and purpose heavily influences its spending policy. Some organizations with urgent and immediate needs may adopt higher spending rates to maximize their impact in the short term. Conversely, organizations with long-term goals may adopt lower spending rates to ensure the longevity of their mission.

2. Investment Returns and Market Volatility: Nonprofits with higher investment returns may afford to have a more liberal spending policy, while those with lower returns may need to be more cautious. Market volatility can affect the annual spending amount, as nonprofits may adopt spending rules that smooth out fluctuations in investment returns over time.

 

Effects of Spending Policy on Investment Returns:

1. Impact of High Spending Rates: Nonprofits that adopt a high spending rate risk depleting their endowment over time, reducing its ability to generate future returns. This can result in financial instability, forcing the organization to rely more heavily on fundraising efforts and external support. High spending rates may undermine the organization's long-term sustainability and limit its ability to fulfill its mission in the future.

2. Effects of Low Spending Rates: Nonprofits that adopt a conservative spending policy with low withdrawal rates tend to prioritize the preservation of their endowment. While this approach may protect the organization's long-term financial stability, it may also limit its immediate impact on the community it serves. Additionally, excessively low spending rates may cause the endowment to grow at a pace that exceeds its intended purpose, resulting in underutilization of resources.

When a nonprofit invests its funds wisely, such as in stocks, bonds, or other financial instruments, it has the potential to generate returns or profits over time. By reinvesting those returns and allowing them to compound, the non-profit's investment portfolio can grow significantly over the years.

A lower spending rate allows more funds to be directed towards investment, increasing the potential for capital appreciation and income generation. As the investment portfolio grows, the non-profit may have more financial resources available to support its activities and expand its impact over time.

It's important to note that investment returns can be influenced by various factors, including market conditions and the chosen investment strategy. Therefore, careful planning, prudent financial management, and regular monitoring are crucial to maximize the potential benefits of a lower spending rate for a nonprofit organization.

 

Calculation of Annual “Base” (Smoothing period)

In addition to what actual rate of spending is appropriate for the endowment assets, the calculation of the base on which it is applied is equally important. Many organizations use a rolling average of the past nine quarters (36 months) to calculate the balance to apply the spend rate, however using a longer time frame such as 16 or even 20 quarters may be a better approach given the long cycles in financial markets. In a very strong bull market that lasts several years, the average balance will be elevated, creating a larger spend in actual dollar terms. While on the surface this seems like a good thing, meaning beneficiaries will get a higher level of financial support, it must be considered that the opposite can also occur. A relatively short but severe bear market will keep the averages lower, resulting in less dollars for giving or organizational support. By extending the “smoothing” period out to four or five years instead of three, annual support from the endowment assets will be more consistent and not subject to extreme swings in the financial markets.

 

Balancing Act: The Optimal Spending Policy:

Nonprofit organizations must strike a balance between maintaining their long-term financial health and maximizing their impact. This balance depends on various factors such as the organization's mission, asset size, expected investment returns, and risk tolerance. Striking the right balance requires careful consideration and periodic reassessment of the spending policy.

 

Best Practices:

1. Establishing a Clear Spending Policy: Nonprofits should create a well-defined and transparent spending policy that aligns with their mission, long-term goals, and investment objectives. This policy should be reviewed and revised periodically to adapt to changing circumstances.

2. Diversifying Investments: A diversified investment portfolio helps mitigate risks and enhance returns. Nonprofits should consider a prudent mix of asset classes to achieve their financial objectives while being mindful of risk tolerance.

3. Considering Inflation: Nonprofits should account for inflation when determining their spending policy. A policy that adjusts spending to maintain purchasing power helps ensure the organization's activities and impact can be sustained over time.

4. Seeking Expert Advice: Collaborating with investment professionals, financial advisors, and nonprofit consultants can provide valuable guidance in establishing an appropriate spending policy. These experts can offer insights into investment strategies, risk management, and sustainable spending practices.

 

Conclusion:

A nonprofit organization's spending policy plays a critical role in shaping its investment returns over time. By striking a balance between spending to achieve immediate organizational goals and longer-term policies that maximize growth of the investment pool, nonprofits can sustain the resources necessary to achieve ultimate mission success.

 

Disclosure:

Courier Capital, LLC (“Courier Capital”) is an SEC registered investment adviser located in Buffalo, New York, Rochester, New York, Jamestown, New York and Pittsburgh Pennsylvania.  Registration does not imply a certain level of skill or training.  For information pertaining to the registration status of Courier Capital, as well as its fees and services, please refer to our disclosure statement as set forth on Form ADV, available upon request or via the  Investment Advisor Public Disclosure Website(www.adviserinfo.sec.gov).  The information contained herein should not be construed as personalized investment advice or a solicitation to buy or sell any security.  Investing in the stock market involves risk of loss, including loss of principal invested, and may not be suitable for all investors.  Past performance is no guarantee of future results.  This material contains certain forward-looking statements which indicate future possibilities.  Actual results may differ materially from the expectations portrayed in such forward-looking statements.  As such, there is no guarantee that any views and opinions expressed in this material will come to pass.  Additionally, this material contains information derived from third party sources.  Although we believe these sources to be reliable, we make no representation as to the accuracy of any information prepared by an unaffiliated third party incorporated herein, and take no responsibility, therefore.  All expressions of opinion reflect the judgement of the authors as the date of publication and are subject to change without prior notice. 

'Artificial intelligence and wealth management - are they compatible?'

Courier Capital’s Thomas Hanlon and Rebecca Westervelt spoke with the Rochester Business Journal about the potential impacts of artificial intelligence, or AI, in the wealth management industry and how it could potentially support Courier Capital’s client-focused and relationship-based approach in the future.  An excerpt of the article, which is available online here, follows.
 
“One area AI might help in is the research area and the gathering and processing of large amounts of data,” said Hanlon, who likens AI to a tool, but cautions against it ever being the only tool in the box when it comes to wealth management.
 
Rebecca Westervelt is an accredited investment fiduciary and the senior managing director and head of retirement services for Courier Capital. She also serves as the head of the firm’s Rochester office.
 
Westervelt also sees some potential value for AI in wealth management from an operational standpoint, but there are also major deficits in terms of the relationship component that, in the opinion of all professionals interviewed for this piece, is vital in wealth management.
 
“We are with a client through everything,” Westervelt said. “It’s a relationship. AI can’t replace the face-to-face interaction with clients and being there for them in good times and bad.”
 
Westervelt also noted that while the onus of asking questions is on the user in AI, when it comes to a typical wealth management relationship, it’s as much the advisor’s role to ask questions as the clients.
 

“We know how to ask the right questions to provide highly personalized services,” she said.

 

 

Financial Institutions, Inc. Subsidiaries Courier Capital, LLC and HNP Capital, LLC Complete Merger

The merger strengthens Courier Capital, LLC, an affiliate of Five Star Bank, into one of the largest wealth management firms in Western New York

 

WARSAW, N.Y., May 1, 2023 — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company”) today announced the completion of the merger of its wholly-owned SEC-registered investment advisory firms on May 1, 2023, under which HNP Capital, LLC (“HNP Capital”) merged with and into Courier Capital, LLC (“Courier Capital”). 

“This merger formally unites our Company’s two well-regarded wealth management firms and is the next natural step in the evolution for our investment advisory business line,” said Martin K. Birmingham, President and Chief Executive Officer of the Company.  “In addition to supporting Courier Capital’s growth, this merger streamlines our ability to provide innovative financial products and services to current and prospective clients, including those of Five Star Bank and SDN Insurance Agency, LLC.”

Financial Institutions, Inc. entered the investment advisory space in 2016 with its acquisition of Courier Capital and further strengthened its offering through the acquisition of Williamsville, NY-based Robshaw & Julian Associates, Inc. in 2017.  In 2018, it announced the acquisition of HNP Capital, which expanded the Company’s wealth management reach to the Rochester, NY market and bolstered its retirement plan and institutional offerings.

Courier Capital President Thomas J. Hanlon commented, “Over the past five years, the teams at Courier Capital and HNP Capital have been collaborating and sharing best practices.  We are thrilled to join forces to provide an even stronger service offering and help our clients achieve their unique financial goals through independent guidance rooted in comprehensive research, deep experience and a commitment to fiduciary excellence.”

“HNP Capital has earned a reputation as a true partner to its clients and our team is known for its customized and consultative approach to investment management and financial planning,” said Senior Managing Director Rebecca L. Westervelt. “Our approach aligns perfectly with that of Courier Capital and I firmly believe our clients’ experiences will only be enhanced through this merger.”

As one of the largest registered investment advisory firms in Western New York with assets under management of approximately $2.7 billion, Courier Capital provides customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at www.couriercapital.com.

About Financial Institutions, Inc. and Courier Capital, LLC

Financial Institutions, Inc. (NASDAQ: FISI) is an innovative financial holding company with approximately $6.0 billion in assets offering banking, insurance and wealth management products and services through a network of subsidiaries. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses throughout Western and Central New York and its Mid-Atlantic commercial loan production office serves the Baltimore and Washington, D.C. region. SDN Insurance Agency, LLC provides a broad range of insurance services to personal and business clients, while Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at five-starbank.com and FISI-investors.com.

Disclosure

Courier Capital, LLC (“Courier”) is an SEC registered investment adviser located in Buffalo, NY, Rochester, NY, Jamestown, NY and Pittsburgh, PA.  Courier and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC registered investment advisers by those states in which Courier maintains clients.  Registration does not imply a certain level of skill or training.  Investing involves gains and losses and may not be suitable for all clients.  Investment products and services are not FDIC Insured, are not a deposit or bank guaranteed, are not insured by any Federal governmental agency, and are subject to investment risks, including possible loss of the principal invested.  For information about Courier, including its registration, fees and services, please contact Courier or refer to the Investment Advisor Public Disclosure Website (www.adviserinfo.sec.gov). 

For additional information contact:

Kate Croft

Director of Investor and External Relations

(716) 817-5159

klcroft@five-starbank.com