3. Financial Institutions, Inc.

Shares of Financial Institutions, Inc. ( FISI) of Warsaw, N.Y., closed at $15.87 Thursday, down 1% year-to-date, following a 12% decline during 2011. Based on a 13-cent quarterly payout, the shares have a dividend yield of 3.28%.

The shares trade for nine times the consensus 2013 EPS estimate of $1.80, and for 1.2 times tangible book value.

The consensus 2012 EPS estimate is $1.71.

The company finished redeeming TARP preferred shares in March 2011.

Financial Institutions, Inc., in January agreed to purchase four branches in New York and Connecticut from HSBC ( HBC) and four from First Niagara Financial Group ( FNFG), in connection with the latter company's purchase of about 200 HSBC branches, and divestiture of about 100 branches.

FISI reported fourth-quarter net income applicable to common shareholders of $5.4 million, or 39 cents a share, increasing from $4.2 million, or 38 cents a share, a year earlier.

Janney Capital Markets analyst Rick Weiss on Jan. 27 reiterated his "Buy" rating for Financial Institutions, Inc., with a fair value estimate of $20, saying that the fourth-quarter results and the branch deal "affirm our opinion that management continues to improve the company's attractive upstate New York franchise."

Weiss estimates that the company will earn $1.70 a share during 2012, followed by 2013 EPS of $1.80.

Interested in more on Financial Institutions, Inc.? See TheStreet Ratings' report card for this stock.

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