Report of Planned Branch Closing
- General statement
- Report to the Superintendent
- Notice to customers
- Findings of Superintendent; consultations by Superintendent
1. General Statement.
This procedure is designed to provide the Superintendent of Financial Services with detailed information concerning the planned closings of branch offices by State-chartered banking organizations, the availability of alternative financial services within the general area served by such branches, and the economic impact upon the community resulting from such closings, and to provide the Superintendent with authority to conduct meetings with banking organizations and community groups in areas where a branch closing is planned.
A sale or other transfer of a branch office which does not result in any material reduction in the financial services offered at such location shall not be deemed to be a closing of such branch, notwithstanding the fact that the ownership of such branch has been transferred from a banking organization to another banking institution. Provided that the report and notice are given as required in sections 2 and 3 of this procedure, nothing contained in this procedure shall prevent a banking organization from closing a branch.
2. Report To The Superintendent.
Every banking organization shall submit to the Superintendent a report of its planned closing of a branch office not less than 90 days nor more than 180 days prior to the planned closing. Such report shall be in writing and shall contain:
- a statement of the reasons leading to the decision to close the branch;
- any statistical or other information in support thereof;
- a past (at least three years), present and projected financial analysis of deposits at such branch (giving number of accounts and dollar amount, profits and losses);
- a past (at least three years), present and projected financial analysis of profits and losses relating to the loan activity at such branch;
- a detailed map of the general area served by such branch, showing the distance and direction of all remaining State- or federally-chartered banking institutions within such area and any licensee of the Department of Financial Services which provides financial services of any kind (e.g., licensed lenders, check cashers); and
- a description of any planned limited or full service banking facility to be opened within such area by either the reporting banking organization or, if known to the reporting banking organization, by any other banking institution.
Reports submitted pursuant to this section shall be treated as confidential, pursuant to section 106.6 of Supervisory Procedure G 106.
3. Notice To Customers.
Every banking organization shall give notice to its customers of the planned closing of a branch not less than 90 nor more than 180 days prior to the planned date of closing. Such notice shall be accomplished by:
- the posting of a notice in a conspicuous place in the branch which is planned to be closed, and leaving such notice in such branch for at least 90 days; and
- the inserting of a single notice in the periodic account statement ordinarily mailed to each person who maintains a banking relationship with such banking organization at the branch which is planned to be closed.
4. Findings Of Superintendent; Consultations By Superintendent.
The Superintendent shall make a finding as to whether or not the proposed branch closing will result in a significant reduction of financial services in the community to be affected. Such findings shall be made public. If the Superintendent finds that the availability of financial services in the community will be significantly reduced by the closing of the branch office, he/she shall be authorized to conduct such meetings with banking organizations and community leaders as are necessary, in his/her judgment, to explore the feasibility of replacing such branch with other adequate banking facilities.
As used in this procedure:
the words banking organization shall mean and include each bank, trust company, savings bank, and savings and loan association, as those terms are defined in section 2 of the Banking Law;
the words branch office, branch or office shall include principal offices, branch offices, and public accommodation offices, but shall not include convenience centers, mobile teller units, automated teller machines, point-of-sale terminals or similar facilities;
the words financial services shall mean and include demand and time deposit accounts, check cashing services, deposit and withdrawal transactions, sale of bank or travelers checks and money orders, processing loan applications, acceptance of loan repayments, and any related services; and
the words facility and facilities shall mean and include any building, structure, vehicle, unit, machine or device, permanent or temporary, mobile or stationary, at which financial services of any kind or description are provided or dispensed.