September 18, 2018
Contact: Richard Loconte, 212-709-1691
DFS SUPERINTENDENT MARIA T. VULLO ANNOUNCES NEW CAYUGA COUNTY BANKING DEVELOPMENT DISTRICT AND APPROVAL OF A NEW BANKING DEVELOPMENT DISTRICT BRANCH IN ALBANY COUNTY
New Banking Development District Will Be Established in Union Springs Through Existing Branch of Generations Bank
Banking Development District in Green Island Will Now Include an Existing Branch of Catskill Hudson Bank
Under the BDD Program, Generations Bank and Catskill Hudson Bank Will Receive Financial Incentives to Establish, Expand and Preserve Access to Banking Products and Services to Benefit Consumers and Businesses in Cayuga and Albany Counties
Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has approved two applications to provide greater access to banking in New York’s underserved communities. DFS has approved the Village of Union Springs in the Town of Springport, Cayuga County, as a new Banking Development District (BDD) and has approved a branch of New York State-chartered Catskill Hudson Bank to be included as a BDD participating branch in the existing Village of Green Island Banking Development District. Both the approved district and branch will provide access to retail banking services and products for local businesses and residents, including many retirees.
“New York’s BDD program delivers banking services to communities where they are sorely needed,” said Financial Services Superintendent Maria T. Vullo. “Expanding access to affordable banking services provides New Yorkers a greater opportunity to build secure financial futures. These BDDs will service small businesses, provide affordable banking products and services to seniors, support affordable housing and homeownership as well as local economic development efforts, and preserve access to affordable credit products for low-to-middle- income residents.”
New York State’s Banking Development District program, administered by DFS, is designed to encourage the establishment of bank branches in areas across New York State where there is a demonstrated need for banking services. To encourage bank participation in the BDD program, $10 million in subsidized public deposits and other benefits are made available to banks that open or maintain a branch or improve products and services offered in an underserved community. Banks that successfully apply for a BDD designation are eligible to receive below-market-rate deposits from the state of New York. These deposits are intended to lower the financial risk that the branch may incur when opening in an underserved community.
Village of Union Springs
The new BDD in the Village of Union Springs will allow an existing branch of Generations Bank located at 19 Cayuga Street to preserve access to banking services in the village, particularly for the area’s seniors, residents of limited financial means, and businesses. The area’s population of persons 65 years and over grew from 17.9% of the Village’s population during the 2007-2011 ACS period to 19.1% for the 2012-2016 ACS period, and persons over 65 is now the largest segment of the population in the Village. Under DFS’s supervision, the bank will provide financial education on topics that meet the needs of the residents of the BDD, including establishing and building credit, budgeting, first-time homeownership, writing a business plan, and establishing business projections.
Village of Green Island, Catskill Hudson Bank Branch
The inclusion of a branch of Catskill Hudson Bank, located at 148 George Street, within the Village of Green Island BDD will allow the bank to preserve access to banking services in the village, where many residents do not own cars and depend on public transportation. DFS previously designated the Village of Green Island as a Banking Development District in 2004, with Pioneer Savings Bank as the BDD participating branch. Pioneer closed their local branch in June 2017. Nearly one third of households in the Village receive at least one type of public assistance. The participating branch will provide needed services for the community including low-cost bank accounts, 24-hour access to an ATM and credit-building products and services, expanded access to credit for residents and small business, as well as services to the Village including tax collection. The bank also plans to provide financial education on topics that meet the needs of the residents of the BDD, including historic residence owners and homebuyers, residents, small business and senior citizens.
Menzo Case, President & CEO of Generations Bank said: “Generations Bank has been committed to serving the Finger Lakes region for nearly 150 years. This partnership with the New York State Department of Finance will help us address the unique needs of the Union Springs area. We are excited by the opportunity and we look forward to what we can achieve together. I would also like to express our gratitude to AG Cutrona, Generations SVP for recognizing the potential of this program and acting as a driving force to bring this collaboration to fruition” said Menzo Case, Generations President and CEO.
Village of Union Springs Mayor Bud Shattuck said: “As a Mayor in a small upstate village, filled with great people and expectations, I offer a very heartfelt voice of gratitude for this Banking Development District opportunity. Providing financial options to underserved residents and creating small business development and jobs is key to keeping our pass-through community whole. As we transition from a past of light manufacturing to a vibrant tourist-based village on one of New York States most beautiful lakes (Cayuga Lake), this investment will go a long way in funding and educating many in ways they may not have viewed possible. Thank you to all at the New York State Department of Financial Services who worked so hard for the Village of Union Springs and our community.”
Catskill Hudson Bank Chairman & CEO, Mario L. Martinez, said: “Catskill Hudson Bank is dedicated to serve all of our communities in the Catskills, Hudson Valley and the Capital District. The local community worked closely with us in the application process and being part of the BDD further allows Catskill Hudson Bank to provide the full banking services needed in Green Island. We thank the NYSDFS for their commitment to communities like Green Island and in helping us through the application process.”
Village of Green Island Mayor Ellen McNulty-Ryan said: “For over a year the Village of Green Island was without a bank until Catskill Hudson Bank made a commitment to our community. I am strongly supportive of their efforts to fully utilize the existing Banking Development District (BDD) in Green Island and for the bank’s decision to locate within its boundaries. The BDD designation will enhance the attraction of Catskill Hudson Bank to our community and provide much needed bank services that are convenient to our residents, those that are employed in Green Island and especially to our senior citizens who have a hard time with mobility issues and would be best served by a bank located here. Thank you to the New York State Department of Financial Services for their commitment to Green Island and all underbanked communities in New York State.”
For more information on the Banking Development District Program, please see here.