Flushing Financial Corp. in Lake Success, N.Y., announced Monday that it has formed a limited-purpose commercial bank for the purpose of soliciting deposits from state and local governments.
New York law bars thrifts from accepting such deposits; Flushing, the parent of the $2.9 billion-asset Flushing Savings Bank, is the latest thrift company to establish a commercial bank for the purpose of doing so.
Others in the state with commercial bank subsidiaries include First Niagara Financial Group Inc. in Lockport and New York Community Bancorp Inc. in Westbury.
"We believe that our ongoing commitment and strong relationships in the communities we serve make us an ideal financial partner to support state, city and municipal government agencies in the day-to-day operation of their business," said Flushing chief executive John R. Buran.
