protests from neighboring banks and other credit unions.

Olean (N.Y.) Dresser Clark Community Federal Credit Union asked the National Credit Union Administration last year for permission to accept members from anywhere within its home Cattaraugus County. Currently, the $80 million-asset institution can accept as members only those who live or work within its hometown of Olean.

It has now shrunk its requested expansion to a little more than half the county in order to appease an alliance of banks and credit unions that feared an expanded Olean Dresser Clark would have the resources to drive them all out of business.

The campaign against Olean Dresser Clark was led by Cattaraugus County Bank in Little Valley, N.Y. Two local credit unions, Allegany Community Federal Credit Union and Olean Teachers Federal Credit Union, also submitted letters opposing the expansion.

A spokeswoman for the NCUA said that, though the regulator did not reject the original application, it did defer it and express some concern about the proposed service area. She said the agency's office in Albany, N.Y., had worked with Olean Dresser Clark on the revised application but that a decision is not expected for at least a few months.

Thomas Crosson, general manager of Olean Dresser Clark, did not return calls seeking comment.

This is the second credit union expansion request to be blocked recently due to competitors' concerns. Last month, the NCUA board voted down a request by three New York associations that were seeking permission to serve all of a four-county area north of New York City. Letters protesting that application were filed by 12 other credit unions in the area and by America's Community Bankers.

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