Seneca-Cayuga Bancorp in N.Y. set to accept municipal deposits
The parent company of Generations Bank in Seneca Falls, N.Y., has received regulatory approval to form a limited-purpose commercial bank.
Seneca-Cayuga Bancorp, a $291 million-asset mutual holding company, had applied with the Federal Deposit Insurance Corp. earlier this year to form Generations Commercial Bank. Seneca-Cayuga wanted to form the bank so it could accept deposits from municipalities and other public entities.
Mutuals are not allowed to work with municipalities in New York.
The company said in a Tuesday press release that the limited purpose bank will provide another way to grow.
“The limited purpose commercial bank is an important development for Generations and for our communities,” Menzo Case, Generations' president and CEO, said in the release.
“By placing funds on deposit with Generations, our local towns, villages and schools can be sure that their funds will be put back to work, right here in our community, creating opportunities for growth and building our local economy," Case added.