Seneca Falls, N.Y.-based Generations Bank (MHC) has applied for federal insurance of the deposits of Generations Commercial Bank, which is being chartered and organized as a direct subsidiary of Generations Bank.
Generations Bank, in its application, proposed that Generations Commercial Bank will have 100,000 authorized shares of common stock in one class with a par value of $10.00 per share and no authorized shares of preferred stock. Generations Commercial Bank will initially issue 100,000 common shares to Generations Bank at a purchase price of $25.00 per share for a total capitalization of $2.5 million. The purchase price will be allocated $1.0 million to capital stock and $1.5 million to surplus.
Generations Bank will also file an application with the New York Department of Financial Services for the approval of the chartering and organization of Generations Commercial Bank. Also, Generations Bank will submit an application to the Office of the Comptroller of the Currency to hold Generations Commercial Bank as a wholly owned subsidiary of Generations Bank.
In addition, the directors of Generations Bank will serve as initial directors of Generations Commercial Bank until its first annual meeting of shareholders.
Seneca-Cayuga Bancorp Inc. (MHC) is the holding company of Generations Bank.