Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has approved the Village of Sylvan Beach in the Town of Vienna, Oneida County, as a new Banking Development District (BDD).  The approved district, involving an existing branch of New York State-chartered Adirondack Bank, will preserve access to retail banking services and products for local businesses and residents, including many retirees, as well as tourists to the area.  The Village of Sylvan Beach has a tourism-based economy and a lower median income and higher unemployment rate compared to the Town of Vienna and Oneida County.   The Adirondack Bank branch is the only full-service bank in the Village of Sylvan Beach.

“This new banking development district demonstrates DFS’s commitment to ensuring that residents and businesses in New York’s communities have access to quality, affordable financial services close to home, and strengthens our state-banking system,” said Financial Services Superintendent Maria T. Vullo.  “I am pleased that this New York State-chartered bank is dedicated to meeting the unique financial needs of this community.”

Today’s announcement follows DFS’s approval of two BDDs in the Bronx and Brooklyn in July.  New York State’s Banking Development District program, administered by DFS, is designed to encourage banks to establish branches to provide affordable financial products 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 reduce the higher cost of doing business that the branch may incur when operating in an underserved community.

The BDD announced today, located at 808 Main Street within a middle-income census tract in the Village of Sylvan Beach, will allow Adirondack Bank to preserve access to banking services in the village, where the next-closest bank branches are nearly 10 miles away from the BDD.

Adirondack Bank President and CEO Rocco F. Arcuri, Sr., said: “Adirondack Bank has been dedicated to serving the financial needs of northern New York State for more than a century, and we are proud of partnership with the Department of Financial Services on this new banking development district, which will allow us to serve the specific needs of Sylvan Beach residents, businesses and tourists right here in the village.”

Adirondack Bank’s branch, the only full-service bank in the village, will provide services that allow businesses to grow, contribute to Sylvan Beach’s economic development and support businesses.  Specifically, Adirondack Bank has provided lines of credit to help businesses through down-cycles, and quickly reaches decisions on loan applications, which is important in the Village’s tourism-based economy.  The BDD designation will provide access to banking services during regular business hours for local businesses, 84% of which are small businesses such as restaurants, entertainment venues, retailers and construction businesses.  This is especially important because these businesses generate most of their revenues within a short time frame due to the seasonal nature of the area.

According to 2011-2015 estimates from the U.S. Census Bureau, the Village of Sylvan Beach’s median household income was $40,147, compared with $42,338 for the Town of Vienna and $48,246 for Oneida County.  The unemployment rate for Sylvan Beach is 5.7%, while the rates for the Town of Vienna and Oneida County are 4.7% and 4.4%, respectively.  In total, 40.5% of the village’s population are living at or below 200% of the poverty level, while that figure for the Town of Vienna is 33.1% and for Oneida County is 35.4%.  Sylvan Beach’s population of 845 is increasingly retirement-age, with residents age 65 rising to 22.7% of the total population in the 2010 Census, compared with 14.3% in 2000.

Oneida County Executive Anthony J.  Picente said: “I welcome this new Banking Development District in the Village of Sylvan Beach because expanding access to affordable financial services is needed in Oneida County.   We are pleased to see a BDD assuring increased access to financial services right in the local community.  I appreciate the work of the Department of Financial Services to ensure that all New York communities have access to affordable financial services.”

Village of Sylvan Beach Mayor Greg Horan said: “This new Banking Development District means that Village of Sylvan Beach residents, business owners and tourists won’t have to go outside of our community for essential financial products and services, saving them both time and money.  We are proud of our partnership with the Department of Financial Services, which resulted in a win-win for all involved.”

For more information on the Banking Development District Program, please see here.