SENECA FALLS — Seneca-Cayuga Bancorp, Inc. (ticker symbol: SCAY), the holding company for Generations Bank, on Oct. 1 completed the merger with Medina Savings and Loan (MSL) Association, located in Orleans County in western New York. The banking company expects the merger to increase Seneca-Cayuga’s consolidated assets to $335 million, up from $291 million as […]
SENECA FALLS — Seneca-Cayuga Bancorp, Inc. (ticker symbol: SCAY), the holding company for Generations Bank, on Oct. 1 completed the merger with Medina Savings and Loan (MSL) Association, located in Orleans County in western New York.
The banking company expects the merger to increase Seneca-Cayuga’s consolidated assets to $335 million, up from $291 million as of Dec. 31, 2017.
With the merger complete, Medina’s branch offices will now operate as branch offices of Generations Bank under the name “MSL, a division of Generations Bank” for “at least two years.” Additionally, two members of Medina’s board of directors will become members of the boards of directors of Generations Bank, Seneca-Cayuga Bancorp, and the Seneca Falls Savings Bank, MHC, the mutual holding company of Generations Bank and the 56.9 percent majority shareholder of Seneca-Cayuga.
Under the terms of the agreement, depositors of Medina will become depositors of Generations Bank and members of the MHC, and “will have the same rights and privileges in the MHC, as if their accounts had been established in Generations Bank on the date established at Medina,” the release stated.
Seneca-Cayuga will issue shares of its common stock to the MHC in an amount equal to the fair value of Medina as determined by a third-party appraisal. The banking company expects to issue these shares “concurrent with the completion of the merger.”
Because the transaction is structured as a merger with a mutual entity, “no purchase price is being paid in connection with the transaction,” per the release. As a result, the transaction is not expected to be dilutive from a capital or earnings perspective to Seneca-Cayuga’s stockholders while increasing its earnings base. In addition, the transaction could be expected to add to Generations’ value should it ever implement another stock offering or a second step stock conversion.
“We are pleased to announce our partnership with Medina Savings and Loan. We are very familiar with Medina, its conservative approach to banking and its deep roots in the communities it serves. We are very excited about the future of our combined company,” Menzo Case, president and CEO of Generations Bank, said.
Washington, D.C.–based Luse Gorman, PC, served as legal counsel to Generations Bank and Binghamton–based Hinman, Howard & Kattell, LLP acted as legal counsel to Medina.
