Generations Bank sees growth ahead

SENECA FALLS — You can count Generations Bank among those that have been able to thrive despite the worst economic downturn in decades, President and CEO Menzo Case says.

The bank never saw demand for loans sag and has been looking at expanding into new markets. Generations, formerly known as Seneca Falls Savings Bank, was a participant in the U.S. Treasury Department’s Small Business Lending Fund — a $30 billion fund created in 2010 to provide capital to community banks with under $10 billion in assets.

Generations Bank received $5 million through the program, which aims to spark more lending at community banks. The bank was quickly able to reach its lending commitments under the program, Case says.

“That was really the right thing to do from the federal government side,” he says. “They needed to look at community banks and provide them with capital so we can expand business lending. To get that additional capital was a big part of our growth. It provided us the means to grow in a measured way.”

Generations Bank began expanding its commercial lending and insurance services about five years ago, Case adds. And while most of the bank’s customer base is families, he expects more commercial growth in the years ahead.

Family-owned businesses in particular will be an important growth segment for Generations, he says. The bank has been heavily involved in lending to the Finger Lakes wine and cheese industry, Case says.

It was the lead lender for Magnus Ridge Vineyard and Winery, a new winery on Seneca Lake.

Case expects growth on the retail side of the business as well. He notes the bank is seeing strong demand from consumers for auto loans.

“We’ll plod along,” he says. “We won’t grow as fast as some others, but we will grow in a measured, methodical way. That’s how we’ve done it for 140 years.”

New markets are on the drawing board for Generations, but Case declined to discuss specific locations for new branches. He adds that the bank’s leadership believes strongly in the importance of a physical presence in its communities.

As much as possible, Generations tries to staff its locations with people from is local markets, Case says.

“We go where the need is,” he says.

Based in Seneca Falls, Generations Bank has total assets of $255.3 million and nine locations in Seneca Falls, Auburn, Waterloo, Geneva, Union Springs, and Phelps. Generations announced its name change from Seneca Falls Savings in April.

In addition to the Seneca Falls Savings name, the bank used additional names in its other markets, such as the Bank of Phelps. Changing to a single name will allow the company to present a more cohesive identity, Case says.

The bank’s insurance business also changed names to Generations Agency from Royce & Rosenkrans.

The bank was running into some confusion over the word “savings” in its name, Case adds. That sometimes led customers to think the bank only handled passbook savings accounts and residential mortgages.

The expansion of its commercial business made it important for the bank’s name to communicate the broader focus, Case says. The board settled on the Generations name to display its commitment to serving its communities for the long haul.

For the first quarter, net income available to common shareholders at the bank totaled $307,000, or 13 cents a share, down from $328,000, or 14 cents a share a year earlier. For 2011, net income available to common shareholders totaled about $1.3 million, or 57 cents a share, up from $1.1 million, or 50 cents a share, in 2010.      

SENECA FALLS — You can count Generations Bank among those that have been able to thrive despite the worst economic downturn in decades, President and CEO Menzo Case says.

The bank never saw demand for loans sag and has been looking at expanding into new markets. Generations, formerly known as Seneca Falls Savings Bank, was a participant in the U.S. Treasury Department’s Small Business Lending Fund — a $30 billion fund created in 2010 to provide capital to community banks with under $10 billion in assets.

Generations Bank received $5 million through the program, which aims to spark more lending at community banks. The bank was quickly able to reach its lending commitments under the program, Case says.

“That was really the right thing to do from the federal government side,” he says. “They needed to look at community banks and provide them with capital so we can expand business lending. To get that additional capital was a big part of our growth. It provided us the means to grow in a measured way.”

Generations Bank began expanding its commercial lending and insurance services about five years ago, Case adds. And while most of the bank’s customer base is families, he expects more commercial growth in the years ahead.

Family-owned businesses in particular will be an important growth segment for Generations, he says. The bank has been heavily involved in lending to the Finger Lakes wine and cheese industry, Case says.

It was the lead lender for Magnus Ridge Vineyard and Winery, a new winery on Seneca Lake.

Case expects growth on the retail side of the business as well. He notes the bank is seeing strong demand from consumers for auto loans.

“We’ll plod along,” he says. “We won’t grow as fast as some others, but we will grow in a measured, methodical way. That’s how we’ve done it for 140 years.”

New markets are on the drawing board for Generations, but Case declined to discuss specific locations for new branches. He adds that the bank’s leadership believes strongly in the importance of a physical presence in its communities.

As much as possible, Generations tries to staff its locations with people from is local markets, Case says.

“We go where the need is,” he says.

Based in Seneca Falls, Generations Bank has total assets of $255.3 million and nine locations in Seneca Falls, Auburn, Waterloo, Geneva, Union Springs, and Phelps. Generations announced its name change from Seneca Falls Savings in April.

In addition to the Seneca Falls Savings name, the bank used additional names in its other markets, such as the Bank of Phelps. Changing to a single name will allow the company to present a more cohesive identity, Case says.

The bank’s insurance business also changed names to Generations Agency from Royce & Rosenkrans.

The bank was running into some confusion over the word “savings” in its name, Case adds. That sometimes led customers to think the bank only handled passbook savings accounts and residential mortgages.

The expansion of its commercial business made it important for the bank’s name to communicate the broader focus, Case says. The board settled on the Generations name to display its commitment to serving its communities for the long haul.

For the first quarter, net income available to common shareholders at the bank totaled $307,000, or 13 cents a share, down from $328,000, or 14 cents a share a year earlier. For 2011, net income available to common shareholders totaled about $1.3 million, or 57 cents a share, up from $1.1 million, or 50 cents a share, in 2010.