New York DFS expands chartered bank system

The New York State Department of Financial Services (DFS) recently approved the applications of a pair of financial institutions as a means of expanding the state’s chartered bank system.

Financial Services Superintendent Maria T. Vullo said DFS approved branch applications for Empire State Bank, a New York State-chartered bank, to open two new branches in Staten Island and Brooklyn, New York, while also granting Bridgehampton National Bank’s application to convert its charter to conduct business to a New York State Banking Charter, effective Dec. 31, 2017.

“DFS appreciates these two banks’ commitment to the New York State-chartered banking system, which is a testament to the strength, effectiveness, and value of the state-chartered banking system,” Vullo said. “DFS is committed to supporting New York’s local communities and fostering a competitive financial services marketplace while providing strong regulatory oversight and consumer protection.”

Officials noted Bridgehampton National Bank is the 13th federal bank to convert to a New York State charter since DFS was formed in October 2011. After the conversion, The Bridgehampton National Bank will change its name to BNB Bank.

“We are pleased to receive approval from the Department of Financial Services to convert to a New York state-chartered bank,” Bridgehampton National Bank president and Chief Executive Officer Kevin M. O’Connor said. “We are dedicated to serving the financial needs of New Yorkers, and we look forward to working with DFS as our primary regulator beginning in 2018. The state charter will allow BNB to compete in the New York market while benefiting from the insight of locally focused regulators.”

DFS officials said New York currently has a total of 139 state-chartered commercial banks, savings banks, and bank holding companies, 16 state-chartered credit unions, 84 foreign branches, 10 foreign agencies, and 27 representative offices.