Seneca-Cayuga Bancorp, Inc., the holding company for Generations Bank, together with the boards of directors of The Seneca Falls Savings Bank, MHC, the mutual holding company of Generations Bank expect to implement a second step stock conversion in which the MHC would sell its majority ownership in Seneca-Cayuga in a “second-step” stock offering.
Seneca-Cayuga, which is currently in the mutual holding company structure, would reorganize to a fully public stock holding company.
As part of the conversion and reorganization, Generations Bank would become a wholly owned subsidiary of a new holding company. Shares of common stock of Seneca-Cayuga held by persons other than the MHC (whose shares would be cancelled) would be converted into shares of common stock of the new holding company pursuant to an exchange ratio generally intended to preserve the percentage ownership interests of such persons.
President and CEO Menzo D. Case said, “Generations Bank, Seneca-Cayuga Bancorp and their MHC are excited to jointly announce this important step for our organization. We feel that a second step transaction is the best way to serve the interests of our stockholders, customers and community in today’s challenging banking environment.”
Bradford M. Jones, the Chairman of the Board of the Company and the Bank added, “This transaction represents the culmination of a long strategic planning effort as to how to best provide cutting edge banking products and services to our community members. Our bankers have worked long hours throughout the pandemic to provide much needed financial services in the Finger Lakes area and this transaction is yet another aspect of that effort.”
The second step transaction will be subject to the approval of Seneca-Cayuga stockholders (including approval by a majority of the shares held by persons other than the MHC), the voting members of the MHC (depositors of the Bank), the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.