Rhinebeck Bancorp in Poughkeepsie, N.Y., is looking to form a commercial bank.
The $946 million-asset company filed an application last week with the Federal Deposit Insurance Corp. requesting deposit insurance for Rhinebeck Commercial Bank. The bank would be based in the same building that houses Rhinebeck’s corporate offices.
The application wasn’t immediately available. Efforts to reach Michael Quinn, Rhinebeck’s president and CEO, were unsuccessful.
The reasons for the application are unclear, though several New York mutual banks have pursued separately chartered commercial banks in recent years because state law bars mutuals from working with municipalities.
Seneca-Cayuga Bancorp in Seneca Falls, N.Y., received approval from the FDIC in 2018 to create
Dime Community Bancshares in Brooklyn, N.Y., considered a similar route, but it eventually withdrew an application for Dime Municipal Bank after deciding that it would be difficult to gain business as a new entrant.
