Allegany County legislators on May 28 discussed recent Community Bank branch closures in Wellsville and Belfast and signaled support for pursuing state rule changes that could allow municipal deposits in credit unions and savings-and-loan institutions.

The nut graf: Legislators said the county has seen multiple branch closures — cited during the meeting as Wellsville and Belfast most recently, with earlier closures in Angelica, Canaseraga and Andover — and that state law currently limits municipal depositories to certain types of financial institutions. One assembly bill on the agenda would permit municipal entities to deposit in savings-and-loan institutions and credit unions, a change supporters say could help sustain local branches.

Members recounted constituent reactions and local impacts. One legislator read a constituent letter that called the closures “devastating to our communities and local economy,” and another said seniors who rely on in-person banking would be hardest hit. “It is stressful on the local residents to have a branch of a bank that they have depended on for so long to close,” a legislator said.

Board members discussed local efforts and private options: a legislator told the board that community members in Belfast had approached Bend Trust about replacing the branch, while others noted that credit unions such as ALCO Federal Credit Union have expanded in the county in recent years. The county treasurer cautioned that any change must ensure public funds remain safeguarded.

Policy detail cited: a board member noted that, under definitions used by the Federal Reserve, a “banking desert” can be defined as no financial institution within 10 miles; other discussion focused on whether municipal law that currently limits deposit options is the appropriate vehicle for addressing branch closures.

Action taken at the meeting was procedural: the board indicated support for directing administration and the county attorney to draft a resolution to either support the listed assembly bill or to prepare a county resolution addressing federal oversight and rural banking deserts; members signaled agreement by show of hands. No formal roll-call vote was recorded.

Ending: Staff were asked to draft resolution language and return it to the board for review; legislators said they would consider both state-level bill support and a separate federal-directed resolution.