New York State Comptroller Thomas P. DiNapoli and Department of Financial Services Acting Superintendent Kaitlin Asrow today announced the approval of the towns of Shandaken and Olive as a Banking Development District (BDD), and the State Comptroller provided a deposit of $10 million to Ulster Savings Bank’s (USB) Phoenicia branch.
The BDD program supports the establishment of bank and credit union branches across the state where there is a demonstrated need for banking services. DFS administers the program and recently designated the contiguous area of the towns of Shandaken and Olive as a BDD. USB’s Phoenicia location is now a designated BDD branch eligible for state deposits. BDD applications by eligible financial institutions must be submitted in partnership with a local government.
The BDD program was created to encourage and incentivize qualified banks and credit unions to open or maintain banking branches in underserved areas, and, subject to a DFS recommendation, authorizes the State Comptroller to deposit state funds to eligible institutions. The Office of the State Comptroller’s deposit of $10 million in state funds in the USB branch will enhance its operations and provide affordable and accessible banking products and services to the Shandaken and Olive communities.
“The designation of the towns of Shandaken and Olive as a Banking Development District will help expand access to essential banking services,” DiNapoli said. “My thanks to the Department of Financial Services and the local communities for their partnership in making this possible. By placing state deposits at Ulster Savings Bank’s Phoenicia branch, we can help expand access to credit, support local businesses and promote long-term economic growth.”
“The BDD program is an important tool to support underserved communities with access to safe, accessible and affordable banking services,” Asrow said. “The Department is proud to continue to expand this program and advance our mission of creating an inclusive financial system across New York State.”
“The designation of our Phoenicia branch as a Banking Development District is deeply meaningful to us, not just as a bank, but as a neighbor and partner in this community,” Bill Calderara, President and CEO of Ulster Savings Bank said. “This approval reflects a shared belief that access to responsible, affordable banking can change lives, strengthen local businesses, and help communities thrive. We are sincerely grateful to New York State Department of Financial Services team and State Comptroller DiNapoli and his staff for their commitment, collaboration, and care throughout this process. Their dedication made this milestone possible, and it will have a lasting impact on the people and neighborhoods we are proud to serve.”
“Shandaken and Olive have been banking deserts for far too long, but their new designation within the Banking Development District program is a major step forward in solving that inequity for their residents and businesses,” Senator Michelle Hinchey said. “When people have a local bank or credit union they trust, it has the power to change the course of a person's life, whether it's a small business looking to grow, a family hoping to build a more stable financial future, or a senior needing local services they can easily access. I thank State Comptroller DiNapoli and Acting Superintendent Asrow for making this happen, and I want to especially thank Ulster Savings Bank — their leadership in identifying this gap and working creatively to close it is exactly the kind of vision that will boost economic growth and help our region thrive into the future.”
“This designation will help expand economic opportunities for our local economy and empower our community to build a more stable financial future,” Assemblymember Brian Maher said. “This designation is an important step to create a stronger future for our regional economy.”
“Our Town has one institution banking in it: Ulster Savings, Phoenicia Branch. We’re thrilled to now be able to do municipal banking in our back yard,” Shandaken Town Supervisor Barbara Mansfield said.
The Phoenicia branch is committed to providing affordable banking products and services, expanding banking access and increasing financial education initiatives that will support local economic growth and financial empowerment and inclusion within the community. USB’s banking products and services include secured credit cards, government-backed mortgages and reduced fee or no fee products and services, and the branch will sponsor financial education, identity theft and elder abuse and scams workshops.
The USB branch, located at 58 Main Street, Phoenicia, NY 12464, marks the state’s 59th BDD designation. As of May 1, 2026, the State Comptroller’s office has deposits totaling approximately $540 million in 13 banking institutions that have opened or maintained branches in BDDs across New York State.
Learn more about the Banking Development District program on the DFS website.