Luse Gorman Serves as Legal Counsel to Seneca Savings in its MHC Reorganization and Offering of $9.1 Million of Common Stock

On October 11, 2017, Seneca Savings, Baldwinsville, New York, completed its mutual holding company reorganization and concurrent initial public offering by Seneca Financial Corp. (“Seneca Financial”), the holding company of Seneca Savings.  Seneca Financial sold 910,305 shares of its common stock in a subscription offering at $10.00 per share, representing 46% of Seneca Financial’s outstanding shares.  The stock offering closed slightly below the adjusted maximum of the stock offering range.  The remaining 54% of Seneca Financial’s outstanding shares of common stock were issued to Seneca Financial MHC, the mutual holding company parent.  Seneca Financial’s common stock began trading on the OTC Pink Marketplace operated by OTC Markets Group under the symbol “SNNF” on October 12, 2017.

Seneca Financial’s stock offering is the first public mutual holding company stock offering completed with less than $10.0 million in gross proceeds since 2015. The completion of Seneca Financial’s minority offering demonstrates the viability of smaller mutual holding company stock offerings.

Luse Gorman served as legal counsel to Seneca Savings in the reorganization and offering. The Luse Gorman team was led by Benjamin Azoff and Jeffrey Cardone.

Seneca Savings has $172.4 million in total assets and is a federally-chartered savings association serving the financial needs of its customers located in Onondaga County, New York and contiguous counties.  Seneca Savings conducts business from its main office and two branch offices.