New York's attorney general has reached agreement with Five Star Bank requiring it stop excluding predominantly minority neighborhoods in the Rochester area.
Attorney General Eric Schneiderman says an investigation showed the New York-chartered bank left those neighborhoods out of its lending area, deemed loans there "undesirable" and excluded borrowers seeking mortgages of $75,000 or less, effectively making many of its loans unavailable there.
Five Star has 49 branches across western New York with 19 in the Rochester area, but none in the city itself.
It added the city to its lending area in 2013.
The agreement requires opening two new branches. The first has been approved for Rochester's new CityGate development.
The company says it cooperated and has remained committed to complying with federal and state fair lending laws.