Jan. 6--Two Western New York banks say they will continue to work with a Grand Island technology firm for at least two years, despite the firm's acquisition last week by a larger area banking rival.

The purchase of Suchak Data Systems by Angola-based Evans Bancorp means that Lake Shore Bancorp and Bank of Akron will now receive at least some transaction processing services from a direct competitor.

But at least for now, that's not dissuading either bank from sticking with Suchak.

"We are currently under contract with Suchak Data Systems and we currently plan to stay with them until the contract runs out," David Mancuso, president and CEO of Dunkirkbased Lake Shore, said by email. "We will have to see how the ownership by Evans Bank will affect Suchak Data Systems before we can make a decision about staying with them in the future."

Lake Shore uses Suchak for check-processing, Internet banking and online bill-pay services. Mancuso said officials will "review all the options" for those services before the contract runs out to decide "the best course" for the savings bank. That includes considering if Lake Shore is getting "the best product at a reasonable cost," he said.

Similarly, Bank of Akron will consider "all options for our technology needs" when its contract expires but "we do not view Evans' purchase of SDS as a competitive threat" because of confidentiality clauses in the contract, said Akron president and CEO E. Peter Forrestel II.

Under the transaction, Suchak, which was founded in 1981 by Vinod Suchak, is becoming a separate subsidiary of Evans and will remain located on Grand Island. However, there are no plans for the company to change its business to serve only Evans, Suchak said in an interview.

Evans was one of the firm's original customers, but the company also serves Somerset Trust Co. in Pennsylvania, as well as Lake Shore and Bank of Akron. So far, none of the banks have expressed concern about the new arrangement, Suchak said.

"We have talked to them about it. I don't see much difference in terms of servicing those other customers," he said. "It mutually benefits them, too, in a sense. We're going to get more resources."

jepstein@buffnews.com

-----

To see more of The Buffalo News, N.Y., or to subscribe to the newspaper, go to http://www.buffalonews.com.

Copyright (c) 2009, The Buffalo News, N.Y.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-NMS:EVBN, NASDAQ-NMS:LSBK, OTC-PINK:BARK,

A service of YellowBrix, Inc.