Hartford Business Journal

HARTFORDBUSINESS.COM | August 15, 2022 23 FOCUS: BANKING & FINANCE encouraged more community bank startups in recent years. But it's a long road from idea to reality. Frank was hired as a consultant at New Haven Bank in 2012, two years after the bank launched. She was promoted to acting CEO in 2013, and formally took over that post in 2014. She said it took a few years to get chartered because of heightened regulatory attention following the 2007 economic crash. "(Regulators) want to make sure that they're not making deals that could prove unfavorable to the institu- tion in the long run," Frank said. Carusone said the entire process for chartering a bank through pre-opening takes between nine months to a year, and that doesn't include the time organizers spend raising capital. It's legally intensive, he said. New Canaan's application, which the Bank Analysis Center looked at on behalf of the state, took almost a year before reaching the preliminary approval stage. "Application materials are definitely more scrutinized than they were before," Carusone said. Community appeal Now more than 10 years after opening, New Haven Bank manages about $165 million in assets and has its eyes on expansion. Frank said brick-and-mortar sites are important for smaller banks, and the institution is planning to open two new branches in greater New Haven within the next year. "For a community bank that's trying to serve a smaller population of people, you definitely need that physical presence," Frank said. Guilford Savings Bank Senior Vice President, Director of Marketing and Cash Manage- ment Renee Pallenberg said her community lender has grown to eight branches with about $1 billion in assets. It has a goal to continue expanding statewide. Like Frank, she said customers appreciate being able to meet and work with employees in a more local setting. "We offer pretty much everything a commercial bank might offer, but I think the difference still comes down to the more customized and person- alized approach," Pallenberg said. Perez said community banks serve an important role in the economy and will continue to exist, even if they're not as abundant as they once were. "As convenient as technology may be, people still want the personal touch," Perez said. "So that's why there's always going to be room for community banks." New Canaan Bank still has a long road before it can open. The tempo- rary certificate of authority is not a full approval. Instead, it gives the bank founders 18 months to meet certain conditions — like getting Federal Deposit Insurance Corp. and other types of insurance, obtaining office space and raising capital — before a bank charter can be officially issued. Eagleson said he thinks there will be "a lot of eyes" on New Canaan because it's unique to have a startup in the state's current financial ecosystem. Regardless of the decline in new banks, Carusone said Connecticut has a strong financial sector. "Connecticut is unarguably among the most attractive banking markets in the country because of its comparative retail affluence … and its commercial dynamism," Carusone said. "It's situated between Boston and New York and it's replete with a lot of businesses and high per-capita income." Member FDIC Equal Housing Lender All loans are subject to credit and underwriting approval. For more information contact Steve Roche, Market President: sroche@liberty-bank.com or visit liberty-bank.com/commercial-lending $4,500,000 Business Acquisition Financing Hartford, CT $43,000,000 Commercial Real Estate Loan Multi-Family Apartments Cromwell, CT $16,000,000 Mortgage Loans Gas Station/Convenience Stores CT & MA We're the kind of bank that helps our community grow. Mergers-acquisitions/failures far outpace new bank startups in CT BANKS IN CT 1980-1989 1990-1999 2000-2009 2010-2022 TOTAL & NET CHANGE SINCE 1980 New charters/subsidiaries 43 21 21 1 86 Mergers-acquisitions/failures 0 -46 -31 -21 -98 Net change 43 (25) (10) (20) (12) No. of CT banks at end of decade 87 62 52 32 Source: Bank Analysis Center in Hartford using Federal Deport Insurance Corp. and Federal Reserve data

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