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2017 | Doing Business in Connecticut 51 O ne of the most interesting and unique aspects of Connecticut's financial services market is the large number and wide variety of banks and credit unions. While many states outside of New England may be covered by a handful of banking-industry giants, Connecticut's business are also served by a large network of small- and medium-size institutions with local roots and a steadfast commitment to local businesses. ose institutions include almost four dozen banks and nearly 120 credit unions based in the state. As the financial crisis set in almost a decade ago, many of the nation's larger lenders brought small business lending to a halt, allowing Connecticut's community and regional banks to prove they have the power, expertise and relationship-building acumen necessary to pick up the slack. Lending variety For a state of only about 3.6 million residents, Connecticut has a staggering variety of banking options, from huge "money-center" banks to super-regional players to small, lo- cal institutions and tiny credit unions. What separates them may be how they approach business customers, especially when things are less than perfect. "We did not close the lending window during the depths of the recession," said Tim Bergstrom, regional president for the Hartford market at Waterbury-based Webster Bank. Now, Webster — which in recent years has ex- panded to 177 branch offices in four states — is seeing the credit quality of its business borrow- ers improve and is capitalizing on the good will it built up when times were tougher. "It comes down to our values, taking per- sonal responsibility for our customers' needs, being ethical and being active in the commu- nities we serve," Bergstrom said. "You have to focus on the customer." Webster also has a strong lending practice aimed at manufacturers, including loans for equipment purchases and other capital expens- es, a practice that has been growing especially well over the last few years, Bergstrom said. Connecticut is home to 42 banks, which claimed nearly $104 billion in total assets as of the third quarter of 2016, and that number has been rising steadily as asset quality, never much of a sore spot for Connecticut banks, has strengthened, according to the FDIC. e FDIC's figures also indicate that Connecticut banks are doing more lending for construction and development, commercial real estate and industrial customers. Andreas Kapetanopolous, senior vice president of small business and government banking at Farmington Bank, said small- and medium-size business banking opportunities have been warming up in the bank's mar- ket recently. "We're seeing good opportunity. In the last few years, it's grown more and we're seeing good credit quality come along with that and that's a win-win for us," he said. at growth has come as Farmington has grown. e bank, established in 1851, has been expanding beyond its home market in Central Connecticut, and now has 26 offices, including two in the Springfield, Mass., area and two on the Connecticut shoreline. For Kapetanopolous, the key to success is making sure bankers are closely in touch with the capital needs of their custom- ers, and that takes dedica- tion, persistence and oen, some good old-fashioned shoe leather. "We don't wait for the business to come to us," Kapetano- polous said. "e team is out there knocking on doors, they're in Rotary, they're on boards, the chamber [of commerce], and we'll go knocking on doors visiting existing customers, going to seminars." Kapetanopolous said Farmington has seen expansion, especially in the small-busi- ness market. "It's not a rapid expansion, but it's a steady expansion, and that builds a great base for us," he said. Some of those customers include a brewery in West Hartford and an existing day care center expanding in Farmington. "ese are existing customers that want to bring their businesses to the next level," Kapetanopolous said. ❑ Access to Capital Stays Strong in Connecticut Money keeps flowing for state's small- and medium-sized businesses By Matthew L. Brown Andreas Kapetanopolous, senior vice president of small business and government banking, Farmington Bank. PHOTO/FARMINGTON BANK Webster Bank's branch located within the CityPlace I office tower in Downtown Hartford. PHOTO/WEBSTER BANK