Bridgeport's Community's Bank Declared Insolvent
FDIC Named Receiver
September 13, 2013
State Banking Commissioner Howard F. Pitkin today declared that the financial condition of The Community’s Bank, headquartered in Bridgeport, Connecticut, was such that it would be unsafe and unsound for it to continue operations. A petition was filed at the Superior Court for the Judicial District of Hartford County to name the Federal Deposit Insurance Corporation (FDIC) as Receiver. Pitkin noted that each depositor would continue to be insured by the FDIC up to the $250,000 limit.
Beginning on Saturday morning, bank and regulatory personnel will be at the bank office to respond to telephone inquiries regarding how customers may access their deposit accounts.
Pitkin explained that the action taken today was necessary because of continued operating losses which have depleted the institution’s capital. Information filed with the Superior Court indicated the bank had a deficit capital position of $31,000 at June 30, 2013.
“The Banking Department worked diligently to find ways to allow for the continued operation of The Community’s Bank. Unfortunately, despite considerable efforts in seeking an acquirer or viable investor, the bank’s issues could not be resolved and my primary responsibility is to the protection of Connecticut consumers, and in this case, specifically the depositors of this institution,” commented Commissioner Pitkin.
According to Pitkin the bank has been under increased regulatory scrutiny since 2010, and despite efforts to recapitalize the bank, its financial condition continued to erode. This is the first bank failure in Connecticut since 2005.
The Community’s Bank was chartered in 2001 as a Connecticut bank and trust company. The Community’s Bank acquired three branches as a result of the divestiture of branches as part of the Fleet/Bank of Boston merger. The branches were located in Bridgeport, Bloomfield, and Hartford, Connecticut. The Hartford branch was closed in 2003, and the Bloomfield branch was sold in 2004 to Windsor Federal Savings and Loan Association.
For additional information, please review the questions and answers below.
The Community's Bank Additional Receivership Information
Where is the information related to The Community’s Bank (TCB) on the Banking Department’s Web site?
The press release is posted to the Web site at http://www.ct.gov/dob/.
Where is TCB based?
TCB executive offices are located at 1087 Broad Street, Bridgeport and its branch is located at 2574 East Main Street, Bridgeport.
What services were offered by TCB?
TCB offered a full range of banking services, including consumer and business deposit accounts, residential and commercial loans, and online account services.
What does the closing of TCB mean for a customer’s account?
Connecticut Superior Court appointed the FDIC as receiver of TCB. As Receiver, the FDIC will oversee the payout of deposit accounts by mailing checks to deposit customers for their insured amounts. Loan customers should continue to mail scheduled payments to the regular address until further notice.
How were the issues/problems at TCB brought to the Banking Department’s attention?
TCB, as a state chartered bank and trust company, was subject to regulatory oversight by the Connecticut Banking Department and FDIC. The regulators have been closely monitoring the bank and its attempts to find a new owner and inject needed capital.
Why was TCB closed?
The Banking Commissioner determined that TCB was insolvent and was operating in an unsafe and unsound condition, and under Connecticut Banking Law the Banking Commissioner sought receivership.
Where can I find additional information?