The Department of Banking News Bulletin

Bulletin # 2112
Week Ending August 13, 2004

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Commissioner of Banking, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.

BRANCH ACTIVITY
State Bank Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

On August 11, 2004, the Banking Commissioner entered into a Settlement Agreement with Joseph V. Ciaburri, Chairman and Chief Executive Officer of The Bank of Southern Connecticut ("the Bank"), and Michael M. Ciaburri, President and Chief Operating Officer of the Bank (collectively referred to as "the Respondents"). The Settlement Agreement was based upon an investigation by the Financial Institutions Division of the Connecticut Department of Banking which found a violation of the Connecticut General Statutes Section 36a-262(a) regarding limitations on liabilities of any one obligor. Specifically, the Respondents approved three (3) loans and issued a commitment letter on behalf of the Bank for such loans which resulted in a concentration of unsecured credit exceeding 15 percent of the equity capital and reserves for loan and lease losses of the Bank. Such conduct constituted violations of Section 36a-53(d)(1)(c) of the Connecticut General Statutes.

Each respondent has agreed to pay a civil penalty of $2,500. In addition, the respondents agree to maintain policies and practices that will ensure no future occurrence of said violations.

SALE OF ASSETS

On August 3, 2004, pursuant to the provisions of Section 36a-210 of the Connecticut General Statutes, The Community's Bank requested approval to sell the assets of its branch located at 48 Jerome Avenue, Bloomfield, Connecticut, to Windsor Federal Savings and Loan Association, Windsor, Connecticut.

CONVERSION

On August 10, 2004, pursuant to Section 36a-135 of the Connecticut General Statutes, as amended by P.A. 03-259, the Commissioner granted approval to Naugatuck Valley Savings and Loan, S.B., Naugatuck, Connecticut, to convert from a mutual savings bank to a federal mutual savings bank to be known as "Naugatuck Valley Savings and Loan".