Apply for a State Bank Charter

Section 36a-70 of the Connecticut General Statutes allows for the organization of an insured, Connecticut state-chartered bank.  Organizers have the option of choosing between a variety of charter options including: a state bank and trust company (also referred to as a commercial bank); a savings bank; a savings and loan association; a community bank; and a community development bank.  

Key Requirements/Qualifications

• Minimum equity capital of $5 million
• One-time $15,000 Application Fee
• Certificate of Incorporation filing
• Character and experience assessments of the entity’s executive management team (including biographical and financial report submissions)
• Performance of a feasibility study (as ordered by the Commissioner)

Organizers interested in a community bank charter or a community development bank charter should contact the Department of Banking directly regarding specific limitations and requirements.

Application Process

• Schedule a meeting with the Department of Banking to discuss application logistics and requirements (this should occur at least 30 days prior to the planned submission of a draft application)
• Submit draft application
• Department of Banking will provide a review and response to the draft application submitted
• Resubmission of draft application may be required for additional review
• Submit actual application 
• Department of Banking orders feasibility study within 20 days of receipt of application (per statutory requirements)
• Public Hearing is scheduled by the Department of Banking upon receipt of the feasibility study to occur within 30 days of receipt of the feasibility study (per statutory requirements)
• Temporary certificate may be issued upon the Department of Banking’s satisfactory review of all application materials submitted, including a review of the feasibility study (allowing for the organizers to complete the organization of the bank)
• Upon issuance of a temporary certificate, organizers apply with for deposit insurance with the FDIC
• A target opening date should be provided to both the Department of Banking and FDIC (to allow for parallel yet coordinated review processes by the two regulators)
• An examination of the entity is performed after the entity has been fully organized according to statute (including raising the required capital)
• A final certificate may be issued after examination findings have been addressed by the entity and the Department of Banking has determined that applicable requirements of 36a-70 are appropriately met

Organizers are encouraged to contact both the Department of Banking and FDIC prior to any submission of documents to further discuss and understand the chartering process.  Organizers should anticipate frequent communication throughout the application process.

Items to Include in the Application

• Draft Certificate of Incorporation 
• Business Plan
• Pro-Forma Financials for at least 3 years
• Description of the Organizers, Directors and Executive Management Team
• Policies and procedures of the organized entity
• Interagency biographical and financial reports for the entity’s organizers, directors and officers

Applicants are strongly encouraged to use the "Interagency Charter and Federal Deposit Insurance Application" for their submission - see below.

Resources

• Section 36a-70 of the Connecticut General Statutes
• Interagency Charter and FDIC Insurance Application
• Connecticut Addendum to Interagency Charter and FDIC Insurance Application
• Interagency Biographical and Financial Report Form (Uninsured Banks)
• Authorization to Release Information

Contacts

Danzel Palmer, Director, Financial Institutions Division

Matt Saunig, Assistant Director, Financial Institutions Division

Joseph Wallace, Banking Department Manager