Connecticut Banking 3Q 2011 by The Warren Group

Third Quarter 2011

INSIDE:

A BIGGER, BETTER BANK WORLD SOCIAL SECURITY GOES RANDOM A NEW BANK FOR NEW HAVEN

THE REPEAL OF REG Q

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CONNECTICUT BANKERS ASSOCIATION

10 Waterside Dr. Farmington, CT 06032-3083 Telephone: 860-677-5060 • Fax: 860-677-5066 Chairman John C. Roman

Second Vice Chairman John J. Patrick, Jr.

First Vice Chairman Martin J. Geitz

President & CEO Gerald M. Noonan

President & CEO Nangatuck Valley Savings & Loan

President & CEO Simsbury Bank

Chairman, President & CEO Farmington Bank

Senior Vice President & Secretary Lindsey R. Pinkham Vice President & Treasurer Thomas S. Mongellow Vice President Colleen E. Clancy

COVER STORY

Regulation Q Repeal An Operational Headache or Business Opportunity?.............. 12 As one of the first deadlines from Dodd-Frank goes into effect, the banking industry has no consenus on its outcome.

Connecticut Banking is an official publication of the Connecticut Bankers Association and is published quarterly by

With the exception of official association announcements, the Connecticut Bankers Association and The Warren Group disclaim responsibility for opinions expressed in Connecticut Banking. This publication is intended and designed to provide accurate and authoritative information, not to provide legal, accounting or other professional advice.

CONNECTICUT BANKING

Editor Lindsey R. Pinkham The Warren Group Chairman Timothy M. Warren CEO & Publisher Timothy M. Warren Jr. President David B. Lovins Group Publisher & Editor in Chief Vincent M. Valvo Finance & Administration Controller / Dir. of Operations Jeffrey E. Lewis Editorial Custom Publications Editor Christina P. O’Neill Associate Editor Cassidy Norton Murphy Advertising & Circulation Publishing Division Sales Manager George Chateauneuf Account Managers Richard Ofsthun Cara Inocencio Advertising, Marketing & Events Coordinator Emily Torres Design & Production Creative Director John Bottini Senior Graphic Designer Scott Ellison Graphic Designer Ellie Aliabadi ©2011 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805.

Photo credits: iStockphoto

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FEATURES

Start Community Bank Opens in New Haven.............................. 4 SSN Randomization Has Arrived..................................................... 6 Caught on Camera............................................................................ ....8 Expecting a Full House: A Grand New Bank World...................10

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Promotable People..................................................................... 16 Promotable Projects.................................................................. 20 3

Connecticut Banking Magazine • Third Quarter 2011

Start Community Bank Opens in New Haven By Lynn Miller

n the early evening of April 27, under a white tent erected in the parking lot at 299 Whalley Ave. and festooned with green, white and blue balloons, Start Community Bank greeted and then thanked everyone who helped the bank earn a charter and open its doors. Chartered as a community development bank, Start is committed to creating a better quality of life for the residents of greater New Haven by providing loans to residents and businesses that support affordable housing and create new jobs. The bank offers low cost convenience services such as check cashing and utility bill pay, easy to understand bank account products that meet the needs of members, and practical information about money and money management. The bank has two branches, one on Whalley Avenue, and one on Grand Avenue, both in New Haven. The bank obtained its official charter and FDIC insurance certification on Dec. 20, 2010, one of only three banks in the United States to do so. The bank decided to replace the standard grand opening with a spring “thank-you” event. CEO Bill Placke kicked off the official program with a welcome to the many supporters who attended, including Sen. Dick Blumenthal, New Haven mayor John DeStefano, local members of the Aldermanic Board, and neighbors. Also in attendance were the many vendor partners who worked tirelessly as the bank was built, including the crew from Chapel Construction, staff from the Connecticut Department of Banking, the bank’s operating system partner Fiserv, web partner Tortus Technologies, a myriad of accountants, lawyers, consultants – and last but not least, the START team. In place of a memento for the guests to take home, everyone was delighted to be included as co-contributors to the James Hillhouse High School Marching Band’s effort to raise money for new instruments and uniforms. A 25-member contingent of the band, all decked out in their START

Mark Sklarz, member of the board, William Placke, CEO, and Lou Stone of Chapel Construction surrounded by the James Hillhouse High School Marching Band.

Sen. Dick Blumenthal congratulating CEO Bill Placke.

T-shirts, marched into the tent and entertained the guests. The bank was pleased to welcome the young student musicians of Music Haven, a neighbor on Whalley. Led by a dedicated core of professionally trained musicians, the young impresarios performed a moving rendition of Michael Jackson’s “I’m Looking at the Man in the Mirror.” The sentiment echoed Start Community Bank’s mission to step up and serve the community. Placke also announced a partnership with the Youth@Work summer jobs program. After attending the “Loot Camp,” the students will be able to convert financial literacy into financial capability 4

by opening an account in their own name, with their own ATM card, that will accept the direct deposit of their pay. No more paper checks, no more trips to a check casher, and a savings incentive – when students reach a savings goal, they are automatically entered for a chance to win an iPad2. The evening concluded with guests enjoying and dancing to the rhythms of a Latino-flavored band from Fair Haven. Many also visited the branch to view the art work decorating the walls, courtesy of the StartArt contest student winners. u Lynn Miller is senior vice president of Start Community Bank.

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SSN Randomization Has Arrived

he Social Security Administration has departed from its multidecade-long method of assigning Social Security numbers as of June 25, 2011, and has begun assigning them on a random basis. Therefore, the SSA has eliminated the geographical methodology of assignment of area numbers (the first three numbers). These three digits are no longer allocated for assignment to individuals in specific states. In like manner, the significance of the highest group number (the fourth and fifth digits) for validation purposes has also been eliminated. Thus, those area and group numbers assigned as of June 25, 2011, and after can no longer be used to check states of SSN assignment (and states of birth or residence) and probable dates of SSN assignment and birth, the way we’ve all used them with our Social Security Number Verification manual for decades in the past.

The Good News The National Association for Bank Security has published its Social Security Number Verification manual since 1986 up through the 2011 edition (January 1, 2010 – December 31, 2010). It will shortly publish a final edition which will cover the traditional assignment of SSNs up to June 25, 2011. Knowing the characteristics of Social Security numbers and the numerical system utilized by the Social Security Administration in issuing SSNs, coupled with the ability to determine the year a particular SSN was issued, for many years has rendered the SSN one of the most valuable tools for detecting the use of false identification. The good news is 6

that it remains one of the most valuable tools for this purpose because our new SSN manual makes available over 50 years of SSNs and crucial related information generated during the era when SSNs were allocated and issued in the traditional, nonrandomized manner. The use of traditionally-issued SSNs (up to June 25, 2011) for over five decades by our 30-plus editions of our Social Security Number Verification series remains very valid, and the over 50 years of information can be found in our soon-to-be-published last edition of the manual, which will include all SSNs and related crucial information up to June 25, 2011.This, our last manual, will continue to provide an essential understanding of the Social Security numbering system and how SSNs are issued. It will also provide over 50 years of SSN charts which, for SSNs issued before June 25, 2011, should help enable any banker to: • determine whether or not a particular SSN was issued by the Social Security Administration (as of June 25, 2011); • determine if a particular SSN is one that could not possibly exist legitimately (e.g., the 900-series SSNs); • determine the state in which a particular SSN was issued, or the state in which a person resided at the time the SSN was issued; • determine the precise year (or, in some instances, an approximation within two years) a particular SSN was issued; • determine if a specific SSN could conceivably belong to a particular individual, based upon the

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apparent age of the person and the approximate year the SSN was issued; • determine the exact minimum age of the person who should be legitimately in possession of a specific SSN; • determine the probable age range of the person who should be legitimately in possession of a specific SSN; • determine if the alleged or apparent age of a person claiming to legitimately hold a specific SSN falls within either unlikely or highly questionable age ranges for that specific SSN. Thus, the verification/authentication techniques that have been used in past years to “check” SSNs will remain as valid as they have been in the past for all SSNs assigned prior to June 25, 2011. The techniques – and our new text entitled Social Security Number Verification – will remain perfectly valid and useful for years to come. The numbers that it works with (hundreds of millions issued between 1935 and June 25, 2011) are in stone. The Social Security Number Verification Manual is available at a cost of $69.95 from the National Association for Bank Security/Profit Protection, LLC, 4800 S.W. 51 Street, Suite 101, Fort Lauderdale, FL 33314; phone: 954-327-1223; fax: 954-327-1226; www.banksecurity.com. Substantial discounts are available for quantities of 20 or more. u

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Connecticut Banking Magazine • Third Quarter 2011

CONNECTICUT BANKERS

Caught on Camera

Pictured, left to right: Rich Vassallo, WEF; Florence Barlow, co-president, WEF; Gaye Rizzo, board member, WFS; Mark Griffin, president, WFS; Bill Chiodo, chairman of the board, WFS.

Windsor Federal Savings – Windsor Federal Savings held a birthday celebration to commemorate their 75th year in business. The event was held at their main office in Windsor, and was replete with cake, balloons, local dignitaries, and a slight variation from the traditional birthday party – Windsor Federal didn’t receive gifts, but gave them, instead. The lucky recipients of the gifts were the Education Foundations of Windsor, Granby and Bloomfield. Each foundation was formally presented a $2,500 check by Mark Griffin, president of Windsor Federal Savings, who commented, “Each of these foundations serves their school systems and towns in a way that benefits students and citizens positively. At Windsor Federal, we try to do the same, not just with our customers, but with the communities that we’re a part of. We’ve been active in our communities for 75 years, and we look forward to the next 75.” In addition to the representatives of the local Education Foundations, on hand for the celebration were Windsor Mayor Don Trinks; Bloomfield Mayor Sid Schulman; and Granby First Selectman John Adams.

Pictured: Presenters Pam Elkow of Robinson & Cole; Joseph McGee, vice president, public policy and programs, The Business Council of Fairfield; and Jay Forgotson.

Bank of Fairfield – BNC Financial Group CEO Jay Forgotson was a member of the panel of experts featured in a symposium presented by the Construction Institute of Fairfield County on May 11 at the UConn Stamford Campus. The forum addressed collaboration, environmental issues, globalization and financing and their evolving role in the construction industry. BNC Financial Group is the holding company for the Bank of New Canaan, The Bank of Fairfield and Stamford First Bank.

Essex Savings Bank – Gregory R. Shook, president and CEO, was a recipient of the Middlesex County Chamber of Commerce’s 2011 Distinguished Citizen Award. As president and CEO of the bank, Shook advocates relationship building while leading the $290-million bank, which has been in existence as a mutual savings bank since 1851, serving the eight-town market area of Chester, Deep River, Essex, Old Saybrook Westbrook, Lyme, Madison and Old Lyme. Shook also leads the bank in its service to the community at large. He has been the number one proponent in the continuance of the bank’s Community Investment Program. The bank donates 10 percent of its net profits to over 200 non-profit groups in the bank’s market area. Under Shook’s direction each year, hundreds of thousands of dollars are distributed to those in need.

Pictured, left to right: Robin Collins, supervisor of the Elmwood Community Center; John J. Patrick, Jr., chairman, president and CEO; and Todd Bower, vice president and branch manager of the new Elmwood office.

Farmington Bank – Farmington Bank celebrated the opening of its 16th branch office, and its second one in West Hartford, with a ribbon-cutting ceremony. The event, held at the new branch’s location in the Elmwood Plaza at 176 Newington Road, featured three check presentations of $2,500 from the Farmington Bank Foundation to the town of West Hartford Food Pantry, the Elmwood Community Center (pictured) and the Hillcrest Area Neighborhood Outreach Center.

Pictured: Debbie Hartman, branch manager and assistant vice president, New Milford branch, and winner Carol Gerger.

Vantis Life Insurance Company – Peter L. Tedone, president and CEO, is the 2011 recipient of the American Council of Life Insurers (ACLI) Forum 500’s Distinguished Service Award. He received the award at the Forum 500 Section’s Leadership Retreat in Washington, D.C. on May 11. The award is presented to an individual whose work has greatly contributed to the life insurance industry, especially to small and medium-sized life insurance companies, which the Forum 500 represents.

Savings Bank of Danbury – Congratulations to Carol Gerger of Sherman, who won Milford Branch’s Customer Appreciation Sweepstakes. Carol was the lucky winner of an iPad2®, which was raffled as part of the branch’s Customer Appreciation Week festivities.

Pictured, left to right: Vanessa Calabro, Jennifer DaSilva, Eugene Schreiner, Reyno Giallongo, Katherine Harris, and James Gareau.

First County Bank – First County Bank and its foundation were recently honored by the United Way of Western Connecticut as one of the largest corporate contributors to the 2010 United Way Campaign and a recipient of its “Give” award.

Pictured, left to right: Charles J. Boulier, III, Naugatuck Savings Bank president and CFO; Lisa Brewster, Naugatuck Savings Bank Mt. Carmel branch manager; Hamden Mayor Scott Jackson; Mark C. Yanarella, Naugatuck Savings Bank chairman and CEO; Dawn Orsini, Naugatuck Savings Bank vice president of retail banking; Nancy Dudchik, Hamden Chamber of Commerce president.

Naugatuck Savings Bank – Naugatuck Savings Bank opened a new branch office at 2989 Whitney Ave, Hamden. “We continue to grow our branch network as we strive to better serve our customers,” said Mark Yanarella, chairman and CEO of the bank. “Hamden seemed to be the perfect location to expand our footprint. Our new office will feature our customer-oriented design including a computer café and investment center, created to enhance our customer’s banking experience.” The month-long grand opening celebration kicked off on June 18.

Connecticut Banking Magazine • Third Quarter 2011

EXPECTING A FULL HOUSE

A Grand New BankWorld

New Venue, New Date, New Approach for Northeast’s Top Banking Event

he first thing local bankers will learn about the annual BankWorld conference and expo is that it’s going to be here much sooner than expected. BankWorld is the largest banking show in the Northeast. And for the past 16 years, it’s traditionally been held somewhere towards the middle of the year – the 2011 show happened in late April. But the next BankWorld will take place on Jan. 13, 2012. And that’s just the start of the changes coming to the conference. “We’re looking to drive more excitement, add more value for our bankers, and increase opportunities for education and networking,” said Colleen Clancy, vice president of the Connecticut Bankers Association, which produces the

show in partnership with The Warren Group. “BankWorld always gets high marks from attendees and sponsors. But we know we can’t rest on our success. So we’ve been working to develop ways to improve this show for everyone involved.” The 2012 BankWorld will now be held at the fabulous MGM Grand resort at Foxwoods. “This venue is a proven draw,” commented Vincent M. Valvo, group publisher and editor-in-chief at The Warren Group. “The MGM Grand was built with conference business in mind. The rooms are large and convenient, and the atmosphere is exciting and elegant.” BankWorld will occupy the Celebrity Ballroom. Advantages for the nearly 900 registrants of the event include the ability to have educational sessions in spacious

rooms connected directly to the tradeshow area, making traffic flow easier for attendees and exhibitors. “The rooms available to us will also allow us to program even more educational sessions for bankers,” said Clancy. “BankWorld’s great strength has always been that it delivers a lot of information in a short time frame, for exceptional value. Being at the MGM Grand will give us the chance to build on that.”

Building Community BankWorld’s success has also been rooted in one simple tenet: it works to build connections between bankers, banking groups, and banking vendors of all stripes. That’s why it has historically served also as a meeting space for organizations such as

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Third Quarter 2011 • Connecticut Banking Magazine

the U.S. Small Business Administration and BankersBank Northeast. “We’re continuing with that,” said Clancy. “But this move gives us an opportunity to really elevate that ‘community gathering’ nature of this event.” In part, that’s because attendees at BankWorld will get to go to not just one conference, but several. Running concurrently with BankWorld will be the New England Mortgage Expo, the largest regional mortgage conference in the nation. “The Mortgage Expo attracts more than 2,000 registrants,” said Valvo of The Warren Group, which produces the Expo with the Connecticut Mortgage Bankers Association. “It operates with event partners such as the Federal Home Loan Bank of Boston, the Appraisal Institute, the Real Estate Finance Association and more. And since the CBA has also been an event partner of the Expo, it makes sense to find a way for these two shows to work together.” That means that a badge to attend BankWorld will also give bankers admittance to the educational sessions open to all of the Mortgage Expo attendees.

Similarly, New England Mortgage Expo registrants will be able to attend BankWorld sessions. Badges will also grant the wearer access to either exhibit hall. Attendees will also find the New England Financial Marketing Association holding its Winter Conference at the MGM Grand at the same time. NEFMA, the organization for marketing directors at banks and other financial service institutions, makes at least one of its sessions open to all conference attendees. “We’ve got so many great groups coming together here,” said Clancy. “We’re also pleased to have the Center for Financial Training joining BankWorld as an Event Partner. CFT has crafted a topnotch reputation for banking education throughout the region. We’re looking forward to their contribution to the show.”

Looking For Leaders And on the eve of BankWorld, the CBA and Connecticut Banking magazine will be hosting a special Gala Awards Banquet celebrating the New Leaders in Banking for Connecticut. Throughout

the summer of 2011 and into the fall, the CBA is soliciting nominations for Connecticut bankers aged 40 or under who are making significant contributions to their institutions and communities. After a panel of independent judges selects the winners, they and their banks will be celebrated on Thursday evening, Jan. 12, at a lavish reception and dinner in their honor. “At its heart, BankWorld is a celebration of community banking,” said Colleen Clancy. “We believe, why not start it with a celebration of community bankers?” Look for more news on the all-new BankWorld over the next few months. Meanwhile, to nominate someone from your institution for the New Leaders in Banking awards, go to www. bankworldexpo.com, and just click on the “New Leaders” tab. (And for those who would like overnight rooms at the MGM Grand for Thursday evening, we’ve negotiated a discounted rate of just $119. Click on the “Contact” tab at the BankWorld site for more information.) u

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REGULATION Q REPEAL

An Operational

HEADACHE HEADACHE or Business Opportunity? By Denyette DePierro, Senior Counsel, American Bankers Association

ommunity bankers await July 21, 2011, with concern and anticipation. The July date is one of the first deadlines established under the Dodd-Frank Act for several new regulations to take effect. Among the changes is the repeal of the prohibition against paying interest on demand deposits, commonly referred to as Regulation Q. Beginning July 21, 2011, banks may offer interestbearing demand deposits, including checking accounts, to businesses and individuals. Regulation Q prohibits the payment on interest on demand deposits, which include checking accounts, certified check, traveler’s checks, or money orders. In practice, Regulation Q prohibited the payment of interest only on business checking accounts; as other account types, such as Negotiable Order of Withdrawal (NOW) accounts, developed to circumvent Regulation Q prohibitions and extended interest to individuals and a limited number of business entities. Despite the remaining prohibition on paying interest to commercial accounts, banks developed accounts extending interest-like payments to business customers too. Currently, commercial accounts may receive interest through two methods: a “sweep” account, or earnings credits. A “sweep account” moves money overnight to an interest bearing account, such as a mutual fund or investment account. Earnings credits waive bank fees for payroll and other bank services. In sum, Regulation Q does little to prohibit the payment of interest; it merely makes it more cumbersome.

A Short History of Regulation Q Regulation Q arises out of the banking crisis of the Great Depression, and the Banking Act of 1933,

which prohibited interest bearing checking accounts and set interest rate caps. Prior to the Banking Act, smaller banks commonly deposited funds in the interest-earning demand deposit accounts of larger institutions. Regulation Q was intended to (1) encourage banks to lend money, rather than to hold interest-earning balances, and (2) increase profitability of the banking industry by reducing interest rate expenses and decrease competition among banks for deposits.

Impact on Community Banks and Commercial Customers At this time, there is no consensus within the banking industry on the impact of the repeal. Many banks already pay for business accounts via a sweep product, and do not anticipate a significant increase in costs from paying interest directly. The anticipated effect on bank profits, and the allocation of deposit liabilities is closely tied to a bank’s local market and the interest rate environment. To understand the impact of the repeal, a bank should consider three variables: the local market, competition for deposits, and the interest rate environment. • Local market with low competition for deposits: In some smaller markets with less competition for deposits, few banks are paying for commercial deposits in the form of NOW accounts, repos, or sweeps. If deposit competition continues to be low, banks in these markets may elect to pay no interest or offer no earnings credits after the repeal of Regulation Q. • Low interest rate environment with high competition for deposits: In a low interest rate environment in markets where there is

This article is reprinted with permission as it originally appeared in the ABA’s Commercial Insights email bulletin. 13

Connecticut Banking Magazine • Third Quarter 2011

Operational Headaches

competition for deposits, most banks already are paying for deposits in some manner as NOW accounts, earnings credits, repos, or sweeps. For these banks, the ability to pay interest may offer a less tedious, less cumbersome method of paying for a deposit. Many banks have expressed that the cost difference in a low interest rate environment between paying direct interest and offering an interest substitute would not be significant. • High interest rate environment with high competition for deposits: In a high interest rate environment, banks in competitive markets will be under increased pressure to offer interest, and coincidently the cost of funds will increase and net interest margins may decrease. These markets likely will experience increased competition for high-balance business accounts, and the cost of funds will increase as these deposits become more difficult to attract and more expensive to retain. Community banks are particularly concerned that troubled financial institutions needing liquidity, “deposit starved” banks, and banks with a high cost of funds will aggressively market exceptionally high interest rates. These practices may place community banks with conservative deposit pricing at a disadvantage.

Although the one-year repeal of Regulation Q was well known, the implementing notice of proposed rulemaking was released only 96 days before the Dodd-Frank Act mandated deadline of July 21, 2011. Banks choosing to offer interest bearing demand deposits have a short period of time and high operational burden to develop new deposit products, update contracts and disclosures, educate customers, determine the proper quarterly reporting for new interest-bearing products, and, depending on the applicable FDIC insurance levels, move a substantial volume of customer funds into new deposit products.

Call Reports and TFRs Need to be Modified

Before the September 2011 reporting deadline, Call Reports and Thrift Financial Reports (TFR) need to be modified for the interest-bearing demand deposit account products that will be developed following the repeal of Regulation Q. Call Report and TFR instructions need to explain clearly how to report (1) accounts bearing paid interest, and (2) accounts bearing hybrid interest.

Clarity Needed for New Hybrid Products

Post-Reg Q, the banking industry’s best defense against interest rates spiraling to exceptionally high and unsustainable levels are more account options, including interest, earnings credits, premiums, bonuses, and hybrid accounts.

The term “hybrid product” describes post-Regulation Q demand deposit accounts offering a combination of earnings credits and interest payments. Many institutions are interested in offering these products, but more regulatory clarity is needed.

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Third Quarter 2011 • Connecticut Banking Magazine

Specifically, banks need to know if hybrid accounts will be considered interest bearing, and how unused earnings credits may be used, particularly if credits may be rolled over monthly or reserved indefinitely for future use.

“rate chasers” and give the bank more pricing tools, which would lessen the bank’s reliance on interest rate increases to capture deposits. Anecdotally, business customers are expressing a strong preference for earnings credits and likely will continue to request earnings credits after the Regulation Q repeal.

Business Opportunities

Improved Parity with Credit Unions

Post-Regulation Q, there will be opportunities for banks to be more creative with the types of benefits extended to customers. Depending on needs and preferences, both individual and commercial customers, may receive earnings credits, premiums, or bonuses – or a combination of these options – in lieu of paid interest, or in addition to paid interest.

Before the repeal of Regulation Q, FDIC insured financial institutions were at a disadvantage relative to credit unions, which pay interest on business checking and are moving aggressively into the small business-banking niche. When shortterm interest rates increase, the inability to offer interest-bearing business checking accounts would become a competitive disadvantage for banks if Regulation Q were not repealed. In a high interest rate environment, commercial customers would seek out credit unions offering interest-bearing business checking, while banks would be barred from competing for the interest-bearing demand deposit accounts of business customers.

Reintermediation of Funds Outside the Traditional Banking System

The ability to pay interest may assist banks of all sizes and charter types to attract funds previously placed outside of the traditional banking system. The reintermediation of corporate money will be more noticeable when interest rates increase.

New Role for Earnings Credits kers - Summer, 2010

In the short-term, the repeal of Regulation Q likely will be marked by continued uncertainty and operational burdens as community banks develop products and respond to new regulatory demands. However, in time, the flexibility ushered by the repeal of Regulation Q’s limitations should foster banking innovation in new depository products and customer service options. u

For banks, earnings credits and hybrid accounts may soften the impact of the increased cost of funds and mitigate the upward spiral effect of “rate chasing.” If the industry experiences a high demand for interest-bearing demand deposits in a high interest rate environment, an increased variety of interest options and earning credits would moderate the influence of

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PromotablePeople Recognizing the career milestones of the people who contribute to Connecticut’s banking industry. Naugatuck Savings Bank – Mark C. Yanarella has been named chairman of the board of directors and chief executive officer. Charles J. Boulier, III, Mark C. Yanarella has been named president and chief financial officer. This comes as part of an 18-month transition that will see Yanarella retire from daily operations at Naugatuck Savings Bank Charles J. Boulier, III and gradually transfer leadership over to Boulier. Craig W. Porter has joined Nutmeg Financial, MHC, as vice president and marketing director. In this role, he is responsible for effectively Craig W. Porter overseeing all marketing and advertising functions of Nutmeg Financial and its wholly owned subsidiaries, Naugatuck Savings Bank and Sutherland Insurance Group. Kathleen A. McPadden Kathleen A. McPadden has joined the bank as vice president of human resources. In this role, McPadden will be responsible for overseeing human resources and training for Naugatuck Savings Bank and Sutherland Insurance Group, and will serve on the bank’s Executive Management Committee.

Jim Cronin

Nick Caplanson

David J. Stanland

Dime Bank – Jim Cronin, president and CEO of Dime Bank, announced he will be retiring in September. Cronin has been with Dime for over 40 years and has served as its president and CEO for 24 years. Nick Caplanson, who is currently the senior vice president and chief financial officer at Dime, will become the 14th president and CEO. David J. Stanland has

John C. Adams

joined the bank as its new senior vice president and chief financial officer. John C. Adams has joined the bank as its new assistant vice president and technology officer.

Rockville Bank – William H. W. “Bill” Crawford, IV, officially became president and chief executive officer of Rockville Financial, Inc., and Rockville Bank in late William H. W. Crawford April. He joined Rockville Bank as its senior executive vice president in January 2011. He is a banking executive with a 23-year career at Wells Fargo & Company and its predecessor banks, Wachovia and South Trust. Fairfield County Bank – Gary C. Smith retired on June 30, 2011. Smith joined the bank as president and CEO in 1987 and has served 24 years with the Gary C. Smith bank. He will remain on the board of directors. David S. Schneider will succeed Gary C. Smith as CEO. He joined the bank in 1994. As CEO he will also be a member of the board David S. Schneider of directors. He has been CFO of Fairfield County Bank for the past nine years. Dan Berta will serve Fairfield County Bank as COO. He joined the bank Dan Berta in 2007 as executive vice president, coming from Chase ,where he had 17 years of service and the title of senior vice president. Stamford First Bank – CEO Jay Forgotson has announced that the bank has named a divisional board of community and business leaders to strengthen the foundation of the new bank that opened its doors in late July 2010. The board members include: 16

Ron Miller, Chairman, Jim Benjamin, Mike Berkoff, Gerry Bosak, Paul Bova, Don Corbo, John DeSimone, John DeMenna, Jr., David Eben, former Lt. Gov. Michael Fedele, Michael Gray, James Grunberger, Steven D. Grushkin, Bill Hennessey, Joseph Maida, Fran Pastore, Joseph Richichi, Mark Smith, Barbara J. Smith-Soroca, Jonathan Waxberg, and Penny P. Wickey. Chelsea Groton Bank – Ben Benoit has joined the bank’s board of directors. Benoit serves as president of the PCW Management Center, a family office, Ben Benoit providing financial, investment, tax and estate planning services. He also serves as the executive director of The PCLB Foundation, Inc., a sister entity. Simsbury Bank – Michael D. Nicastro has been elected a director of the bank. Nicastro has been involved with the Greater Bristol Chamber of Commerce, and is the senior vice presiMichael D. Nicastro dent and chief marketing officer of Open Solutions, Inc.

Steven Erickson

Windsor Federal Savings – Steven Erickson has been appointed to Windsor Federal’s board of directors. Erickson is a CPA and partner in the firm of Whittlesey & Hadley, P.C.

The Bank of New Canaan and Stamford First Bank – Michael J. Pida has been named vice president and residential sales manager. Pida has been vice presiMichael J. Pida dent and residential sales manager at The Bank of Fairfield since early 2010 and has more than 18 years of experience in the mortgage industry. He will lead all three banks’ residential lending teams.

Bankers’ Bank Northeast – Monique Angell has been promoted to operations specialist. Angell has been with the bank since 2003 and in her new position she will be involved with Monique Angell the daily operational activities associated with processing domestic and international wires, as well as the processing of Federal Reserve and STARS settlement transactions for clients. Chelsea Groton Bank – Karen Stearns has been promoted to assistant vice president, and was also recently appointed a reverse mortgage specialist. Dawn DeCristofaro has Karen Stearns been promoted to assistant vice president. DeCristofaro manages an extensive com-

Dawn DeCristofaro

mercial loan portfolio and assists business customers with their financing needs. Rick Turner has joined the bank’s lending team as a mortgage loan specialist. Turner has over 25 of lending experience. He possesses a vast knowledge of the local lending market and has extensive experience with government loan programs.

support area and is responsible with the compliance officer for establishing procedures and monitoring to ensure regulatory compliance. Essex Savings Bank – Marla Bogaert has been named assistant vice president, branch manager and loan officer of the Essex office. She has served as retail banking manager of Marla Bogaert the former CT River Community Bank.

Rick Turner

Paul C. Violette

Connecticut Community Bank – Paul C. Violette recently joined the bank as vice president for loan operations and lending compliance. He manages the loan operations and

First County Bank recently announced that Constantine “Gus” Drakakis has joined the bank as vice president of mortgage lending Gus Drakakis operations, a new position within the bank. Drakakis will be responsible continued on page 18

Women of

Women of FIRE Awards Luncheon WEDNESDAY, SEPTEMBER 28TH, 11:30 – 1:30 | THE HARTFORD CLUB

FINANCE | INSURANCE | REAL ESTATE

Recently, The Commercial Record set out on a quest to find the best and the brightest women from the Connecticut FIRE (Finance, Insurance and Real Estate) sector. With the help of our readers, we had no shortage of nominations, but a very difficult decision. And now, after much deliberation, the first ever Women of FIRE have been chosen – 10 brilliant, innovative leaders who KEYNOTE SPEAKER DR. PAMELA TROTMAN REID are more than deserving of the title. These accomplished professionals will be honored on Wednesday, September 28th at The Hartford Club with an awards luncheon featuring keynote speaker Pamela Trotman Reid, Ph.D., President of St. Joseph College. Please joins us as we salute the achievements of the first ever Commercial Record Women of FIRE.

THE WINNERS KATHLEEN MURPHY

BARBARA PEACE

Fidelity Personal Investing

H. Pearce Real Estate

CAROLYN O’CONNELL

Konover Commercial Corporation

Gateway Financial Group, Inc. LISA GRIFFIN

Eastern Federal Bank

To purchase tickets, log on to www.commercialrecord.com/ womenoffire

ELIZABETH JUDD

LINDA SEPSO

Sepso Appraisal Associates

MARY-ELLYN VICINO

MARGARET LIVINGSTON

Coldwell Banker Residential Brokerage

Guilford Savings Bank

CANDACE ADAMS

LIZABETH H. ZLATKUS

Prudential Connecticut Realty

The Hartford

Questions? For information on attending the Women of FIRE awards luncheon, contact Barb Dimauro at 800.356.8805, ext. 321 or email bdimauro@ thewarrengroup.com. For sponsorship information, contact Mona Ashour at 800.356.8805, ext. 337 or email mashour@thewarrengroup.com.

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Connecticut Banking Magazine • Third Quarter 2011

PromotablePeople continued from page 17

for managing all residential mortgage application operations. Liberty Bank appoints three. Rob Parry has been appointed senior vice president and human resources director for the bank. He brings leadership and expeRob Parry rience in all facets of HR from a 17-year career that spans the financial services, manufacturing and consulting industries. Theodore Horan has been appointed vice president Theodore Horan and senior commercial loan officer for Liberty Bank. Horan has nearly three decades of experience in banking and lending, specializing in commercial credit analysis, strategic Jacqueline Nelson planning, credit risk and structured finance. Jacqueline Nelson has been appointed assistant vice president and senior loan review officer for the bank. Nelson has a wealth of lending experience, including underwriting, structuring complex credit transactions, loan review and portfolio risk management.

Robert D. Creigh

over 30 years.

Patriot National Bank – Robert D. Creigh recently joined the bank at its Milford branch as assistant vice president and assistant branch manager. Creigh has been in banking for

Salisbury Bank appoints one, promotes five. Richard G. Aldrich has been appointed executive vice president of the bank. Aldrich will be a key memRichard G. Aldrich ber of the bank’s business development efforts in Berkshire County, Mass. Meredith Tiedmann has been promoted to

vice president and trust officer. She will continue providing individualized, long-term growth for clients in accordance with their goals, needs and investment philosophy. Meredith Tiedmann Steve Essex has been promoted to vice president and trust officer. He will continue to serve as a relationship manager and investment advisor to individuals and Steve Essex families. Kim Downey has been promoted to assistant vice president and trust officer. She will continue to manage the Client Service Group for Salisbury Trust Kim Downey Wealth Advisory Service. Amanda Lidstone has been promoted to assistant vice president and compliance officer. She will continue to oversee the Compliance Department, ensuring the Amanda Lidston bank remains compliant with all regulatory requirements. Adam Higgins has been promoted to assistant vice president and commercial loan officer. He will conAdam Higgins tinue serving his clients’ commercial lending needs.

Brian Hull

Norma Eccellente

Savings Institute Bank & Trust promotes one, hires three. Brian Hull has recently been promoted to chief operating officer. Hull, who is also the chief financial officer, will have direct responsibility for all back office areas of the bank. Norma Eccellente joins the bank as a commercial lending officer. Eccellente has over 20 years of experience 18

in the financial services industry. She is involved in numerous community activities. Robyn McCullough joins the bank as a commercial lending officer. Robyn McCullough McCullough has over 20 years of experience in the financial services industry. She has served on the boards of several area organizations. Daniel Rys Daniel Rys joins the bank as commercial lending officer. Prior to joining New Alliance in 2001, Rys was senior vice president and senior loan officer for the Savings Bank of Rockville. He has served a long list of community and volunteer activities. Simsbury Bank – Howard R. Zern has been elected executive vice president. Zern’s career in financial services has spanned more than 30 years, during which he Howard R. Zern served in a variety of senior managerial roles in merger integrations, branch banking administration, market management, employment and corporate training. Shawn Martin has joined Shawn Martin the bank as vice president and home lending sales manager. Martin will lead Simsbury Bank’s growing load origination team in addition to working directly with home buyers and Jeffrey Stever homeowners to obtain the financing they need. Jeffrey Stever has joined the Simsbury Bank team as commercial relationship manager. Stever brings over 20 years of business banking experience to the role. Specializing in the needs of small and mid-size commercial businesses and commercial real estate developers, Stever’s career was most recently with Textron Financial.

Third Quarter 2011 • Connecticut Banking Magazine

Stephen LaFlamme has joined the Simsbury Bank team as commercial relationship manager. LaFlamme brings over 20 years of business banking experience to the role. Prior Stephen LaFlamme to joining Simsbury Bank, he had a long career with Savings Institute Bank & Trust Company in various commercial banking roles. Susan Butler Janelli has Susan Butler Janelli joined its mortgage and home lending team. Janelli will work oneon-one with home buyers and homeowners to help them achieve their home dreams and other life goals through the right home financing solution. TD Bank – Stephen Festa has been named vice president and senior relationship manager in commercial lending in New Haven. He is responsible for new business development among middle market companies in Southern Connecticut, and health care and not-for-profit entities across the region. Christopher G. Johnson has been named the store manager of the downtown Stamford store. An assistant vice president, he is responsible for new business Christopher Johnson development, consumer and business lending, and managing personnel and day-to-day operations at the store serving customers throughout the Stamford area. David B. Sportelli has been David B. Sportelli named vice president and SBA loan specialist in the DBA Division in New Haven. He is responsible for expanding TD Bank’s SBA loan production throughout Connecticut. Sportelli has 33 years of banking experience. Gerald Wright has been named vice president and small business relationship manager in commercial lending in Bridgeport. Wright has more than 40 years of banking experience in the Fairfield County region and is

returning to his roots in small business lending. Wright is a member of the Bridgeport Regional Business Counsel and the Fairfield Chamber of Commerce. Thomaston Savings Bank announces three promotions. Todd Burton has been promoted to retail banking sales manager. He will be responsible for Todd Burton leading the bank’s strategic retail expansion into greater Bristol and the surrounding markets. Burton is active in several local community organizations including several area Kim Lebron chambers of commerce as well as volunteering his time to United Way, Abilities Beyond Disabilities and Habitat for

Humanity. Kim Lebron has been promoted to vice president and commercial loan manager. She will be responsible for overseeing the two divisions of the commercial Francis Berthiaume loan department at the bank. Francis Berthiaume, vice president and mortgage lending sales manager has been promoted to consumer loan officer and will assume all consumer lending responsibilities. u

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PromotableProjects Illustrating the many bank projects designed to assist the people and communities that the industry collectively serves.

A host of dignitaries lends a helping hand at the groundbreaking: Michael Lettieri, Connecticut Department of Economic Development; Susan Elliott, Federal Home Loan Bank of Boston; Greg Shook, Essex Savings Bank; Chandler J. Howard, Liberty Bank; Loni Wiley, the Women’s Institute; Connecticut Governor Dannel Malloy; Michael Place, town of Old Saybrook; Tony Lyons, HOPE Partnership; and Margaret Livingston, Guilford Savings Bank.

Pictured: Bank of Fairfield Business Development Head Bob Hojnacki and Commercial Lender Mary Jascha with Kennedy Center President and CEO Marty Schwartz and Associate Vice President of Development JoAnn McMullan.

Bank of Fairfield – The Bank of Fairfield made a contribution to the Kennedy Center, which held its 20th Annual Charity Golf Classic at the Shorehaven Golf Club. The Kennedy Center provides quality services and innovative programs for people with disabilities in the community.

Liberty Bank – After five years of planning, the state’s first affordable housing property under the HOMEConnecticut program broke ground on May 20 in Old Saybrook. It was brought about thanks to the combined efforts of the town of Old Saybrook HOPE Partnership, the Women’s institute, the Connecticut Department of Economic Development, Liberty Bank and the Federal Home Loan Bank. At the groundbreaking, Liberty Bank President and CEO Chandler J. Howard told a crowd of onlookers, “Ferry Crossing is the perfect example of the old principle that a group is more powerful than the sum of its parts. I believe we have set a new standard for how affordable housing will get done, not only in this town, but all across the state.”

Pictured: March of Dimes Executive Director Greg Plage; Carol Fedele; former Lt. Gov. Michael Fedele; and Stamford First Bank Business Development Officer Bob Hagan.

Stamford First Bank – Stamford First Bank was a sponsor of the “March for Babies” walk on May 1 in Stamford that raised more than $127,000 for the March of Dimes fundraiser. More than 1,200 residents came out to support Connecticut’s tiniest citizens.

Pictured: Michael Rauh, president and CEO of Chelsea Groton Bank; Amanda Brown, grant writer for the Women’s Center of Southeastern Connecticut; and Eric Janney, president of the Chelsea Groton Foundation Board presenting the Women’s Center, with a grant for $5,000.

Pictured: LouAnn Bloomer, TBICO president and CEO; Donna Ramey, executive vice president and COO for the Savings Bank of Danbury; and Annie Weed, director of programs and development for TBICO.

Savings Bank of Danbury – The Savings Bank of Danbury Foundation awarded a $5,000 grant to The Bridge to Independence and Career Opportunities (TBICO). The grant will be used to support the agency’s free employment related education, training and support services. 20

Chelsea Groton Bank – The Chelsea Groton Foundation recently distributed $48,575 among 16 non-profit organizations serving southeastern Connecticut and the Westerly area. Grants were awarded during a ceremony held on June 1. The foundation is part of the Groton-based Chelsea Groton Bank. This foundation’s mission is to improve life in southeastern Connecticut and the Westerly area through financial distributions to charitable and social service agencies serving those regions.

Pictured: Robert Kettenmann, president, Darien Rowayton Bank; Matthew M. Hoidal, executive director, Camp Sunshine; Bert Knotts, CEO, Darien Rowayton Bank.

Darien Rowayton Bank – For more than 25 years, Camp Sunshine has provided a haven for more than 35,000 family members from around the world, many of whom come annually from Connecticut. Camp Sunshine has the distinction of being one of the only programs in the nation addressing the impact of a child’s life-threatening illness on every member of the family.

Pictured: First County Bank President Rey Giallongo, New Canaan First Selectman Jeb Walker, Selectman Robert Mallozzi, III, and First County Bank Assistant Vice President and Branch Manager (New Canaan) Michael Victor, in front of the painting on the first level of town hall.

First County Bank donated a four-by-eight-foot-long painting titled “New Canaan Connecticut 1912,” depicting a period scene of a New Canaan street to the New Canaan Town Hall. Commissioned in 1990, artist T. R. Colletta reproduced a street scene from New Canaan to be displayed in the branch located at 95 Park St. Today, visitors to town hall can see what this beautiful town looked like almost 100 years ago. Litchfield Bancorp has launched some new community programming and a website page to highlight it. It’s called Community Counts and is one way the bank gives back to the community. There are three types of free programming: Green Begins@ Home, grassroots recycling efforts; Art of Discover, featuring children’s arts events; and Your Financial Health, which talks about today’s financial issues. “This type of programming is something a small community bank can do at a grass roots level and the feedback we get from the community will help us do that,” said Mark Macomber, President and CEO of Litchfield Bancorp. continued on page 22

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Ed Palomba, SIBT’s Enfield branch manager, presents a check to Linda Bridge, director of the Enfield Food Shelf.

Pictured: Terry Boulton, senior market manager of the Simsbury office of Simsbury Bank, with Natalie St. Denis, recipient of the bank’s 2011 scholarship to a Simsbury High School graduating senior.

Simsbury Bank – Simsbury Bank recently announced that Natalie St. Denis was the recipient of its annual scholarship awarded at the Simsbury High School awards ceremony. St. Denis plans to attend the University of Connecticut’s business school and is majoring in business finance. The bank’s staff extends its congratulations to her and wishes all the Simsbury graduates the brightest futures. Simsbury Bank is proud to help hardworking and community oriented students like St. Denis attend college. The bank has a long history of supporting members of our community achieve their dream of a college education.

Savings Institute Bank & Trust – The Savings Institute Bank & Trust Company Employees’ Caring & Giving Program recently awarded first quarter contributions of $4,000 to 19 charitable organizations dedicated to alleviating hunger and homelessness. “This winter was particularly difficult for many area families. As a result, there was a greater need for the services that our recipients provide,” said Bill Anderson, Caring & Giving chairperson. “The funds will help food pantries restock their shelves and allow shelters to purchase the supplies necessary to run their organization.” The Caring & Giving program has made donations totaling over $150,000 since its inception in 1998. Bank employees created the program as a way of self-directing their yearly charitable contributions. For the year 2011, employees have pledged more than $16,500 to assist organizations that address such issues as families in need, hunger and homelessness, helping the elderly and assisting individuals with disabilities or special needs. Naugatuck Savings Bank – The Naugatuck Savings Bank Foundation recently announced the winners of its Community Awards Program at a special ceremony honoring the recipients with a total of $53,000 in awards. Each Naugatuck Savings Bank customer was able to cast a vote for a local charity of their choice to receive a grant from the Naugatuck Savings Bank Foundation. “The Naugatuck Savings Bank Foundation has awarded $3.4 million in grants since 1999 to non-profit organizations,” said Mark C. Yanarella, president and CEO of Naugatuck Savings Bank. “Asking our customers to help determine where we distribute a portion of our foundation’s 2011 grant money seemed to fit in perfectly with our philosophy of building lifetime relationships with our customers. This collaboration is a wonderful partnership between our customers, the foundation and the organizations that our customers feel will improve the lives of those in our communities. We are pleased that so many of our customers took the time to vote for the charity they feel is most deserving of this special allocation of grant money.”

Windsor Federal Savings – Turning 75 years old for most means easier schedules, lighter workloads and “the golden years.” At Windsor Federal Savings, turning 75 is quite to the contrary: they are busy adding new customers, rolling our new products and services, and participating in an ever-growing list of community activities, like the recently held “Shred Day” in Windsor. “Our strong community involvement is one of the ways that we stand out from other banks,” said Mark Griffin, Windsor Federal Savings president and CEO. “We take an active role in each one of the communities we’re in, and the recent Shred Day is just one example of that. It also highlights our commitment to combating identity theft.” People’s United Bank – The People’s United Community Foundation announced recently that it has awarded $585, 176 in grants to nonprofit organizations in its service area for the second quarter of 2011. A total of 70 organizations throughout six states received funding in support of their programs, which ranged from basic needs services and affordable housing initiatives, to education and employment programs. “We are proud to support the many well-deserving nonprofit organizations throughout our footprint,” said Hank Mandel, executive director of People’s United Community Foundation. “Our nonprofit partners are doing great work in adapting to the changing needs of our communities and addressing the challenges that individuals, families and businesses are facing today. People’s United Community Foundation is pleased to join our community partners in their collaborative efforts to improve the quality of life in our communities.”

Rockville Bank – The Rockville Bank Foundation has given a grant of $1,000 to Link to Libraries to help promote literacy and donate books to public elementary schools and non-profit organizations in western Massachusetts, and in northern and central Connecticut. The funds will be used to purchase new books and develop a read- aloud story hour for children at more than 40 of the sites. SUBMIT YOUR

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