Federal bank regulators Sept. 13 closed The Community’s Bank in Bridgeport, which had operated 12 years and was the state’s only minority-owned bank.
The Federal Deposit Insurance Corp. (FDIC) said the bank had some $26.3 million in assets and $25.7 million in deposits as of June 30.
The FDIC reported it was unable to find another bank to take over The Community”™s Bank operations. The FDIC expects the failure will deplete the federal deposit insurance fund by $7.8 million. (The FDIC insures individual deposits up to $250,000.)
Connecticut Banking Commissioner Howard Pitkin said the state Banking Department had tried to save the bank, but was unsuccessful and in the end acted to protect depositors. He said the bank had been under increased regulatory scrutiny since 2010, and its finances had been gathering red ink despite attempts to recapitalize.
“I am shocked and saddened by state Banking Commissioner Howard Pitkin”™s announcement today regarding the closure of Bridgeport-based The Community”™s Bank,” Bridgeport Mayor Bill Finch said. “The bank has provided a full range of banking services to the Bridgeport community since 2001, and has been a strong supporter and sponsor of many events in our city and the region.
“The closing of this bank means our minority community, which oftentimes does not have the same access to credit as others do, is now bereft without this bank”™s focus on providing access to credit or capital,” Finch said.
Finch expressed bewilderment at the failure and has cast a net for answers.
“It is not clear how the state could allow this to happen,” he said. “I will be writing to the Banks Committee of the Legislature urging them to investigate this loss of a source of capital to Bridgeport individuals and businesses and asking them how we can change the laws to improve access to capital in minority communities and assure this never happens again. The state of Connecticut needs to do a better job of getting investments into small businesses like the ones served by The Community”™s Bank.
“I also have spoken to Commissioner Pitkin about the impact of the loss of The Community”™s Bank on our city. I will be organizing a public forum with him to discuss community and minority capital needs and how the state can work together with the city to address those needs.”
Finch also promised to work with the state to fill the void left by the closing. The Community”™s Bank had operated two branches, one by Interstate 95 and the other by Beardlsey Park.
