Banks and industry groups back expanding treasurer’s community-banking program and easing branch-improvement filings

Local bankers and trade groups told the Banking Committee they support expanding the state treasurer’s community banking investment program to include federally chartered institutions and federal credit unions, and urged lawmakers to remove outdated filing requirements for well-capitalized institutions seeking to renovate or open branches.

George Herman, executive chairman of Windsor Federal Bank, described his institution as a mutually owned federal savings bank headquartered in Windsor and urged passage of Senate Bill 12-55 to clarify that federally chartered banks and credit unions may participate in the program. "The community banking program was established to support Connecticut's community banks and credit unions," Herman said. He told the committee the 2023 change unintentionally omitted federally chartered institutions and that allowing them to participate would "maximize its overall impact on the increasing pool of eligible deposits and the number of communities and residents that are served."

Bart/Corey and additional Connecticut Bankers Association representatives said they were aligned with Windsor Federal and supported the bill. The association also voiced support for House Bill 68-77, a separate measure to reduce regulatory steps for well-capitalized state-chartered institutions that want to renovate or open branches. Tom Mangelo and Art Corey (Connecticut Bankers Association) told the committee HB 68-77 would remove duplicative filings for institutions judged by the commissioner to be well capitalized and not under enforcement action.

Community bankers reinforced that point. Mike Alberts, president and CEO of Jewett City Savings Bank, said the current application process for branch improvements required a significant internal time investment even when the commissioner ultimately imposed modest fees. He said his bank's recent $905,000 branch renovation required about 35 staff hours to compile the application, adding internal costs that exceeded the commissioner's filing fees.

What it means: Supporters said the treasurer's program can do more if it captures federally chartered institutions and federal credit unions, broadening eligible deposit pools and community reach. Supporters also framed HB 68-77 as a modernization step that would reduce unnecessary regulatory burden for well-run institutions while preserving oversight through routine examinations.

Ending: The committee received written testimony from industry groups and community banks and heard consistent on-the-record support for both bills; lawmakers questioned precise limits and noted the commissioner retains supervisory authority. The committee indicated it would review statutory text as it prepares potential amendments.