Connecticut bankers, it seems, look at the state’s highways as roads to riches. All, that is, except one.
Of some 212 new bank and credit union branches in the state over the last five years, more than 80 percent have tracked closely to Connecticut’s major transportation routes. Fairfield County, by far the state’s richest region, has drawn the most new branches in the past five years, with 63. But there has also been heavy branch growth along all major roads coming out of Hartford.
Notably absent, however, are any new branches along Route 2.
Despite wealth, proximity to Hartford and plans for enhanced retail space, no bank or credit union has added a branch along Route 2 east of Glastonbury center during the last five years.
The absence of new branches is particularly perplexing in Hebron and Marlborough. In Marlborough, a charming rural town with a growing population of 6,000, the median household income is $92,000 — nearly 50 percent more than the state average.
But only two banks, Bank of America and Liberty Bank, have offices there, and both of those facilities were opened in the 1970s. And although Bank of America’s deposits dipped between 2005 and 2006, Liberty Bank’s deposits show solid growth.
Go Away
Yet even William Black, Marlborough first selectman isn’t sure his town needs any more banks.
Black said the banking scene is “balanced” in the town, which is to say he is not pitching banks on coming. He indicated little opportunity for banks at the moment.
The opportunity for banks and credit unions might be better in Hebron.
So far, Hebron is also home to only two bank branches, The Savings Institute Bank & Trust, which opened its branch in 1972, and NewAlliance Bank, which set up shop in 1999. Deposits of both are growing steadily. The Savings Institute’s deposits rose from $41 million to $48 million. The NewAlliance Bank office increased its deposits in those years from $24 million to nearly $26 million.
Unlike Marlborough, however, Hebron wants more banks.
Retail Rules
William Anderson, vice president of retail banking at the Savings Institute, said the popularity of already retail-rich spots like Enfield — compared to the towns along Route 2 — is a sign that bankers are putting more faith into retail traffic than income information.
He also said that a town with fewer branches doesn’t necessarily make for a better locale: “I think competition is good. There are a lot of different products out there, but customer service is something that sets [banks] apart,” Anderson said.
