The Connecticut Bank and Trust Co. has received $5.4 million in new capital through the U.S. Treasury Department’s bank bailout program.
The Hartford bank received the money following a special meeting held last week during which shareholders approved a change to CBT’s charter to allow it to issue preferred stock, clearing the way for the bank to participate. The vote was necessary because the Treasury requires financial institutions to issue preferred stock to federal taxpayers.
CBT has $223 million in assets. With the infusion, CBT’s total risk-based capital ratio would increase to approximately 14.25 percent from 11.52 percent, as of Sept. 30, the bank said. Institutions with capital ratio at 10 percent or more are well capitalized.
“We are pleased with the confidence shown by our shareholders,” said David A Lentini, CBT’s chairman and CEO said in a statement. “With the added capital, CBT can increase support of local businesses and consumers throughout the Greater Hartford market. During the uncertain times we face, our prudent lending practices will allow the CBT Team to work with both new and existing customers in meeting their legitimate needs for funds.”
