Q. Why did Connecticut Bank and Trust Company apply for $5.4 million from the capital purchase program?
A. With this new capital, CBT’s total risk-based capital ratio would increase to approximately 14.25 percent. The proceeds of the program will strengthen the company’s already strong capital position. CBT’s total risk-based capital ratio of 11.52 percent as of September 30, 2008 is already well above the regulatory requirements of 10.0 percent for a “well capitalized” institution.
What will the bank use the money for?
Since we opened our doors in 2004, our goal has always been to support the communities in which we operate. The Treasury’s investment will bolster our lending ability to expand our already deep commitment to provide capital to the businesses and individuals in the communities we serve
Not all banks that have applied for the Treasury funds have been accepted into the program. Why do you think the Treasury has given its preliminary approval for CBT to participate?
We see the Treasury’s investment as an important recognition of our prudent growth, strength and stability and our good standing as a strong and healthy financial institution
Has Connecticut Bank and Trust participated in any of the subprime lending that has hurt the larger banks?
No.
If not why?
CBT is a community commercial bank supporting the short and long-term needs of consumers and business in our marketplace. For that reason, this kind of lending is not something we would ever engage in.
