NewAlliance Bank has opened its first branch in downtown Hartford, but don’t expect it to be its last new office in the region.
Mark Gibson, executive vice president and chief marketing officer of the bank, said plans call for expanding NewAlliance’s footprint further in Greater Hartford, including potentially opening up more new branches this year.
It’s all part of a growth strategy at the New Haven-based regional lender, which could include an acquisition along the Amtrak corridor.
“We continue to see attractive markets from Boston to Philadelphia,” Gibson said. “But there are also a lot of communities in Connecticut that we aren’t in, but feel we should be in. We are always looking to expand our footprint.”
NewAlliance’s new office marks the first bank branch opening in downtown Hartford since June 2008. The 3,500-square-foot facility fronts Trumbull Street and offers commercial services for medium-to-small businesses and personal banking, including checking, savings, and investment products.
Inside, the building has an edgy, modern design dominated by orange and blue. There are customer friendly nooks and crannies, including wireless internet and a “dwell” zone where consumers can relax and watch a flat-screen TV.
The facility also has the latest in banking technology, including ATM’s that do not require envelopes.
NewAlliance, with over $8 billion in assets, has avoided making subprime loans that sunk the balance sheets of other banks. Its 2009 fourth quarter earnings jumped 26 percent from a year earlier to $12.1 million.
Gibson said the company opened the new branch now because it wants to have a presence in the heart of downtown’s central business district, where it hopes to serve as an economic catalyst. NewAlliance employs 40 people in the city, including those at its Parkville branch.
NewAlliance also sees an opportunity to lure customers away from big money center institutions, many of which have pulled back on services and employees as a result of the financial crisis.
“During the financial crisis it’s been hard for big bank customers to get the services they are used too,” Gibson said. “We view this as an opportunity for banks like us.”
The bank is especially interested expanding commercial, government and nonprofit lending in the region, and expects 50 percent of the branch’s business to come from those areas. Its bread and butter is small business loans ranging from $5 million to $10 million, but NewAlliance can underwrite loans up to $50 million.
NewAlliance joins a crowded field of banks in downtown including Webster Bank, Sovereign Bank, People’s United Bank, Citizen’s Bank and the Connecticut Bank & Trust Co.
Still, industry experts view NewAlliance’s foray into the area as a smart business decision.
John Carusone, president of the Bank Analysis Center, a consulting firm in Hartford, said any bank that is going to be a statewide institution must have a meaningful presence in the capital city.
“They would be doing their shareholders a disservice if they didn’t take an opportunity to make this move now,” Carusone said.
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CB&T Offers Deal On Business Loans
Afraid to refinance your business loan because of the closing costs?
One local bank is looking to turn that fear into a business opportunity.
Through a new loan program, The Connecticut Bank and Trust Company is offering to cover up to $20,000 in closing costs, or 1 percent of a small business loan.
Dave Lentini, president and CEO of the bank, said the program is part of an effort to lure small business customers away from big banks. CBT is also using the deal as a way to boost its loan volume.
“It enables business customers to get out of a bank that doesn’t care about them,” Lentini said. “We know they want to come to community banks, but sometimes it’s difficult to do it.”
The loan program has been running for a couple of weeks and the bank has already received interest from nearly a dozen customers, Lentini said. He said this is a good time for companies to refinance their debt, in order to get a longer term loan at a better interest rate.
The offer will cover closing costs including legal fees, appraisals and environmental costs, and will run for the next few months.
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Greg Bordonaro writes the Financial Sense column every other week. Reach him at gbordonaro@HartfordBusiness.com.
