The state legislature’s Commerce Committee recently passed a bill that allows the Department of Economic and Community Development to give preference under the “First Five Plus” program to businesses that relocate overseas jobs to the Nutmeg State.
“First Five” is the major economic development initiative created by Gov. Dannel P. Malloy, in which the state is offering a host of tax credits and loans to the first five companies that agree to add 200 or more jobs and invest at least $25 million in Connecticut over the next few years.
The program was subsequently changed to a “First Five Plus” program, which will expand the offer to 10 or more companies.
The ‘First Five’ program allows DECD to give preference to a manufacturer from another state or country relocating to Connecticut; a business relocating a corporate headquarters here; or a business “redevelopment project” that meets the program’s job creation and investment criteria sooner.
The bill recently passed by the Commerce Committee expands DECD’s authority to give preferences to businesses relocating overseas jobs here. The proposal also reserves $ 20 million solely for businesses that propose to relocate at least 100 overseas jobs to Connecticut.
So far, only three companies have been awarded grants and loans under First Five — Bristol sports and entertainment giant ESPN, Bloomfield insurer Cigna, and NBC Sports. South Windsor-based TicketNetwork originally qualified for the program, but subsequently declined to participate after its CEO Don Vaccaro got into personal legal problems.
Wooing a major international company to set up shop in Connecticut would prove to be a major victory for Malloy and the state, and there is increased attention on making Connecticut more of a player on the international scene.
Malloy, for example, traveled to Davos, Switzerland, in January for the World Economic Forum to rub elbows with some of the world’s top business and economic leaders while promoting the state as fertile soil for bioscience.
That could be one industry that Connecticut tries to woo on an international basis.
• • •
Banking sector stable
The number of troubled and problematic banks in Connecticut held steady at the end of 2011, a sign that the state’s banking sector remains on stable ground despite rough economic headwinds, according to financial health rankings by BauerFinancial, an independent bank analysis firm based in Florida.
Five out of the 54, or 9.3 percent, of Connecticut-based banks reviewed by BauerFinancial were rated as problematic, and all of those are located in southwest Connecticut.
They include Wilton Bank, Community’s Bank in Bridgeport, the Connecticut Community Bank in Westport and Stamford-based Patriot National Bank. The Bank of Southern Connecticut, which has been experiencing financial losses and whose proposed merger with Naugatuck Valley Financial Corp. fell apart in 2010, was added to the list of problematic banks in the first quarter of 2011.
BauerFinancial rates banks on a zero-to-five-star system. Banks with two stars or less are considered troubled or problematic.
Wilton Bank and Community’s Bank had the lowest ratings of zero stars, while the remaining problematic financial institutions each had a two-star rating.
Nationally, 11 percent of banks were listed as problematic by BauerFinancial. Even though that number is still high, it’s down from 13.2 percent last quarter and 13.2 percent a year ago, which is a sign the industry is improving. The percentage of banks earning Bauer’s top ratings (five stars or four) stood at 64.5 percent at the end of December, a number not seen since the first quarter 2008.
All banks in Greater Hartford were given at least satisfactory ratings. Among the best performing banks, according to BauerFinancial, are Rockville Bank, People’s United Bank, Savings Institute Bank and Trust Co. in Willimantic, and Thomaston Savings Bank.
On the credit union front, financial performance seems to be improving. Only 5.4 percent, or seven of 134 Connecticut nonprofit cooperatives were listed as “troubled” or “problematic” in the fourth quarter, compared to nine in the prior quarter.
The credit union’s that escaped the watch list include the Community Credit Union of New Milford and the Greater West Haven Federal Credit Union.
BauerFinancial bases its ratings on financial institutions capital ratios, income and nonperforming loans.
• • •
Nutmeg State FCU buys site
Nutmeg State Federal Credit Union paid $1.175 million for the former Prudential Realty building directly across from its Cromwell Avenue headquarters for its new Rocky Hill base.
Nutmeg State is renovating the vacant space at 520 Cromwell Ave. The move-in date is uncertain, a spokeswoman says.
The credit union’s existing 12,000-square-foot building at 521 Cromwell Ave. will remain a Nutmeg State branch.
The seller was My III Sons LLC, which had owned the building since April 2000 and had Prudential as a tenant, authorities said.
Greg Bordonaro writes the Financial Sense column every other week. Reach him at gbordonaro@HartfordBusiness.com.
