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CENTERBANK'S BID FOR CONNECTICUT SAVINGS BANK IS SUCCESSFUL

     CENTERBANK'S BID FOR CONNECTICUT SAVINGS BANK IS SUCCESSFUL
    WATERBURY, Conn., Nov. 14 /PRNewswire/ -- Centerbank (NASDAQ: CTBX) today acquired specific assets and liabilities of Connecticut Savings Bank from the FDIC, announced Robert J. Narkis, chairman and chief executive officer.  Regulators closed the insolvent bank at the close of business of today (Nov. 14).  Established in 1857 as a state chartered, mutual savings bank, Connecticut Savings Bank was headquartered in New Haven, Conn.
    With this transaction Centerbank will obtain $964 million in deposits and $102 million in secured borrowings from Connecticut Savings Bank.  Centerbank will also assume $595 million in loans, including $215 million in commercial loans, $82 million in consumer loans and $298 million in residential loans.
    This transaction is structured with a loss sharing arrangement under which the FDIC will take all non-performing loans at the time of bank closing, and for two years will absorb 80 percent of the loan charge-offs from the consumer and residential mortgage loans, and 85 percent of charge-offs from the commercial loan portfolio that Centerbank assumes from Connecticut Savings Bank.
    Commenting on the takeover, Narkis stated that he was very pleased that the FDIC selected Centerbank's bid.  "This transaction further increases the franchise value and earnings horsepower of our institution.  It also is a major step forward in our strategic direction.  This move, coupled with the stabilization we have seen in the level of our non-performing assets, certainly positions us well for continued profitability."
    Narkis continued, "Connecticut Savings Bank branches are a perfect fit for Centerbank.  They represent a strong presence in an attractive market area that is contiguous to Centerbank's current branch network." With this transaction, Centerbank expands its branch network by 20 offices in New Haven County.  These include Branford, Cheshire, Clinton, East Haven, Hamden, Madison, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven and Woodbridge.
    The offices of Connecticut Savings Bank will reopen at their normal hours, Nov. 15, under the Centerbank name.  Deposits will continue to be insured for up to $100,000 by the FDIC.
    This is the second major transaction for Centerbank within the last month.  On Oct. 18, 1991 it acquired certain assets and liabilities of Central Bank, a $675 million savings bank with 15 branch offices throughout central Connecticut.
    Headquartered in Waterbury, Conn., Centerbank was established in 1850.  Following the assimilation of Connecticut Savings Bank, Centerbank will have assets of over $3 billion and more than 50 branch offices throughout Connecticut.  Its subsidiaries include Centerbank Mortgage Company which operates on a nationwide basis; Center Capital Corporation, an equipment leasing subsidiary with offices across the country; and Affiliated Business Credit Corporation (ABCC), a commercial finance company based in Wethersfield, Conn.
    -0-                       11/14/91 R
    /CONTACT:  Gary Fetzer of Centerbank, 203-575-5546 (days) or 203-426-7115 (evenings)/
    (CTBX) CO:  Centerbank ST:  Connecticut IN:  FIN SU: KM-DD -- NE006 -- 4557 11/14/91 16:16 EST
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Publication:PR Newswire
Date:Nov 14, 1991
Words:478
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