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Ion Bank News

Web Site: http://www.ionbank.com
- East Side 1336 East Main St., Meriden, CT 06450
Tel: (203) 639-8866 Fax: (203) 317-3859

Ion Bank is an independent community-based bank committed to providing a full line of consumer and business products and services.

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A Message from Nutmeg Financial to our Customers and our Community

March 12, 2009

In the spring of 2006 Castle Bank & Trust Company joined together with Naugatuck Savings Bank as its sister company under Nutmeg Financial, MHC. The purpose at the time was to promote independent mutual banks while enjoying the economies of scale of a larger integrated organization. At the time we knew that this would not maximize efficiency but was worth the extra cost in that it worked to promote hometown community banking, a concept we truly believe in.

After three years of working in this relatively unique model, we have found the economy working against its success. A low interest rate environment, significantly higher FDIC premium costs associated with national banking issues and the lack of synergies that the model produced have led us to a point where difficult decisions needed to be made.

To this end, the Board of Trustees of Nutmeg Financial this week decided that to properly serve the community and our customer base, a formal merger of Castle Bank and Trust Company into Naugatuck Savings Bank needed to take place. We have therefore now begun the process to file the appropriate regulatory applications which should take a few months to be approved.

In making our decision we weighed the pros and cons for the banks themselves, the employees, the customers and the community as a whole. We would like to share with you some of our thoughts on how each constituency will be affected.

Once all approvals are in place, the offices of Castle Bank will be re-branded as Naugatuck Savings Bank branches. They will continue to operate in the same locations and have basically the same hours.

For the employees, our goal is very simple, we want to preserve jobs, giving them the job security of a financially stronger organizetion while offering the professional growth opportunities found in an $800 million bank.

For the customers, our desire is to provide excellent customer service with the same friendly staff members that you deal with now at Castle Bank. Enhanced will be the service offerings that will be available, particularly on the household side of the business where Naugatuck Savings Bank excels. This includes a wide variety of residential mortgage products including residential construction, bridge loan financing and first time homebuyer mortgage programs.

For the community, we intend to continue in the tradition of Castle Bank as a community leader in the sense of volunteerism and charitable giving. Our charitable giving arm, the Naugatuck Savings Bank Foundation will help in this effort.

People have counted on Naugatuck Savings Bank since 1870 and have helped us to be one of the most financially sound banks in Connecticut. We are confident that this union provides strong financial stability, sound lending practices and superior customer service that you expect and deserve.

Sincerely,

Mark C. Yanarella Chairman, President and CEO Nutmeg Financial, MHC

 
 

Member News is provided as a service of the Midstate Chamber of Commerce and is also featured in the monthly "Chamber News" newsletter mailed to members.

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