State Banking Commissioner John P. Burke today declared that the financial condition of Stamford-based Connecticut Bank of Commerce was such that it would be unsafe and unsound for it to continue operations and he petitioned the Superior Court for the Judicial District of Fairfield County to name the Federal Deposit Insurance Corporation (FDIC) as receiver. Burke noted that each depositor would continue to be insured by the FDIC up to the $100,000 limit.

On Thursday morning, bank and regulatory personnel will be at each of the bank offices to respond to customer telephone inquiries explaining how they may access their deposit accounts.

Burke explained that the action taken today was necessary because the bank's capital would be depleted after providing for considerable loan losses that were recently identified by bank regulators. Information filed with the Superior Court indicated that the bank had a deficit capital position of $7,461,000.

According to Burke, the bank had been under increased regulatory scrutiny since 1999, and despite efforts to recapitalize the bank, its financial condition continued to erode.

Connecticut Bank of Commerce is the former Amity Bank, based in Woodbridge, Connecticut. It changed its name to Connecticut Bank of Commerce in January 1993, and later relocated its main office to Stamford. It maintained branches in Branford and Woodbridge, Connecticut, and two in Manhattan.

This is the first bank failure in Connecticut since 1996.

See also FDIC Web page on bank closing, acquiring institution and customer questions.