Regulators have closed a small bank headquartered in Bridgeport, bringing the number of U.S. bank failures to 21 this year.
The Community's Bank was shut down today after State Banking Commissioner Howard F. Pitkin deemed the bank "unsafe and unsound," according to a release from the State Department of Banking.
Frustrated customers stopped by the bank's only remaining branch on East Main Street but were unable to access their money.
"I can't do anything. All my money's in this bank. I've been with this bank for years," said Malaika Langston. "I'm just mad. I'm very upset."
The Federal Deposit Insurance Corp. said Friday it has taken over The Community's Bank.
Bank and regulatory personnel will be available by phone starting Saturday morning to help customers recover their money, according to the release.
Checks for insured accounts will be mailed out on Sunday, according to the F.D.I.C.
"They can call, they can stop by. We will be available to answer any questions but one thing I want to reiterate is they don't have anything to worry about, that if they had under $250,000 their checks will be in the mail," said Eric Raines, a spokesman for the F.D.I.C.
Pitkin said the bank had racked up a deficit of about $31,000 as of June 30 this year.
“The Banking Department worked diligently to find ways to allow for the continued operation of The Community’s Bank. Unfortunately, despite considerable efforts in seeking an acquirer or viable investor, the bank’s issues could not be resolved and my primary responsibility is to the protection of Connecticut consumers, and in this case, specifically the depositors of this institution,” Pitkin said in the release.
The FDIC was unable to find another financial institution to take over the failed lender's banking operations. As a result, the FDIC says it will mail checks directly to depositors for the amount in their accounts that's insured.
The FDIC insures deposits up to $250,000 per depositor.
The failure of The Community's Bank is expected to cost the deposit insurance fund $7.8 million.
It's the first Connecticut bank to fail since 2002, according to the F.D.I.C.
The Community's Bank was chartered in 2001 and has been "under increased regulatory scrutiny since 2010," the release says.