The Other Important Anniversary For Newtown—

Newtown Savings Bank: 150 Years Of Service And Going Strong

By Nancy K. Crevier

It is not just loans that Newtown Savings Bank will float this tercentennial year. When the Labor Day Parade steps off on September 5, Newtown Savings Bank will launch a special float down Main Street commemorating both the town’s 300th anniversary and the anniversary of the bank that has called Newtown home for 150 years.

This year, 2005, marks the 150th anniversary of Newtown Savings Bank, which began its career in the Main Street home of Henry Beers Glover and has since branched out to eight surrounding communities.

On September 15, 1855, when Newtown Savings Bank opened for business with an initial deposit of $2 from Henry Beers Glover’s daughter, Mary, Newtown was primarily an agricultural community. The nearest banks were in New Haven and Bridgeport, and larger banks were not particularly interested in the needs of small farmers. Initial incorporators, which included Henry Beers, Henry Glover, David Johnson, and Samuel Curtis, wanted a bank that would remain faithful to the community.

Says Newtown Savings Bank CEO and Chairman John Martocci, “They didn’t want any one individual or group to be dominant.” To that end, the biggest deposit allowed by Newtown Savings Bank in 1855 was $400. As stated in the passbook issued in 1855, the bank had “been established for the purpose of affording a secure investment to persons who have not the facilities of safely putting their income otherwise to use.”

Through investments in railroads and careful direction of its founders, Newtown Savings Bank gradually built up capital, enabling it to grow and provide secure mortgages and personal loans to local residents. It was not until after the bank had passed its first century of business that Newtown Savings Bank was able to offer services beyond savings and CDs, though.

“We were chartered as a savings bank,” says John Trentacosta, president and treasurer, “and until the late 1970s, we were not able to have checking accounts. Then the NOW accounts came into being, which changed things. After that we were able to offer businesses checking accounts, and now we have commercial loans and mortgages as well.”

Growing the business does not mean growing away from the bank’s roots, though, and the trustees strive to uphold the Newtown Savings Bank mission statement, “To remain an independent community bank providing quality financial products and service that benefit the people and businesses of the communities we serve.” Indeed, as the bank marks its century and a half of existence, “community” and “service” are two words that crop up frequently when speaking with Mr Martocci and Mr Trentacosta.

“As a savings bank, we are ‘owned’ by the community, in a sense,” says Mr Martocci. “We feel a sense of responsibility to the community.”

Newtown businessman Dave Friebel, owner since November 2004 of World of Wine and Spirits of Newtown on South Main Street, speaks highly of his experiences as a banking customer. The World of Wine is Mr Friebel’s first venture into retail, and it was Newtown Savings Bank that helped coordinate financing with the Small Business Administration for him.

“Everything about them [the bank] was very professional. There is a very small town feel to dealing with them,” says Mr Friebel.

He said he was pleasantly surprised when Mr Martocci and Mr Trentacosta came into his store and introduced themselves. “Our relationship is blossoming as people at the bank get to know me,” Mr Friebel says.

Don Droppo, chairman and CEO of Curtis Packaging on Berkshire Road in Sandy Hook, knows the bank on both a personal and professional level. “It’s been a very good relationship,” he says. And he is one to talk. Curtis Packaging, which has been a Newtown institution for 160 years, and the family that owns it have been bank customers in some respect, “I would bet for most of Newtown Savings Bank’s 150 years,” according to Mr Droppo. Curtis Packaging, he says, presently relies on the local bank for commercial mortgages and payroll checking, as well as most of its other banking needs. It was Newtown Savings Bank that financed the 40,000-square-foot warehouse addition for this business in 2000.

As a personal customer of Newtown Savings Bank, Mr Droppo cites the bank’s extremely positive and responsive attitude as a big draw.

“The thing about the bank,” he states, “is that you’re dealing locally. Really, in banking it’s a breath of fresh air. It’s in the banking business that there’ve been so many mergers and inconsistent policies [as the banks change hands], so with other banking we’ve done, we see changes. But Newtown Savings Bank is stable.”

The bank has achieved its goal of integrating into the community, in Mr Droppo’s eyes. He says, “It’s very nice dealing with them. Everyone is friendly. And we see them [the employees] around town. They care about Newtown, really.”

Small Overtures

It is the small overtures that Newtown Savings Banks puts forth that earmark its dedication to service, Mr Trentacosta and Mr Martocci believe. The lobbies of Newtown Savings Banks, for example, showcase local businesses with whom the bank has developed a relationship, featuring a different business each month. “It’s not just in Newtown. We do this in all of our banks,” Mr Trentacosta explains.

Another example of the bank’s philanthropic approach is that of a program at Danbury Hospital through which Newtown Savings Bank provides financing to Certified Nursing Assistants and nursing students. The loans do not come payable until six months after the student has found employment in that field.

“If you are going to be a force,” Mr Martocci says, “you have to understand what the community is about.” Mr Trentacosta adds, “That goes for all of the communities we are in, whether through contributions or through the Chambers of Commerce, whatever.”

There seems to be hardly a charity or organization in Newtown that has not benefited from the bank’s generosity. Plaques of appreciation line the waiting areas: Boy Scouts, Habitat for Humanity, The United Way, and the Rotary Club, to name just a few. Because Newtown Savings Bank encourages its offices and employees (150 in the area, 75 of whom are employed in Newtown) to be a part of the community through active participation in organizations, the bank feels it is important to support those efforts. It is able to do so through the creation of The Newtown Savings Bank Foundation, a private foundation that provides donations to the public. Between actual contributions and sponsorships, the bank contributed more than $200,000 in 2004, according to Mr Trentacosta, including $20,000 for the tercentennial fireworks.

The bank is a regular supporter of the Newtown Labor Day Parade, and both Mr Trentacosta, who moved to Sandy Hook one and a half years ago, and Mr Martocci, who has been a Newtown resident for seven years, served on the planning committee for Fairfield Hills. Both men have also been pleased to serve on the Tercentennial Steering Committee this year. “We try to take leadership in the community,” Mr Martocci says.

 

A History Of Growth

Not only have the past 150 years seen a growth in financial strength for the bank (total assets as of December 31, 2004, were listed as $617.6 million), the building itself has expanded more than once to meet the needs of its patrons.

In 1887 the bank moved from the home of Mr Glover to an office in the Henry Sanford building on Main Street. With the purchase of land in 1906 between that of the Congregational parsonage and the residence of David Beers, a building committee voted to erect a building on that land. In May of 1910, the bank opened its doors on the very spot it stands today.

Renovations have continued over the years, including updating the lobby in 1955 and an 8,000-square-foot addition to the north side of the original building in 1998. Ever-expanding bank offerings and local growth have created a need for yet more space, and in the past several months the newest addition to Newtown Savings Bank has taken shape behind the Main Street building.

The 10,000-square-foot addition will house loan originators and servicing, deposit operations, IT and the IT server room, finance, and human resources, all of which are presently housed in the original building.

The commercial lending group and investment representatives will move into the updated, original space. “Our target date is December of 2005, when we will tie a 150th Anniversary and Grand Opening celebration together,” says Mr Martocci.

The new renovations will also include a relocation of the ATM to the back of the new building, allowing easier access for the bank’s customers. “We knew that the present location was not liked by a lot of our people. We listen to people. It’s important how we are viewed by the community,” says Mr Trentacosta.

“We’ve designed this bank to keep it going for another 150 years. We want to keep this a community bank,” Mr Martocci states. “We are focused on that goal. Our objective is to be a true community bank providing services to the businesses and people, and to maintain good profitability to achieve that goal.”