The History Of A Community Bank

To the Editor:

In a day when large banks are failing due to mismanagement with subprime mortgages and questionable operating practices, it is indeed pleasant to have a bank in Newtown that has avoided all of that, remains very solvent, and still dedicated to the town for which it is named. I am of course, referring to the Newtown Savings Bank.

I was privileged to be asked to write the history of this extraordinary institution three years ago for its 150th anniversary. In the process, I had access to all of their records and came to understand how much the bank moved and created the community that is Newtown today. It was started by a group of prosperous businessmen who created a mutual savings bank for small savers who were not being served by the larger area banks. These men were so dedicated to the town that they operated the bank for many years without a drawing a salary. It is no longer practical to volunteer for bank operations, but the same sense of community service still pervades the entire present bank staff from its officers to it tellers.

The most remarkable aspect of this bank has been its conservative operating practices which have made it continuously prosperous. There are only two years in the bank’s 150-year history when it did not experience an increase in its assets, and one of those years was during the Depression. I defy any other bank to make that claim.

It further has given substance to the Newtown community by giving its citizens a safe place to deposit money and arrange loans, especially for mortgages. Until very recently, almost every house that was built in Newtown was financed by the Newtown Savings Bank. Most recently they have moved into business banking, supplying a resource for the creation and expansion of local business The bank is still molding the community. It has been important to Newtown’s history, but even more important to its present and future.

The history of the Newtown Savings Bank is available in the Cyrenius H. Booth library and I encourage everyone to read the fascinating story of this almost unique financial institution. After the continuous bombardment of bad news about the financial markets and institutions in the national media, it is refreshing to look over the back fence at a bank that has done it right. A bank you keep for life.

Dan Cruson

174 Hanover Road, Newtown                                       March 16, 2009