FEDERAL DEPOSIT INSURANCE CORPORATION
In Re: InsurBanc (Proposed)
Farmington, Hartford County, Connecticut
Application for Federal Deposit Insurance (Savings Association Insurance
Fund)
ORDER
The undersigned, acting on behalf of the Board of Directors pursuant to
delegated authority, has fully considered all available facts and
information relevant to the factors of Section 6 of the Federal Deposit
Insurance Act relating to the application for Federal deposit insurance for
InsurBanc (the Bank), a proposed new federal savings bank to be located at
10 Executive Drive, Farmington, Hartford County, Connecticut, and has
concluded that the application should be approved.
Accordingly, it is hereby ORDERED, for the reasons set forth in the
attached Statement, that the application submitted by the Bank for Federal
deposit insurance be and the same hereby is approved subject to the
following conditions:
(1) That beginning paid-in capital funds of not less than $11,425,000 be
provided;
(2) That core capital, as defined at 12 C.F.R. Section 567.5(a) of the
Office of Thrift
Supervision regulations, be maintained in an amount equal to not less than
10%
of adjusted total assets, 12 C.F.R. Section 567.1(a), for the first three
years after
Federal deposit insurance is effective;
(3) That, within 60 days of approval, the Bank identify all individuals
that the Bank plans to hire for senior management positions and that the
Bank submit all appropriate background information for such individuals to
the Division of Supervision's Boston Regional Director for his prior
review and non-objection;
(4) That any changes in proposed management or proposed ownership (10% or
more
of stock) of the Bank, including new acquisitions of or subscriptions to
10% or
more of the Bank's stock, will render this commitment null and void unless
such
proposal is approved by the Division of Supervision's Boston Regional
Director
prior to the opening of the Bank;
(5) That Federal deposit insurance shall not become effective
unless and until the applicant has been established as a federal savings
bank, that it has authority to conduct a banking business and that its
establishment and operation as a bank have been fully approved by the
Office of Thrift Supervision;
(6) That, until the conditional commitment
herein ORDERED becomes effective, the FDIC shall have the right to
alter, suspend or withdraw the said commitment should any interim
development be deemed to warrant such action; and
(7) That, if deposit
insurance has not become effective within twelve months from the
date of this ORDER, or unless, in the meantime, a request for an extension
of
time has been approved by the FDIC, the consent granted shall expire at
the end
of the twelve-month period.
Dated at Washington, D.C. this 13th day of
March, 2001.
FEDERAL DEPOSIT INSURANCE CORPORATION
BY:
John M. Lane
Associate Director Division of Supervision
FEDERAL DEPOSIT INSURANCE CORPORATION
In Re: InsurBanc (Proposed)
Farmington, Hartford County, Connecticut
Application for Federal Deposit Insurance (Savings Association Insurance
Fund)
STATEMENT
Pursuant to the provisions of Section 5 of the Federal Deposit Insurance
Act (12 U.S.C. 1815), an application for Federal deposit insurance, with
membership in the Savings Association
Insurance Fund, has been filed by the Independent Insurance Agents of
America, Inc. (IIAA),
W.R. Berkley Corporation ("Berkley"), and Signet Star Reinsurance
Company ("Signet Star") on
behalf of InsurBanc (the Bank), a proposed new federal savings bank to be
located at 10
Executive Drive, Farmington, Hartford County, Connecticut.
The Bank's sole shareholder will be Peyton Street Independent Financial
Services Corporation (Peyton Street), a newly formed thrift holding company.
Stock ownership of Peyton Street will be held by IIAA, Berkley, and Signet
Star. IIAA is a nonprofit, national trade association for independent
insurance agents representing more than 300,000 agents and their employees
through its federation of 50 state associations. Berkley is a publicly
traded property and casualty insurance holding company. Signet Star is a
reinsurance company, which is wholly owned by Berkley.
The proposal is being undertaken in order to provide banking products and
services to IIAA's member independent agents located in the States of
Connecticut, Massachusetts and New Jersey, to their employees, and to their
customers. The applicants feel that the traditional lines of separation
between the delivery of banking and insurance products continue to blur and
that banks are forming strategic alliances with insurance agencies. The Bank
will enable the agents to refer their clients to banking products and
services. The Bank's strategy is to replicate the community banking
relationship between the traditional community bank and its customers by
building on the independent insurance agents' one-to-one relationship with
their customers.
The Bank will offer home equity loans, first and second mortgage loans,
small business loans, and consumer loans: The products will be offered to
IIAA member independent insurance agents, their employees, and their
customers. Delivery systems for the Bank's products will include a
combination of postal mail, telephone, Automated Teller Machines (ATMs), and
personal computers (PC). PC banking will be facilitated by the use of the
Internet and a transactional web site.
For purposes of this proposal, the investment in fixed assets is reasonable,
capital is adequate, future earnings prospects are favorable, and management
is considered satisfactory. The Bank provides an alternative banking source
to its targeted market with no adverse effect on the competitive
environment. Corporate powers to be exercised are consistent with the
purpose of the Federal Deposit Insurance Act. No undue risk to the Savings
Association Insurance Fund is apparent.
Accordingly, based upon a careful evaluation of all available facts and
information, the Associate Director of the Division of Supervision, pursuant
to delegated authority, has concluded that approval of the application is
warranted.
ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION
