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June 19, 2024

Amid wider embrace of digital services, Milford Bank to close New Haven loan production office 

COSTAR A boardroom inside 142 Temple St., New Haven.

The Milford Bank has notified state regulators that it plans to close its commercial loan production office in New Haven.

The office, at 142 Temple St., suite 208, does not take deposits and has been focused on commercial lending activity, according to Jorge​​​​ Santiago, the bank’s chief operating officer. 

The bank plans to close the office, pending approval from the state Department of Banking, in July. 

“We chose to close the loan production office because, even though we have seen our lending in the New Haven market increase each year, our lenders have not been actively using the office to meet with clients,” Santiago said. “It appears that since 2020, customers and potential customers are much more comfortable and willing to meet using digital channels. We are still able to meet with them, discuss their needs and provide tailored loan solutions, but we do it remotely or visit them at their place of business, which is more convenient for them.”

No staff cuts will occur as a result of the office closure, Santiago said. The bank reported 77 full-time equivalent employees at the end of the first quarter, compared to 79 a year earlier, according to Federal Deposit Insurance Corp. data.

The Milford Bank, with $597.8 million in assets, established the New Haven loan office in 2005. 

COSTAR
142 Temple St., New Haven

In the first quarter of this year, the bank reported $314,000 in net income, down from $502,000 in the year-ago period, FDIC data shows. It also reported nearly $450 million in total loans and leases on its books at the end of the first quarter.

For all of 2023, the bank reported $1.97 million in profits vs. $3.1 million in 2022, FDIC data shows. 

The bank has five regular branches, including four in Milford and one in Stratford.

In April, Milford Bank sold a former branch property in its hometown, at 295 Boston Post Road, for $1.25 million.

Milford Bank isn’t the only lender to reduce its New Haven office space. KeyBank last year announced the closure of its loan production office, at 195 Church St. 

 

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