Profile: Southern Connecticut Bancorp Inc (SSE)

Southern Connecticut Bancorp, Inc., incorporated on November 8, 2000, is the bank holding company of The Bank of Southern Connecticut (the Bank). The Bank focuses on serving the banking needs of small to medium-sized businesses, professionals and professional corporations, and their owners and employees in the Greater New Haven Market. On February 29, 2008, the Bank sold its branch in New London, Connecticut to the Savings Institute Bank & Trust. On August 1, 2008 the Company’s wholly owned subsidiary, SCB Capital, Inc., purchased the assets of Evergreen Financial LLC.

Lending Activities

The Bank offers a range of loans to businesses and individuals in its service area, including commercial and business loans, industrial loans, personal loans, commercial and home mortgage loans, home equity loans and automobile loans. The Bank has received lending approval status from the Small Business Administration (SBA) to enable it to make SBA loans in communities located throughout the State of Connecticut.

Loans are made on a variable or fixed rate basis, with fixed rate loans typically limited to three to five year terms. Commercial loans and commercial real estate loans may be written for maturities of up to twenty years. Loans to purchase or refinance commercial real estate are typically supported by personal guarantees of the principal owners and related parties, and are collateralized by the subject real estate, which may in certain cases be supplemented by additional collateral in the form of liquid assets. Loans to local businesses are supported by the personal guarantees of the principal owners and are underwritten to determine appropriate collateral and covenant requirements. The Bank’s net loan portfolio was $89.2 million as of December 31, 2008.

Investment Activities

The investment securities held by the Bank include debt securities, such as United States Government securities, government sponsored agency securities, municipal bonds, domestic certificates of deposit that are insured by the Federal Deposit Insurance Corporation (FDIC), mortgage-backed securities and collateralized mortgage obligations. The Bank’s investment portfolio is limited to the United States Government sponsored agency obligations and sponsored agency issued collateralized mortgage obligations, which have been classified as available for sale.

Sources of Funds

The Bank has attracted a base of core deposits, including interest bearing and non-interest bearing checking accounts, money market accounts, savings accounts, sweep accounts, negotiable order withdrawal (NOW) accounts, repurchase agreements, and a range of certificates of deposits and individual retirement accounts (IRA) accounts. The sources of deposits of the Bank are small to medium-sized businesses, professionals (lawyers, doctors, accountants, etc.) and professional corporations, and their owners and employees. The Bank offers Internet banking services to its customers, including commercial cash management services and personal banking services. The Bank offers remote deposit capture, which offers check deposit capabilities for customers from their place of business. The Bank also offers drive-in teller services, automated teller services, wire transfer, lock box and safe deposit services. Total deposits were $94.0 million as of December 31, 2008.

Other Services

The Bank provides a range of other services and products, including cashier’s checks, money orders, travelers’ checks, bank-by-mail, direct deposit and the United States Savings Bonds. The Bank is associated with a shared network of automated teller machines that its customers are able to use throughout Connecticut and other regions.