Profile: Southern Connecticut Bancorp Inc (SSE.A)

Southern Connecticut Bancorp, Inc., incorporated on November 8, 2000, is a bank holding company. The Company owns 100% interest in The Bank of Southern Connecticut (the Bank), a Connecticut-chartered bank, and 100% interest in SCB Capital, Inc. As of December 31, 2011, the Bank operated branches at four locations, including downtown New Haven, the Amity/Westville section of New Haven, Branford and North Haven. The Company serves the Greater New Haven Market, which consisted of the communities located in and around New Haven County in Southern Central Connecticut. The Bank provides a range of other services and products, including cashier’s checks, money orders, travelers’ checks, bank-by-mail, direct deposit and United States Savings Bonds.

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. Loans are made on a variable or fixed rate basis, with fixed rate loans typically limited to three to five year terms. The Bank, at times, participates in multi-bank loans to companies in its market area. Commercial loans and commercial real estate loans may be written for maturities of up to 20 years. Loans to purchase or refinance commercial real estate are supported by personal guarantees of the principal owners and related parties. The Bank’s net loan portfolio was $111.6 million as of December 31, 2011.

Investment Activities

The Company’s permissible investments include debt securities, such as the 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. Its investment portfolio is limited to the United States Treasury bills, 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 of withdrawal (NOW) accounts, repurchase agreements, and a variety of certificates of deposits and individual retirement accounts (IRA). The primary sources of deposits are small to medium-sized businesses, professionals (lawyers, doctors, accountants) 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. It 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 $132.6 million as of December 31, 2011.