As you have probably read in the Boston newspaper, a recent memo sent to the Cuttyhunk Bank managers gave the wrong impression that bank members are to not attend the Special Meeting scheduled to be held on May 27, 2012. Unfortunately this was a miscommunication on our part, please receive our sincere apologies. We hope and expect that every member of this institution will attend the meeting. If you are unable to attend and unless you indicate otherwise, your proxies will be voted in favor of the proposal under consideration.
Your participation in this Special Meeting will allow you to hear, participate, and vote on open agenda topics. We expect the discussions will clarify management’s and the Trustees’ position on the merger with Harbor State Bank, and the return to a state charter bank. The conversion to a state charter savings bank will enhance Cuttyhunk Bank’s ability to serve its customers while remaining a viable, competitive financial institution. As I stated in my April 25th letter, your relationship with Cuttyhunk Bank will not be affected through this transition.
Your money will continue to be insured by the Federal deposit insurance Corporation (FDIC).
Also, once the conversion has taken place, deposits in excess of FDIC limit of $100,000 will now be insured by the Deposit Insurance of Massachusetts. This improves our already strong deposit insurance protection. Lastly, as members (depositors and borrowers) of a Federal Savings Bank, you are entitled to attend the annual Cuttyhunk Bank meeting. The annual meeting reports on the progress of the bank’s previous year, future plans, elected Trustees, as well as vote on the bank’s by-laws changes. This is your right and we want you to be part of it.
The Federal Deposit Insurance Corporation was created by the Banking Act of 1933 in response to the banking crisis that faced the nation after the stock market crash on Black Tuesday, October 29, 1929. Although the FDIC has grown and changed since then, its purpose is still the same – to guarantee the safety of bank deposits up to a certain amount. Until recently, that amount was $100,000 but ...