Economic Strength and Community Growth: How Connecticut Community Banks are Making an Impact

Community banks like GSB play a pivotal role in reinforcing local economies and fostering community unity. These institutions don’t merely function as financial service providers; they’re instrumental in uplifting cities and towns, nurturing entrepreneurship, and enhancing the quality of life for residents.

Our impact, at a glance:

• $781 million in Small Business loans

• $6.8 billion in Commercial & Industrial loans

• $21.2 million in charitable giving to over 4,700 local organizations

• 142k community service hours

From personalized customer service to fostering regional economic growth, community banks create significant impacts in the areas they serve.

Stimulating Local Businesses

One significant way community banks contribute to the vitality of Connecticut’s economy is through supporting local businesses – the backbone of every community. According to the 2024 Community Involvement Survey by the Connecticut Bankers Association (CBA), 22 Connecticut banks, including GSB, issued $781 million in small business loans throughout the state.

For many entrepreneurs and small business owners, access to financial resources is often the biggest hurdle. By providing these loans, community banks enable startups to launch, existing businesses to expand, and innovation to flourish. Small businesses, in return, create jobs, stimulate local supply chains, and contribute to the overall socio-economic stability of the area. This infusion of funds into the small business sector serves as a major driving force for economic growth, encouraging entrepreneurship and resilience in various industries, from quaint coffee shops to cutting-edge tech startups.

Facilitating Major Commercial Growth

In addition to supporting small businesses, Connecticut’s community banks are major players in the broader commercial landscape, having issued $6.8 billion in Commercial & Industrial Loans according to the CBA survey. This substantial financial support underpins much of the state’s economic infrastructure, allowing for the development and modernization of industrial facilities, enhancement of logistical operations, and maintenance of high standards in manufacturing and service sectors. These activities contribute significantly to the state’s GDP and provide thousands of jobs to local residents.

Commercial real estate has also been an area of major growth. With $1.8 billion directed into Commercial Real Estate Loans in 2024, community banks like GSB have played a crucial role in developing critical infrastructural assets, such as office buildings, retail spaces, and industrial parks. These investments not only provide spaces for businesses to thrive but also stimulate construction jobs, increase property values, and enhance neighborhood aesthetics.

Strengthening Residential Foundations

Apart from business and commercial interests, community banks in Connecticut are deeply committed to bolstering residential growth and stability. With $2.4 billion allocated to residential mortgages in 2024, these banks are making the dream of home ownership a reality for countless families. Homeownership is a cornerstone of financial stability for many residents, providing them with a sense of security and an opportunity to build equity over time.

By facilitating access to mortgages, community banks help stabilize communities, reduce rental burdens on families, and encourage long-term investment in area neighborhoods. This not only enhances individual financial security but also leads to stronger, more engaged communities.

Fostering Community Well-being Through Philanthropy

The impact of community banks transcends financial services, as evidenced by their philanthropic contributions. The CBA survey highlights that community banks, including GSB, donated $21.2 million in 2024 to charitable causes throughout Connecticut, positively impacting 4,700 organizations. This generosity supports a broad spectrum of community needs, ranging from education and healthcare to environmental conservation and cultural preservation.

These charitable efforts ensure that essential services are maintained and reach those in need. In times of economic downturns or crises, the charitable support from community banks becomes even more vital, providing a safety net for vulnerable populations and ensuring stability in community programs.

At GSB, our dedication to philanthropy was exhibited through our direct community contributions totaling over $310,000 in 2024 alone. This includes $115,000 given in community foundation grants and $22,000 in scholarships for higher education. Reflecting our culture of giving, GSB employees personally donated $15,000 to a variety of causes – which the bank was pleased to match in an effort to enhance the reach and effectiveness of their contributions.

A defining moment of 2024 was GSB’s landmark decision to donate its office building at 44 Boston Street in Guilford, CT, to The Guilford Foundation—a trusted nonprofit focused on meeting the needs of their community. Having provided use of this space to the Foundation for over 20 years, formalizing the donation was a meaningful step, further cementing our commitment to supporting organizations that strengthen our communities.

Broader Social Impact

Beyond tangible financial contributions, community banks in Connecticut play an essential role in building social capital. They’re often involved in local events, sponsor community initiatives, and provide financial literacy resources. This engagement helps to create a sense of shared purpose and community belonging.

GSB’s continued investment in community engagement underscores our steadfast mission to serve and support the communities in which we live and work. Through providing financial resources, participating in active volunteerism, and maintaining strategic collaborations with over 160 community organizations, we’re proud to contribute to the sustainability and growth of Connecticut’s dynamic nonprofit network.

Community Banking: A Partnership for Sustainable Growth

Connecticut community banks are much more than financial institutions—they’re vital partners in the state’s economic and social ecosystems. Our ability to adapt, innovate, and respond to the unique needs of the communities we serve helps to lay the foundation for a resilient and flourishing future. As we continue to adapt, innovate, and respond to the evolving landscape of the financial sector, community banks like GSB will remain a firm pillar of support in the areas we serve.