Summary

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Donald Trump on March 27, 2020. The legislation provides approximately $2.2 trillion of fiscal stimulus including:

• Direct payments to many Americans
• A $350 billion bank loan program for small businesses
• $500 billion in lending facilities from the Treasury and Federal Reserve for severely distressed sectors of the economy
• $150 billion for state and local governments
• $150 billion for hospitals.

What happens next?

Many of the relief measures included in the package relate to programs overseen by multiple governmental agencies. Some measures will become available more quickly than others. We will keep you informed as new programs become available that are related to the financial services we provide.

How could the CARES Act help me and family?

The CARES Act provides cash assistance directly to eligible taxpayers among other opportunities for relief.

One-time checks
The U.S. Treasury has stated it will issue refund checks as rapidly as possible, and officials are hoping for April. The full credit amount of $1,200 for individuals and $2,400 for couples is available for individuals with income at or below $75,000 ($112,500 for heads of household) and couples with income at or below $150,000. You will receive an additional $500 per child. Your tax rebate amount will be reduced by $5 for each $100 your income exceeds the income limits. That means for those without children, an individual will not receive a rebate if his or her income exceeds $99,000 or for couples, more than $198,000 of income.

401K and IRA early withdrawal penalties
10% early withdrawal penalties will be waived for certain coronavirus-related 401k and IRA distributions up to $100,000 made during 2020.

Student loans
Federal student loan payments will be waived for up to six months, and interest will not be accrued during this period.

Unemployment benefits
Individual unemployment benefits provided by states will increase by an additional $600 per week for four months, retroactive to January 27, 2020.

Credit reporting
The Act creates a moratorium on missed payment reports to credit reporting agencies for the duration of the public health emergency and 120 days thereafter.

Mortgages
Foreclosures will be prohibited on all federally-backed mortgage loans for 60 days beginning March 18, 2020, and up to 360 days of forbearance (180 days, plus one 180-day renewal) will be provided for borrowers of a federally-backed mortgage loan who have experienced a financial hardship related to COVID-19.

IRAs & HSAs

• Required Minimum Distributions Suspended – Individuals, including beneficiaries, will not be required to take their 2020 required minimum distributions (RMDs) from their IRAs. This RMD waiver also applies to individuals who turned 70½ in 2019 but did not take their RMD before January 1, 2020.

• IRA/HSA Contribution Deadline Extended – Since the tax return filing deadline for 2019 income tax returns was extended to July 15, 2020, the deadline for making a 2019 contribution to an IRA or HSA also is extended to July 15, 2020.

• Early Distribution Penalties – The 10% penalty for taking early distributions from qualified retirement plans is waived for distributions up to $100,000, taken between January 1, 2020 and December 31, 2020, for qualified individuals. Qualified individuals are defined as:

  • an individual (or the spouse or a dependent of that individual) who is diagnosed with COVID-19 or SARS-CoV-2 in an approved test; or

  • an individual who suffers related adverse financial consequences, or suffers from other factors as determined by the Secretary of the Treasury.

• IRA Beneficiaries subject to the 5-year rule – The 2020 year will not be counted for purposes of a five-year payout period for a beneficiary. (This provision will not alter a required beginning date for years after 2020).

• Delayed Contributions to SEP Plans – Required minimum contributions for 2020 to Simplified Employee Pension plans can be delayed until January 1, 2021.

How could the CARES Act help my business?

The goal of the Act is to provide financial assistance to businesses and incentivize businesses to keep employees on payroll. These provisions have been commonly referred to as the Paycheck Protection Program.

The Act focuses on the Small Business Administration (SBA) Section 7(a) guaranteed lending program. SBA will provide additional guidance and implementation dates following enactment of the Act.

• The Act authorizes $350 billion for loans under the SBA Section 7(a) guaranteed lending program to cover eligible business concerns or non-profits with fewer than 500 employees. It waives all fees and increases the federal government guarantee to 100 percent, with payments deferred for up to one year and no prepayment penalty.
• The Act increases the loan amounts available under 7(a) to the lesser of $10 million or 2.5 times average monthly payroll, plus the value of any existing EIDL loan received after January 31, 2020, and provides eligibility for loan forgiveness on all amounts used for payroll, mortgage interest, lease, and utility payments between February 15, 2020, and June 30, 2020. Loan forgiveness will be reduced if there is a reduction in the number of employees or employee compensation during this period. Loans are capped at 4 percent and terms of up to 10 years.
• Loans may also be used, but not forgiven, for other specified purposes.

Assistance for mid-size businesses is being accounted for in provisions related to the severely distressed sectors of the economy:

• As part of a $454 billion provision in support of Federal Reserve lending, the Act directs the U.S. Treasury and Federal Reserve to try to provide financing to banks and other lenders that make direct loans to eligible businesses and nonprofits with 500 to 10,000 employees.
• The interest rate on loans would be capped at 2 percent, with no payments due for the first 6 months, and borrowers would be required to provide good-faith certification to a list of conditions, including workforce retention; no payment of dividends or stock buybacks; no outsourcing or offshoring of jobs; and union neutrality with no collective bargaining agreement breaches for two years after repayment.

Thomaston Savings Bank offers several alternate banking solutions for those that wish to avoid public places or cannot visit us in person during this time, including:

• Our Online and Mobile Banking services are available 24 hours a day, 7 days a week, allowing both consumers and businesses to perform many banking transactions from your home or office location. You can deposit checks, transfer money between accounts at Thomaston Savings Bank and your other financial institutions, check your balances, review account activity, pay bills, and more.
• If you have not yet downloaded our mobile app, you can find it by searching Thomaston Savings Bank in the App Store for Apple iOS devices and Google Play for Android devices.
• If you need to send cash quickly to family or friends, Zelle is a fast, safe and easy way to send money directly between almost any bank accounts in the U.S., typically within minutes. With just an email address or U.S. mobile phone number, you can send money to people you trust, regardless of where they bank. Learn more about Zelle.
• If you have a Thomaston Savings Bank Visa Debit Card you can make surcharge-free cash withdrawals at over 32,000 MoneyPass ATMs. Visit moneypass.com to find a surcharge-free ATM near you. Don't have a Thomaston Savings Bank Visa Debit Card? Log into Online or Mobile Banking and head to the Service Center to request a new card; we will mail it to you within 7 to 10 business days.
• Residential Mortgage, Home Equity Loan, and Home Equity Line of Credit applications can be completed online. Get started here.
• Existing customers can open a new Personal Checking or Statement Savings account online. To get started, login to Online or Mobile Banking and select Open an Account.
• Our Contact Center is available during business hours to assist with your banking needs or questions you may have via phone at 855.344.1874. You can also send a secure message to us in Online or Mobile Banking.

During a time of economic uncertainty, it is natural to be concerned about the safety of your hard-earned money. Thomaston Savings Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Since the FDIC was founded in 1933, no depositor has ever lost a penny of FDIC-insured funds. Today, the FDIC insures up to $250,000 per depositor per FDIC-insured bank. An FDIC-insured account is the safest place for you to keep your money.

• Learn more about deposit insurance here.

• The FDIC's Electronic Deposit Insurance Estimator (EDIE) is a tool that can help you determine deposit insurance coverage based on accounts you already have and accounts you are considering opening.

Unfortunately, fraudsters are finding ways to take advantage of fears related to the coronavirus. Learn about the common scams and what you can do to protect yourself.

Common Scams

• Phishing and supply scams. Scammers impersonate health organizations and businesses to gather personal and financial information or sell fake test kits, supplies, vaccines or cures for COVID-19.
• Stimulus check or economic relief scams. There are reports that the government will help to ease the economic impact of the virus by sending money by check or direct deposit. However, the government will NOT ask for a fee to receive the funds, nor will they ask for your personal or account information.
• Charity scams. Fraudsters seek donations for illegitimate or non-existent organizations.
• Delivery of malware through “virus-tracking apps” or sensationalized news reports.
• Provider scams. Scammers impersonate doctors and hospital staff and contact victim claiming to have treated a relative or friend for COVID-19 and demand payment for treatment.
• Bank/FDIC scams: Scammers impersonate FDIC or bank employees and falsely claim that banks are limiting access to deposits or that there are security issues with bank deposits.
• Investment scams often styled as “research reports,” claiming that products or services of publicly traded companies can prevent, detect, or cure COVID-19.

10 Tips to Avoid Becoming a Victim

1. Watch out for phishing scams. Phishing scams use fraudulent emails, texts, phone calls and websites to trick users into disclosing private account or login information. Do not click on links or open any attachments or pop-up screens from sources you are not familiar with, and NEVER give your password, account number or PIN to anyone.
2. Ignore offers for a COVID-19 vaccine, cure or treatment. If there is a medical breakthrough, it wouldn’t be reported through unsolicited emails or online ads.
3. Rely on official sources for the most up-to-date information on COVID-19. Visit the Centers for Disease Control and Prevention, World Health Organization and your state’s health department websites to keep track of the latest developments.
4. Remember that the safest place for your money is in the bank—it’s physically secure and it’s federally insured. When you deposit your money at a bank, you get the comfort of knowing that your funds are secure and insured by the government. You don’t have the same level of protection when your money is outside the banking system.
5. Do some research before making a donation. Be wary of any business, charity or individual requesting COVID-19-related payments or donations in cash, by wire transfer, gift card or through the mail.
6. Keep your computers and mobile devices up to date. Having the latest security software, web browser, and operating system are the best defenses against viruses, malware and other online threats. Turn on automatic updates so you receive the newest fixes as they become available.
7. Recognize and avoid bogus website links. Cybercriminals embed malicious links to download malware onto devices or route users to bogus websites. Hover over suspicious links to view the actual URL that you are being routed to. Fraudulent links are often disguised by simple changes in the URL. For example: www.ABC-Bank.com vs ABC_Bank.com.
8. Change your security settings to enable multi-factor authentication for accounts that support it. Multi-factor authentication—or MFA—is a second step to verify who you are, like a text with a code.
9. Before you make any investments, remember that there is a high potential for fraud right now. You should be wary of any company claiming the ability to prevent, detect or cure coronavirus. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission website.
10. Help others by reporting coronavirus scams. Visit the FBI's Internet Crime Complaint Center at www.ic3.gov to report suspected or confirmed scams. You can also stay up-to-date on the latest scams by visiting the FTC’s coronavirus page at ftc.gov/coronavirus.

Source: American Bankers Association

It is important to seek information from official and well-supported sources. Here are some resources for your reference:

• Centers for Disease Control and Prevention (CDC)
• State of Connecticut
• World Health Organization
• Call 2-1-1 of Connecticut or visit 211ct.org.
  • 2-1-1 is a program of United Way of Connecticut and is supported by the State of Connecticut and Connecticut United Ways. 2-1-1 is a one-stop connection to local services, from utility assistance, food, housing, child care, elder care, crisis intervention and more. If you experience a problem using the 2-1-1 number, dial 1-800-203-1234.

• We have measures in place that will support our continued operations and to support our customers during emergencies and disasters. These measures will evolve as we respond to the particular challenges of this pandemic.
• We are consistently monitoring staffing levels throughout all areas of the Bank to prevent any disruptions in service.
• We have secure remote work capabilities so even in the most extreme circumstances, we can continue our operations to deliver essential financial services.
• To help prevent the spread of any illness to customers or the public, we have asked that any of our employees who are feeling ill or exhibiting symptoms of illness (including respiratory disease or fever), or has a family member who is ill, to stay home.
• In accordance with the guidance provided by the CDC, we are asking that anyone who has traveled to or from a Level 3 or Level 2 area, please avoid visiting a Thomaston Savings Bank office for at least two weeks after returning to the U.S.
• We have escalated cleaning practices. All high-touch surfaces, ATMs, drive-up teller equipment, and night depositories are disinfected frequently.
• Our branch lobbies are closed to walk-in traffic until further notice to better enable us to adhere to social distancing guidelines. Our drive-ups, ATMs, and night depositories remain open.

March 23, 2020

A Message From Our President & CEO

To Our Customers and Community,

Amid the pandemic that has gripped our nation and the world, our daily lives are remarkably different than they were just a short time ago. Concern about our personal health, and the health of our family, friends, and neighbors, now commands our daily routine. As New Englanders, we usually look forward to spending more time outdoors at this stage of year, as temperatures rise, daylight becomes more abundant, and the spring sports season nears. Rather, we find ourselves in an indeterminate state of isolation to do our part to reduce the spread of illness.

The health and well-being of our customers, employees, and community is paramount to everything we do. We recently announced that we closed our branch lobbies to walk-in traffic until further notice. Rest assured your trusted bankers are still available by phone or appointment if and when you need them.

To provide immediate relief to those who may be facing financial hardship, we made the following changes, effective March 23, 2020 for all customers, for a temporary period to end no sooner than April 30, 2020:

• Non-Sufficient Funds fees waived for all transactions of $100 and less.
• Unavailable Funds fees waived for all transactions.
• Next-day availability for funds from deposited checks increased from $200 to $500.
• Penalty applicable to Certificate of Deposit accounts waived for early withdrawal amounts up to $25,000.

If you have a loan with us and you are experiencing, or expect to experience soon, financial hardship please contact us so we can discuss options that may help you.

Please visit our website regularly at ThomastonSB.com for valuable information about our commitment to ongoing operation throughout this challenge. Included on our website are resources for the digital banking services we offer that can help you complete more of your banking activity from the comfort of your home or business. We will continue to communicate updates as we adapt our business to best serve you.

Thomaston Savings Bank has weathered many difficult economic periods over its history of 146 years. In this time of uncertainty, it is important that you know we operate today from a position of fiscal strength that was built by adhering to safe and sound banking principles for over a century. We are well capitalized and stand ready to support the people and businesses in our community for the duration of this historic period. With the spirit of community that bonds us all, we will persevere together.

Thank you for the trust you continue to place in us. We wish you and your family good health, now and always.

Sincerely,

Stephen L. Lewis

President & CEO

March 19, 2020

In our commitment to the health and well-being of our customers, employees, and community, we will limit all branch offices to drive-up only service beginning Friday, March 20. All branch lobbies will be closed to walk-in traffic until further notice as a proactive measure to help mitigate the spread of illness.

We will reopen branch lobbies as soon as possible and we will notify you once that happens. We strongly encourage you to use our digital tools and other resources for self-service banking and 24/7 account access.

We will meet with customers by appointment for bank services that cannot be completed through the drive-up or other self-service channels. To schedule an appointment, please call us at 855.344.1874.

March 9, 2020

Thomaston Savings Bank is monitoring and taking actions to respond to the evolving public health situation around COVID-19. The health, safety, and well-being of our customers, employees and community is our top priority. We will continue to monitor developments around COVID-19 and provide updates on this page as they relate to our operations. We are committed to remaining your trusted financial partner during this time and we appreciate your business.

We strongly encourage you to use Thomaston Savings Bank's digital tools and other resources for self-service banking and 24/7 account access.