In Brief: Conn. Thrift Sets Up Tax-Exempt Foundation

American Savings Bank has established the only tax-exempt foundation created and endowed exclusively by a Connecticut mutual thrift.

The thrift intends to give up to 10% of its pretax earnings to boost the endowment of the foundation, through which it plans to contribute millions of dollars to area communities.

Based on the last five years of earnings, the foundation's principal could reach $15 million within five years, with possible annual donations of $1 million to local communities.

The foundation initially will distribute college scholarships and grants to organizations based on merit or need, as determined by the foundation's board of trustees. Applicants must live in the bank's service area.

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