Stonington - Newport Federal Savings Bank, in the midst of a steep national recession, just managed to open up two new branches in three months - including one at 445 Liberty St. in the Pawcatuck Farms development near Routes 2 and 49.

"We never did any of the subprime lending - that's why community banks are doing well," Susan Ouellet, the bank's marketing director, said this week.

"Our deposit activity in 2008 was the best ever," added Kevin McCarthy, president and chief executive of the bank, "and in the first quarter of 2009, we've had another nice increase in deposits."

NewportFed opened the doors of its sixth branch May 4, held a ribbon cutting May 11 and conducted a reception at its new local office just this week. The Stonington branch opening, which includes a cafe station in the lobby, three drive-through lanes and an envelope-free ATM, follows hard on the addition of another NewportFed branch in Portsmouth, R.I.

McCarthy said he is particularly proud of the new branches' similar designs, created by architect Peter Gutting of Strategic DesignWorks of Natick, Mass., and contractor Behan Brothers Inc. of Middletown, R.I.

"We've received a lot of positive feedback from people," he said.

The bank plans a grand opening June 13. Drawings, giveaways, and a Family Fun Day will be held, and NewportFed promises to donate $5 to the Mystic Area Shelter and Hospitality for every new checking account opened through the end of the month.

Ouellet said NewportFed is promoting its so-called e-Loop Checking Accounts, which currently offer an interest rate of more than 4 percent for those who agree to conduct at least 10 debit transactions a month, receive a paperless statement and pay at least one bill a month directly through checking.

These accounts have no minimum balance requirement, but the rate is offered on accounts only up to a maximum of $50,000.

NewportFed, a federally chartered bank whose parent company is NewportFed Bancorp, has been around since 1888, currently has about $430 million in assets and has been on an expansion mode since opening itself up to stock ownership three years ago. It has locations in Newport, Middletown, Wakefield and Westerly in addition to its new offices.

NewportFed acquired Westerly Savings Bank in 2005, but closed its branch on Union Street in Westerly while retaining another space it owned on Wilder Avenue. The new office in Stonington, about three miles away from Union Street, is more convenient and in a better location, Ouellet said.

"In Westerly, we had a fair amount of Connecticut customers," McCarthy said. "The new Stonington branch is definitely more convenient for them."

l.howard@theday.com