Banking New England March/April 2015 by The Warren Group

MARCH/APRIL 2015

INSIDER: ARE YOU READY FOR THE CHANGES IN THE PAYMENTS LANDSCAPE?

NEW ENGLAND

THE RESOURCE FOR NEW ENGLAND’S FINANCIAL LEADERS

The

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LETTER FROM THE EDITOR

The Season of Green Shoots Christina P. O’Neill Editor, Banking New England

he New England housing market is the focus of this issue’s cover story. The advent of spring, along with recent Federal Reserve indications that interest rates won’t be going up quite as soon as the market expected, has contributed to a nascent residential real estate revival. As we were heading to press, snowbanks were melting and it’s hoped that the spring season will make up for at least some of the time and activity lost to the Great Recession. Kevin Handly’s article on EGRPRA regulations takes the national pulse of community bank input on regulatory burden on small banks. One of the commenters cited in his article notes the absurdity of requiring a form to report that the submitting bank has not conducted a specific type of transaction, and if it had, it would have provided the information. If the same type of regulation were imposed on taxpayers, just imagine how many extra forms would be needed and extra boxes would have to be checked to report evidence of non-activity on many fronts.

As the economy continues to improve, we’re bound to encounter many more seismic shifts as job figures improve and homeowners opt for long-delayed home improvements either for their own enjoyment or to get homes ready for sale. It’s hoped that the properties going on the market will meet the needs of prospective buyers – a question raised in a recent study by The Boston Foundation, which admittedly focuses on Massachusetts but which addresses demographic issues that go far beyond the state’s borders. Then, there’s the recent news about how the nation’s top three credit rating agencies will be required to raise their reporting standards and to make it less difficult for consumers to correct erroneous reports on their credit scores. All of these things signal “green shoots” for our long economic winter. They will have to play out over the next few months and years. But they signal an improvement in the financial economy which should be welcomed by lenders and borrowers alike. BNE

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CONTENTS

A PUBL ICAT ION OF T HE WA RRE N G ROUP

NEW ENGLAND

THE RESOURCE FOR NEW ENGLAND’S FINANCIAL LEADERS

Payments Landscape Changing Rapidly

ALIGNING THE PIECES

A NEW THREAT

A Winning Growth Strategy Requires the Right People, Products and Policies

BANK PROFILE

Freedom National Bank Brings Change Back Home

CHOOSING A CRM SYSTEM

Is Salesforce Right for Your Bank?

INDUSTRY NEWS

COMMENTS ON EGRPRA

Taming the Regulatory Beast

PERSONNEL FILE

COMMUNITY GOOD WORKS

The

Rebirth of New England’s

Housing Market TWG STAFF CEO & PUBLISHER Timothy M. Warren Jr. PRESIDENT David B. Lovins

www.thewarrengroup.com ©2015 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production

IN CASE YOU MISSED IT

inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210

Interested in receiving additional copies of Banking New England? Call 617-896-5307 or email custompubs@thewarrengroup.com

EDITORIAL EDITORIAL DIRECTOR Cassidy Murphy CUSTOM PUBLICATIONS EDITOR Christina P. O’Neill ASSOCIATE EDITOR Anna Sims INTERN Rachel Benoit SALES DIRECTOR OF BUSINESS MEDIA George Chateauneuf PUBLISHING GROUP SALES MANAGER Rich Ofsthun ADVERTISING ACCOUNT MANAGERS Claire Merritt, Bob Holzhacker and Michael Lydon CREATIVE/MARKETING DIRECTOR OF MARKETING & CREATIVE SERVICES John Bottini DESIGN PRODUCTION MANAGER Scott Ellison GRAPHIC DESIGNERS Amanda Martocchio, Tom Agostino and Tyler Grazio

A NEW THREAT

Payments Landscape Changing Rapidly Navigating the World of eCommerce Requires Partnerships

BY MIGUEL L. VARGAS Miguel L. Vargas is a partner at Bank Solutions Group LLC, a management consulting firm serving banks, credit unions and other financial institutions. He can be reached at miguel. vargas@banksg.com.

BANKING NEW ENGLAND

he payments industry has undergone radical changes in the past two decades. Despite some predictions, paper checks have not (yet) disappeared, although they have been radically reduced. But it’s more than just electronic payments via credit and debit card that have rocked the banking landscape. The innovations from non-bank competitors continue to drive payments away from banks altogether, which is a disturbing trend if you are a bank executive. Non-bank competitors like Google Wallet, Apple Pay, Paypal and even Netflix have done one thing that many of traditional banks have not done. They have followed the trend of an up-and-coming generation, watched how they communicate, where they spend their time and what their preferences are. And those preferences aren’t with or at a traditional bank. What do you see in the hand of every 11- to 29-year-old? A device. It might be a smartphone or a tablet, but the “device” is ubiquitous. So these non-bank competitors have followed the crowd and brought the payments to where the customers – and future customers – are. With the introduction of mobile payments, mobile wallets and peer-to-peer transactions, companies like these have not just reached the next generation both financially and philosophically, they have done so in a way that bypasses the bank altogether. Banks for a long time had a near-monopoly on payments, because payments could only be made with a check – and checks had to process through a bank. Now that structure is under immediate threat. If you look at “innovation” in payments, there isn’t a single financial institution that has created a new, innovative way for money to change hands. And to be honest, it’s not likely that they will. It’s not in a bank’s DNA. So what is the best alternative for a community bank? We see several. First, create alliances with companies that are innovating in payments. Work with Apple Pay, Google, PayPal and the others, and not against them. This is the future of the payments industry: If banks go up against, or even ignore, these alternative payments systems, they will be in the losing position. Even the larger payments companies are willing to work with the smallest of community

banks. They really don’t care about the size of the organization; they simply want transactional volume. Second, follow the money. Where are the customers that your bank wants? Are they in your branch? Or are they online, on a mobile device, in some new market that you don’t even know about? Find out, and follow them. Yes, this is a new direction that many banks haven’t yet been able to or willing to go. You may have to hire a different kind of retail or deposit offer. Be willing to listen and to learn from them. Third, spend some additional time shoring up the more traditional side of the bank. While it doesn’t make sense for most banks to simply let go of the payments revenue they have, it does make sense to face the reality that transactional volume may decrease. If it does, be ready to replace that topline revenue with something else – fee income, new lines of business, new products. The biggest threat to community banks in terms of payments is never going to be the bank next door. Competition is coming from companies almost completely removed from the banking industry, which is what makes it harder to predict. For banks to stay relevant, they must continue to look toward the customer of the future. Stop following those whom you thought were the competition – follow the customers instead. They will lead you to the future of payments! BNE

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COVER STORY ALIGNING THE PIECES

A Winning Growth Strategy Requires the Right People, Products and Policies The Right Product

BY ACHIM GRIESEL Achim Griesel is COO at Haberfeld Assoc., a new customer acquisition marketing and profitability consultant for community-based financial institutions. He can be reached at achim@haberfeld.com.

ACHIM GRIESEL

or community financial institutions, success starts with growth. On Feb. 12, The Wall Street Journal published an op-ed article on the unlikely alignment of Goldman Sachs CEO Lloyd Blankfein and Sen. Elizabeth Warren on the issue of more regulations demanded by the Dodd-Frank Act. Warren is obviously an advocate for more oversight and regulations. But why would Blankfein, a leader of one of Wall Street’s biggest banks, warm up to the idea of more regulations? It’s because he realizes additional regulations are additional hurdles for smaller competitors to overcome. Blankfein understands one of the benefits of being one of the biggest banks is that there are far more resources to manage the requirements of running a business. That’s fine for Goldman Sachs and the other too-big-to-fail banks. For the rest of us, there are more pragmatic reasons to put every resource toward growth. When you grow, you will: • Increase your profitability. • Be able to devote more resources to technology and innovation. • Make employees realize they are on a winning team – and do anything to win. Achieving growth is more than a product play, more than marketing, more than a sales culture and more training. Sustainable growth can only be achieved if your approach is strategic and incorporates all of the above, and a blend ofeverything that follows.

BANKING NEW ENGLAND

A review of several million customer records at community banks and credit unions shows most consumers and businesses – actually 64 percent in our study – start financial relationships with a checking account. It is the key product in achieving primary financial institution (PFI) status. This same data also shows that once a community bank has achieved PFI status, it should have more than five additional product and services per customer. That’s why the PFI is such a critical relationship, and why developing more of them hinges on the right products. The core principle here is simple: The right account should be something that’s easy to sell – and profitable for your bank – so make sure it’s simple, a good deal for customers and clearly targeted.

The Right Policies

With compliance always at the fore, policies can overlook who we really serve – our customers. That’s a big mistake. Policies are often outdated, misplaced or simply not useful and can cost you money. While we must be in compliance, we should also evaluate policies from the customer’s point of view. Examine your policies and ask if they are helping or hurting your bank.

The Right Process

Your best sales force is your front-line staff. But are they empowered to sell your products? Do they understand your product, policies and sales process? More importantly, do they believe in it? If you can make your sales process simple and logical, and clearly outline expectations, you can transform your bank into a full-time sales machine.

The Right Training

Unleashing a sales culture starts with training. When you engage customers, you gain their trust. Gain their trust and they’ll take more products. When they take more products, they’ll refer you to their friends. That’s how you generate more revenue for your organization.

The Right Incentive

Community banks find competitive advantage through products, policies and training. What

else is there? Incentives. There are so many options here, from grand prizes to rewarding every new consumer and business with cash or gift incentives. Whether you’re competing with the big banks or other community banks, the right incentive can put your institution in the lead.

Right Marketing, Right Offer, Right Audience

Your marketing must be more strategic than just occasional campaigns. The right marketing medium, frequency and offer drive the most customers to your branches, including your web branch. Your offer should include product advantages and an incentive. The message should focus on how the customer benefits and be spread across a number of mediums.

Leverage the Power of Referrals

When customers feel wanted, and are enchanted by how you do business, they’ll spread the love. Maximize the warm fuzzies by measuring referrals and providing tools that incent customers and employees. Don’t forget to cover all channels from traditional branches to online.

Measurement and Accountability

What gets measured gets done. For measurement to be meaningful, we need to compare our own benchmarks and comparable benchmarks for new PFI acquisition, same-store sales, PFI

MIDYEAR MORTGAGE

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relationship profitability, acquisition costs and branch performance. When we talk to a prospective client, we see them generating between 100 and 500 core PFI relationships per branch, per year. With a strategic approach the ones that generate 100 double results to 200, and the ones that generate 500 double results to 1,000. The key is not the absolute number, but realizing your relative potential and achieving it.

Inspect What You Expect – Mystery Shopping

This is the key to evaluating how well you execute at the frontline. It’s important enough that it should happen all the time, but a successful strategy needs at least an annual in-depth mystery shop of all branches. Once that’s done, you have a foundation for your training plan.

More Training

Training is essential at all levels and the mystery shop shows where you’re succeeding or falling short. Training allows you to make adjustments from branch to branch. Reinforcing that shows how committed you are to acquiring new customers and becoming more profitable. The bottom line is, if you are serious about growing your organization – and you should be – you have to think of this as a strategy. Evaluate your potential, and look at both the potential results and the investment. BNE

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COVER STORY BANK PROFILE

Freedom National Bank Brings Change Back Home BY LINDA GOODSPEED

Anthony A. Botelho, president and CEO of Freedom National

10 BANKING NEW ENGLAND

round 2009, in the depths of the Great Recession, John Lombari, president of RI Carbide, a medical tool manufacturer in Smithfield, had a vision of how to move his company forward. “I wanted to buy some very sophisticated equipment, but my bank at the time wouldn’t lend to me,” Lombari said. “No bank would lend to me.” Then Lombari tried Freedom National Bank, a small startup bank in Greenville. “They took the time to come in, listen to my story and came up with a way to do it,” he said. “Over the last three years we’ve invested close to $3 million in new equipment. It’s reinvigorated the company. We’ve had three great years.” RI Carbide recently hired four new employees, and now has to fend off other leasing companies and banks who want its business. “I’m staying with Freedom National,” Lombari said. “They were there before. They treat me great. I feel so comfortable with them.” Freedom National Bank, one of the smallest

banks in the smallest state, opened in November 2001. The bank is owned by Berkshire Financial Services, a holding company, which also owns Lee Bank in western Massachusetts. Berkshire expanded into northern Rhode Island, a traditionally underbanked region, in an effort to diversify into a more commercial market. Freedom has two branches, one in Greenville and another about 10 miles away in Cumberland. FNB experienced slow and steady, if unspectacular, growth for the first several years of the decade. Then 2008 hit, and the bottom fell out. The recession hit the Ocean State particularly hard – it led the nation in job losses and unemployment. It also impacted FNB. In March 2010, the Office of the Comptroller of the Currency (OCC) executed a formal agreement with FNB. “Like most community banks and other banks, Freedom had some asset quality issues,” said Anthony A. Botelho, president and CEO of Freedom National. “The OCC had

a heightened awareness at the time, and wanted to make sure the bank implemented a strategic plan to move the bank forward.”

Strong Growth under a Strong Leader

Since then, FNB has grown total assets from $80 million to more than $108 million as of Jan. 31. Key to the bank’s steady performance the last four years is Botelho, who joined the bank as president and CEO in June 2011, shortly after the OCC stepped in. Born and raised in Rhode Island, Botelho has a 30-plus year banking career, primarily in commercial banking. Botelho said he liked the challenge at FNB. “It brought me back home, and it was a community bank, which appealed to me because of the challenges commercial customers face with big banksw,” he said. “It was an opportunity for me to go back to my roots and support community banking and commercial banking.” Bob Mancini, executive director of the RI Society of CPAs and a member of FNB’s advisory board, said Botelho was a great catch for the bank. “He’s injected an incredible level of energy and professional competency, not just as CEO, but the people he has surrounded himself with,” he said. When Botelho started at FNB in 2011, he was the newest employee. Now he is one of the most senior, replacing 80 percent of the bank’s 20 employees with his own team. He said the bank has worked through most of its legacy credit issues from 2008–2010, and its asset quality is now “better than satisfactory.” “Our core customers have sales up to $10 million,” Botelho said. “We have a lot of family-owned, second generation, third generation businesses who live and breathe through their access to capital. FNB fills the void left by big banks going upmarket and not paying as close attention to small businesses.” In 2014, Freedom was ranked fourth among all RI banks for SBA lending in

Rhode Island, and is currently fifth as of March 2015. “Our goal is always to be in the top five in Rhode Island,” Botelho said. Currently, FNB’s asset balance is 67 percent commercial loans, 13 percent consumer loans and 20 percent investments. Botelho wants to rebalance that mix to decrease consumer loans to 10 percent, investments to 15 percent and bump up the bank’s commercial loan portfolio to 75 percent. “We want to play to our strength,” he said. “Most of our people have a pretty extensive commercial background.” Over the last two years Freedom National Bank has also invested heavily in technology, including 90 remote deposit capture machines.

“It gives our customers the convenience of doing their banking at their offices,” Botelho said. “Without that it would be very difficult for us to grow and service our customers because we have only two branches.” FNB has the luxury of being able to lean heavily on its parent company, Berkshire Financial, for other technology, product development, human resources and other back-office support. “Our strategy is very simple,” Botelho said. “We’re not looking to expand bricks and mortar. Our plan is to grow our customer base, service them well, continue to reinvest in technology and products and people while meeting our financial objectives and regulatory commitments.” BNE

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CHOOSING A CRM SYTEM

Is Salesforce Right for Your Bank? A Reality Check on CRM in Smaller Banks

BY SUSAN CONNOR Susan Connor is president and chief CRM strategist at SquareBlue Consulting. She can be reached at susan@ squareblueconsulting.com.

SUSAN CONNOR

12 BANKING NEW ENGLAND

ustomer relationship management, or CRM, is not new on the banking scene. Since the advent of relationship marketing in the early 1990s, banks have with mixed success using the wealth of information they have about their customers to upsell, cross-sell and increase share of wallet among their marketplaces. In today’s market, though, upselling, crossselling and increasing share of wallet are no longer a luxury. They have become a necessity. In this environment of crunched margins and decreasing non-interest income, banks are increasingly turning their attention to the top line of revenue generation. That means making sales and reaching potential customers – understanding who they are, what they want and how to reach them. There has to be an app for that, right? Oh, there are many. A quick Google search of “CRM in banking” will get you a shade more than 13 million results, everything from the core banking systems to reviews of the leading bank CRM systems to case studies. Almost every evaluation of CRM leads to a short list of providers that nearly always includes the behemoth Salesforce.com. While many banks have adopted and customized Salesforce for their own organizations, its rate of adoption among banks less than $5 billion has been lower. A decade ago, the likelihood of a community banking organization adopting Salesforce was slim – because of regulatory scrutiny of the cloud model, the upfront cost of implementation or the lack of integration with legacy systems – but today it’s a different story. Salesforce isn’t just for the top 25 banks any longer. When it is implemented correctly, can house prospect and customer data for the full lifecycle of a relationship, from prospecting to purchase to service. But it doesn’t happen quickly, and it doesn’t happen out of the box. Too many people rush into a Salesforce implementation after sitting next to someone on an airplane who “has Salesforce” and thinks they will sign the contract and have the same system. Not so. Before making a commitment to Salesforce, or to any CRM that will act as a pivotal point in your business, think about these high-level lists.

Salesforce Might be Right for Your Bank If:

You have a dedicated person or people who can learn, master and administer the system. Once your system is implemented, you will want to have an internal administrator for about every 40 users of the system. They’ll need to know the basics of resetting forgotten passwords, as well as the complexities of producing reports and dashboards for the executive team. Your technology and marketing departments have a close, healthy relationship. Sometimes that administrator mentioned above is in your technology group. Sometimes it’s in marketing. Ideally, it’s a “marketing technologist” who understands the end goal of the system and can also navigate the technical complexities. Your compliance department has a firm grasp of the requirements surrounding cloudbased technology. Regulators’ understanding and acceptance of software as a service has come a long way, but it’s an ongoing vendor management issue to ensure the safety and soundness of any vendor who might house nonpublic customer information.

Salesforce Might Not be Right for Your Bank If:

Your board or management team do not have a good understanding of or comfort level with cloud-based technology. If it’s going to be an ongoing struggle to create comfort with the cloud, and if legacy systems are going to continue to be used as well, it might be better to stay with legacy. You don’t have the top-level management commitment to the system. If everyone but the CEO is going to log in and use Salesforce, don’t bother. The executive team has to drive adoption, or the system won’t be successful. Your commitment to data is lacking. Don’t worry if your data isn’t perfect on Day 1. No bank, and no company, has perfect data. But unless you have a cultural commitment to it, up to and including a chief data officer, investing in the system to house your bad data would be a wasted effort and investment. BNE

Strengthen Your Core

Integrated Technology for the Heart of Your Institution Maintaining your health starts by strengthening your core. Maintaining the financial and operational health of your financial institution is no different. A strong and flexible core should be at the heart of your institution. At COCC, we deliver the latest in relational core technology. The COCC INSIGHT platform provides our clients with strength at the core while integrating the best-of-breed in ancillary products. Our powerful core platform ensures that we can develop, integrate and deliver capabilities that you need, when you need them. Through our unique cooperative structure, clients have a strong voice in determining the future of the technology at the core. The trust we have developed in this partnership structure is the foundation of COCC and we measure that commitment each quarter by client report cards and surveys. With COCC, each client receives: • The highest ratio of customer service staff to financial institutions • The most ambitious visitation, training and education in the industry • A mutual ownership structure that ensures our focus remains on our clients • A voice in determining your future core technologies Exercise your right to learn how COCC can strengthen your core. Call us today at 888.678.0444 or visit our website at www.cocc.com

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INDUSTRY NEWS

Mechanics Savings Bank, Biddeford Form Holding Company

Auburn, M.E.-based Mechanics Savings Bank and Biddeford Savings Bank have formed a holding company to own both banks. Upon approval, the two banks will continue to operate separately under ownership of the holding company, employing 152 people across 10 branches.

Eastern Bank, NuGen Capital Partner on $27M in Mass. Solar Projects Merrimack County Savings Bank Opens New Branch

Concord, N.H.-based Merrimack County Savings Bank opened its eighth branch on I-93 North in Hooksett, N.H., in January.

Tarullo Named FFIEC Chair

Federal Reserve Board Governor Daniel K. Tarullo has been named the 22nd chairman of the Federal Financial Institutions Examination Council. Tarullo’s two-year term will run through the March of 2017. He succeeds Thomas J. Curry, comptroller of the currency at the OCC. The council also named FDIC chair Martin J. Gruenberg as its new vice chairman for the same two-year term. Before he was appointed to the Federal Reserve Board in 2009, Tarullo was professor of law at Georgetown University Law Center, where he taught courses in international financial regulation, international law and banking law. Earlier, he held several senior positions in the Clinton administration, including serving as a principal on both the National Economic Council and the National Security Council.

De Novo Bank Gets OK in NH

State-chartered Primary Bank has received conditional state approval as the first new bank in New Hampshire in seven years, and is now awaiting FDIC approval. According to its CEO Bill Stone, the bank needed to raise an additional $22 million before its May opening in Bedford, N.H. The bank has already raised $3 million as of February from 133 investors to pay for startup costs, according to news reports.

First Colebrook Bank Changes Name

Colebrook, N.H.-based First Colebrook Bank changed its name to Granite Bank effective March 16. No change in ownership or management was involved. The bank acquired the long-inactive name of Granite Bank. The name change will have minimal impact on customers and no affect on staffing or online banking. 14 BANKING NEW ENGLAND

Boston-based Eastern Bank has partnered with Bristol, R.I.-based NuGen Capital Management to finance more than $27 million of solar projects in Massachusetts, to sell the electricity to Massachusetts-based municipalities, universities and small business.

Meridian Bancorp Combines Mt. Washington Bank, East Boston Savings Boston-based Meridian Bancorp Inc. is consolidating its Mt. Washington Bank division into East Boston Savings Bank. Mt. Washington Bank was acquired by East Boston in 2009 and functioned as a division; now, the two will function as one entity.

United Bank Closes Two Branches

Glastonbury, Conn.-based United Bank is closing two Massachusetts branches as part of a restructuring to save about $3 million annually. Closing dates were unspecified at press time. The bank will also close two sites in Northampton Mass. and Connecticut, eliminating all positions at the five branches. Closures were expected to result in a $5.5 million in pre-tax earnings in fourth quarter 2014, according to United Bank, and result in about $3 million in cost savings annually.

Bangor Savings Bank to Expand York County Presence Maine’s largest independent bank, Bangor Savings Bank, plans to open a new branch in Ogunquit in April, becoming Bangor Savings Bank’s sixth branch in York County.

Middlesex Savings Bank To Open Sherborn Branch

Natick, Mass.-based Middlesex Savings Bank will open a new full-service branch in Sherborn, Mass., taking over a location that Santander plans to vacate in June. Pending regulatory approvals, the bank will open up shop at 31 North Main St. in September. Middlesex Savings Bank has 29 branch offices across 23 towns. This branch will be its first in Sherborn. BNE

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COVER STORY COVER

The

Rebirth of New Englandâ&#x20AC;&#x2122;s

Housing Market Pent-Up Demand, Expected Rate Rise Fuel Activity

16 BANKING NEW ENGLAND

By Scott Van Voorhis Earlier this season, banks across New England were gearing up for what could be one of the strongest spring mortgage markets in years, a prospect that would have seen unlikely, to say the least, in the depths of winter. Back in February, much of the region looked like a scene out of the Alaskan outback, with a series of freak winter storms shattering records for snowfall. The arctic weather led to predictions that it would put the spring home sales market into a deep freeze, forcing buyers and sellers to hibernate while leaving bank loan officers to twiddle their thumbs instead of writing new mortgages. The impact on the local economy, given the damage wreaked by the harsh winter of 201314 – which saw the national economy kick into reverse for a couple months – was another unknown. But a funny thing happened on the way to snow-pocalypse, with the real estate market and economy miraculously shrugging off the freak weather as buyers scramble over snowbanks to get to open houses and make offers. Adding fuel to the fire have been interest rates, which have dropped to historic lows once again, even as threats of a rate hike mid-year have given new urgency to buyers looking to get a mortgage – or refinance one – while borrowing is still cheap. All of this is good news for banks across New England, with some local lenders now beefing up their mortgage origination staff in order to capitalize on the flood of demand. In fact, some of the biggest beneficiaries are community and regional banks, which remain highly competitive with the mega banks when it comes to mortgage lending, according to new stats from The Warren Group, publisher of Banking New England (see graph, page 19). In Massachusetts, Rockland Trust, Bank of Canton, Berkshire Trust, First Federal Savings Bank of Boston, Cape Cod Five Cents Savings Bank, Eastern Bank and Lowell Cooperative Bank were all in the top 20 in 2014 for most active banks in mortgage lending, The Warren Group reports.

“I think the season is starting to pick up,” Christiana Thornton, president and CEO of the New Hampshire Bankers Association, said in early March. “Rates continue to be historically low and it continues to be a great time for firsttime buyers to jump into the market or upgrade to a larger home.” “Residential lending continues to be a primary business that many of our bankers are engaged in,” she said.

Hiring Spree

One good indicator of how strong demand is heading into the spring market is what happened in February. Defying expectations, pending sales rose 2.6 percent in Massachusetts over the year’s shortest and snowiest month, the Massachusetts Association of Realtors reports. The median price of homes put under agreement jumped 7.6 percent, to $317,500, MAR reports. A large percentage of Realtors polled – roughly 40 percent – said most and in some cases all of their buyers kept looking, despite the mountainous snow drifts and cruelly cold weather. Another 19 percent of agents polled by the real estate group said about half their clients stayed in the game. Home sales in New Hampshire’s Rockingham County, which includes a large swath of the southern part of the state, rose 13 percent in February, while condo sales leapt 35 percent, according to Seacoastonline. While the February numbers were not available at press time, Maine and Rhode Island also saw sales increases in January, when the snow began piling up. But as surprisingly good as the winter was for the real estate market, bankers are now gearing up for what could be an intensely busy spring market. In Massachusetts, Weymouth Bank, which is in the process of merging with Lynn-based Equitable Bank, is getting ready to beef up its mortgage staff to meet rising demand for loans over the next few months. The bank is gearing up to hire a residential originator on the South Shore, while also adding to its lending staff on the North Shore as well. Continued on next page

BANKING NEW ENGLAND

COVER STORY COVER New England Housing Market Continued from page 17

“We are definitely looking to increase our position on both sides of the city,” said Weymouth Bank CEO Robert Terravecchia Jr. “There will probably be some pent-up demand on part of people who have been locked up all winter long, and that is a positive sign.” Armando Carvalho, senior vice president and director of residential lending at Rockland Trust, said he has hired six new loan officers in the past few months, bringing his group up to 19. The bank is preparing to announce two additional hires as well. Rockland has also inked a deal with Embrace, which will now handle its back office mortgage work, including a new online platform that allows borrowers to check on the status of their mortgage and electronically file paperwork with the bank. But as Rockland grows, the bank’s approach to mortgage lending remains focused on the customer. “We don’t want to be the big mortgage company that just checks boxes,” Carvalho said.

Demand Drivers

A number of factors are combining to produce what could be an epic spring market, say bankers and real estate agents. While buyers were undaunted by the brutal winter, some sellers put off listing their homes in February and early March, deciding to wait until well into April or even May. Sellers have been concerned that their homes simply might not show as well in the deep snow, with buyers unable to see decks, foundations and yards, real estate brokers said. The delay could extend the selling season into the summer months, when sales activity typically dies down as sellers and buyers head for the mountains and the beach. Other forces are helping stoke buyer demand to a fever pitch as well. The economic recovery is finally gaining traction, boosting optimism among buyers about their careers and job prospects and making more people comfortable with taking on either taking on a mortgage for the first time or upgrading to a larger house, Rockland’s Carvalho said. This is especially true of Millennials, who are finally getting on their feet with jobs and careers and moving into the housing market. “The big one really is around the Millennials,” Carvalho said. “They were absent from the market over the last two or three years. All of a sudden, this group [is coming] into the home purchasing market and that is helping drive that volume.” Interest rates are also playing a major role. Bucking predictions, rates once again sank to historic lows over winter, falling from the 4s back into the 3s. That has helped spur both the purchase market and refinance activity. Buyers have been eager to lock in rates before they go up again, while homeowners have seized the opportunity to refinance mortgages and drop from the 4s and 5s into the 3s, noted Marc Canner of Canner Law & Assoc. in Needham, Mass., which works with local banks on loan closings and other issues. 18 BANKING NEW ENGLAND

“The first quarter was really busy; there was a lot of refinancing, double or trip at the same point last year,” Canner said. “The rates went down and we had a ton of refinances.” Credit standards are also finally loosening a bit, making it possible for some homeowners who were previously frozen out to take advantage of the lower rates, said Carvalho. Where a score of 700 was the make or break mark before, now it’s down to 680. Offering another spur to action, the Federal Reserve Board has made no secret of that it may consider finally raising its rate, now at just about zero, as the economy finally shows signs of being able to stand on its own. That has lent urgency to efforts by buyers to find a house and settle on a mortgage before the Fed moves and rates go up, with a similar incentive for homeowners looking to refinance. “I do see rates going up,” said David Reinherz, senior residential loan officer at Patriot Community Bank in Woburn, Mass. “That might push people who are on the fence to buy sooner rather than later.”

Looking Ahead

Yet the spring market could mark a last hurrah of sorts for the booming real estate market. The specter of rising rates posing some serious questions for the market going forward. The Maine homes sales market hasn’t rebounded from the downturn to the same extent is has in the Bay State, with demand for mortgages among qualified buyers still lagging, noted Chris Pinkham, president of the Maine Bankers Association. That isn’t to say the numbers aren’t improving, with low rates certainly providing a boost. But homes sale and lending activity isn’t back to pre-2008 levels. “There was a spread of time where it was really growing, but we haven’t seen that in years,” he said. New federal requirements, including large down payments, are hard for many buyers to swing, especially young professionals just out of college and trying to pay down their student debts. “Many buyers aren’t in a position to have 20 percent down, or have a credit rating that qualifies them, or they don’t have the debt to income ratio,” he noted. “That is a challenge.” Weymouth Bank’s Terravecchia noted that provided the Federal Reserve finally starts raising rates, one big question is whether a large segment of the real estate market will be effectively locked in by the low rates of the past few years. In particular, what incentive will homeowners with mortgages in the 3s have either to refinance or buy a new home if rates climb in the 5s and 6s? Terravecchia asked. Low rate have also taken some of the sting out of steadily rising home prices, keeping mortgage payments lower than they would ordinarily have been in a normal rate environment. Once rates start to rise, the increases that have propelled home prices in towns and cities across New England to new highs will really start to bite. “I think 2015 will be better than 2014,” he said. “I do wonder about the longer-term market … as we enter a different phase in the interest rate cycle.” BNE

WELLS FARGO BANK

USAA FEDERAL SAVINGS BANK

TD BANK

SOVEREIGN BANK

SANTANDER BANK

2010

2011

2012

2013

2014

2,321

1,241

719

747

869

491

332

435

626

600

743

571

618

753

712

BERKSHIRE BANK CAPE COD FIVE CENTS SAVINGS BANK

458

EASTERN BANK

271

446

FIRST FEDERAL SAVINGS BANK OF BOSTON LEADER BANK

SAGE BANK

ROCKLAND TRUST CO.

RBS CITIZENS BANK NA

LOWELL COOPERATIVE BANK

BANK OF CANTON

LEADER BANK

BANK OF AMERICA

FIRST FEDERAL SAVINGS BANK OF BOSTON

EASTERN BANK

CAPE COD FIVE CENTS SAVINGS BANK

BERKSHIRE BANK

BANK OF CANTON

BANK OF AMERICA

TOP LENDERS IN NE

410 488

1,073

1,173

848

645

SAGE BANK

614

610

SANTANDER BANK

814

784

LOWELL COOPERATIVE BANK RBS CITIZENS BANK NA

849

ROCKLAND TRUST CO.

210

482

820

244

578

798

975

423

SOVEREIGN BANK

884

539

TD BANK

344

272

USAA FEDERAL SAVINGS BANK WELLS FARGO BANK

729 517

280 1,895

1,921

1,712

1,310

1,120

BANKING NEW ENGLAND

COMMENTS ON EGRPRA

Taming the Regulatory Beast Agencies’ Regulatory Review in Second Phase

BY KEVIN HANDLY Kevin Handly is a Bostonbased attorney who lectures on financial institutions M&A at Boston University Law School’s Graduate Program in Banking and Financial Law. He can be reached at khandly@ bostonbankinglaw.com

hat do you get when in four years you issue over 8,000 pages of new regulations and guidance, require quarterly reporting of over 1,900 financial items, add inconsistent and heavyhanded examinations, and shut off the pipeline of new community bank charters? A rapidly shrinking pool of community banks, according to many firstround EGRPRA commenters. On Feb. 13, the FDIC, Federal Reserve Board and Office of the Comptroller of the Currency invited public comments in the second phase of the agencies’ ongoing review under Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). The purpose of the decennial EGRPRA review is to identify outdated, unnecessary or unduly burdensome regulations and consider how to reduce regulatory burden on insured depository institutions while, at the same time, ensuring the safety and soundness 20 BANKING NEW ENGLAND

of the financial system. The notice for the second phase of the EGRPRA review invites submission of comments in the areas of bank operations, capital and the Community Reinvestment Act by May 14, 2015. The first phase of the EGRPRA review commenced on June 4, requesting comments by Sept. 2, 2014. The notice invited comments on agency regulations in the areas of applications and reporting, powers and activities and international operations. In addition to the formal notice and written comments process, the agencies are also conducting community outreach meetings soliciting oral comments and testimony at locations throughout the country. Outreach meetings were held in Los Angeles on Dec. 2, 2014, and in Dallas on Feb. 4. Continued on page 22

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COMMENTS ON EGRPRA Taming the Regulatory Beast Continued from page 20

Several EGRPRA comment letters make specific recommendations for improvements in agency regulations and processes. Here’s a small sampling: • The ABA and the Community Bankers of Illinois recommend that the Federal Reserve Board’s exemption for small bank holding companies’ from consolidated capital requirements be expanded and extended to savings and loan holding companies. • The Illinois Community Bankers recommend allowing community banks to file abbreviated Call Reports in March and September, filing full-length reports only in June and December. • The Luse Gorman law firm recommends extending the Fed’s waiver of holding company approval requirements for subsidiary bank mergers to savings and loan holding companies and to mergers of thrifts as well as banks. • Boston-based mutual holding company Eastern Bank Corporation recommends changes to standardize the regulatory approval process for “non-stock” mutual holding company formations and acquisitions of additional banks. • The Texas Independent Bankers request a relaxation of certified appraisal requirements for residential mortgage loans and updating changes to the Federal Reserve Board’s Expedited Funds Availability rules to reflect advances in check processing. • The Consumer Credit Industry Association urges the OCC to revise and update its regulations governing debt cancellation agreements and similar “add-on” products. • SIFMA and the Financial Services Roundtable urge the Agencies to permit alternatives to published newspaper notice of applications, to eliminate residency requirements for national bank and savings association directors, to relax branching requirements for national banks, and to adopt a uniform set of terms and definitions for use in all of the agencies’ regulatory applications and reports.

Additional meetings are set for Boston on May 4, Chicago on Oct. 19, and Washington, D.C. on Dec. 2. Fifty comment letters were submitted in response to the Phase I invitation. These included 13 comments from national bank and financial industry trade associations, 10 from individuals, nine from consumer and community advocacy groups, seven from individual banks, five from law firms and one from a state banking commissioner.

Same Old, Same Old

The Phase I comments cover a wide variety of issues. Some, like the comments submitted by the Florida Bankers Association, the American Bankers Association, the Bankers Roundtable and Securities Industry and Financial Markets Association, are lengthy and detailed. More than one complains that the agencies largely failed to act on detailed suggestions for regulatory reform submitted 22 BANKING NEW ENGLAND

during the prior EGRPRA review in 2006. Several commenters urge the agencies to expand the scope of the EGRPRA review to include regulations only recently adopted and not yet fully implemented. Several comment letters, particularly from smaller institutions, are short and focus on specific issues. For example, two community banks take issue with the FDIC’s treatment of reciprocal deposit arrangements as “brokered deposits” subject to regulation under Section 29 of the Federal Deposit Insurance Act. The law firm Arnold & Porter urges that deposits placed through affiliated brokerage firms be treated as “core deposits” and not as “brokered deposits.” Louisiana Bank Commissioner John Ducrest requests the FDIC reconsider its position that entering into a mineral lease converts oil and gas interests taken by a bank “DPC” into an “activity” requiring notification or application to the FDIC. A concern in many of the comments is that exploding regulatory and compliance burdens are making it difficult for community banks to survive. In its comment letter, the ABA observes that during the four years since the Dodd Frank Act was enacted, “banks have faced more than 8,000 pages of related final rules and guidance, and the rule-writing mandated by the act is only half completed.” The ABA notes that more than 1,500 community banks have “disappeared” in the last decade. In its comment, the Florida Bankers Association includes a table showing that the number of banks with assets under $1 billion has shrunk from over 17,000 in 1984 to fewer than 7,000 today. The Community Bankers Association of Illinois takes issue with the FDIC’s “apparent position of actively inhibiting de novo community bank formation.” Noting that the FDIC has only approved a single de novo bank since 2010, the CBAI observes that for the FDIC to “completely shut down the pipeline is clearly regulatory overreaction.” The National Asian American Coalition urges the FDIC to reduce the time and process required to form a de novo bank and to conduct separate hearings on “the absence of de novo charters and the lack of expansion of minority-owned banks.” Several commenters urge the agencies exempt community banks from the more burdensome regulatory requirements imposed on the larger, more complex financial institutions. A Tennessee law firm urges the agencies to exempt institutions determined to be “well managed” and “well capitalized” from regulatory notice and application requirements for most corporate transactions. Another commenter urges that the examination cycle for well managed community banks be increased from 18 months to two years and that the size cut-off for less frequent examination be increased to $2 billion. Some comments have a distinctly rural flavor. Jay Messenger, president of West Texas-based Muleshoe State Bank, writes: “For many years we have submitted the same exact information on the FRY-8 indicating that no transactions have occurred. The concept of the Fed using such a complex separate document to say that something has not occurred is an extreme example of improper regulation. Please consider doing away with this document and any other stand-alone document that says we did what we were supposed to do and if we didn’t we would have filed the other appropriate documents.”

Several bank trade associations urge the agencies to reconsider the length and complexity of banks’ required quarterly call reports. One commenter notes that over the past 20 years, the number of separate line items in the call report has more than tripled to approximately 1,900 today. Other commenters note that while even the smallest community banks are required to file a burdensome 80-page report, the nation’s largest credit union, with assets of over $58 billion, files only a 28-page report with the NCUA. The Association of Bank Directors urges agency rulemakers to consider a proposed rule’s impact on bank directors. The agencies should not impose additional burdens on directors that are not “clearly outweighed by the benefits,” the association writes. Consumer and community advocacy groups caution that any reduction in regulatory burdens for banks should not be at the expense of consumer protection or low and moderate income communities. Consumer advocates call for revision of the OCC’s regulations regarding preemption of state laws, arguing that the comptroller’s regulations improperly immunize national banks from a broad sweep of state consumer protection laws, contrary to Congressional intent.

The Outcomes

What will be the result of this decade’s EGRPRA review?

Consumer and community advocacy groups caution that any reduction in regulatory burdens for banks should not be at the expense of consumer protection or low and moderate income communities. Will the federal banking agencies implement the comments received, or put them on the shelf and continue current practices? In its comment letter, the Florida Bankers Association asks: “Will there be a future for community banking if this trend continues? While everyone says they are concerned about the future of community banks, the fact remains that little has been done to provide any relief. Instead, the avalanche of regulation continues. Many communities no longer have a locally based community bank and may not see one again. It has been almost six years since the last de novo was formed in the state [of ] Florida. Will anyone want to start a new community bank in the future?” Only time will tell. BNE

Shared Goals, Strong Outcomes We’ve got a lot in common: A shared commitment to successful, sustainable homeownership; a belief in responsible mortgage lending; and a passion for helping our customers, especially those who need it most. Working with community banks like yours, MassHousing has helped thousands of families buy a home in Massachusetts. Let’s work together and help thousands more.

www.masshousing.com/homeownership Many partners worked together to help the Rosario family purchase their rst home including: Sage Bank, Mill Cities Community Investments and Federal Home Loan Bank of Boston

Mission. Value. Service.

E Q UA L H O U S I N G

OPPORTUNITY

BANKING NEW ENGLAND

COVER STORY PERSONNEL FILE

Career achievers in banks across New England are constantly on the move, with their professional journeys reflecting a combination of mobility and longstanding service. In this space, we acknowledge them, and welcome readers to submit news of their own banks’ efforts and endeavors to Editor Christina P. O’Neill at coneill@thewarrengroup.com.

Appointments and Elections Androscoggin Bank Lewiston, Maine-based Androscoggin Bank announced that Neil Kiely has joined its senior leadership team and is now Neil Kiely executive vice president, chief strategy officer and general counsel.

East Boston Savings Bank

Featured Banks

• BankNewport

East Boston Savings Bank president, chairman and CEO Richard Gavegnano has been selected to serve on the Federal Reserve Richard Gavegnano Bank of Boston Community Depository Institutions Advisory Council.

• Citizens Financial Group Inc.

Franklin Savings Bank

• Commerce Bank

Peter Judkins, president and CEO of Farmington, Maine-based Franklin Savings Bank, has been appointed to the Federal Reserve Bank of Boston board of directors.

• Androscoggin Bank • Bank of New Hampshire

• East Boston Savings Bank • Franklin Savings Bank

Lake Sunapee Bank

• Kennebunk Savings Bank • Lake Sunapee Bank • MutualOne Bank • Needham Bank • North Middlesex Savings Bank

Stephen R. Theroux, president and CEO of Newport, N.H.-based Lake Sunapee Bank, was elected to the board of Stephen R. Theroux directors of the Federal Home Loan Bank of Boston.

MutualOne Bank

• Rollstone Bank & Trust • StonehamBank • Webster Five Cents Savings Bank David Yee

Framingham, Mass.based MutualOne Bank has elected David Yee of Needham to the position of vice president.

Needham Bank Needham Bank has appointed Katie Sullivan to its advisory council. Katie Sullivan

24 BANKING NEW ENGLAND

Promotions Bank of New Hampshire

Laconia, N.H.-based Bank of New Hampshire has promoted Chris MacDonnell to senior vice president of treasury management services and business development for the Chris MacDonnell commercial banking division. Barry Leonard has been promoted to senior vice president, Mary Mattson Barry Leonard chief commercial banking officer. Mary Mattson has been promoted to senior vice president and team leader for the commercial banking division.

East Boston Savings Bank

Janis Reardon has been promoted to vice president, branch officer of Mass.based East Boston Savings Bank’s (EBSB) Lynn office. Lindsay Venza has been Janis Reardon promoted to vice president. Venza is the branch officer of EBSB’s Somerville Lindsay Venza Karen A. Gallo office. Karen A. Gallo has been promoted to vice president. Gallo is the branch officer of Rosemary Ferraro Debby Chui EBSB’s Revere office. Rosemary Ferraro has been promoted to vice president. Ferraro is the branch officer of EBSB’s Saugus Center office. Debby Chui has been promoted to vice president. Chui is the branch officer of EBSB’s Belmont office.

Promotions

New Arrivals Kennebunk Savings Bank

Citizens Financial Group Inc.

Danny Edgecomb of Portsmouth, N.H. has been promoted to the position of president of Kennebunk Savings Insurance.

Danny Edgecomb

Citizens Financial Group Inc has named Tom Gamache as northeast division sales manager for the retail loan officer channel of the home lending solutions group, the bank’s consumer lending business. Tom Gamache

Rollstone Bank & Trust

Laura Pearsall

Heather Sarasin

Robert Courtemanche Heather Finnerty

has been named credit officer.

Laura Pearsall and Heather Sarasin have been named vice presidents in the bank’s retail division. Robert Courtemanche and Heather Finnerty were promoted to branch managers in the retail division. Amy Bonilla was promoted to assistant vice president of human resources. Amanda McGrath Amanda McGrath

Webster Five Cents Savings Bank

Webster, Mass.-based Webster Five Cents Savings Bank has named Sam Bitar as assistant vice president and business analyst.

Sam Bitar

Commerce Bank

Worcester, Mass.-based Commerce Bank has hired Thomas L. Rose as senior vice president and managing director of commercial lending.

Thomas L. Rose

East Boston Savings Bank

Adnai Mendez has joined East Boston Savings Bank as assistant vice president of its Central Square, East Boston office.

Adnai Mendez

North Middlesex Savings Bank

William Keyles has joined North Middlesex Savings Bank as vice president of learning and development. Patrick Bean has joined the bank’s mortgage lending team William Keyles Patrick Bean as a mortgage originator/ business development representative.

StonehamBank

Michael Rossetti has joined StonehamBank as a vice president and director of cash management.

New Arrivals BankNewport

Victor Correia has joined BankNewport as assistant vice president and branch manager of Victor Correia Paul J. Kloiber Sharon L. Medeiros its Warren office. Paul J. Kloiber has joined the bank as vice president and branch manager of its Newport office. Sharon L. Medeiros has joined the bank as senior vice president and controller.

Michael Rossetti

Webster Five Cents Savings Bank

Mass.-based Webster Five Cents Savings Bank has hired Jane Cullen to be its vice president and business services officer. Hugh S. Adams was hired as its vice president, director of technology. BNE

Jane Cullen

BANKING NEW ENGLAND

COMMUNITY GOOD WORKS

Financial institutions large and small have been making a difference in their communities for years. In this space, we acknowledge them, and welcome readers to submit news of their own banks’ efforts and endeavors to Editor Christina P. O’Neill at coneill@thewarrengroup.com.

Featured Banks • Bay State Savings Bank • Commerce Bank • Dedham Institution for Savings

Bay State Savings Bank

Worcester, Mass.-based Bay State Savings Bank participated in a recent build program called “Project Playhouse” under the direction of Habitat for Humanity and the Worcester Sharks hockey team. Volunteers constructed playhouses for the children of local veterans returning from deployment.

Commerce Bank

• Eastern Bank

Eastern Bank

Eastern Bank honored Hubert Jones and Katherine Jones with the 2015 Community Advocacy Award, which annually recognizes the region’s best community leaders. Pictured, from left: Eastern Bank President and COO Bob Rivers; Katherine Jones; Hubert Jones; Beverly Morgan-Welch, executive director, Museum of African American History; and Eastern Bank Chairman and CEO Rich Holbrook.

Florence Bank

• Florence Bank • Meredith Village Savings Bank • MutualOne Bank • Northern Bank & Trust • Rollstone Bank & Trust • The Village Bank

Worcester, Mass.-based Commerce Bank presented the United Way of Central Mass. with a check for $95,000, representing the donation by the bank and its employees from the 2014 fundraising campaign. Pictured, from left: Brian Thompson, president and CEO, Commerce Bank; Peter Rawinski, product manager, Commerce Bank; Doreen Thornburg, relationship manager, United Way, Michael Roy, senior vice president, Commerce Bank; and Timothy Garvin, president and CEO, United Way.

Dedham Institution for Savings

The Dedham Institution for Savings Foundation donated $2,500 to the Neponset River Watershed Association to fund a groundwater model and an enviroscape watershed model to use in their water conservation and storm water educational programs. Pictured, from left: Dee Mullen, director of development; Kristina LaFrance, office manager, Neponset River Watershed Association; Jerry Lavoie, trustee, Dedham Institution for Savings Foundation; Ian Cooke, executive director and Sarah Bounty, environmental engineer, Neponset River Watershed Association. 26 BANKING NEW ENGLAND

John F. Heaps Jr. (right), president and CEO of Florence Bank, with David Christopolis (left), executive director of the Hilltown CDC. Florence Bank recently contributed $20,000 to Hilltown CDC to assist in the organization’s community development programs.

Meredith Village Savings Bank

N.H.-based Meredith Village Savings Bank donated $32,500 to NeighborWorks Southern New Hampshire. The funding supports homeownership education, counseling and coaching services offered by NeighborWorks Southern New Hampshire. Pictured, from left: Carol Bickford, senior vice president, retail lending officer, Meredith Village Savings Bank; Denise Hubbard, mortgage loan program specialist, Meredith Village Savings Bank; and Paul McLaughlin, HomeOwnership manager, NeighborWorks Southern New Hampshire. Continued on page 28

COMMUNITY GOOD WORKS

MutualOne Bank

Featured Banks • Bay State Savings Bank • Commerce Bank • Dedham Institution for Savings • Eastern Bank • Florence Bank • Meredith Village Savings Bank • MutualOne Bank • Northern Bank & Trust • Rollstone Bank & Trust

The MutualOne Charitable Foundation awarded a $10,000 grant to the Resiliency for Life program to help Framingham High School students stay on the graduation path. Celebrating the award are program students, faculty and representatives of MutualOne Bank.

Northern Bank & Trust

Rollstone Bank & Trust

• The Village Bank

The Northern Bank & Trust Charitable Foundation of Mass.based Northern Bank awarded $31,500 in grants to local food pantries and meal programs within Middlesex County. Members of Billerica-based Sunshine Gals Inc., one of the recipients of the foundation’s recent grant, participating in the check donation ceremony at the bank’s Billerica office. Pictured, back row, from left: Carolyn Bobryk, Billerica branch assistant manager; Janis Albergo; Kathy Revane; Jo Leary; Charles Morrison and Jackie Lawless of the Sunshine Gals; and Margarita Kaliviotis, assistant vice president, Billerica branch manager. Front row, from left: Arlene Segool and Marie Morrison of the Sunshine Gals.

Fitchburg, Mass.-based Rollstone Bank & Trust donated $5,000 to two local fuel assistance programs: the New England Farm Workers’ Council and the Leominster Mayor’s Heating Fund. The bank matched customers’ donations by more than 100 percent. Pictured, front row, from left: Leominster mayor Dean Mazzarella; Linda Racine, executive vice president, RBT; Mike Montuori, director, RBT; Linda Racine; John Keeney, area project coordinator, NEFWC.

The Village Bank The Village Bank will award $50,000 in college scholarships to graduating college-bound high school seniors from the communities served by the bank. The Auburndale Community Charitable Foundation will award two $10,000 scholarships and 15 $2,000 scholarships. 28 BANKING NEW ENGLAND

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