Banker & Tradesman October 12, 2015

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OCTOBER 29, 2015

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Est ab li s h e d 1 8 7 2

the

financial

www.bankerandtradesman.com

WEEK OF MONDAY, OCTOBER 12, 2015

services

and

real

estate

weekly

for

massachusetts

A Publication of The Warren Group DENSE DISTRICTS BIG BANKS PULL OUT

Intensive Care For An Ailing City

Citi, BofA Announce Plans To

Yank Some Products From Massachusetts Market

Springfield Starts Small, Thinks Big BY STEVE ADAMS BANKER & TRADESMAN STAFF

2

Community And Regional Banks Ready To Fill The Void

BY LAURA ALIX BANKER & TRADESMAN STAFF

W

as it something we said? The past month has seen not one, but two, multitrillion dollar banks pulling certain operations out of Massachusetts, but judging from the local banking scene, it’s unlikely they’ll be missed. “I think the big banks are making another prototypical big bank mistake: They look at a trend in the future and never go beyond one degree of cause and effect,” said Don Musso, president of the New Jerseybased bank consulting firm FinPro. He’s referring, first, to the recent

Top 5 Boston-Area Banks By Deposits

news that Citigroup will yank its retail operations out of the Boston market early next year, shuttering 17 branches in favor of greener pastures in Chicago, New York and D.C. Boston ranked 18th in deposit share, averaging a paltry $54 million, for Citigroup, while its other markets averaged around $155 million in deposits. Though the $1.89 trillion-comContinued on Page 12

NUMBER OF OFFICES

1. State Street Bank and Trust Co.

2. Bank of America, National Association

3. Citizens Bank, National Association

4. Santander Bank, N.A.

5. The Bank of New York Mellon

015 is the year an $800 million casino was supposed to be well under way in downtown Springfield, culminating in two years with the daily arrival of thousands of visitors and new jobs in the Bay State’s second-poorest city. MGM Grand’s proposal is now in flux, with the casino completion delayed a year and designs being scaled back to control costs. But the city hasn’t put all of its eggs in the gaming basket. Downtown Springfield is part of MassDevelopment’s latest experiment in resuscitating moribund communities, the Transformative Development Initiative (TDI). The current approach: start small and promote growth in dense, urban mixed-use districts that can be crossed in a five-minute walk. Attract jobs and civic amenities through public-private partnerships. And hope for economic revitalization to expand outward. “There’s potential for the district to be catalytic and impact change beyond its boundaries if it really got going,” said Laura Continued on Page 10

DEPOSITS IN MILLIONS

A TANGLED WEB

MARKET SHARE

1

$118.68

36.1%

175

$59.01

17.95%

205

$29.17

8.87%

163

$15.75

4.79%

1

$13.14

4% Chart Continued on Page 12

CONTENTS

Residential �������������������������������������������������������������� 8

Records Section ������������������������������������������������������ B1

Points ����������������������������������������������������������������������� 4

Commercial & Industrial ���������������������������������������� 10

INSERT

By The Numbers ������������������������������������������������������� 6

Banking & Lending ������������������������������������������������ 12

In Person ������������������������������������������������������������������ 7

Classified Sections ������������������������������������������������� 14

State Struggles With Affordable Housing Lesser-Known 40R And 40S Can Help Blunt 40B’s Blow BY JIM MORRISON BANKER & TRADESMAN STAFF

T

he need is clear: Massachusetts requires more affordable housing, but projects aren’t being built fast enough – and the sometimes brutal approval process leaves many a bruised municipality in its wake. A 2014 Massachusetts Housing Partnership (MHP) report says the need for affordable housing –defined as housing for families earning less than the area median income – is strong in the Bay State and only getting stronger. In 1980, Massachusetts’ home prices were near the national average, but since then, they’ve grown faster than any other state in the union, according to the report. Worse, more than a million Baby Boomers are projected to leave the state’s workforce by 2030 and there aren’t enough current residents to fill those jobs. Nor is there Continued on Page 8


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