Massachusetts Banker 3Q 2012

Dossier: BayCoast is Coasting Nicely | Graduates of NES for Financial Studies S ETCHOIN RD D Q QU U AA R R TT EE R R 22 00 11 22

TT H H EE M M AA G G AA ZZ II N N EE

O O FF TT H H EE M M AA SS SS AA CC H HU U SS EE TT TT SS B B AA N NK K EE R R SS AA SS SS O O CC II AATT II O ON N

The New

Comptroller of the

Currency

Thomas J. Curry

FEATURES

New Graduates of the NES for Financial Studies . . . . . . 14

COVER STORY

MBA Elects 10 Members to Board . . . . . . . . . . . . . . . . . 20

New Comptroller of the Currency Thomas J. Curry . . . . . . . . . . . . . . . . . 16 COLUMNS

Chairman’s Column . . . . . . . . . . . . . . . . . . . . . . . 4 Legislative Review . . . . . . . . . . . . . . . . . . . . . . . . 8 20 DEPARTMENTS

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Dossier: BayCoast is Coasting Nicely . . . . . 6 On the Move . . . . . . . . . . . . . . . . . . . . . 22 Good Neighbors . . . . . . . . . . . . . . . . . . . 26 MBA Calendar of Events . . . . . . . . . . . . . . 30

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OFFICERS Chairman: Dorothy A. Savarese, President

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Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

3

CHAIRMAN’S COLUMN

by Dorothy A. Savarese

Passing the Torch is not Limited to the Olympics

W

hen former MBA Chairman Ken Brennan pulled a talented group of member CEOs together last winter to tackle updating the Massachusetts Bankers Association strategic plan for the next three years, it was apparent that this was not a simple task. I had the privilege of joining that group, and immediately appreciated the forwardlooking tenor that was appropriately tempered by the recognition that the unprecedented pressures on our industry meant there were constraints.

Feedback received from our member survey underscored the fact that traditional banks are facing threats on multiple fronts. In addition to the prolonged and painful recession, our traditional banks continue to grapple with an artificially flat interest rate environment, rising costs of technology and difficulty recruiting the most talented young people to the field.

What was extraordinarily concerning was the growing regulatory burden and what looks to be a tidal wave of new compliance rules that could actually imperil the dual banking system. The existing and potential unintended consequences of well-meaning efforts to protect the consumer and the economy have, in some cases, hurt the very institutions that have been there all along for consumers and small businesses alike – our traditional banks.

With a sense of urgency about the importance of the Association’s mission to support the competitiveness of our members, the committee reported out an action plan for the MBA to continue and expand its

4

efforts to advocate for and support our member institutions. But as former Chairman Brennan and Immediate Past Chair Norm Seppala pointed out when the board took the plan under consideration, the success of our Association’s efforts depends, to a great degree, on involvement from our members.

As current chairman of the MBA, picking up the torch from our capable leadership, I recognize that my responsibility is to support the work of the board and staff, and to reach out to all of you to encourage your engagement, particularly in a number of key areas of MBA concentration during the next year. Those areas are: 1) telling our story; 2) small business lending growth; 3) financial education and 4) developing our banking leaders of tomorrow.

Telling Our Story We’re New Englanders. We don’t like to toot our own horns. But I think we all have seen that there is not a widespread understanding that there is a difference between Wall Street firms and Main Street banks.

I recently attended an American Bankers Association meeting where some research was presented that showed that consumers have a very negative reaction to the word “banking industry” and even “banks,” but the majority of consumers like their own traditional bank. As the old saying goes, people hate Congress but like their Congressman.

In Massachusetts, we have a great story to tell. I recognize that there are variations across our member institutions but, as a group, compared to national statistics, our traditional banks in the state have increased business lending throughout the financial crisis, had fewer non-per-

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

forming loans, experienced deposit growth and more. We have strength, a demonstrated commitment to local communities and a record of charitable giving that cannot be denied. Although MBA has been working to get this message out, we need you to let the public, the media and politicians know just what an important role you play in the lives of your customers and communities.

You are an integral part of the economic lifeblood of the areas you serve. So get out there and be proud and share with the world all the good you do in your communities on all fronts. Tell the Rotary, ask your local, state and federal politicians to come visit you, talk to regulators, cut some ribbons, hand out those oversized checks. Talk to your customers and local media and let them understand how important you are and how excessive regulation could impact you. Help them understand that overreach in this area could actually cut down on consumer choice.

Small Business Lending Growth We all know demand has been weak, but it is improving, however slowly. It is incumbent on all of us to make businesses aware of the many ways that you are there to support them, including communicating with regulators and elected officials on their behalf, so that we can keep credit flowing. The MBA is also introducing a program to help you train more commercial lenders, a critical need if we are to achieve the objective of increasing commercial lending.

Financial Education We have all engaged in financial education for years (in some cases, over a century) in one way or

another. Sometimes this is as simple as the interaction between our platform staff and a customer in need of explanation. We must build upon this by reaching out and being proactive.

The financial crisis brought home how important financial education is in terms of helping people sustain or attain financial stability and independence. Educated consumers provide a foundation for a better community, even a relatively small percentage of struggling people can cause great harm to a community, thus the need for far-reaching financial education is pressing. We encourage you to support the inclusion of financial education in all curricula, from kindergarten through college. We also encourage you to become involved in financial education or share your good experiences with others. We have an active committee at MBA focused on this and are collaborating with many other players.

Developing Our Banking Leaders of Tomorrow Let’s get ready to pass the torch!

Our younger and mid-level managers are key to the future of our businesses. They need to understand how the MBA works and to carry this torch into the future with the passion and zeal that has always been a hallmark of our industry. The MBA has a number of grass-roots efforts underway for our future leaders to get involved. Make participation in these efforts a part of what you expect of your personnel.

I am humbled by the opportunity you have given me to serve the MBA as your chair over the next year, and let me say, more than a little proud to be a the helm of this marvelous organization for a short while.

Thanks to my predecessors and the talented MBA staff, this organization has developed a supe-

rior reputation locally and within the frustratingly dissonant halls of Washington D.C. I have been so gratified to get feedback from politicians, regulators and banking group peers alike about the respect they have for the effectiveness, professionalism and integrity of our staff and our members.

Influence stands upon the shoulders of reputation.

At our core, you are our Association and it exists for you. So call me at any time, or send me a note with your ideas and suggestions, and together we’ll do our best to keep moving toward a better banking future in the year ahead. n Dorothy A. Savarese is chairman of the MBA and president and CEO of The Cape Cod Five Cents Savings. She can be reached at dsavarese@capecodfive.com or (508) 247-2104.

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www.masshousing.com Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

5

DOSSIER

BayCoast is Coasting Nicely

by Jay Fitzgerald Bank:

BayCoast Bank

Headquarters:

Fall River

CEO:

Nicholas Christ

Charter:

Mutual

Assets:

$916 million

Branches:

14

ATMs:

17

Founded:

1851

Employees:

193

A

few years ago, Nicholas Christ’s Citizens-Union Savings Bank of Fall River sponsored a road race that he hoped would heighten his institution’s market profile and garner good will among current and potential bank customers.

But there was just one problem at the event: The public-address announcer for the race kept referring to the sponsor as “Citizens Bank,” as in the giant institution based in Providence and owned by the Royal Bank of Scotland, not “Citizens-Union Savings,” the locally-based community bank.

“That was kind of the last straw,” recalls Christ of the all-too-familiar mixup in names. “We had toyed with the idea of a name change for many, many years. But that [road race faux pas] was the little push that we needed.”

To mark its official merger with the Bank of Fall River and to mark the beginning of a new era in the bank’s history, Citizen-Union officially changed its name earlier this year to BayCoast Bank and Christ, as the chief executive of the combined institution, couldn’t be happier.

“It’s been a tremendous success,” Christ said of both the merger and name change that created the $916 million-asset BayCoast Bank. “It couldn’t have worked out better.”

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Nicholas Christ

And Christ has high hopes for BayCoast’s future moving forward, as the combined bank consolidates its positions in the Fall River-New Bedford markets and, ideally, pushes east toward the I-495 area and even up to the Plymouth market. “We’ll try to do it any way we can,” he said of BayCoast’s envisioned expansion. “We’re committed to growing organically. But we’re not ruling out other alternatives and possible acquisitions.”

From the perspective of the old Citizens-Union Savings Bank, the merger with the smaller Bank of Fall River, with $164 million in assets and four branches, just made sense. After all, Bank of Fall River’s headquarters was literally across the street from CitizensUnion’s headquarters in Fall River.

“What compelled us to do it was the close proximity of the two banks to each other,” said Christ, who has led Citizens-Union since 2006. “Culturally and philosophically, we were very similar. Our strengths complemented their weaknesses, and vice versa.”

One of Bank of Fall River’s strengths was it strong presence in the old Flint section of Fall River, historically known for its French-Canadian connections, and its strong market positions in Dighton and Fairhaven, said Christ.

In particular, the once rural Dighton is

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

now a “rapidly growing suburban area” and an attractive market for any bank, Christ said.

Combined with Citizens-Union’s strong presence in the cities of Fall River and New Bedford, the recently combined BayCoast Bank has a solid base from which it can grow, said Christ.

“Frankly, at first, I wasn’t optimistic about finding a good name,” said Christ.

“I knew we needed to change. But I thought we wouldn’t come up with something special. I was wrong.”

What Citizen-Union’s marketing team came up with was BayCoast Bank, conjuring up images of the enduring coastal heritage of southern Massachusetts (not to be confused, by the way, with southeastern Massachusetts, Christ always notes).

Before and after the official name change earlier this year, the bank blitzed its market area with a heavy array of billboard, newspaper, television, radio and online advertising.

As part of its new “Just Right” campaign, BayCoast also launched a number of other efforts to get its name out there to customers. One such effort was BayCoast’s “Just Right” contest to determine a “Philanthropist for a Day.” Thousands of area residents were asked at branches, through newspaper ads, and on the bank’s Facebook page, what the “Just Right” phrase meant to them. After an “intense competition” and voting, Lakeville resident Nina Mach was declared the winner for her answer: “Treating people well and being thankful every day. Simple as that.”

As the official “Philanthropist for a Day,” Mach was ultimately feted at a bank ceremony, given $5,000 in cash, awarded another $5,000 to be distributed evenly to her favorite five nonprofit charities, and the bank even provided a limousine for her to personally deliver bank checks to the nonprofits.

And, oh, she was also given $250 in cash, all in $5 bills, to randomly hand out to people in Fall River and New Bedford.

“You should have seen the faces of some of the people when they were handed money,” recalls Monica Curhan, senior vice president and chief marketing officer at BayCoast. “They looked around and would say, ‘You mean, you’re just giving away money?’”

The unique and quirky marketing idea worked.

“It’s been a tremendous success,” said Christ of the overall rebranding campaign. “The old name of the bank is almost unrecognizable now.”

All the recent positive news – from the merger with Bank of Fall River to the rebranding – doesn’t obscure the fact that there’s still a tough economy and banking climate facing all financial institutions in the area, not just BayCoast.

As many community banks discovered over the past four years,

there was a silver lining to the 2008 financial crisis. The result for BayCoast was millions of dollars in new deposits and new commercial-loan opportunities.

BayCoast also has benefited from a slowly reviving Fall River-New Bedford economic outlook. In particular, New Bedford has won praise for fixing up its downtown and making it more attractive for tourists and small-business employers. Fall River, meanwhile, has benefited from the opening of a new biotech industrial park, designed to capture some of the manufacturing operations spun off from the large biotech and pharmaceutical firms in Cambridge.

There’s also the distant prospect that the state will establish a commuter rail line to the area, something that’s been long planned and discussed over the years as a potential economic game-changer for the region. The commuter rail idea, though, will remain a

long-term vision until the state and federal government actually commit to the hundreds of millions of dollars it would take to build the line.

The federal Dodd-Frank financial reform bill is another major concern for the entire banking industry, said Christ. “The big fear is all the unknowns associated with the bill,” said Christ of the numerous DoddFrank rules awaiting to be written and announced.

Despite the economic and regulatory challenges ahead, Christ expressed optimism and even pride in his market’s resiliency and potential for economic growth.

With its Plimoth Investment Advisors and BayCoast Financial Services units, BayCoast Bank, now with 14 branches and 17 ATMs, is in a good position to expand in coming years, Christ said.

“We’re optimistic,” said Christ.

“We’re very excited about the future.” n

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Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

7

LEGISLATIVE REVIEW

by David Floreen

The Lost and the Founders

I

n 1776 John Adams described his concerns that the Continental Congress would be driven by “noise, not sense; by meanness not greatness; by ignorance not learning; by contracted hearts, not large souls.” It is well documented that the early leaders of our nation – George Washington, Thomas Jefferson, Alexander Hamilton and John Adams, et al – often were bitter rivals and did not like each other. Yet they found a way to work together to set up a government that, while it struggled, has survived and prospered. Can our elected officials do the same?

Since 1973 Gallup has surveyed Americans to say how much confidence they have in a variety of U.S. institutions. In its June 2012 annual survey, Americans rank the military number one at 75 percent, small businesses second at 63 percent, police third at 56 percent and the church or organized religion next at 44 percent. Confidence in public schools has crashed from 58 percent in 1973 to 29 percent in 2012.

HMOs come next at 19 percent; and banks, big business and organized labor are in a race toward the bottom at 21 percent. To no one’s surprise, Congress ranked last, at only 13 percent.

Most disconcerting to us, the drop in confidence in banks is the steepest percentage deviation from historical averages of all 16 surveyed industries/institutions. The ongoing LIBOR rate setting scandal does little to enhance public confidence in the banking system, even though local banks are potential victims as much as anyone else.

8

Media reports of a public official or business leader engaged in illegal or inappropriate activity merely adds to the loss of confidence in traditional institutions and leaders. Is it any wonder why so little gets done?

A July Washington Post-ABC News poll asked hundreds of likely voters: “Regardless of whom you support, which candidate do you trust to do a better job, President Obama or Governor Romney?” Romney wins on fiscal and tax issues, while Obama leads on health care and making appointments to the U.S. Supreme Court. This slugfest will intensify over the next three months as the candidates and their surrogates try to score points and sow doubts about the other: Obama the closet socialist sympathizer vs. Romney the capitalist robber baron. This is happening largely without a detailed outline of their agendas for the future. The tit-for-tat sours the electorate’s perception of politics, candidates and trust in government, exacerbated by the absence of serious discussion about substantive issues.

Clearly this is a very highly charged election. At stake is control of the White House, the Senate and House, and selection of nominees to the Supreme Court for the next four years. Most observers predict that the House will remain solidly Republican, with little net gain or loss in the number of seats each party controls.

Control of the Senate appears fluid as Republicans must have a net gain of four seats to wrest control of the Senate. As of late July, the respected Cook Political Report predicted 12 seats leaning or strongly for Democrats with eight leaning or strongly Republican, with 10 toss-ups, including Massachusetts and Maine.

In case you haven’t noticed, the Senate race between Sen. Scott

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

Brown and challenger Elizabeth Warren is one of the most watched and expensive campaigns in the nation. By October we’ll all be clamoring for the return of car and antiaging medicine ads peddled on TV. Do not underestimate both the substantive and symbolic importance of this race.

Also worth noting is the brewing race in the Sixth Congressional District between eight-term incumbent John Tierney and Republican challenger Richard Tisei, former Massachusetts Senate Minority Leader.

With no statewide races for constitutional offices, elections focus on state Senate and House districts.

Notably, 23 of the 37 incumbent Senators running have no opponent in either the September 6 primary or November 6 general election. There are three open seats. In the House, 90 of the 152 incumbent House members have no opponent either in September or November, with eight open seats. Compared to 2012, there are far fewer open seats and more legislators that have no opponents.

What does that mean? Less voter distress, more apathy or accepting the status quo? We’ll see in November.

Let’s talk about money. With national data indicating sputtering consumer spending, slower manufacturing growth and reluctance by businesses to invest in plant and equipment, preliminary Department of Revenue data showed that Massachusetts state tax collections grew by 2.9 percent in fiscal year 2012, but significantly less than the 10.6 percent jump recorded in fiscal year 2011.

All this discussion pales in comparison to the financial angst billowing in the nation’s capitol in advance of the fiscal cliff looming in continued on page 10

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Legislative Review continued from page 8

December. The upcoming perfect storm of the expiration of the Bush income and estate tax cuts, increases in Social Security payroll taxes, elimination of extended unemployment benefits, and potential mandatory $500 billion in defense spending, plus reduced Medicare reimbursements to physicians, all kick in on January 1, 2013 unless Congress acts. Reports from Washington are beginning to surface that serious conversations within both parties and branches of Congress, not unlike the conversations referred to earlier among leaders, could evolve into a comprehensive plan that Congress could accept after the November elections. Meanwhile the uncertainty continues, resulting in hesitant behavior and inhibiting new investment.

Beacon Hill Report The Massachusetts Legislature concluded its formal sessions at mid-

night on July 31. Informal sessions continue throughout the year, but any action requires unanimous consent and no roll calls are possible.

Given the external forces pressing the banking industry, this was a good year. Just prior to the close of the session, the Legislature enacted and Gov. Deval Patrick signed a compromise foreclosure bill that did not incorporate several features sought by housing and legal rights advocates and strongly opposed by the Association: mandatory mediation, language guaranteeing that a foreclosed owner could remain a tenant in his/ her home until it was sold, or mandatory judicial review. The new law, Chapter 192, establishes a commercially reasonable standard for lenders to offer borrowers with certain types of loans a loan modification prior to proceeding to foreclosure.

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M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

cumstances and consider the net present value of a loan modification versus the anticipated recovery to the lender from foreclosure.

We are very pleased that on July 8, Patrick signed into law the new Massachusetts Uniform Trust Code (MUTC) and a companion set of revisions to the newly enacted Massachusetts Uniform Probate Code (MUPC). This new law, Chapter 140, keeps Massachusetts as a top wealth management center in the United States. Another interesting bill awaiting final House approval, S 2313 would permit access to the email passwords of the next of kin of the deceased relative with certain restrictions. This is a rapidly evolving issue which several other states have begun to address.

The state budget for fiscal year 2013 included a special $250,000 appropriation for a three-year pilot grant program run by the Department of Elementary and Secondary Education (DESE) to establish a financial literacy program in up to 10 high schools in “gateway” cities across the commonwealth. The budget also establishes a special advisory committee to help develop, implement and monitor financial literacy activities and progress within DESE which includes a designee from the Association. The banking industry strongly supported this initiative as an important first step toward enhancing the financial literacy of our high school students.

Equally significant is that no negative bank or bank customer legislation advanced so far this session, such as limits on bank or interchange fees or activities, data security, lending practices or corporate governance.

Perhaps the most significant accomplishment of the session is the enactment of a new health care cost control law on the last day of the session. Details are still forthcoming, and more information will be continued on page 12

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Legislative Review continued from page 10

provided in the next issue, but since health care now consumes over 40 percent of the state’s entire budget, all businesses and taxpayers need to be aware of these details. Patrick also signed a major overhaul of the state’s administration and finance laws. Finally, explanatory guidance pertaining to the new debt collection regulations issued by the Office of Attorney General is expected shortly.

Washington Report From now until after the November elections, all financial industry eyes in Washington will be focused on the Consumer Financial Protection Bureau (CFPB). The bureau celebrated its first anniversary on July 21, and is working on a very aggressive agenda to draft and implement dozens of regulations mandated by the Dodd-Frank Act (DFA).

Key issues are the recently released 1,100-page proposed regulations

and model forms integrating RESPA and Truth-in-Lending disclosures.

The proposal covers all closed-end mortgages plus home equity lines of credit, reverse mortgages and loans secured by mobile homes. CFPB is already considering an expansive proposal to define a qualified mortgage (QM) and meet the goals mandated by DFA requiring mortgage lenders to assess a customer’s ability to repay before extending a mortgage loan. This process likely will last well into the fall and the outcomes on both remain unclear at best. These initiatives are a key part of the CFPB’s Know Before You Owe mortgage disclosure integration project.

In mid-July, CFPB released a final rule expanding oversight over consumer reporting agencies and is pushing forward on initiatives to regulate consumer general purpose reloadable prepaid debit cards and a

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M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

comprehensive new model for disclosing student financial aid to prospective and returning students. Regulators are still carefully reviewing the tens of thousands of pages of comments on the proposed Volker Rule, a subject garnering enhanced attention due to the LIBOR scandal.

Discussions on Basel III capital requirements also continue to generate real concerns as the outcome could reshape the future of community banks, with higher risk weights for home mortgages and many equity investments as well as an elimination of trust preferred securities as Tier I capital for all banks.

It appears that the Senate may approve legislation to protect banks from frivolous lawsuits by repealing the outdated, duplicative requirement that in addition to on-screen disclosures, a placard must be attached to ATMs stating that a fee may be charged. Another bill would protect confidential bank exam information given to the CFPB by providing the bureau with the same express rules on privilege of information as those already established at the federal banking regulators.

Finally, banks continue to aggressively oppose S 2231, a bill that would more than double the credit union member businesslending cap. Only a small number of large credit unions would benefit from the bill, as 70 percent of all credit unions do no member business lending at all and many smaller credit unions actively oppose the legislation. Nevertheless, banks cannot rest easy as credit unions are pushing this matter hard.

Congress is now on its August recess, scheduled to return the week after Labor Day for about three weeks before recessing again until late November, when their agenda during the lame duck session will be overflowing. Enjoy the rest of the summer. n David Floreen is senior vice president at the MBA. He can be reached at dfloreen@massbankers.org

Julie H. Livingston (top left), CEO of Marblehead Bank, provides instruction to students.

New Graduates of the New England School for Financial Studies

T

he New England School for Financial Studies (NESFS) recently graduated another fine group of 71 rising stars in our banking industry from all over New England. Now more than 50 years old, the school provides banking professionals with the tools needed to manage effectively in today’s changing financial world.

An intensive two-year program of studies broadens the skills of supervisory personnel and trains the professionals to make decisions that promote the profitability of the bank as a whole. Over 3,320 bankers have graduated from the school in the last five decades.

Two one-week resident sessions one year apart provide students with 135 hours of classroom instruction conducted by distinguished faculty members chosen for their expertise in both the academic and business worlds.

Classes combine lectures with case studies to involve

14

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

participants actively in the process of research, analysis and creative planning.

“Each student has devoted a tremendous amount of hard work and long hours to this program,” said Daniel J. Forte, president of the Massachusetts Bankers Association. “Everyone should be proud of what was accomplished this year.”

Between the two spring sessions, students complete five assigned independent study projects that build on the first session’s instruction to prepare them for more advanced training during the second year resident session. The course culminates in a comprehensive computerized simulation which challenges students to assume senior management responsibilities.

The sponsors of the school include the Maine, Massachusetts, New Hampshire, Rhode Island and Vermont bankers associations.

The 2012 Class of the New England School for Financial Studies Nicole M. Almeida BayCoast Bank

Pamela S. Duval Adams Community Bank

Stacey A. Laliberte Easthampton Savings Bank

Mary J. Rawls Greenfield Co-operative Bank

Brian J. Bernier Norway Savings Bank

Kelly Flanagan Dean Bank

John T. Latino Jr. Millbury National Bank

Lucia Rebelo BayCoast Bank

Jennifer Boyle United Bank

James E. Garfield Bank of New Hampshire

Stacie A. Long Bristol County Savings Bank

Linda Rodriguez BayCoast Bank

Philip A. Bracey Winchester Co-operative Bank

Paul P. Garganigo Seamen’s Bank

Heidi MacSweeney Northmark Bank

Peter A. Rogers Bank Rhode Island

Debra A. Garvin Hampden Bank

Tabatha R. Magnusson Commerce Bank & Trust Company

Gerardo Sanchez Florence Savings Bank

Jo-Ann P. Burnett Needham Bank Susan R. Burns Braintree Co-operative Bank Coleman L.M. Carden Winchester Co-operative Bank Brady D. Chianciola PeoplesBank Jason M. Consalvo Salem Five Cents Savings Bank Kevin C. Coote South Shore Savings Bank

Steven B. Gath StonehamBank - A Cooperative Bank

Kara W. McCormic PeoplesBank

James C. Gordon Needham Bank

Melinda E. McLaughlin Canton Co-operative Bank

James P. Shanley The Cooperative Bank of Cape Cod

Peter J. Halberstadt Cambridge Trust Company

Robyn A. Masi Union Bank

Sharon E. Spellman Bristol County Savings Bank

Debbie Henderson Lake Sunapee Bank, FSB

Brendan P. Meehan Northern Bank & Trust Company

Angela M. Strozewski Merrimack County Savings Bank

Christine Murphy StonehamBank - A Cooperative Bank

Brian Sullivan Middlesex Savings Bank

Kyle Hill Southbridge Savings Bank

Karen K. Cornell Bank of New Hampshire

Jillian P. Jurilla Mt. Washington Bank, A Division of East Boston Savings Bank

Ben R. Craigie StonehamBank - A Cooperative Bank

Ann M. Kane Webster Five Cents Savings Bank

Susan D. Dagoumas Bank of New Hampshire John C. DaLomba Webster Five Cents Savings Bank Eric R. Devine Country Bank for Savings Bruce G. Donovan The Savings Bank Emily K. Drapeau Easthampton Savings Bank

Carrie L. Keech Federal Savings Bank Heidi-Jo Kemp Country Bank for Savings Barbara A. Kennedy Middlesex Savings Bank Deborah J. Kirby Bristol County Savings Bank Lindsay H. Ladden Blue Hills Bank Clare A. Ladue Chicopee Savings Bank

Astric G. Nalbandian Watertown Savings Bank Dianne E. Nicol Lake Sunapee Bank, FSB Teresa Oliveira BankFive Peter J. Piekarski The Cooperative Bank of Cape Cod Lori M. Piper Merrimack County Savings Bank Bennet B. Porter Martha’s Vineyard Savings Bank Daniel J. Pulit Cape Cod Five Cents Savings Bank

Teresa D. Sarno Eastern Bank

Nelson R. Teixeira BankNewport Anabela F. Vasconcelos Canton Co-operative Bank Sheila M. Veideman Southbridge Savings Bank Matilda Volpicelli People’s United Bank Amy Werner Lowell Five Cent Savings Bank Donna J. Wiley PeoplesBank James H. Wojtaszek Greylock Federal Credit Union Heather L. Zautner Bay State Savings Bank

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

n 15

The New

Comptroller of the

Currency Thomas J. Curry

by Jay Fitzgerald

Cover Story Photos by James Kegley

T

alk about starting a new job at a tough time.

Soon after Thomas J. Curry took office as Comptroller of the Currency this past spring, he was confronted with the news – and controversy – that JPMorgan Chase & Co. had suffered a minimum $2 billion trading loss after an “egregious” risk-management failure at one of its powerful units, sparking renewed debate about tougher regulatory oversight of large national banks. Along with other government officials, Curry, the former Massachusetts commissioner of banks, was called to testify before Congress as the new Comptroller, whose agency, the OCC, is in charge of overseeing large nationally chartered banks like JPMorgan Chase.

The JPMorgan affair came at a time when the nation’s banking system was still healing from the dramatic financial crisis of 2008 and when Europe’s entire financial system was reeling under the strain of the Euro-zone’s sovereign debts, threatening to weaken the U.S. economy and banks in the process.

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M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

If Curry’s been rattled by all the various pressures on him and his agency since he became Comptroller in April, he isn’t showing it.

“It’s a very interesting experience to be up before a committee of Congress,” said Curry, when asked if his brief honeymoon as Comptroller was almost over before it began. “But it’s all part of the job.”

A lot of people these days are keenly interested in Curry’s new role and how he views his new responsibilities – from his philosophy on banking regulation to his thoughts on the giant Dodd-Frank Financial Reform Act. In a wide-ranging interview with Curry, the comptroller talked about some of those issues, as well as his past role as commissioner of banks in Massachusetts, how his state experience prepared him for today’s national banking issues, how he views the relationship between federal and state bank regulators, and what he hopes to achieve as Comptroller of the Currency during a particularly critical time in the history of the U.S. banking system.

Massachusetts Miracle One thing is clear: Curry knows about controversy and pressure when it comes to banking regulation.

As former deputy commissioner and later commissioner of banks in Massachusetts in the 1980s, 1990s and through early last decade, Curry saw firsthand the crash of the Massachusetts Miracle in the late 1980s, when many of the state’s then mighty computer companies faltered or failed and the entire regional economy went into a tailspin with them.

“It was really a depression in New England – a real estate bust, widespread unemployment, a banking system that didn’t have the capital to lend,” recalled Curry, now 55 and who still maintains an apartment in Boston’s North End. Curry served as commissioner of state banks from 1990 and 1991, arguably the worst period following the crash of the Massachusetts Miracle, and then as full-time commissioner again from 1995 to 2003, as the state’s economy and banking system slowly recovered and eventually prospered during the so-called “dot-com” Internet era.

In all, Curry served under five different Massachusetts governors – and he likes to think he’s been around the block when it comes to seeing both the worst and the best of a banking system. During his first stint as the state’s bank commissioner, he and his agency were involved in the closure of dozens of state-chartered banks and, during his second stint as commissioner, he later saw the historic consolidation of the state’s largest banks into mega-regional institutions.

“It really served as a microcosm of what we went through here nationally in terms of the global financial crisis,” he said about his time as Massachusetts’ banking commissioner.

Indeed, Curry, who eventually became a director at the Federal Deposit Insurance Corporation after leaving his state post, found himself in a unique position when the national housing market crashed and the financial crisis ensued. continued on page 18 Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

17

New Comptroller continued from page 17

“I was the only [FDIC] board member who had actually closed a bank when we starting closing banks on the national level,” he said. “Having had that experience in Massachusetts has been very helpful in dealing with the crisis situation that we’re emerging from now.”

Becoming Comptroller, whose office oversees about 2,000 institutions, is “kind of going back to the basic job description” that he had in Massachusetts, albeit at much larger and complicated level, Curry said.

Curry said he’s not the only one to have learned from past experiences.

He thinks bank executives and regulators across New England and in Texas and Oklahoma also learned some “very painful” lessons from seemingly longago economic bubbles and subsequent banking woes – well before the recent subprime-mortgage frenzy got out of control elsewhere. That’s one of the reasons why the New England and TexasOklahoma regions today are “two fairly bright spots” in terms of their healthy banking systems: They had learned from past mistakes, he said.

But Curry, who automatically remains an ex-officio member of the FDIC board as comptroller, indicated he believes the nation’s entire banking system has come a long way since 2008, describing banks as generally being “much stronger” than they were even a few years ago.

Ready for a Rebound Though bank earnings “could be a little better,” he noted that nationally chartered banks, on average, have much stronger capital positions and “generally strong management” today.

Asked how much longer it might take for a full banking-system recovery, Curry responded, “I think you’re seeing a definite slowdown in the number of troubled or problems banks.” And that’s translated into a slowdown in the number of bank failures nationwide, he said.

“Hopefully, the economy itself will turn around and be much stronger,” he said, noting that every improvement in 18

the general economy leads to a “corresponding improvement in banks.”

As part of recent banking systems reforms, the Office of the Comptroller of the Currency last year took over the oversight responsibilities of the former Office of Thrift Supervision, thus assuming regulatory control over both national banks and hundreds of federal savings associations, or thrifts, many of them mutually owned.

Some concerns have been raised about the OCC potentially applying one-size-fits-all requirements on both national banks and small institutions, such as for capital and lending concentrations.

“We’re very sensitive to the impact of what we do to smaller community-based institutions.”

But Curry said, as a former state banking commissioner, he’s familiar with traditional banks, mutuals and thrifts – and understands the varying and underlying issues involved. The OCC has been “very sensitive” about making sure there’s a “good mix” of both OCC and ex-OTS regulators who recognize the needs of different institutions, he said.

Some industry players have also expressed concern that many institutions that now fall under OCC oversight might switch from national to state charters, partly to avoid what some perceive as real or potential regulatory burdens under the Dodd-Frank reforms.

“Charter choice is really a decision that individual boards and directors have to make, weighing the pros and cons of each charter,” Curry said.

But the OCC has a “vibrant charter” and there “really is no need to switch” charters, he emphasized.

As for Dodd-Frank reforms, Curry’s predecessor as comptroller, John G. Walsh, angered some Democrats by saying planned new regulations might impair the health of the nation’s banking system. Walsh’s comments were seen

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

as one of the reasons why Curry was brought in by the Obama administration to serve as permanent comptroller.

Walking a political tightrope in the ideologically divided Washington, Curry is generally cautious in his remarks about regulatory matters. But he does drop hints that he’s going to be someone who’s more open to regulation than some previous comptrollers. He said Congress and the president are the ones to write and pass the laws of the land – and the OCC plans to “faithfully execute those mandates.”

But Curry also noted that “we do have a great deal of discretion” when it comes to developing and implementing rules – and that it’s “incumbent upon us” to take advantage of that discretion to make improvements.

In the past, much criticism has been leveled at the OCC and its prior comptrollers for not doing enough to police the national banking system and to avert the 2008 financial crisis.

Asked about that past criticism, Curry said the OCC is proud of its achievements since it was created 150 years ago. But “that doesn’t mean there aren’t areas for improvements.”

Curry said he hopes to “further enhance the reputation and performance of the agency” over time. It’s important to bring a “healthy skepticism” to regulatory matters and to be prepared to apply “appropriate remedial action,” if necessary, when big or small problems arise.

“It should really be a fair and balanced assessment of the conditions and management of an institution, and where there are deficiencies, it’s our obligation to identify them and to require remediation,” he said.

Scandals in the Press Two of the bigger issues now facing the OCC and other regulators, both here and abroad, are the controversies now swirling around JPMorgan, over its massive trading losses (growing at press time), and the scandal involving rate-fixing of one of the world’s most widely used interest benchmarks, the London Interbank Overnight Rate, known as LIBOR.

Curry declined to comment on both controversies, noting that both cases are currently under investigation.

But he said of the LIBOR case in general: “It’s important that the [banking] process has its integrity, and to the extent to which its integrity is being called into question, that’s concerning.”

While declining to talk about JPMorgan Chase’s problems, Curry did note that one of the biggest challenges moving forward for the banking system is how do deal with the risks involved with an increasingly more complex and global finance market.

“Credit risk is always one of the problems for the banking industry,” he said.

Specifically, an emerging area of concern, for all institutions, is “operational risk” and the “failures of people, processes, and procedures at institutions.”

The Comptroller of the Currency can help in a number of ways, from using the office as a “bully pulpit,” via speeches and reports, to enunciate concerns and possible actions, he noted. Ongoing bank examinations can also look at various risk-management structures and capital reserves at institutions, he said.

Perhaps separating himself a bit from his predecessor, who was leery of major capital-reserve requirements, Curry said one of the major lessons from 2008 is rather straightforward: “Capital is essential. … We need to have strong capital at financial institutions.”

Citing international calls for such requirements, Curry said “higher levels [and] better quality of capital” are necessary for institutions to withstand future financial shocks.

Recognition of Small Banks One of the biggest concerns expressed by community bank executives is that the Dodd-Frank Act and the new CFPB will put too many burdens on their institutions, treating all banks as if they’re the same.

Curry said he hears and understands those concerns, especially concerns about capital-reserve requirements for smaller banks.

“We’re very sensitive to the impact of what we do to smaller communitybased institutions,” said Curry. “We’re trying to be both more sensitive and

creative in terms of how we go about rule making.”

Consulting with state bank regulators and executives is, by its nature, part of the OCC’s goals – and Curry indicated he’s going to stay in contact with a wide variety of regulators. “You have to interact on a regular basis with all regulators,” he said. “There’s a need for more – not less – communication.”

Curry said he hopes there isn’t a trend of bank consolidation driven “solely by regulatory considerations” stemming from new reforms. “I hope that doesn’t happen,” he said.

He supports the idea of a dual banking system consisting of federal and state institutions and regulators. “It’s actually healthy competition,” he said, recalling the late U.S. Supreme Court Justice Louis Brandeis’s famous metaphor of how states can serve as important “laboratories” for policy experiments.

As for international issues, the OCC is closely eyeing U.S. banking ties to Europe, where the euro-currency and debt crisis there are now dramatically unfolding. The European woes could have a “potential impact” in the U.S. that needs constant assessment.

“It’s something we’re monitoring,” said Curry, acknowledging events in

Europe are among his biggest concerns at this moment.

In the end, Curry’s goal as comptroller is rather simple: To maintain and promote the historical integrity of the Office of the Comptroller of the Currency. “I would hope that I would continue with that tradition,” he said. “I want to make sure we have a strong and effective national banking system.”

Curry said he loves returning “as much as possible” to his apartment in Boston’s North End and to visit relatives, colleagues and friends.

Noting that he’s not the only Massachusetts official today involved with banking issues in the nation’s capital – his successor as state commissioner of banks, Steve Antonakes, now heads the depository supervision unit of the CFPB – Curry said he’s proud of Massachusetts’ “long history” of sound banking and banking oversight.

From establishment of the Bank of Massachusetts (later Bank of Boston) in 1784 to today’s comparatively strong state financial system, Curry said: “That history of banking and of bank supervision in the state comes through and that’s part of the reason why, I hope, I’m here in Washington, D.C.” n

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

19

Left to Right: The MBA’s Dan Forte, president, with Holbrook, Tucker, Savarese, Seppala and Kevin Kiley, EVP, of the MBA.

MBA Elects 10 Members to Board Dorothy A. Savarese Named Chairman

T

he Massachusetts Bankers Association (MBA) has elected 10 executives to serve in new positions on its board of directors, including Dorothy A. Savarese, president of Cape Cod Five Cents Savings Bank, as the chairman of the MBA, serving a one-year term.

“This is a terrific group of banking executives and leaders,” said Daniel J. Forte, president and CEO of the MBA. “Their knowledge, expertise and leadership skills will serve the industry, consumers and their local communities in the year ahead. Lately, our Main Street banks have often been confused in the minds of the media and consumers with Wall Street firms. Moreover, navigating through the vast array of products and

services has become more complicated for the average consumer. Our dedicated board members will continue to help us set the record straight and deliver value for individual consumers and bolster economic development across Massachusetts and elsewhere in New England.

“Dorothy Savarese, our new chairman,” added Forte, “brings a great deal of intelligence, energy and communication skills to her role as chairman of the organization. Her career-long dedication to financial education is but one example of the ambitious agenda she is bringing to the MBA. Expect her to raise the profile of our industry for the benefit of bankers and consumers alike.”

Savarese has more than 25 years of experience in banking, finance and eco-

nomic development. She serves on the FDIC Advisory Committee on Community Banking, is chairman of the board of directors of the Cape Cod Chamber of Commerce, and is a member of the board of trustees of Cape Cod Community College.

“The banking industry is experiencing a great deal of change and pressure from numerous sources,” said Savarese.

“Our challenge is to educate, inform and let consumers and businesses know that we’re here to help. In Massachusetts, our banks never deviated from our mission and expanded our small business lending throughout the recession. We’re on course to stimulate economic development and create wealth in all of the communities we serve.” n

The 10 executives and their new MBA board positions include: Chairman of the Board

At-Large Director, Three Year Term Richard K. Bennett President Marlborough Savings Bank (Re-appointment)

John D. Doherty Chairman, Central Cooperative Bank, Somerville (Re-appointment)

Michael E. Tucker President, Greenfield Co-operative Bank

Richard E. Bolton Jr.

Treasurer

John Boucher President, South Shore Savings Bank, South Weymouth (Re-appointment)

Dennis L. Parente President, Foxboro Federal Savings Bank (Re-appointment)

Dorothy A. Savarese President, Cape Cod Five Cents Savings Bank, Orleans

Vice Chairman

Richard E. Holbrook Chairman, Eastern Bank, Boston

President, LowellBank

Immediate Past Chairman Norman S. Seppala President, Granite Savings Bank, Rockport

20

Daniel C. Yates President, Brattleboro Savings & Loan Association, VT (Re-appointment)

For a complete list of the Massachusetts Bankers Association Board of Directors, please visit www.massbankers.org.

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

THE FOLLOWING IS A PAID ADVERTISEMENT

Outsourcing for Opportunities Leveraging external technology resources pays off

T

he current financial environment is complex and challenging, with wealth firms competing to improve profitability while increasing transparency and expanding their client bases. As these firms face unique profitability challenges, they are increasingly looking to outsourcing partnerships. By leveraging an external provider’s scale and leading-edge capabilities, firms acquire the means to significantly enhance their own service offerings, while meeting the challenges to their bottom line.

Reducing costs, increasing efficiency In particular, mid-size firms can lack the scalability that helps larger firms operate more flexibly — making it harder for them to tame the costs associated with acquiring, maintaining and upgrading the technology resources needed to support the services their clients expect. Outsourcing offers the chance to cost-effectively improve technology, increase your service offering and reallocate resources to focus on meeting the high expectations of today’s private wealth clients.

There are three pivotal ways that wealth managers benefit by outsourcing their technology needs: • Best-in-Class Technology – Outsourcing can easily accommodate the varied needs of clients that want to migrate, wholly or in part, to providers’ platforms.

These systems offer scale, speed and modular flexibility that even the largest wealth management firms could, until recently, only aspire to.

• Third-Party Vendor Systems – As providers continuously improve their technology offerings by integrating the latest systems, wealth clients enjoy the benefits, in functionality, cost and scalability, far beyond their size.

• Support of Client-Specific Infrastructure – Some firms opt to develop their own proprietary systems as a competitive advantage. Leading outsourcing providers can support this clientspecific infrastructure, enabling firms to deploy their own technology while relying on external leading-edge expertise.

More specifically, sharing in a scalable platform can enhance profitability by: converting costs from fixed to variable, as firms achieve the ability to align costs with revenues; reducing future costs by decreasing the need to invest in technology infrastructure; enabling long-term planning through inclusion in a provider’s technology roadmap and upgrades to meet regulatory requirements; and allowing for ondemand capacity through the flexible support of servers, systems and staff to meet peak demand.

New, better client relationships The right outsourcing provider can also enable a private wealth firm to expand its potential client base.

By leveraging a scalable platform that includes multi-base, multi-currency accounting systems, the firm can make its services accessible and attractive to a diversified clientele. Leading outsourcing providers may maintain a presence, and commensurate expertise, in more than 100 markets. With the backing of the providers’ resources, smaller organizations now have access to these opportunities.

In addition, joining a provider’s platform can enable the firm to meet rising client expectations through interactive Web-based data access, customized reporting, and a range of other data-intensive activities protected by leading-edge privacy safeguards. The greater operational efficiencies that outsourcing makes possible allow for new standards in reliability, an additional contributor to both bottom-line performance and client satisfaction. Increased data accuracy, across markets and investment types, is a further benefit and critical consideration as firms seek growth.

Whether it’s to save resources, increase profitability or improve client service, more and more wealth firms are looking to outsource their technology needs. By partnering with a third party, these firms gain opportunities to access cutting edge solutions, leading expertise and expanded client bases.

■ Michael Tropeano, CFA, is a vice president in State Street’s Wealth Manager Services group, responsible for platform strategy.

Peter Amato is a vice president in State Street’s Wealth Manager Services group.

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

21

OntheMove Richard De Almeida

Amy Mitchell

Daniel Briand

Susan Lincoln

Gina Palmer

Cheri Carty

Osman Acheampong

Donald Murano

Diana Carvajal-Hirsch

Patrick Murray Jr.

Leonard Sullivan

Julie Chapman

Bob DeMora

Dennis Leahy

Michele Roberts

Nelson Braga

Kevin McCarthy

Donna Oliveira

Kathleen Mulhern

Mariano Pimentel

Renee Vallee

BANKGLOUCESTER – Promotes Richard De Almeida, assistant vice president of mortgage lending, and Amy Mitchell, business banking officer.

Mahoney, Neil Marttila, Diane Rowlings; Cheryl Smith, and Patricia Walsh, vice presidents; Jennifer Bouthillier, Michael Dunford, Russell Labbe, Magdalena Padzik, and Andrea Ponte, assistant vice presidents; and Lauren Ard, Gabriel Belino, Estella Edmondson, Andrew Foss, Eric Gallagher, Peter Horne, Beth Ann Meehan, Bonnie O’Neill, Suzanne Rogers, Aisling Ross, Linda Vokey and Bruce Williams, bank officers.

BLUE HILLS BANK – Hires Adi Tibrewal, assistant vice president and credit analyst.

BRISTOL COUNTY SAVINGS BANK – Promotes Patrick Murray Jr., president and CEO; Leonard Sullivan, first executive vice president and senior loan officer; Julie Chapman, executive vice president and chief operating officer; Bob DeMoura, executive vice president and chief information officer; Dennis Leahy, executive vice president, treasurer and chief financial officer; Michele Roberts, executive vice president and community relations officer; Nelson Braga, Kevin McCarthy and Donna Oliveira, senior vice presidents; Dianne Chandler, Patricia Cochran, Kathleen Mulhern, Mariano Pimentel, Jean Purrier and Renee Vallee, vice presidents; and Lisa Lassiter, controller; hires Susan Nelson, vice president, senior marketing officer.

BOSTON PRIVATE BANK & TRUST COMPANY – Hires Donald Murano, senior vice president and commercial loan officer, and Diana Carvajal-Hirsch, vice president and community investment loan officer.

CAPE COD FIVE CENTS SAVINGS BANK – Promotes Joel Brickman, executive vice president; Daniel Balkin, William Hourihan Jr., and Christopher Raber; senior vice presidents; Vanessa Greene, Nancy

COMMERCE BANK – Promotes Jacqueline Champagne, senior vice president; Charles Dunn, aircraft credit officer; and Alyssa Gorgone and Thomas Moschos, commercial loan officers.

BAYCOAST BANK – Promotes Daniel Briand, senior vice president of retail lending, and Susan Lincoln, vice president of marketing; hires Gina Palmer, branch manager.

BAY STATE SAVINGS BANK – Promotes Cheri Carty, vice president and treasurer, and Osman Acheampong, vice president and credit administration officer.

22

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

CHARLES RIVER BANK – Promotes Tom Cern, vice president and director of financial services; Lisa Forman, assistant vice president and controller; and Deborah Anderson, Ann Gonyea, and Michael Tuite, assistant vice presidents and branch officers.

PHOTO SUBMISSIONS:

Submit photos and text for consideration for inclusion in Massachusetts Banker to Barbarajean Adams at bjadams@ massbankers.org.

Lisa Lassiter

Susan Nelson

Bruce Williams

Tom Cern

Lisa Forman

Deborah Anderson

Ann Gonyea

Michael Tuite

Alyssa Gorgone

Thomas Moschos

Gilda Nogueira

Michael Mullaney

Brad Dillman

Charles Dwyer

Kerry Morgan

Dianne Bukis

Susan Wassmus

Laura Duncan

Nicole Pecorelli

Madelyn Phelan

Charles Baumann

Sheilla Watts

EAST BOSTON SAVINGS BANK – Promotes Rachel Ramos, branch officer.

EAST CAMBRIDGE SAVINGS BANK – Promotes Gilda Nogueira, president; Amie Bowzer, senior vice president; Patricia Rizzo, assistant vice president/mortgage origination manager; and Janine Mahoney, investment portfolio/assistant manager; hires Brad Sherwood and Christopher Triantos, mortgage originators.

FIDUCIARY TRUST – Promotes Michael Mullaney, chief investment officer.

LOWELL FIVE CENT SAVINGS BANK – ”Hires Brad Dillman, senior analyst and credit officer.

MIDDLESEX SAVINGS BANK – Promotes Charles Dwyer and Kerry Morgan, senior vice presidents; Diane Bukis and Susan Wassmus, vice presidents; Laura Duncan, Keith Karkane, Nicole

Pecorelli and Madelyn Phelan, assistant vice presidents; Charles Baumann and Sheila Watts, retail lending officers; Julie Balunas, legal officer; and Paul van Corbach, human resources officer.

MUTUAL BANK – Promotes Jeanna Veneto and Aida Monteiro, assistant treasurers.

NEEDHAM BANK – Promotes Mark Whelan, president and COO. NORTH BROOKFIELD SAVINGS BANK – Promotes Anthony Piermarini, senior vice president and senior commercial loan officer; Donna Tiso, senior vice president and retail lending manager; and Erica Floyd, assistant vice president; hires Patricia Ostrout, vice president, retail banking; Rick Egan, assistant vice president and commercial loan officer; and Lillian Carlson, loan officer.

NORTH SHORE BANK – Promotes Betzi De La Rocha, sales and service manager.

Jacqueline Champagne

Charles Dunne

NORTHERN BANK & TRUST COMPANY – Hires Anthony Rizzo, senior vice president of residential lending; Stephen Jones, vice president and retail sales manager; and Robert Shanahan, Ronald Wiltshire, Shawn Tully and Barbara Webb, assistant vice presidents and residential loan officers.

PEOPLESBANK – Hires James Sherbo, senior vice president of consumer lending.

SOUTH SHORE BANK – Promotes Michael Healy, first vice president and senior commercial loan officer; Jeff Ryan, vice president and commercial lender; and Noreen Cahill, retail manager.

SOUTHBRIDGE SAVINGS BANK– Promotes Todd Tallman, executive vice president, COO and treasurer; Brian Chandley, senior vice president of commercial lending and services; Thomas Dufresne, senior vice president and chief technology officer; Katherine Alexander,

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

23

OntheMove

continued from page 23

Julie Balunas

Paul van Corbach

Jeanna Veneto

Aida Monteiro

Mark Wheelan

Anthony Piermarini

Donna Tiso

Erica Floyd

Patricia Ostrout

Rick Egan

Lillian Carlson

Betzi De La Rocha

James Sherbo

Michael Healy

Jeff Ryan

Noreen Cahill

Randal Webber

Adrian Rawn

Lisa Kirkwood

Thomas Evans

Katherine Bonadies

Elyson dos Santos

Joanne Shea

Thomas Creed

Scott Wisdom

Michael Pappas

Eliot Klein

Jeffrey Marquis

Ivette Korecki

James Truden

Thomas Smith

Manuel Bolivar

Christine Chilton

Tammy Salisbury

Teresa Flynn

vice president of sales and marketing; Caron Dooley, vice president and regional branch manager; Sheila Veideman, vice president and regional branch manager; and Heather Loranger, vice president, operations officer; hires Gonzalo Puigbo, senior vice president of residential and consumer lending.

SPENCER SAVINGS BANK – Promotes Randal Webber, executive vice president and chief lending officer.

24

TD BANK – Promotes Adrian Rawn, vice president and cash management sales officer; Lisa Kirkwood, senior loan officer and vice president of commercial lending; Thomas Evans, commercial portfolio officer; and Katherine Bonadies, Elyson dos Santos, Joanne Shea, store managers; hires Thomas Creed, senior vice president and market commercial credit manager; Scott Wisdom and Michael Pappas, vice presidents and relationship managers; Eliot Klein, vice president; and Jeffrey Marquis, Ivette Korecki, James Truden, Thomas Smith and Manuel Bolivar, store managers.

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

THE FIRST NATIONAL BANK OF IPSWICH – Hires Christine Chilton, mortgage banking officer.

UNITED BANK – Hires Ronald Gannett, senior vice president of commercial lending; and Tammy Salisbury, internal audit officer.

WEBSTER FIVE – Promotes Teresa Flynn, senior vice president and director of human resources. n

The 2012 PULSE Conference is an ideal opportunity for your financial institution to gain valuable insight into how your debit card program can turn with confidence.

October 1- 3, 2012 The Bellagio Hotel Las Vegas, Nevada For more information about the conference, scan the code or visit

pulsenetwork.com/conference12

Š2012 PULSE

GoodNeighbors

PHOTO SUBMISSIONS:

Submit photos and text for consideration for inclusion in Massachusetts Banker to Barbarajean Adams at bjadams@massbankers.org.

BAY COAST SAVINGS BANK – Donates $5,000 to Boys and Girls Club of Greater New Bedford’s Basketball Challenge.

BAY STATE SAVINGS BANK – Donates $1,600 to the Worcester Telegram & Gazette Santa Fund.

BERKSHIRE BANK – Awards nearly $1.3 million to local non-profit organizations, and an additional $36,000 in scholarships to local high school students.

BRISTOL COUNTY SAVINGS BANK – Awards more than $1 million to 143 different organizations within the communities it serves, and donates and additional $17,700 to Hopewell Elementary School.

CAPE COD FIVE CENTS SAVINGS BANK – Awards a total of $28,219 in grants to 84 local school teachers.

COMMERCE BANK – Donates $67,000 to the United Way of Central Massachusetts.

NEEDHAM BANK’s Branch Manager Michelle DeSimone (left) presents a check in the amount of $2,000 to the Dedham School of Music to support its Summer Band and String Program, which provides students daily private instrumental lessons and band and chamber orchestra rehearsals. The four-week session will conclude with a concert showcasing all students enrolled in the program.

FRAMINGHAM CO-OPERATIVE BANK – Donates $5,000 to the Jewish Community Housing for the Elderly and $8,665 to Friends of Callahan.

NEWBURYPORT FIVE CENTS SAVINGS BANK – Donates $6,000 to Roof Over Head Collaborative.

PEOPLESBANK – Donates over $1 million to local charities.

SPENCER SAVINGS BANK – Donates $505 to the American Heart Association.

ROLLSTONE BANK AND TRUST donates $2,240 to Simonds-Sinon Regional Cancer Center to help provide important services such as physical therapy, and complimentary care like massage, reiki and acupuncture. Pictured, from row, from left: Jim Adams, vice president, and Heather Sarasin, assistant vice president and branch manager, Rollstone Bank & Trust; and Mary Jane Ruth, director, and Dr. Madhavi Toke, medical director, Simonds-Sinon Regional Cancer Center. Back row, from left: Rollstone Bank & Trust staff members Nick Caravella, Cathy McGuirk, Rob Courtemanche and Christine Roy.

NEWBURYPORT FIVE CENTS SAVINGS BANK donates $10,000 to the Amesbury Parks and Recreation Committee to help renovate and install a new playground at Amesbury Park. Pictured, from left: Erica BrooksSayers, branch manager, Newburyport Five Cents Savings Bank; Jennifer Hawrylciw, Michelle Sanchez, Kellyn Nahas; Jennifer Gravelle; board members, Parks and Recreation Committee; and Jan Morse, president and CEO, Newburyport Five Cents Savings Bank.

26

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

WEBSTER FIVE donates $50,000 to Harrington HealthCare at Hubbard’s “Strengthening Our Future” capital campaign to help rebuild the Emergency Care Center in Worcester. Pictured, from left: Edward H. Moore, president and CEO, Harrington HealthCare System; Pamela Zouranjian Connor, site administrator, Harrington HealthCare at Hubbard; Karen Kempskie-Aquino, vice president, Webster Five; and Richard T. Leahy, president and CEO, Webster Five.

ABINGTON BANK’s President Andy Raczka (left) presents a check in the amount of $1,500 to Kevin Donovan, chief executive officer, South Shore Tri-Town Development Corporation to support its 32nd Annual Abington Senior Citizens Cookout.

WEBSTER FIVE CENTS SAVINGS BANK donates $3,000 to the Youth Opportunities Upheld, Inc. (Y.O.U., Inc.) to support its “40 Years of Building Brighter Futures” campaign. Pictured, from left: Karen Kempskie-Aquino, vice president, Webster Five Cents Savings Bank; Beth Folcarelli, CEO, Y.O.U., Inc.; and Richard Leahy, CEO, Webster Five Cents Savings Bank.

NORTH BROOKFIELD SAVINGS BANK donates $1,500 to Hearts for Heat to supports its program for providing heat to residents in need throughout Worcester Country. Pictured, from left: North Brookfield Savings Bank Trustee Betsy Cuddy; Hearts for Heat North Brookfield Chapter Members Ellen Smith, Sue Lewandowski, Michelle Petraitis, Judy Manning, Tom Lewandowski, and North Brookfield Savings Bank President and CEO Donna Boulanger.

SPENCER SAVINGS BANK donates $1,000 to Hearts for Heat (Spencer Chapter) to support its program of providing heat to residents in need during difficult times.

Pictured, from left: Priscilla L. Berthiaume, vice president and mortgage officer, Spencer Savings Bank; Sharon Legasey, president, Hearts for Heat, Spencer Chapter; and Lori L. Kowal, assistant vice president of marketing, Spencer Savings Bank.

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GoodNeighbors continued from page 27

NEWBURYPORT FIVE CENTS SAVINGS BANK donates $10,000 to Newbury Elementary School to help purchase a new school dishwasher. Pictured, front row, from left: Cameron Willey; Benjamin Hall; Nina Paradiso; Lila Roy; and Suzanne Kelty, students at Newbury Elementary School. Back row, from left: Sally Milliken, co-chair, Newburyport Elementary School Recycling Committee; Jan Morse, president and CEO, Newburyport Five Cents Savings Bank; Michael Tracy, principal, Newbury Elementary School; Alicia Chiasson, sixth-grade math teacher, Newbury Elementary School; and Tammy Cotter, co-chair, Newburyport Elementary School Recycling Committee.

ROLLSTONE BANK & TRUST donates $25,000 to the Boys & Girls Club of Fitchburg (BGCFL) to support the immediate and long-term needs of the club. Pictured, from left: James P. Adams, vice president, Rollstone Bank & Trust and chairman of the bank’s fundraising committee; M. Marcus Moran Jr., chairman of the board, BGCFL; Donata Martin, executive director, BGCFL; and Martin F. Connors Jr., president and CEO, Rollstone Bank & Trust.

TIME FOR A NEW BOLI PARTNER?

ROBERT S. KARAM, CLU, ChFC, REBC (left) rsk@karamfg.com STEPHEN R. KARAM, CLU, ChFC, REBC (right) stevek@karamfg.com

Karam Financial Group • 456 Rock Street Fall River, MA • stevek@karamfg.com • www.karamfg.com

Securities offered through LPL Financial Member FINRA/SIPC

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M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

NEWBURYPORT FIVE CENTS SAVINGS BANK donates $400,000 to the Richard A. Eaton Charitable Foundation to support its advancement of physical education and athletic programs in public and private schools and other charitable organizations for their physical education and athletic programs. Pictured, from left: Daniel Thornton, athletic director, Pentucket Regional High School; Janice C. Morse, president and CEO, Newburyport Five Cents Savings Bank; Richard A. Eaton, chairman, Richard A. Eaton Charitable Foundation; Donna Andersen, athletic director, Triton Regional High School; and Timothy L. Felter, senior vice president and treasurer, Newburyport Five Cents Savings Bank.

It’s Time to Expect More from Currency Automation Solutions and Self-Service Coin Centers

Doing Things the Right Way

CLINTON SAVINGS BANK donates $1,000 to United Way of Tri-County to support its mission to help local families remain strong and together during difficult times. Pictured, from left: Robert J. Paulhus Jr., president and CEO, Clinton Savings Bank; Paul L. Mina, president and CPO, United Way of Tri-County; and Michael D. Tenaglia, senior vice president and CIO, Clinton Savings Bank, and treasurer/ board member, United Way of Tri-County.

EAGLE BANK donates $10,000 to Housing Families, Inc. to support its ongoing eviction prevention and stabilization services for struggling families in the local communities. Pictured, from left: Christine Falzarano, vice president, Eagle Bank; Jim Goebelbecker, chief executive officer, Housing Families Inc.; Heather Wetterneck, assistant vice president and CRA officer; and William Nolan, vice president of commercial lending, Eagle Bank, and a Housing Families, Inc. board member. n

Currency Dispensers

Centers ice Coin Self-Serv

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1

61-201 50 Y E AR S

Currency Recycle rs

Contact us: 800-347-1414 ext. 425 kmagee@mageecompany.com or visit www.magner.com

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R

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2012 MBA Calendar Dates are subject to change. Announcements are mailed approximately six weeks prior to event.

For additional information, contact the education department at 617-523-7595. Visit our website at: www.massbankers.org

September 6

Writing an Effective Credit Memo Marriott Courtyard, Marlborough

7

Risk Forum Marriott Courtyard, Marlborough

10-14 Annual Bank Compliance Academy

Marriott Courtyard, Marlborough

October 5

Professional Development Forums for Sr. Mortgage Lenders Middlesex Savings Bank Training Center, Westborough

16

IT Workshop Marriott Courtyard, Marlborough

18-19 Advanced School of 19-21 New England Conference

Commercial Lending

Equinox Resort, Manchester Village, VT Sheraton Hotel Framingham

SPOTLIGHT EVENT: Nov. 30, 2012 Annual Trust and Wealth Management Conference and Exhibit Sheraton Hotel Framingham

18

Annual Bank Security Certificate Program and Webcast

November

9 CFO Forums

Middlesex Training Center, Marlborough 15

BSA/AML Conference Doubletree Hotel, Westborough

16 CFO Forums

Middlesex Training Center, Marlborough 30

Annual Trust and Wealth Management Conference and Exhibit Sheraton Hotel Framingham

22-26 School of Commercial Lending

Sheraton Hotel Framingham

We’re experienced.

We’re innovative.

We’re Nutter.

Leading with over 130 years of successful practice in the region. Delivering a wide range of legal services from a single point of access. Focused on building lasting relationships with consistently excellent work. Find out more at nutter.com.

WWW.NUTTER.COM

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NUTTER MCCLENNEN & FISH LLP • ATTORNEYS AT LAW

M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

Diebold ATM security.

Not like a security guard, like a security army.

With losses at $1 billion a year, threats to ATM security are increasing and alarming. It’s why Diebold is relentlessly proactive with an entire team dedicated to keeping its customers safe. From ATM security alert e-mails and ATM educational seminars to developing security solutions that combat sophisticated attacks, Diebold delivers a multilayered security approach. It’s another example of Diebold doing more to build the relationships that have inspired us to become security leaders and innovators for more than 150 years.

For the entire story, visit www.diebold.com/boldsecurity.

1.800.806.6827 www.diebold.com requests@diebold.com

experience the difference is

From site evaluation to building design to construction administration, DRL Associates can help you realize your vision, goals and budget for your bank’s new facility or branch renovation. Contact us and discover the value of working with an experienced design partner.

2 West St. Suite G Weymouth, MA 02190 tel. 781-331-8541 http:.//www.drlarchitects.com

DRL ARCHITECTS