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Banking and Financial Services

Banking and Financial Services

Uniting Forces

People’s United Bank is no longer the small, Springfield-based institution, then known as the Bank of Western Massachusetts, that made its name three decades ago through a strong emphasis on local commercial lending. And the now-Connecticut-based institution is growing again, with a planned acquisition of United Bank that will push its assets well above $50 billion. But local connections are still key to the People’s United ethos, its Massachusetts president says — and he hopes United Bank customers feel the same way.

Patrick Sullivan thinks People’s United Bank has built a strong reputation in Western Mass. — and hopes customers of United Bank feel the same way following a recently announced acquisition.

“We trust that customers kind of know us already in Western Mass., and that they’re confident this isn’t a big change in the sense of somebody they don’t know. They’ve known us for a long time,” said Sullivan, Massachusetts president of People’s United, the Bridgeport, Conn.-based bank that began life in downtown Springfield 32 years ago as the Bank of Western Massachusetts.

“We have people that have worked for either the Bank of Western Mass. or People’s United for a long time,” he added. “Long-term relationships are valued here, and long-time principles and dynamics don’t change. Local is local.”

The two institutions announced in July that People’s United Financial Inc., the holding company for Peoples’s United Bank, would acquire United Financial Bancorp Inc., the holding company for United Bank, in a 100% stock transaction valued at approximately $759 million. Then banks’ leaders characterized it as a strong cultural fit that would benefit customers.

“We are excited to welcome United Bank to People’s United,” said Jack Barnes, chairman and CEO of People’s United Financial. “With the fourth-largest deposit market share in the combined Hartford and Springfield market, a complementary array of commercial and retail capabilities, and a shared legacy of community giving, United will solidify our presence in the Central Connecticut market and strengthen our franchise in Western Massachusetts.”

William Crawford, president and CEO of United Financial Bancorp, added that “People’s United Bank has long been a premier brand in Connecticut that is committed to building meaningful relationships with its customers and communities. We are confident their broad array of products and services, in-market knowledge, and the size and strength of their balance sheet will deliver enhanced value to our stakeholders.”

Patrick Sullivan says the acquisition of United Bank makes sense on a number of levels, both financially and culturally.

Indeed, the move is, in one sense, the story of two Connecticut-based banks —United is based in Hartford — but both banks have a long history and a strong presence in Western Mass.

Sullivan — who joined People’s United six years ago as Massachusetts president and also oversees the bank’s commercial, industrial, and business banking, noted that the institution was already the eighth-largest bank in Massachusetts, and will obviously be slightly larger, growing from 56 branches in its multi-state footprint to around double that, though some are expected to close (more on that later).

“Because of the economy in Massachuetts and the size of the market, we’ve invested a lot in people from other institutions that have joined us with specific expertise in lending, commercial markets, retail, wealth, insurance, whatever,” he went on, citing its government-banking niche as one strength.

“We had a good government business in Western Mass. before I came on six years ago. Today, we’ve got 90 clients in Western Mass. with $162 million in deposits. It’s a big business for us. Likewise, it’s a big business for us throughout the whole company. The city of Springfield is a major customer,” he explained, as are Worcester, Pittsfield, Easthampton, and many others.

For this issue’s focus on banking and finance, BusinessWest spoke with Sullivan about the broadened services and technology People’s Bank will bring to United Bank customers, and why he feels this growing institution will continue to maintain a local focus in the communities where it operates.

Growth Pattern

Immediately after the merger, People’s United will go from five branches in Hampden County to 20, from five to 10 in Worcester County, and from three to four in Hampshire County; its roster of three branches in Franklin County won’t change.

Still, not every branch will remain open; in some communities, both banks now operate within a block or so of each other, which means consolidation is inevitable, Sullivan said. “We’ll make a decision in the best interests of our customers, according to where they bank. But all the retail employees have been told they will have positions with us.”

Just as it has during its growth over the years — People’s United boasts assets around $47.9 billion, and is acquiring a bank with about $7.3 billion — Sullivan said the institution stresses local decision making when it comes to lending, philanthropy, and other matters.

“We still operate just like we did when we had $30 billion. We want to keep it local,” he told BusinessWest. “Our biggest client has its headquarters in Western Mass. Our challenge has been small businesses, those $100,000 loans, the startups. We try to take care of the small-business segment. Let’s face it, those are the heart of a lot of the communities we’re in, and we’re always trying to be more responsive to them.”

In recent years, People’s United has made significant investments in its commercial specialties, including hiring teams of specialized industry experts to better serve customers. Among these niches are technology companies, restaurant franchises, and a healthcare finance team. While those divisions are based out of Boston, they serve the bank’s entire New England and New York footprint and beyond.

The bank has also invested heavily in technology, said Steven Bodakowski, vice president of Corporate Communications.

This United Bank branch in downtown Springfield is just a couple blocks from the People’s United branch — one of many examples of overlapping branches the organization must examine post-merger.

“We’re constantly focused on on how, when, and where we interface with customers in this changing age of banking,” he noted. “Technology and digital enhancements continue to be a major focus for the bank as we aim to stay one step ahead of customer needs and deliver a truly integrated service model that blends the best in customer service with technology.”

To that end, People’s United has developed a strategic initiative to provide customers with online and digital solutions for a suite of its most popular offerings.

“This digital banking experience is designed to mirror and be an extension of the branch experience — serve as another path to interact with and receive guidance from bankers, based on individual customer preferences,” Bodakowski said. “Our bankers are being trained to become digital advocates.”

Offerings include a technology-based home-lending platform designed to simplify and transform the way customers apply for a home-equity loan or home mortgage, providing the ability to virtually interact with mortgage account officers in real time to complete the online application.

Other features include a refreshed online and mobile solution for opening checking and savings accounts, a digital small-business loan application for loans $250,000 or less, a direct-to-client robo-advisory offering, and a new, digitally driven financial-literacy platform that allows customers and the community to access financial-literacy classes and modules.

The latter is an especially important tool to help young people, the elderly, and anyone, really, become more financially savvy, make better decisions, plan for the future, and avoid scams.

“We also launched a new website in May with a fully optimized user experience,” Bodakowski said, one that delivers a fully optimized user experience for mobile devices, an enhanced ‘storefront’ feature to highlight key product areas, and a robust support and security center and new content areas designed to engage and educate customers.

The bank has also enhanced its marketing capabilities to more accurately target its customers and understand their lifestyles, through the use of integrated third-party digital e-mail and marketing platforms such as Marketo and Salesforce.

“We look forward to welcoming [United Bank’s] well-established customer base and delivering to them our enhanced technology and digital capabilities, combined with our network of expert bankers,” Barnes said when the acquisition was first announced.

Living Local

That’s a lot of growth since the institution opened its doors in 1987 as the Bank of Western Massachusetts with $9.3 million in assets. By way of contrast, People’s United awarded almost half that total — about $4 million — to nonprofits last year, about $2.3 million of that in Massachusetts. Of that latter figure, more than $854,000 was contributed by the bank in donations and sponsorships, while more than $1.4 million was awarded in grants by People’s United Community Foundation and People’s United Community Foundation of Eastern Massachusetts.

Those giving decisions remain, as they always been, local, Sullivan said, because the local bankers know the market and its needs. He knows that’s part of the community-bank ethos in Western Mass., and even banks that have grown far beyond community-bank size still have to operate like one.

“Our philanthropy is very local. We take very seriously how things get allocated to these organizations,” he added. “Our principles are always to stay local, whether it’s the specialty expertise in the market or our volunteerism and philanthropy. That’s in our DNA.”

Joseph Bednar can be reached at [email protected]

Banking and Financial Services

Growing Concern

The American Bankers Assoc. argued it’s critical that legal, cannabis-related businesses have access to the regulated banking system as it urged the Senate to advance the SAFE Banking Act in recent testimony before the Senate Banking Committee.

Joanne Sherwood, president and CEO of Citywide Banks in Denver and chair of the Colorado Bankers Assoc., testified on behalf of ABA. Sherwood explained how current federal law prevents financial institutions from banking any money derived from cannabis-related businesses and how a narrow, banking-specific remedy to the cannabis banking problem will reap immediate public-safety, tax, and regulatory benefits.

“Because cannabis continues to be illegal at the federal level, handling funds associated with cannabis businesses can be deemed money laundering,” said Sherwood. “That federal/state divide has particularly severe repercussions for banks and communities like mine, where the cannabis industry is fully operational, but it also impacts banks in every state.”

With limited access to banking services available, large amounts of cash remain on site in many of the cannabis-related businesses, which creates significant safety concerns for the communities where they are located. For example, on average, more than 100 burglaries occur at cannabis businesses each year in Denver, according to the Denver Police Department.

“Providing a mechanism for the cannabis industry to access the regulated banking system would help those businesses and their surrounding communities by reducing the high volume of cash on hand, thereby reducing instances of cash-motivated crime,” Sherwood said.

Additionally, since many cannabis businesses do not have a bank account, they are forced to pay their taxes in cash at local IRS offices. Processing paper-based returns costs the IRS nearly 17 times more compared to an e-filed return — a cost borne by taxpayers. Cash-based taxpayers are also more likely to underreport income than those who receive payment by check or those subject to third-party reporting or withholding.

“Banking the cannabis industry is a straightforward way to ensure that businesses have the means and motivation to remain fully tax-compliant,” Sherwood said.

The SAFE Banking Act, which is currently before the committee for consideration, would help address this urgent problem. The bill specifies that proceeds from a state-licensed cannabis business would not be considered unlawful under federal money-laundering statutes or any other federal law and directs the Financial Crimes Enforcement Network and federal banking regulators to issue guidance and exam procedures for banks doing business with legitimate cannabis-related businesses.

“Although the SAFE Banking Act does not cure all of the cannabis-related banking challenges, it would help the 33 states that have legalized cannabis in some form to make their communities safer, collect their taxes, and regulate their cannabis markets effectively,” said Sherwood. “ABA supports the SAFE Banking Act and urges the committee to mark up and advance this legislation as soon as possible.”

Banking and Financial Services

On the Way Up

PeoplesBank joined Google, Facebook, BMW, Southwest Airlines, and more top companies on the 2019 WayUp Top 100 Internship Programs list. WayUp is a professional networking application that connects college students and recent graduates to career opportunities with reputable employers.

According to WayUp, the bank was selected because “PeoplesBank interns not only get a behind-the-scenes look at what it takes to operate a bank, they also get hands-on experience to work on passion projects like Habitat for Humanity’s Build Days.” The list is determined by a panel of industry experts who consider everything from public votes to internship-program highlights. More than 1,000 employers participated in this year’s assessment.

“Our internship program instills that we can learn just as much from our interns as they can learn from us.”

“PeoplesBank interns make an immediate and direct impact on the organization and the communities that the bank serves,” said Danielle St. Jean, HR Coordinator and Training Specialist. “Each intern is also assigned to a home department at the bank. In addition to day-to-day assignments and value-add projects completed within that department, the group of interns are involved in several hands-on activities.”

PeoplesBank interns participated in on-site professional development, a Habitat for Humanity Build Day, employee-engagement planning, banking-topic webinars, and job shadowing. They also were able to discuss their career paths with senior leadership in the bank’s finance, human resources, information technology, marketing, and retail operations. After spending the summer at PeoplesBank, the interns have returned to study at colleges throughout Massachusetts as well as Connecticut and Colorado.

“Our internship program instills that we can learn just as much from our interns as they can learn from us,” St. Jean said. “We ask for lots of feedback from our group of interns, and even have a private ‘PeoplesBank Internship Alumni’ group on LinkedIn so that we keep in touch with them at the conclusion of the program.”

Recruitment for the next PeoplesBank summer internship program kicks off during the winter. Interested students are encouraged to complete an application on the bank’s career page, www.bankatpeoples.com/careers.

Banking and Financial Services

In the Dark

By Susan Atran

Bank of America recently announced the findings of a new study conducted by Merrill Private Wealth Management, which found that 64% of wealth holders have never talked with family members about how or why they intend to pass on their assets. While 48% plan to communicate this information eventually, or assume family members already know, 10% vow never to divulge details of their estate plan, primarily because they consider it personal and no one else’s business. But is that a good decision?

“This research is designed to help families make better decisions and secure the promise of wealth, including the impact it can have within and beyond one’s family and lifetime,” said Andy Sieg, president of Merrill Lynch Wealth Management.

For this study, Merrill asked more than 650 high-net-worth individuals across the country how different types of financial decisions are made and communicated within their family. Part of an ongoing series of white papers on wealth sustainability from the Merrill Center for Family Wealth, findings from this study were published in a report titled “How Do Families Make Effective Wealth Decisions?” Among them:

• Decisions about family money — such as gifting to family and charities, dividing assets among heirs, and establishing trust provisions or limitations — ranked as the most important and hardest to make, compared to decisions about saving, investing, spending, and other day-to-day finances;

• Just 33% of people have informed their family of lifetime gifts already made or committed to, such as assets held in a trust or funding of education, a down payment on a first house, or another purpose;

• Seventy-two percent have not discussed their philanthropic commitments;

• When asked what they consider to be the most important idea to communicate when discussing wealth with family, the top response was to be a good steward and handle family money wisely. However, only 46% have talked with heirs about fundamental family values and operating principles;

• On the distribution of their estate, 69% of wealth holders plan to divide their assets equally among heirs, while the rest say allocation decisions are based on specific criteria, such as merit for individual contributions (11%) or need (8%); and

• While 22% plan to openly share details of their estate plan with the whole family, 17% would share information only as it applies to each person.

“Decisions about family money have the potential to change lives, yet the outcome depends on how well the purpose and reasoning behind those decisions are understood, and too often that is left unsaid,” said Stacy Allred, head of the Merrill Center for Family Wealth. “Misunderstanding can lead to family conflicts, resentment, and other unintended consequences, including the misuse or loss of family wealth.”

The Merrill Center for Family Wealth specializes in helping families define the purpose of their wealth. This study found that, in six in 10 families, there is no formal structure or rigorous process in place to ensure family wealth decisions are made and communicated effectively. When asked how wealth decisions are typically made, the most prevalent response was an autocratic and top-down approach whereby one person makes decisions with little or no input from anyone else. Seventeen percent of families make financial decisions democratically with collective input or representation of all members.

Three-quarters of participants, including more men (79%) than women (68%), report complete confidence in their financial decisions. Looking back on decisions they’ve made, however, just 56% of people said their decisions always turned out well. The rest reported mixed results, including 21% who said their decisions turned out badly or they delayed making decisions because they were unsure of the outcome.

“The best form of financial parenting and a big part of improving the outcome of decisions involves putting more care into the decision-making process itself,” said Matthew Wesley, director of the Merrill Center for Family Wealth. “Family wealth decisions can be complicated by family dynamics, a long-time horizon, and unrecognized biases that call for a deliberate and disciplined approach.” u

Susan Atran is senior vice president of Communications for Bank of America.

Banking and Financial Services

Steady Course

President and CEO Michael Tucker

President and CEO Michael Tucker

Like most all bank presidents in the 413, Michael Tucker would concede that a great many of the region’s communities are heavily populated with financial institutions, or “overbanked,” to use the term most would put into play.

He’s inclined to include Greenfield on that list, and gestures out the window of his office to make his point. “They used to call the other end of the street Bank Row,” he said, referring to a stretch of Federal Street now occupied by what once were stately bank offices, many of them redeveloped for other uses. “They really should call this Bank Row now.”

Tucker, president and CEO of Greenfield Cooperative Bank (GCB) and Northampton Cooperative Bank (the two institutions merged in 2015, and the former name was kept) was referencing the number of competitors who call a different stretch of Federal Street home, and it’s a large number.

But, unlike most of the other bank leaders who bemoan the overbanked nature of this region, Tucker sees the landscape through a slightly different lens.

“Some bankers would say we’re overbanked; I would say we have choices,” he explained. “It forces you to be more competitive, and it gives people choices. It doesn’t hurt to have competition — otherwise, you get complacent.”

So perhaps all that competition should get some of the credit for what has been a consistent pattern of growth for the bank, especially since Tucker took the helm at GCB in 2003. Since then, the bank has seen assets rise from roughly $175 million to more than $630 million, its branch count soar from three to 10, and its commercial-lending portfolio take a quantum leap.

Overall, the bank’s strategy has been to gradually expand its footprint in Franklin and Hampshire counties, growing mostly via the organic route (although the merger with Northampton Coop certainly accelerated that process), and achieve more of the size that is needed to thrive in today’s banking landscape.

The plan also calls for seizing opportunities when and where they arise, which brings us to the institution’s latest expansion effort — a branch in South Hadley at the Woodlawn Shopping Plaza that will bear a Northampton Cooperative sign over the door and open next January.

Formerly a Bank of America branch — that institution has been closing a good number of facilities in recent years — the new location gives Greenfield Coop presence in another Hampshire County community, but one that enables it to serve residents of several nearby Hampden County cities, especially Chicopee and Holyoke.

The plan for the foreseeable future is summed up neatly in the bank’s annual report, issued just a few weeks ago.

“Our primary strategy remains to look for prudent and measured organic growth right here in Western Massachusetts,” Tucker wrote in the report, noting that many of those aforementioned competitors have ventured into Central Mass., Connecticut, or both. “We need to remain a lean organization, especially in light of the growth of mobile and electronic banking in today’s world. Our branch strategy recognizes the new world order with the continued growth of the internet.”

Michael Tucker says the GCB branch is just one of many banks located on Federal Street

Michael Tucker says the GCB branch is just one of many banks located on Federal Street, a proliferation that provides competition, which he believes makes his bank better.

For this issue and its focus on banking and financial services, BusinessWest asked Tucker to elaborate on all those points and essentially draft a quick blueprint of the bank’s plans for the future. In a nutshell, it simply calls for more of what of what the bank has been achieving under his leadership — smart growth.

Points of Interest

Tucker said he ventured into banking, if that’s the word for it, while he was in law school at Western New England University.

He took a teller’s job at the institution known then as Springfield Institution for Savings (SIS), while attending night classes, not knowing this would be his employer for some time to come.

He remembers his first boss, John Collins, telling him that his law degree could be put to good use in the banking industry.

“He said, ‘I have a lot MBAs who could use some help, because we have this new thing called compliance,’” he recalled, referring specifically to the Truth in Lending Simplification Act of 1981. “That was my first foray into banking law.”

He took the title ‘counsel and compliance officer,’ and later worked his way up to senior vice president and general counsel. When Peoples Heritage acquired SIS, Tucker, like many others, was soon out of work, but he eventually landed at what is now bankESB for several years before being recruited to lead GCB.

When he arrived in Greenfield, he took over one of the smallest banks in the region with a simple goal — “I told the board I was going to keep this place mutual and hopefully leave it a better bank than I found it” — and set about a course of steady if unspectacular growth, which was by design, as he explained with a little humor.

“Our growth is roughly 4% to 6% a year,” he noted. “If we were a stock bank, they would have thrown me out the door. Because we’re a mutual bank, we can take our time. Where I see banks get in trouble is when they try to grow too fast and lose sight of their basic principles.”

GCB hasn’t done that, and its strategic goal — and operating philosophy — are summed up by its web domain name, www.bestlocalbank.com, and a comment from the annual report. “As I’ve often said before, we’ll probably never be the biggest bank,” Tucker wrote. “But we always strive to be the best bank in Western Massachusetts.”

During Tucker’s tenure, the bank has, as noted, expanded to 10 branches. There are two in Amherst (although they will soon be consolidated; more on that later), one in Florence, another in Northampton, two in Greenfield, as well as a commercial and residential and loan-services facility, and single locations in Northfield, Shelburne Falls, Sunderland, and Turners Falls.

Meanwhile, it has also greatly expanded its commercial-lending team and its commercial portfolio, which, like that at many banks in the region, is dominated by commercial real-estate loans, but also reflects the diversity of the local economy, especially in the bank’s hometown.

Indeed, this is an intriguing time for Greenfield, said Tucker, noting that the community once dominated economically by manufacturing has varied its economy, making great strides in technology and hospitality.

“Our growth is roughly 4% to 6% a year. If we were a stock bank, they would have thrown me out the door. Because we’re a mutual bank, we can take our time. Where I see banks get in trouble is when they try to grow too fast and lose sight of their basic principles.”

“There is a lot of energy in the town,” he said. “We have the new courthouse and the new parking garage; they opened the Olver [Transit Center], and there have been many other new developments.”

Still, this region, and especially Franklin County, where many communities are struggling to maintain population and especially young people, would be considered a low- or no-growth area, he acknowledged, meaning growth is a challenge for any financial institution.

This is why many area banks, as he noted in his annual-report comments, have ventured into Connecticut, Central Mass., or both, and why others have grown through acquisition or merger.

GCB has done some of that with its merger with Northampton Coop, a move that Tucker described as “logical” for both institutions because of that overbanked nature of this sector, and the lack of population growth in Franklin County.

“That’s why we looked at Hampshire County and why I talked to Northampton [Coop],” he explained. “It would have been silly for us to build another branch down in Hampshire County and fight 10 other banks for the money when we can partner with another bank.

“That worked out well for everyone because we didn’t have to lay anyone off,” he went on, adding that he spends one day a week in Northampton at that division of the institution. “It was a smooth transition. We were both very small — and we’re still one of the smaller banks — but we now have more size, and that helps. It was a good merger.”

By All Accounts

As he talked about his bank’s branch strategy, Tucker reached for his cell phone and held it aloft.

“This is our fastest-growing branch,” he said, noting that internet banking is becoming an ever-stronger force in this sector.

But brick-and-mortar branches are obviously still needed, he went on, adding that they probably don’t need to be as large as they once were, and they are far less transaction-oriented than they once were.

But they serve an important purpose in that they give a bank a presence and enable it to better serve customers in a particular region or community.

Which brings us to the new South Hadley branch.

The most logical expansion point for the bank moving forward is probably Hampden County, said Tucker, adding that the South Hadley branch provides an opportunity to make some strides in that direction.

Tucker found the branch while on one of his many drives around the area looking for opportunities.

“We keep our eyes open, and I drive around the area a lot and take a look at the communities,” he explained. “South Hadley was a community that I thought had some upside, and I was surprised when I read that Bank of America was closing that branch because they had a fair amount of deposits in that office.

“With this branch, we can serve some customers that we have already in Springfield and Chicopee,” he went on. “But it also gets us to reach a base in South Hadley that BOA is telling, ‘if you want to bank with us, you have to drive over here.’”

BOA’s departure will ultimately lead to GCB’s arrival, specifically its Northampton Coop division, said Tucker, adding that, while moving into South Hadley, the bank will continue to look for other growth opportunities as well as ways to become the ‘leaner organization’ he mentioned in the annual report.

Toward that end, the bank will consolidate its two branches in Amherst into one, a nod to the fact that specific branches are simply handling fewer transactions these days.

“When I was a teller in Forest Park [for SIS], we had seven or eight tellers plus a manager and an assistant manager,” he noted, turning the clock back four decades or so. “People were lined up out the door — we didn’t have deposit — and everyone came in to cash their Social Security checks on the first of the month.”

Elaborating, he said the branches in Amherst that saw 10,000 transactions a month several years ago were down to 5,000 maybe five years ago, and are now seeing roughly 3,000 a month, thanks to ever-advancing technology.

This phenomenon will eventually lead to fewer branches, and, more immediately, smaller facilities.

“The industry is moving in that direction,” he said while again holding his phone aloft and explaining it is now a branch itself in most all respects. “But I don’t think branches will be obsolete; they will be smaller and leaner.”

As for future expansion geographically, Tucker said GCB will continue to look for potential landing spots. “We’ll continue to look south and possibly east to Worcester County,” he told BusinessWest. “A lot depends on what happens; with some of the branches we’ve opened, I didn’t anticipate doing it at that time, as in Turners Falls, but the opportunity arose.”

Bottom Line

In his annual-report statement, Tucker noted that, over the past 114 years, GCB has had three basic operating slogans.

It’s gone from ‘Traditional, Progressive, Locally Focused,’ to ‘In the Community, for the Community,’ to the current ‘Come on Over to the Coop.’

The words are different, but they say the same thing, essentially — that this isn’t the biggest bank on a block crowded with other banks, but it strives to be best, and it’s generally successful in that mission.

This is the strategy that has worked since Teddy Roosevelt was in the White House, and there isn’t any sentiment to change it, said Tucker, because it works, not only for the community, but for the institution as well.

George O’Brien can be reached at [email protected]m

Banking and Financial Services

The Scammers Are Out There

By Jean Deliso

Jean Deliso

Jean Deliso

Have you ever been scammed by someone or received a phone call attempting to pressure you to provide personal information or send money?

If you can say yes, have you thought about what your parents or grandparents might do in similar situations?

Senior citizens are frequent victims of these criminal activities. To help protect older family members and to safeguard yourself, everyone should be better informed about these schemes and how to help prevent becoming a victim.

Scam artists are everywhere, and they are here in Western Mass. Within the past 18 months, I personally had two different clients who were defrauded by a scam tactic that preyed on their love of their grandchildren and their innocence and confusion.

One was contacted and told their grandchild had been in an accident, he had seriously hurt someone, and he was going to spend many years in jail unless money was sent. In the other situation, it was claimed that a grandchild was in a friend’s car, which was stopped by the police, and they found drugs. The scammer stated that the grandchild was not guilty, but he would be charged unless the grandparent sent cash immediately to get him assistance in court.

Both victims were told not to tell anyone, otherwise the assistance would stop. And in both situations, the grandparents went to the bank or withdrew money from their investment accounts, converted it to cash, placed it an envelope, and sent it to these unknown addresses.

These situations are happening more often, and thus there is a pressing need to educate our senior citizens to be aware of these types of scams.

There is nothing more special than the love of a grandchild. These imposters are targeting and exploiting this love and affection.

There have been other articles written on this subject, but not everyone reads them. It is important to educate your parents or grandparents that these scams exist and that, if they ever receive a call where they are instructed to be silent, they should contact a trusted family member or the proper authorities immediately.

Not all children are comfortable talking to their parents or grandparents about these situations, but I highly recommend you do.

I’ve seen too many of these scams recently amongst my clients. As a certified financial planner, it’s my responsibility to help my clients manage their assets and finances and to help safeguard against risks to their financial well-being. If a suspicious phone call or request is unusual or confusing, it’s important for the recipient to question it and alert their loved ones.

Please speak to your parents and grandparents about these threats. If they receive such a call, have them talk to other family members or the police before providing any information to the caller. They should never send cash to someone they don’t know or if they don’t fully understand why it’s being requested. Have them call the grandchild on their personal phone number, and, most importantly, tell them never to send cash to anyone they don’t know.

Jean Deliso, CFP is a principal with Deliso Financial and Insurance Services; (413) 785-1100.

Banking and Financial Services

Landmark Decision

Tom Senecal, left, and Andrew Crystal

Tom Senecal, left, and Andrew Crystal, vice president of O’Connell Development, look over blueprints for the new banking center now taking shape at the site of the Yankee Pedlar.

Tom Senecal says PeoplesBank first looked at the historic Yankee Pedlar property as the potential site a future branch roughly three years ago.

‘Looking’ didn’t advance to anything further, though, said Senecal, the bank’s president, because at the time, the efforts to ‘save the Pedlar,’ as the campaign concerning the beloved restaurant and gathering spot came to be called, was ongoing, and hopes to keep that landmark in its long-time role were still somewhat high.

Fast-forward a year or so, after many restauranteurs had looked at the Pedlar and essentially passed on it, deeming it too large and too expensive to maintain as a restaurant — and hopes for keeping the property a restaurant had all but dissolved — the bank was back for another look.

“We thought we could do something special for the city.”

And what it saw was opportunity — and in a number of forms, said Senecal.

First, there was an opportunity to save the most historically significant piece of the property, the home to John Hildreth, “overseer of the making up department of the Farr Alpaca Company,” according to Mass. Historical Commission documents concerning the property and, later, a lawyer, judge, president of Crystal Spring Aqueduct, and “president-clerk” of the institution that would become PeoplesBank.” (Note: Officials at PeoplesBank cannot confirm that Hildreth was president, but they also can’t confirm that he wasn’t).

But there was also an opportunity for the bank to consolidate and modernize two of its branches in Holyoke — one on South Street in the Elmwood neighborhood, and the other at the corner of Hampden and Pleasant Streets in the Highland neighborhood, and create a new state-of-the-art facility.

“As we’ve been remodeling all our other branches, we thought there was no better way to do this in Holyoke than put all this together in one centralized location between those two branches in an historic building that we certainly have the ability and the desire to retain and keep as an historic building,” he explained. “We thought we could do something special for the city.”

The Hildreth House, constructed in 1885

The Yankee Pedlar

The Yankee Pedlar

Specifically, that something special is preserving the Hildreth House itself — the hip-roof Queen Ann dwelling built in 1885 that was later added on to several times — for use as a community center, while also building a new state-of-the-art, 4,700-square-foot banking center.

Also to be preserved are many pieces of memorabilia from the Pedlar, including a stained glass window originally from the Kenilworth Castle, a historic Holyoke mansion torn down in 1959, wainscoting, and even ‘Chauncy the Butler,’ the wooden figure that greeted visitors to the Pedlar.

The next chapter in the history of the property will begin the Tuesday after Labor Day weekend, said Senecal, with the opening of a property that will blend the old with the new, the nostalgic with the environmentally friendly.

“We’re doing this in the long-term best interests of the community; quite frankly, no one would spend the kind of money we’re spending on refurbishing this and doing this — no one.”

It’s a project Senecal said is in keeping with the bank’s large and visible presence in the community, and also in keeping with its desire to be on the cutting edge of both of emerging banking technology and ‘green’ architecture and building practices.

He chose to categorize the undertaking, which comes with a pricetag he opted not to disclose, as an investment, one he described this way:

“We’re doing this in the long-term best interests of the community; quite frankly, no one would spend the kind of money we’re spending on refurbishing this and doing this — no one,” he said. “We’re going to be here for a long time. Holyoke is our mainstay, it’s our headquarters. It’s our community.

“We’re a mutual bank, and we want to do the right thing for the community,” he went on. “This bank is going to be here for a long time.”

Building Interest

Senecal told BusinessWest that that the bank has long had a pressing need to modernize those branches in the Elmwood and Highland neighborhoods, both nearly a half-century old in his estimation.

And it was with the goal of finding a replacement for the latter that he said he personally drove the length of Northampton Street to scout potential options.

“I went all the way from Hampden Street to Beech Street looking for various properties that might work,” he explained, adding that the Pedlar property was among those considered. He said he was aware that other businesses were looking at the property, located at the well-traveled corner of Northampton St. (Route 5) and Beech Street, but this was at a time when hopes to keep the Pedlar a restaurant were fading but still alive.

As those hopes eventually dissipated, the bank eventually came forward to acquire the property and announce plans for the consolidation of both branches in that area into the new location that, as noted, would blend new construction with renovation of the Hildreth House — it’s ground floor, anyway, into a community center.

The 4,700-square-foot banking center will feature state-of-the-art banking technology, such as video tellers and cash dispensers, but also include memorabilia from the Yankee Pedlar.

The 4,700-square-foot banking center will feature state-of-the-art banking technology, such as video tellers and cash dispensers, but also include memorabilia from the Yankee Pedlar.

“At the time, I was looking at something to replace the Highland location,” said Senecal. “But as I got closer to the South Street location, it made all the sense in the world to consolidate both branches, because the Pedlar was far more centralized than I thought when I set out.”

Beyond geography, the Pedlar site offered a chance, as he said earlier, to modernize banking at the institution’s Holyoke branches, and do so seamlessly.

“If you look at our branches in West Springfield, Westfield, East Longmeadow, and Sixteen Acres, those branches were built 10-15 years ago — they’re pretty modern and up-to-date,” he explained. “Our brand in Holyoke is extremely dated compared to those. So in order to get existing branches up to our current brand, you’d have to gut the branch, and if you gut the branch, you can’t operate the branch. This provides us an opportunity to close on a Saturday and open on a Tuesday, with no customer traffic impact.”

The bank’s plans were initially greeted with some resistance by those behind the ‘save the Pedlar’ initiative, but it waned as it became clear that the bank would not demolish the Hildreth House, the historically significant portion of the property.

“This project provides a statement of who we are in the Holyoke community.”

As Senecal explained, the property is not on the National Register of Historic Places (it is on the state’s list) essentially because of those aforementioned additions, including the so-called Opera House, a banquet room, and the enclosure of a wrap-around porch to expand the restaurant, undertaken in the ’80s.

While the interior of the Hildreth House was gutted to make way for the community room — to be used by area nonprofits free of charge — and other portions of the property were razed or moved, visitors to the new branch will certainly get a taste of, and feel for, the Pedlar when they head inside, said Senecal.

“The final product will incorporate a lot of the significant historic memorabilia from the Pedlar,” he explained, adding quickly that, originally, there were hopes and expectations that more of these items could be on display. However, due to size constraints and functionality issues, the collection won’t be as large as anticipated.

“Chauncy the Butler will be in the lobby, and in the Hildreth House will contain other historic memorabilia,” he went on. “The ‘hunter’ stained glass painting, which used to be in the main restaurant portion of the Yankee Pedlar, has been refurbished, and that will hang in the main branch, and the wainscoting from the entrance to the original Pedlar will be in a similar area in the community room, and some of the pictures will hang in the corridor between the branch and the community room.”

Also, a few historic gas lanterns, more than a century old, that were mounted on and around the Yankee Pedlar have been refurbished, he said. They’ve been converted to electric and will be positioned on a patio constructed outside the Hildreth House.

Beyond the historic and nostalgic, however, the new facility will also feature state-of-the-art banking technology, including video-banking machines and cash dispensers, as well as cutting-edge ‘green’ building practices. Indeed, the bank will look to have the project, being undertaken by O’Connell Construction (the general contractor and construction manager) and Western Builders, become LEED (Leadership in Energy and Environmental Design) certified.

“This project provides a statement of who we are in the Holyoke community,” said Senecal, summing up the initiative and its many characteristics.

The Bottom Line

Returning to the scouting trip be took down Northampton Street a few years ago, Senecal said there were very few properties that both suitable for what he wanted to do and for sale at the time.

One that fit both categories was an old BayBank Valley branch that he looked at and thought about. But another party beat him to the punch.

“I’m kind of glad they did,” he said, noting, in retrospect, that the site probably was not big enough for what he had planned. And if he had pursued that property, he probably could not have gone ahead with the Pedlar project.

One that, as he said, provided a chance to do something special — for the bank and especially the city.

George O’Brien can be reached at [email protected]

Banking and Financial Services

Adding It Up

It’s no secret that too many Americans make poor borrowing decisions, fail to save for retirement, even lack basic budgeting skills. That financial-literacy deficit begins early, say local bank and credit-union officials, which is why area institutions offer programs and classes to help people — both teenagers and adults — forge better strategies for making their money work for them, not drag them down.

So much, Lena Buteau says, comes down to tiny decisions that add up.

Take that morning coffee. If someone spends $2.69 at Dunkin’ Donuts every morning, that comes out to well over $900 a year. Spend $7 or $8 on lunch five times a week instead of packing a lunch at home, and you’re looking at around $2,000 a year.

“When you think you can’t afford something, look at your daily expenses,” said Buteau, vice president of Retail Administration at Monson Savings Bank, while explaining the importance of MSB’s financial-literacy programs, many of which target students, but which are needed by many adults, too.

For instance, people of all ages often struggle to understand the long-term impact of buying on credit, she noted, using the example of someone who buys a $650 laptop at Best Buy but takes a $150-off deal to put it on a store credit card at 25% interest, then pays only the minimum every month. At that rate, that laptop would be paid off in seven years — eventually costing more than double its original price tag.

“When you explain this, the kids are shocked at the numbers,” she said. “It really touches home.”

Because so many habits and philosophies are forged early, Buteau said, “we go in and teach students about saving, lending, credit scams, how to keep your money safe, and much more.”

And it’s not just schools, she added. “We want to go to church groups, Boy and Girl Scout troops, anybody that will give us an hour of time for a financial-literacy class.”

“No disrespect to the schools, but they’re not preparing kids for real life — how your credit score affects your insurance and buying a car, how to handle a checkbook.”

Michael Ostrowski, president and CEO of Arrha Credit Union, said his institution has an internal focus on financial literacy.

“No disrespect to the schools, but they’re not preparing kids for real life — how your credit score affects your insurance and buying a car, how to handle a checkbook. People don’t go into banks anymore; they do stuff online, and you can get ripped off if you don’t know what you’re doing.”

For that reason, Arrha has worked with high schools in the past on financial-literacy programs and is currently planning another program for local students.

“When we were kids, we had home-ec class, and they used to explain how to do a checkbook. They don’t do that anymore, and I don’t know why,” Ostrowski said, before offering one possible reason. “With all the regulations schools are under, for MCAS and other things, they’ve bailed on programs like this, but they’re absolutely critical for kids’ development and future life.”

Jon Reske, vice president of Marketing at UMassFive College Federal Credit Union, pointed out that financial literacy, and education in general, has long been part of the credit-union culture.

“Why? Because, unfortunately, your parents and my parents probably never taught us anything about personal finance, especially if things weren’t going well in the household,” he told BusinessWest. We take the opposite approach — we say your kid should be involved in understanding how the budget works in your house.

Jon Reske says even good budgeters can be tripped up by a bad loan — with long-term consequences.

Jon Reske says even good budgeters can be tripped up by a bad loan — with long-term consequences.

“We also do workshops on a regular basis — everything from homebuying 101 to how to create a budget to understanding credit,” he added, noting that the latter is especially critical, as the average American, between the ages of 21 and 65, will borrow about $1.5 million, and bad decisions can compound quickly and have a long-term impact. “You can be the greatest budgeter in the world and be smart about your pennies, but if you make bad borrowing decisions, you can be overwhelmed by debt.”

Monson Savings also conducts workshops for adults, such as first-time homebuyers, and offers a Credit Builders loan program, which is an effective way to, as the name suggests, build credit without going into unmanageable debt. The customer borrows a certain amount from the bank, which is deposited into a savings account and cannot be accessed until the loan is repaid. Not only does the borrower build positive credit through on-time payments, but at the end, the balance, plus interest, is available for a down payment on a car or home, a cushion for emergencies — anything, really.

In short, area institutions understand the deficits that exist when it comes to financial literacy and how that impacts the decision-making process — and how bad decisions can turn into years of heartache. And they’re doing something about it.

A Matter of Confidence

A new national survey by Junior Achievement USA and Citizens Bank shows that more than 30% of teens do not believe they will be financially independent of their parents by the age of 30. Sixty percent believe they will own a home by that age, 44% believe they will begin saving for retirement, and 43% think they will have paid off their student loans.

“With a strong economy, you would think teens would be more optimistic. It just demonstrates the importance of working with young people to help them better understand financial concepts and gain confidence in their ability to manage their financial futures.”

“These survey findings show a disconcerting lack of confidence among teens when it comes to achieving financial goals,” said Jack Kosakowski, president and CEO of Junior Achievement USA. “With a strong economy, you would think teens would be more optimistic. It just demonstrates the importance of working with young people to help them better understand financial concepts and gain confidence in their ability to manage their financial futures.”

Financial literacy has long been a cornerstone of Junior Achievement, but there’s no shortage of educational programs available at credit unions and banks.

“Money is very emotional. It’s one of the hardest things to talk about, even with your spouse,” Reske said. “And it’s hard to be objective. That’s why it’s nice when people come to our workshops and say, ‘I’m not emotional now; I’m looking at the objective side of it. I wish I’d taken this before getting that loan.’”

While money issues can seem overwhelming at times, he added, financial-literacy tools are much more accessible than they were 10 years ago if people know where to look. He also outlined a number of concepts people attending UMassFive’s workshops might learn. For example:

• If you’re able to pay bills weekly, as they arrive, do it. It reduces the risk of missing a deadline and winding up with a late fee, which is easy to do when you pay the whole pile of bills once a month.

• Start building an emergency fund. According to a U.S. News & World Report study, two-thirds of Americans would struggle — and often do — to come up with $1,000 for an emergency, like an urgent car repair or medical procedure.

“So what happens? You put it on a credit card, and now you’re paying 21% interest, and soon $1,000 turns into $1,200,” Reske noted. “And an emergency fund can keep you from missing a rent payment or not getting something fixed on your car, which could lead to a bigger repair in three to six months.”

• Check out your credit report on an annual basis, if only to make sure everything is correct. “If the activity on your credit report is inaccurate, you’re getting an inaccurate score, and most rates you get are based on your score.”

• Put every credit card on a minimum automatic payment so you don’t miss any payments — and then pay more principal when the bill arrives in the mail. Also, it’s not a bad idea to dedicate one credit card to online purchases only, to more easily identify instances of identity theft.

• Finally, it’s never too early to start saving for retirement. According to Forbes, 33% of adults have zero saved for retirement.

“Social Security will pay a portion of your expenses, but not all,” Reske said. “Time is more valuable than money because of compounding interest. If you start planning at 50 or 55, you just don’t have enough time; you’ve wasted 20 years. And if you have a 401(k) at work with an employer match and you’re not on it, you’re being foolish.”

Budget Battles

UMassFive also conducts a workshop for high-school seniors in which they choose a career, get a salary, and then go from station to station filling out a budget in different categories, from housing, transportation, and food to luxury items and student loans — and trying to stay within that budget.

“Kids say, ‘I never knew how expensive things are,’” Reske said. “People wonder why a 40-year-old can’t come up with $1,000 for an emergency; it’s because they weren’t taught that the key is to get in front of problems as early as possible” with smart budgeting followed by spending discipline.

Monson Savings runs a similar program in local schools. “One thing I build in there is student debt. If you want to spend $30,000 a year on college and go for a $30,000-per-year job, you’re not going to be able to pay that back,” Buteau said, stressing the importance of making smart decisions about college — if college is even the best option.

In fact, she said, many kids today are so focused on college — because it’s what their schools push — that they may not be aware of careers in the trades that offer robust salaries and no long-term debt.

One thing is for sure: whether in high school, college, early adulthood, or beyond, there’s no bad time to learn more effective strategies for handling money, budgets, and credit — in other words, to become more literate.

“If you’re sick, you go to the doctor,” Buteau said. “If your car is broken down, you go to a mechanic. If your pipes are broken, you call a plumber. But if you have trouble budgeting or financing, no one thinks to go to the bank for advice or a class. And it’s free.”

And when it comes to finances, there’s nothing wrong with free.

Joseph Bednar can be reached at [email protected]

Banking and Financial Services

Financial Environment

PeoplesBank recently issued its annual Corporate Green Report in conjunction with Earth Day 2019. Through its green values and actions to support environmental sustainability, PeoplesBank believes it can help make the region a healthier place to live, work, and raise a family. The bank puts these values to work throughout the year through its charitable donations, volunteerism, support of green-energy projects, and construction of LEED-certified offices.

“As a mutual bank, we are focused on our values of innovation, community support, environmental sustainability, and employee engagement,” said Tom Senecal, president and CEO of PeoplesBank. “Environmental sustainability is really the meeting place of all those other values. It is a way we can be innovative, support the community, and engage our associates in a way that is meaningful.”

Added Philippe Michaud, a loan service associate at PeoplesBank and co-chair of its environmental committee, “a business’ responsibility is to try and influence its communities toward being more sustainable. The environment is a core belief that is built into the fabric of our organization. That goes a long way toward what we do in the community.”

Community banks, like PeoplesBank, are not generally known for building green offices, but PeoplesBank has a LEED Gold-certified office in Northampton, a LEED Gold-certified office in West Springfield, and a LEED Silver-certified office in Springfield. The LEED-certified office in Springfield, the first of its kind in the city, won a Green Seal from the city of Springfield.

The bank’s newest branch in Holyoke will also seek LEED certification once construction has finished. Pursuing that objective means the new branch will be constructed and operated as a green building. Some of the highlights include:

• Reuse of a portion of the existing Yankee Pedlar building (the historic Hildreth House);

• Reduction rainwater runoff on the site and use of landscaping that requires no irrigation;

• Use of low-flow water fixtures and high-efficiency HVAC; and

• Use of building materials that have low or zero volatile organic compounds and are sourced locally where possible.

In addition, the exterior wall is highly efficient and allows for the flow of air vapor in two directions, meaning the wall will ‘breathe’ throughout the year, leading to a cleaner indoor environment.

Three PeoplesBank offices (Northampton, West Springfield, and 330 Whitney Ave. in Holyoke) have electric-vehicle-charging stations. The bank is also launching a “Choose to Reuse” campaign designed to eliminate the use of disposable paper products internally.

“As a mutual bank, we are focused on our values of innovation, community support, environmental sustainability, and employee engagement. Environmental sustainability is really the meeting place of all those other values. It is a way we can be innovative, support the community, and engage our associates in a way that is meaningful.”

During the past year, PeoplesBank was recognized by Independent Banker magazine for its environmental sustainability efforts and, for the fifth year in a row, the bank was voted “Best Green Local Business” by Daily Hampshire Gazette readers. The bank is also a past recipient of the Sustainable Business of the Year Award and Associated Industries of Massachusetts’ Sustainability Award.

Over the course of the last year, PeoplesBank provided more than $58,000 in support for green initiatives in Western Mass., including:

• A mobile farmers’ market that travels to underserved and food-desert areas of Springfield and surrounding communities;

• The Community Involved in Sustaining Agriculture Food for All campaign;

• The Center for EcoTechnology’s Eco Fellows and support of over 100 community education events;

• The annual Source to Sea Cleanup of the Connecticut River, which also includes hands-on participation by a team of volunteers from the bank;

• The Mount Holyoke Wetlands Restoration Project, conducted by Restoration Ecology Summer Scholars;

• Scientific environmental education at the Hitchcock Center for the Environment; and

• ValleyBike, the region’s new bike-sharing program.

PeoplesBank is also a longtime leader in sustainable-energy financing, and the bank’s commercial lenders are recognized for their expertise in creating financing packages for green-energy power generation. To date, the bank has financed more than $183 million in wind, solar, and hydroelectric power-generation projects, an increase of $17 million in just one year.

Banking and Financial Services

What’s in a Name? Plenty

Mike Buckmaster

Mike Buckmaster, vice president of Commercial Lending for Community Bank, N.A.

Since entering the market in 2017 through the acquisition of Merchants Bank and its branch in Springfield’s Tower Square, Community Bank, N.A. has been working to build on its foundation in this region. It brings to the highly competitive local banking landscape both considerable size and an operating mindset commensurate with the name on the letterhead.

Mark Tryniski acknowledges that it sounds illogical that a financial-services institution with $12 billion in assets and more than 230 branches could call itself a community bank — let alone call itself Community Bank, N.A.

But Tryniski, president and CEO of the Syracuse, N.Y.-based institution, said ‘Community Bank’ represents more than a name — and one that fits. Indeed, it’s more like an attitude.

“As our name suggests, we’re a community bank — that’s how we’ve always operated,” he explained. “And when you put the name ‘Community’ on your bank, you’d better function as a community bank — and we do.

“There is such a thing as a community-bank model,” he continued. “You push authority down to people in the branches, as opposed to the big-bank model, where you walk in the door looking for a home-equity loan and they put you on the phone with a 1-800 number and someone working in another country. Community banks don’t do that.”

Mark Tryniski

Mark Tryniski

 “When you put the name ‘Community’ on your bank, you’d better function as a community bank — and we do.”

This operating mindset has enabled the institution to grow considerably over the past several years and into a number of different markets, including Springfield, accomplished through the acquisition in 2017 of Merchants Bank, which had previously acquired NUVO Bank, which operated a single branch within the 413 within a large footprint in Tower Square.

Since putting its name over the door on Main Street, Community Bank, N.A. has downsized that space considerably, while simultaneously working to establish itself and broaden its horizons within this market.

It has done so by essentially living up to the name over the door, said both Tryniski and Mike Buckmaster, vice president of Commercial Lending. They both said the institution possesses the formula that’s required to succeed today — a community-bank feel, but a large size that is necessary in a changing, quite challenging financial-services marketplace today.

“I think that, over a period of time, the market has accepted the fact, to a degree, that this is a consolidating industry,” said Buckmaster, who has logged more than 30 years in the banking industry, locally and in the U.K., and has carried business cards bearing the logos of NUVO and Merchants Bank, among others. “The differentiating factor tends to be the commercial banker, and if the commercial banker can continue to deliver in terms of service and business development, there tends to be a good degree of customer loyalty toward the banker, even through various acquisitions.”

That lengthy explanation helps explain why the Springfield facility has been able to enjoy steady growth in its portfolio even as the name on the wall of Tower Square has changed several times this decade.

Tryniski agreed, but said the combination of size and small-bank attitude is becoming ever more important as the consolidation movement continues without any signs of slowing down.

“I’ve been around the banking industry for a little more than 30 years, and there’s been a dramatic change in the banking landscape, mostly centered around consolidation,” he explained. “When I started, in the ’80s, there were 16,000 or 18,000 banks; now, there are roughly 6,000 banks.

“And I think the trend toward consolidation will continue because of efficiencies that can be garnered by scale and technology,” he went on. “The bigger you get, the more you can justify investments in technology to give you more efficiency. It’s hard for the smaller banks — you have to really be efficient and disciplined.”

Overall, Community Bank will look to get bigger still, and is looking at opportunities to expand within the Western Mass. and Connecticut markets, said Tryniski, but “haven’t found what the right opportunity is yet,” as he put it. Elaborating, he said growth for this institution will continue to come as it has historically, through a mix of organic growth and acquisition, with more of the latter than the former, especially in areas with slow or no growth but more than enough competition, and Western Mass. certainly fits that category.

In such markets, growth can come only by taking market share from other institutions, he went on, adding that this is generally difficult to do. Community Bank has had a good amount of success doing just that, however, because of that aforementioned enviable combination of large size and smaller-bank feel.

Community Bank, N.A.

Mark Tryniski says Community Bank, N.A. will look for opportunities to expand locally beyond its location in Tower Square.

For this issue and its focus on banking and financial services, BusinessWest talked at length with Tryniski and Buckmaster about how Community Bank, N.A. has firmly established its presence in the local market and how it intends to secure additional market share and perhaps expand its footprint in the 413.

By All Accounts

Since acquiring Merchants, and therefore all its branches, Tryniski has visited Springfield on several occasions as part of his efforts to fully understand the broad geographic area served by the institution — one that stretches from the Northern Kingdom in Vermont to the Southwest corner of New York to the Lehigh Valley in Pennsylvania — and meet both team members and customers.

“We spend a lot of time on the road,” he said of the management team at the bank, adding that, when he does visit Springfield, or any other community served by the bank, he makes a point of learning as much about the region as he can.

In the City of Homes, he’s become familiar with some of the players within the business community, has found a few restaurants he likes, and is both impressed with and encouraged by the high level of energy he’s seeing in the central business district.

He said there are a great many similarities between Springfield and Syracuse, and in some ways, that has helped him understand the dynamics of not only the communities themselves, but the banking environment here.

“They’re remarkably similar, actually,” he said. “They have the same population, they have an industrial history, they have a stable-but-not-growing population, there’s a lot of education, the downtowns look very similar … they’re very much alike. Springfield feels to me like Syracuse.”

From a banking perspective, that means a community that, as he said, is experiencing comparatively little growth, population-wise and new-business-wise, and has a crowded field of competitors for financial-services products — banks and non-banks alike.

In this environment, operating with that community-bank model — but with roughly $3 billion in assets behind the institution — is what amounts to a competitive advantage — a large competitive advantage, said Tryniski.

“We tell our branch managers that we want them to be the president of the bank in their town,” he explained. “And we give them the authority to do that; we give them lending authority and authority around charitable contributions, fee waivers, fee adjustments, things like that. We try to vest as much authority in our branch managers locally as we can, and let them make decisions about their customers and their market.

“We probably have more of a community-bank business model than most community banks,” he went on, “because most don’t operate like that.”

However, in this market, there are still a large number of community banks — more than in many other markets — and this simple math requires that small-bank mindset. Meanwhile, the field of competitors continues to change and grow, thanks to technology, which has brought many non-bank players into the mix, said Tryniski.

“We compete now with all sorts of non-bank competitors on the lending side — for everything,” he told BusinessWest. “Whether it’s personal loans, business loans, car loans … it doesn’t matter what kind of loan you’re making, you’re competing against a multitude of other, non-banking enterprises. And the same is true on the deposit side as well.”

Buckmaster agreed, noting that, on the commercial-lending side, with all that competition, as well as all that consolidation, having a local address is not the same thing as having people who know the local market and have worked within it for years, if not decades.

“All that competition puts the emphasis very much on the banker and being able to provide the service and support growth going forward as clients need,” he said, adding that Community Bank is large and stable, and thus able to provide commercial-banking products of all sizes, including dollar amounts beyond the scope of many of the smaller community banks that populate the region.

The sweet spot for the bank, though, is loans between $1 million and $3.5 million, he said, adding that the bank is able and willing to continue writing loans for small-business owners, something the very large banks seem less interested in doing so.

This flexibility has enabled the institution now known as Community Bank, N.A. to continue to serve the customers added to its portfolio when it was NUVO, he went on, adding that loans have been written for businesses across virtually all sectors and for a number of commercial real-estate acquisitions as well.

“We’ve have some customers who were initially small back eight or nine years ago who have grown into significant customers that require a significant increase in loan support going forward,” he told BusinessWest. “We’ve seen some good growth in commercial and industrial customers over that period of time, and in addition, we’ve also seen significant new dollars in different types of commercial-investment real estate, whether it be locally in Western Mass. or further afield.”

Worthy of Interest

Returning to some of those numbers mentioned earlier — the 230 branches and current status as the 125th-largest bank in the country — Tryniski said they certainly make Community Bank, N.A. sound big. And it is.

“But we’re a lot close to the smallest bank in the country than we are to the biggest, even though the numbers say we’re one of the biggest,” he noted, adding that, in today’s banking climate, it’s not how big a bank looks on paper that matters, but how big it acts in the markets it serves.

And with that as the benchmark, this institution does indeed live up to the words on its stationary and over those 230-odd doors.

George O’Brien can be reached at [email protected]