Home Posts tagged growth
Cover Story

Pedal Power

 

Catherine Ratté, principal planner and Land Use & Environment section manager at the PVPC

Catherine Ratté, principal planner and Land Use & Environment section manager at the PVPC

ValleyBike had, by most accounts, an up-and-down first year, and we’re not talking about the hills its bikes make a little easier through electric pedal assist. But on the whole, 2018 was an encouraging success, with gradually increasing ridership across the network’s six municipalities, despite a slow and incomplete roll-out of the 50 stations and 500 bikes. With further expansion possible, hopes are high that more people will ditch their cars for a bike ride in 2019 — and then turn that ride into a habit.

A regional bike-share program may have seemed like a novel idea for many Pioneer Valley denizens last year, but for those who helped bring it about, it’s far from a new concept.

“We’ve been talking about it in the Pioneer Valley for 15 years,” said Catherine Ratté, principal planner and Land Use & Environment section manager at the Pioneer Valley Planning Commission. In fact, the PVPC produced a report in 2008 documenting previous bike-share programs around the world — including the Yellow Bike program that once existed at Hampshire College as well as the Bixi Bikeshare program in Montreal — and encouraging Pioneer Valley municipalities to look into establishing a regional program.

A lot has happened since then, but the main development was the emergence of electric pedal-assist bikes that help riders navigate hills and long distances they might not have wanted to attempt before. It was a game changer, Ratté said.

“Part of it was being a broad region — how can people get from Amherst to Northampton to Springfield? Then electric pedal assist came along, and we said, ‘oh, this could be a regional program,’” she told BusinessWest.

That program, known as ValleyBike, currently encompasses six communities — Northampton, Amherst, Springfield, Holyoke, South Hadley, and Easthampton — with others possibly on the horizon. A rider is free to pick up a bike at any of the 50 stations and drop it off at any other.

“The idea is to replace car trips with bike trips, and pedal assist makes it easier for all ages and abilities to use,” said Ratté. “It’s a big piece of acting on the climate crisis, but we also have a public-health crisis, and people don’t always have the opportunity to be physically active. ValleyBike makes it easier for people to bike to work. Maybe they aren’t physically fit enough to bike without pedal assist, and they don’t want to arrive at work sweaty — but they’re still exercising.”

A recent PVPC report detailed use of ValleyBike during 2018, its inaugural year. Even with limited availability and a slow ramp-up of stations (more on that later), the service logged 26,353 trips last year, an average of 170 per day, generating 83,735 miles — the equivalent of 3.3 times around the earth.

With the numbers expected to increase in 2019, that represents a significant front in the battle against traffic and air pollution, said Wayne Feiden, Northampton’s director of Planning & Sustainability.

“Our biggest commitment this year is to get more people to say, ‘yes, I really want to use this,’” said Feiden, who has long been one of the region’s strongest proponents of a bike-share network. “Nationwide, about a third of the people using bike shares are coming out of their car — making what would have been a car trip otherwise. If we can get you out of your car, that’s great from an environmental standpoint and a congestion standpoint. And that’s the part we need to grow most in the system.”

According to the year-end rider survey that helped the PVPC generate its report, the vast majority of users — 77.9% — rode ValleyBike less than five times per month, and 2.8% used it daily, with another 2.8% riding five or more times per week. These figures suggest that many users rode the bikes for leisure rather than to commute, which isn’t necessarily a bad thing, Feiden said.

Wayne Feiden says ValleyBike organizers have several goals

Wayne Feiden says ValleyBike organizers have several goals, from reducing traffic and air pollution to getting people more physically active.

“We have a lot of goals, and each one serves different purposes,” he noted. “One is just to get people to exercise more. So that’s been great, and it’s also been a diverse set of users.”

Indeed, 28.8% of survey respondents were between 18 and 30, 52.1% were between the ages of 30 and 60, and 6.9% were over 60 years old, while the gender split was close to even.

“People who use bikes tend to be younger, but these bikes are reaching a broader range of users, which is great,” he said. “Getting people healthier is wonderful, as is giving people transportation options, whether they can’t afford a car or don’t want to drive a car for environmental reasons.”

“The idea is to replace car trips with bike trips, and pedal assist makes it easier for all ages and abilities to use. It’s a big piece of acting on the climate crisis, but we also have a public-health crisis, and people don’t always have the opportunity to be physically active.”

One goal moving forward, he said, will be to increase usage of memberships. Annual passes ($80) accounted for just 13% of all rides in 2018, and monthly passes ($20) represented another 28%.

Those riders, Feiden said, are the ones more likely to use ValleyBike Share for commuting to work or other daily commitments, and to turn biking from a leisure activity into a habit and a lifestyle. “Once you sign up for a year, you tend to build your commitment.”

For this issue, BusinessWest looks at the ways ValleyBike is building on its own commitment — and its momentum, both electric-assisted and figuratively.

Winding Path

To its proponents at the PVPC, ValleyBike is a key component of the region’s path to a sustainable future by promoting healthy habits and reducing greenhouse gases emitted by vehicle trips. If managed effectively, the year-end report notes, the program could also reduce the need for road repairs and expansion, and has the potential to improve the effectiveness of the region’s transit system.

Following the 2008 report exploring the concept, UMass Amherst launched a free bike-sharing program in 2012 funded by student government fees. The same year, Northampton’s Planning and Sustainability Department began researching a program for that city.

Mayor David Narkewicz approved a single bike-share station downtown, but by early 2013, officials determined that a larger system, either city-wide or, better yet, region-wide, was preferable. At the same time, Amherst officials were meeting with representatives from Amherst College, Hampshire College, and UMass to explore a town-wide bike-sharing program.

Soon after, the PVPC secured a Massachusetts Clean Energy Center grant to work with several area communities to advance clean-energy strategies, selecting advancement of a regional bike-share initiative as a priority for funding.

The ValleyBike station at Court Square

The ValleyBike station at Court Square, one of 11 in Springfield, saw the sixth-most ride starts across the entire network in 2018.

Between 2014 and 2016, the PVPC worked with a group of member municipalities — Amherst, Holyoke, Northampton, and Springfield — to research and advance regional bike-sharing. In 2016, Northampton, with PVPC and regional support, applied for and obtained federal Congestion Mitigation and Air Quality funds for a regional bike-share network for four communities, later adding South Hadley as a fifth member.

A year later, Northampton, with PVPC and regional support, released a bike-share RFP and awarded a contract to Bewegen Technology for a 500-bike, 50-station system in the five communities. Toward the end of 2018, Easthampton obtained a Massachusetts Housing Choice grant for ValleyBike and joined the regional consortium, growing it to six municipalities.

The year-end report notes that ValleyBike had a rocky start due to issues with station installation, bike availability, and kiosk usability. Only 26 stations were open when the system went online on June 28, and another 17 were added in July and August. The remaining seven opened at the start of the 2019 season, bringing the total to 50.

After a slow start, the popularity of ValleyBike saw large increases in the first few weeks of August, reaching its peak ridership between Aug. 21 and Sept. 3, dipping slightly as temperatures dropped and students went back to school in early September.

“This is the first regional, multi-community, all-electric-pedal-assist bike-share program in the world. It was a really ambitious idea,” Ratté told BusinessWest. “It could have been smoother, but we had fantastic numbers of riders from all communities. And we definitely are eager to expand the coalition.”

She noted that possible expansion communities include Hadley, Chicopee, and West Springfield, should the PVPC secure the necessary additional funding. “We hope to keep it growing and expanding as well as adding some stations in the existing communities.”

“Nationwide, about a third of the people using bike shares are coming out of their car — making what would have been a car trip otherwise.”

With a longer season this year and more bikes — the network typically had about 167 available last year, but will offer 500 at the 50 stations in 2019 — she expects an uptick in ridership and increasing interest from the communities not yet on board.

“Hadley and Chicopee are the two holes in the system we’re trying to fill. We’re also trying to expand to West Springfield, but that’s more expanding out rather than filling in holes,” Feiden added. “Obviously we have to get more funding for new stations; there are many more locations that would make sense than we have money for.”

He added that more corporate sponsors are needed to make the system more sustainable. “But businesses are seeing the value for it — a third of the stations in Northampton are on private property. People gave us easements or licenses, whatever they needed to do, because they saw the value. One is at Cooper’s Corner in Florence, a small grocery store, and I hope people shop there because they gave us some really valuable real estate.”

Sustainable Future

Between climate concerns, public-health awareness, and simply enjoying the outdoors, bicycling — especially when pedal-assisted on those tricky hills — holds appeal to many demographic groups, Ratté said.

“If you ask people what they want in their region, a bike share is a popular thing. People expect their cities to fund options for getting around. And the cool thing is, you don’t have to stay inside your municipality; the same bike can go from place to place. It’s very convenient.”

That said, the program would benefit by coordinating more closely with public transit systems, she noted. According to the year-end survey, 27.5% of riders used ValleyBike in conjunction with other types of public transportation (such as rail or bus services). Organizers had hoped that bike stations could be located close to public transportation so public-transit riders could utilize the bikes to reach their final destinations. However, due to complications regarding the need for electrical outlets in close proximity to stations, this goal was not always met. That’s something planners are looking to remedy with future bike-station placements.

“People rely on the bus,” she said, “and to be able to use ValleyBike to get to and from the bus stop would be great.”

On a related note, the Community Foundation of Western Massachusetts worked with the Pioneer Valley Regional Ventures Center, the not-for-profit arm of the PVPC, to allocate $12,000 per year over three years to provide subsidized memberships for economically disadvantaged residents of the region, particularly those who live in transit-rich urban cores. Bewegen was not able to launch this aspect of the ValleyBike initiative in 2018, and more people are expected to use ValleyBike when the access passes become available this year.

So far, however, people seem to be using the bikes mostly for enjoyment. Of the year-end survey respondents, 52% said they used ValleyBike mostly for leisure, while 21.2% used them to commute, 5.5% wanted to reduce pollution and traffic congestion, and 5.2% were focused on the health benefits. Notably, 36% reported an increase in riding bikes of all kinds since using the system.

“In some ways, the biggest criticism is people asking, ‘why didn’t you come to my neighborhood?’” Feiden said, noting that Northampton added one stop this year and has applied for a grant to establish four more. “And that’s great. It’s nice to get beat up for not doing it.”

The hope is that the coming years will see fewer of those complaints as ValleyBike continues to expand, giving more people an excuse to leave their cars behind, get their legs moving, and maybe leave the air a little cleaner.

Joseph Bednar can be reached at [email protected]

Manufacturing

Scaling Up

CEO Bill Bither

CEO Bill Bither

Over the past five years, Machine Metrics, a company that specializes in predictive analytics for manufacturers, has been scaling up its operation. But with an infusion of $11.3 million in venture capital last fall, this process enters a new and dynamic phase. The company has nearly doubled its workforce, expanded with a new office in Boston, and become much more aggressive in efforts to educate potential clients about its game-changing software.

Bill Bither was asked where he wanted to take Machine Metrics, the five-year-old startup he co-founded that specializes in predictive analytics for manufacturers.

He paused for a second or two, and then, in a voice that brimmed with confidence and conveyed the sentiment that he’d been asked this question — and given this answer — before, said simply and almost matter-of-factly, “we’re really looking to build a billion-dollar company.”

That’s not a phrase you hear often from entrepreneurs based in the 413, but Bither, who launched this venture with Eric Fogg and Jacob Lazier and serves as its CEO, believes that stated goal is certainly attainable. And those who have watched this company grow quickly and profoundly since it first gained attention as a member of one of Valley Venture Mentors’ first accelerator classes would certainly agree.

The company develops software systems that measure manufacturing productivity. To be more specific, these systems analyze performance in real time and send out alerts to clients when production falls behind.

Clients generally see a 20% improvement in efficiency, and the phrase most often used in relation to the software and its overall impact within a given shop is ‘game changer.’

There are now more than 100 manufacturers around the world using the company’s products, and Bither expects that number to climb steadily as awareness of the software, its capabilities, and the results it has generated for customers grows.

Bill Bither, left, seen here with co-founder and CTO Jacob Lazier

Bill Bither, left, seen here with co-founder and CTO Jacob Lazier, says Machine Metrics is adding clients across the country and overseas.

“What we’ve discovered since 2015 is that the market that we’re in is really large, and that industrial technologies are moving very quickly,” he told BusinessWest. “There’s a really high demand for companies to digitize their factories, and the key missing component to doing that is getting data from the factory floor; that’s the first step in digitizing a factory, and that’s what we do very well.”

To continue to do this well on a much larger scale, the company needed to move quickly on a number of fronts — from expanding its customer base beyond this region and this country to greatly expanding its team of engineers, salespeople, and marketers, to being far more aggressive when it comes to getting the word out.

And it has moved forward on all those fronts thanks in large part to an an infusion of $11.3 million in capital late last year.

The company has put that money to work to expand its data-science and product-development teams while accelerating global sales, said Bither, adding that, while the company has been scaling up on an ongoing basis over the past five years, that process has essentially entered a new, more dynamic phase.

“Last year, we grew about 200%, and this year we’ll probably be around that same number,” he explained, adding that this is now a truly global company that continues to expand geographically and in all other ways.

Now headquartered on Pleasant Street in Northampton — a move necessitated by the growth of its workforce — Machine Metrics has also opened an office in Cambridge, and now employs roughly 50 people, a number that has almost doubled since the company announced that infusion of capital.

“What we’re doing now is going even faster, looking at international expansion; having more engineers on the team helps us fulfill our vision quicker. We’ve shown that we’re leading the space that we’re in, and we need to keep leading the industry toward digitizing their factories.”

“We’ve doubled the size of our executive team, we’ve almost doubled the size of the workforce, and our customer count is now over 100,” said Bither. “What we’re doing now is going even faster, looking at international expansion; having more engineers on the team helps us fulfill our vision quicker. We’ve shown that we’re leading the space that we’re in, and we need to keep leading the industry toward digitizing their factories.”

For this issue, BusinessWest talked at length with Bither about the process of scaling up one of the most-watched startups in this region — and about the roadmap to becoming a billion-dollar company.

The Light Is Green

When he talked with BusinessWest earlier this month, Bither was in Toronto on vacation visiting family. Well, sort of.

“I have back-to-back meetings with clients today, which is what usually happens,” he explained. “A vacation trip turns into a work trip.”

There have been a number of work trips and vacations doubling as work trips for Bither and his partners over the past years, as they continue to bring awareness to a product that represents pioneering on a number of levels.

Indeed, while there have been production-monitoring software products on the market for some time, the software systems the company is now offering represent a huge step forward in what’s known as industrial IoT (Internet of Things) technology.

For clients, it has meant adding the phrase ‘being in the green’ to their lexicon. That’s the color that shows up on the dashboards, or large display boards, when machines are operating at or above the desired performance levels. An orange color means they are operating slightly below that level, and red means there’s trouble.

But beyond letting companies know how machines — or shifts of employees — are performing, the software can also predict when errors will occur and machines will fail, thus enabling manufacturers to avoid costly breakdowns that greatly impact overall productivity.

And as productivity improves, companies are better able to navigate what has long been the manufacturing sector’s most pressing — and perplexing — problem: a deep talent shortage that shows no signs of letting up any time soon.

All this explains why that phrase ‘game changer’ is being used so often by those who now have these systems operating in their plants. And it’s being heard both in this region — VSS CNC Inc. in Greenfield, Marox Corp. in Holyoke, and others are on the client list — and well outside it.

“We’re spread out across North America — I think we’re in roughly 40 states now,” he said. “And we’re starting to see some growth in Europe and South America. There’s still so much opportunity in this country, though, and that’s where we’re focusing most of our efforts.”

Bither, when pushed to guesstimate just how big the market is for industrial IoT technology, put the number at $85 billion, and said the mission moving forward, obviously, is to garner as large a share of that market as possible.

To do that, the company knew it had to expand its workforce, adding people in a number in a number of areas, but especially engineers in the field working with customers to digitize their factory floors.

As he talked with BusinessWest, Bither admitted he’d actually lost track of just how big the workforce was at that moment, a clear indication of how fast things are changing and how many people have joined the team.

“We’ve hired software developers, and we’ve added to our marketing team, our sales team, and our customer-success team,” he said, adding that the company has also brought on a chief financial officer, a vice president of Product, a vice president of Business Development, and a vice president of Sales, taking Machine Metrics and its leadership team to a much higher plane.

Meanwhile, the company has also opened an office in Boston, a step taken to not only better serve customers in that area, but also take advantage of the extremely deep pool of IT talent inside the 128 corridor.

“At the rate that we’re growing, it’s difficult to hire enough really skilled people in Western Mass. quickly enough,” he explained. “We’re combining the best manufacturing talent with the best software talent, and Boston really has a heavy concentration of software executives.”

Bither, who has been through the scaling-up process before — he grew the software company Atalasoft to 25 people before he sold it — said this experience at Machine Metrics is different in many ways, primarily because the company is a venture capital (VC)-backed enterprise.

“Therefore, the focus is on growing fast, not about being profitable — that’s the life of a VC-backed technology company,” he explained. “You’re really measured in growth and cash, more so than profits, and that’s different from what I’m used to.”

Moving forward, he said one key to continued growth and effective scaling of this venture is effective website content marketing, an approach designed to help educate and hopefully inspire movement within a sector, manufacturing, that has traditionally been slow to embrace new technologies and different ways of doing things.

Profound growth of its workforce forced Machine Metrics to seek larger quarters

Profound growth of its workforce forced Machine Metrics to seek larger quarters, and it found them in the old Post Office building on Pleasant Street in Northampton.

“We’ve been able to build quite a presence in this space without spending too much money because we’ve been able to build out content on our website and write a number of articles and blogs,” he explained. “And because of that, we’ve been able to bring in a lot of interested buyers that come through our website; our sales team will then talk to them, and a certain percentage of them will actually close.”

Another important marketing vehicle has been industry trade shows, such as the EASTEC show slated for next month at the Big E, but also the recent event in Hanover, Germany (the company’s first international show), where Machine Metrics had a large presence and was able to introduce itself and its software to new audiences.

“It was interesting because we were able to see what the landscape looks like in Europe,” he explained, adding that the company partnered with Amazon Web Services, a subsidiary of Amazon that provides on-demand cloud-computing platforms to individuals, companies, and governments, and thus gained considerable attention at the show.

The company also takes part in the International Manufacturing Technology Show, staged every other year in Chicago, and will be in Las Vegas in a few weeks for another large industry event, said Bither, adding that this exposure is critical to those scaling-up efforts.

Getting Things in Gear

Bither did not want to disclose current revenue figures for Machine Metrics, but he hinted strongly, not that he had to, that this venture is a long way from being a billion-dollar company.

But it seems to be on a path that would make that number more than a fantasy or pipe dream. This is a fast track greased by obvious need among manufacturers large and small to be able to track their performance in real-time analytics, and not rely on guesswork.

Whether the company can get to that magical milestone — or when, obviously — remains to be seen, but the scaling-up process continues, and like those clients it serves, this intriguing startup is certainly operating in the green — figuratively, if not literally.

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

Banking and Financial Services

Taking Account

Matt Sosik says branches serve a different role than they used to

Matt Sosik says branches serve a different role than they used to, providing more value but less volume in the age of online and mobile banking.

In this era of rampant mobile banking, opening a physical branch is a different proposition than it used to be, Matt Sosik said. But it’s still an important one.

“At this point in the cycle of our industry, branching has fallen by the wayside a little bit,” said Sosik, president and CEO of bankESB, which recently opened its 11th branch on Sargeant Street in Holyoke — a move that, despite the declining emphasis on bricks and mortar, made a lot of sense.

“We feel we’ve been banking with the people of Holyoke for years and years, so Holyoke is a natural extension of our footprint,” he said, noting that today’s branches are smaller and more efficient than those built in the past, but still must emphasize customer service — something that Tiffany Raines, Holyoke’s branch manager, has said she will emphasize there.

Indeed, online channels do change the dynamics of a branch as a delivery channel, Sosik told BusinessWest, if only because branches simply serve fewer people in person than they used to.

“Customers, as they should, love that technology can improve their banking experience, and we really encourage our customers to use those online and mobile banking products; they’re so robust and provide so much to customers,” he noted. “That said, we’ll never lose our ability to interact with them face to face. We covet that, and when we get our customers in front of us, we certainly take advantage of that and provide guidance to them.”

“Actual in-person branch transaction volume is well off over the past 20 years, so it’s really about building the initial relationships with the customer; that’s what a branch does best in 2019.”

With that in mind, he said, the new Holyoke branch, like any new branch at most banks, is designed to provide value, not volume — a more personalized experience, in other words, for fewer customers each day.

“Actual in-person branch transaction volume is well off over the past 20 years, so it’s really about building the initial relationships with the customer; that’s what a branch does best in 2019,” he went on. “It’s more a source for originating the customer relationship than it is a delivery channel — more for acute problem resolution and consultative conversations.”

Yet, new branches also reflect growth, and bankESB is certainly growing, with $1.3 billion in assets across its 11-branch network in Hampden and Hampshire counties. Meanwhile, its holding company, Hometown Financial Group, also based in Easthampton, boasts $2.1 billion in assets and 24 branches across Western and Central Mass. and Connecticut, with further expansion to come (more on that later).

Banking today, Sosik said, is less about products and “more about how we deliver those products we’ve all become very familiar with.”

Take residential lending, for example. “The mortgage world has lent itself well to the online world, where we can efficiently process a transaction for somebody to buy what is arguably the biggest asset of their life, and we can do that almost entirely online for them — and very efficiently. That’s what technology has done — improved on products we’ve all come to know and love. That’s the difference between 2019 and, say, the 1990s.”

Dena Hall, the bank’s executive vice president and chief Marketing officer, noted that bankESB has the second-highest market share in Hampshire County at almost 22%, and the expansion into Holyoke follows growing name recognition in Hampden County, where it also maintains branches in Agawam and Westfield.

“We’ve seen an increasing level of awareness across the Pioneer Valley, up and down the 91 corridor, which is important to serve customer needs in this region,” she added. “Really, we’re all about meeting customers where they want to meet us. We want them to know we’re a viable option for them.”

Lending Thoughts

To understand the importance of face-to-face relationships in banking, Hall said, look no further than commercial lending, an increasingly important part of bankESB’s business and strategic direction. The institution added three new lenders to its commercial team in 2018, all from larger local banks, in an effort to add more resources to the division and demonstrate the capability to meet the commercial financing needs of businesses in the region. The team now has seven lenders under the direction of Executive Vice President Ryan Leap.

“When you think about how the customer has gotten physically away from us, that’s less so with the commercial business,” Sosik said. “Commercial lending has a lot to do with what we do best — customer service, face-to-face interactions, and building long-term, value-added relationships. For us, it’s a very natural customer-service direction in which to grow.”

The new Holyoke branch

The new Holyoke branch is a physical extension of business that bankESB had been doing in that city for many years.

That growth comes at a time when businesses continue to invest in capital projects, he added.

“We see a lot of things going on in the economy. The economy has such a long and slow build that it’s hard to see it in motion, but take a look back at the past year and years prior, and we’ve definitely seen continuous, slow, steady growth. Thankfully for Western and Central Massachusetts, we see that growth in small and medium-sized businesses coming in and taking advantage of the economy and improvements in commercial real estate.”

At the same time, Hall said, bankESB is building its consumer divisions. “Last year, we hired a new leader for the residential mortgage and consumer loan division with several years of experience in mortgage operations and origination, most recently with Peoples United Bank,” she noted.

In addition, after a year of developing its back-office processing and underwriting area, the bank recently added two new mortgage loan originators and upgraded its online mortgage application so that customers can apply how and when they want, either in person with a loan originator or online.

“With some banks in our market pulling back on their mortgage efforts, we’re excited to make more products and sales people available to the region,” she said.

Sosik agreed. “We continue to build the depth and breadth of the team to handle our growth. That’s generally been our strategic direction when it comes to community lending.”

That’s why developing both sides of the customer-service equation — a more robust online presence and also branches focused on customer service — are equally important, Hall said.

“A lot of customers are doing research online but close the deal in the branch, and we have people ready to serve them,” she told BusinessWest. “Clients want that face-to-face interaction, and we’ve hit a nice balance of being technologically savvy with mobile offerings and very customer-service-oriented, very customer-facing. That’s a perfect fit in this market.”

Mutual Successes

Hall noted that bankESB has received some key accolades of late. In June, it was named one of America’s best-in-state banks by Forbes in a nationwide survey; of the five banks selected in Massachusetts, bankESB ranked second, and was the only bank on that list headquartered in Western Mass.

Understanding the importance of building a bank’s name, its holding company, Hometown Financial Group, continues to grow its franchise and build a separate brand presence in each region. That means three separate banks will operate under the holding-company profile: bankESB, bankHometown, and Pilgrim Bank. The latter acquisition, based in Cohasset, closes this month and adds three branches and $263 million in assets to the Hometown family.

“We have a commitment to mutuality and building those local brands, building market share in each region, then we consolidate and make efficient the back-office and operation side. We think that’s a compelling business structure going forward,” Sosik said.

“Commercial lending has a lot to do with what we do best — customer service, face-to-face interactions, and building long-term, value-added relationships.”

“We’re big believers in our mutual structure,” he continued. “First and foremost, as a mutual company, we’re not owned by stockholders. We choose to be very entrepreneurial, and we run very much like a stock company would from the business side of it. But that mutuality gives us the ability to service customers and the community in ways that stock banks cannot.”

With so many community banks operating in Western Mass., he explained, that mutual structure helps set bankESB apart. “I think that’s a real difference maker for us, showing how much we are committed to mutuality and community banking.”

At the same time, Hall said, the company’s commitment to mutuality and its holding-company structure makes it an attractive partner for other like-minded mutual banks in its current market and beyond.

“We have some exciting transactions in the works, and we hope to be able to announce those transactions within the next 30 to 45 days,” Sosik added. “I think they’re compelling; there will be market interest there. We’re really moving our company forward in a number of ways. We’re excited about that. There’s a lot going on.”

Joseph Bednar can be reached at [email protected]