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Banks
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some clarity from Congress so the forgiveness path can be clearer. “If people are unclear about forgiveness, they don’t want to spend the money, so it doesn’t get out into the economy.”
At the same time, he added, banks are also being cautious when it comes to growth plans.
“It’s a time to be careful, but at the same time it’s been a very successful year,” he told Busi- nessWest. “We’ve grown a lot this year, but we’re obviously looking forward, expecting continued economic challenges, and our job is to be here for many years. There are times to push hard and run fast, and times to slow that down and be cautious.”
Still, banking leaders are pleased to have made the investments they did in online and remote banking models, Tucker noted, while holding up his smartphone. “Our fastest-growing branch is this. That’s a reality.”
But while the number of GCB customers using remote banking is 25% higher than before COVID-19, branches still serve a critical purpose, he added. “We’ve seen a lot of people realize we are invaluable to them. When they had problems with their mortgage, they can deal with one per- son and not get shuffled through a lot of bureau- cracy. That’s a plus.”
While branches are still necessary, he went on, they’re different than they used to be; the recently opened South Hadley branch is 1,800 square feet, less than half the space the bank used to set aside for new branches. But he doesn’t foresee any clo- sures, aside from two Amherst branches, about a mile apart, that recently consolidated into one.
“Some banks are using this time as a trigger
to say, ‘OK, we’re going to close these branches,’” Tucker added. “We’ve chosen not to do that because there’s enough disruption for customers as it is.”
Sosik noted that bankESB has invested a lot of money in the remote infrastructure and plat- form. “The technology works seamlessly, and the adoption was good. We were looking for a cata- lyst we could use to push it and have customers really start enjoying the technological advances. We didn’t expect it to come from a pandemic; we didn’t want it to come from a pandemic. But the pandemic absolutely pushed people to use it.”
That said, “we totally believe in the branch part of the overall delivery system, and we’re still investing in branches,” including one recently opened in Amherst. “But they’re much different than the ones we built a decade ago, or even five years ago. There’s still a need for a branch; cus- tomers still want that. Even if they don’t need to be there, they still like that someone they know and trust can work with them when they need it.”
Here for the Long Haul
Whatever the model, the presidents Business- West spoke with all believe in the work commu- nity banks have done and continue to do during a very difficult year for so many.
“We believe in it,” Sosik said. “Everyone who works for a community bank does it because we love that part of it. If you look at any successful New England town, you’re going to find a locally managed, if not locally owned, community-type bank at its economic center”
While banks still grapple with the impact of not only loan deferrals but ultra-low interest rates, they’re still in strong shape, he added.
Sullivan agreed. “Banks caused the 2008 reces- sion. Banks were weakened and in a penalty
box and reviled by the mainstream for several years afterward. The big difference now is, this recession was not caused by banks. Banks are healthy and have lots of capital. And hopefully we can turn the page soon and get back to normal lending.”
Tucker doesn’t know what shape the recovery will take — a U, a V, or the one he feels is most likely, resembling the Nike ‘swoosh’ logo, with a
“Banks caused the 2008 recession. Banks were weakened and in a penalty box and reviled by the mainstream for several years afterward. The big difference now is, this recession was not caused by banks.”
long, gradual ascent to normalcy.
“But we’ll do fine, and we are doing fine,” he
said. “There’s just a lot of pressure on the margin with rates as low as they are and all the unknown with COVID.
“I’m very optimistic, though,” he added. “Busi- nesses are doing OK. Yeah, a lot of them are strug- gling, but we see a lot of small businesses trying their damnedest. And we’re trying to support those businesses. We’re here, and we’re going to be here.” u
Joseph Bednar can be reached at [email protected]
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30 AUGUST 31, 2020
BANKING & FINANCE
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