Massachusetts Banker 3Q 2012

T H E M A G A Z I N E O F T H E M A S S A C H U S E T T S B A N K E R S A S S O C I AT I O NT H E M A G A Z I N E O F T H E M A S S A C H U S E T T S B A N K E R S A S S O C I AT I O N

S E C O N D Q U A R T E R 2 0 1 2T H I R D Q U A R T E R 2 0 1 2

Dossier: BayCoast is Coasting Nicely | Graduates of NES for Financial Studies

The New

Comptroller

CurrencyThomas J. Curry

of the

One Washington Mall, Boston, MA 02108-3906

Phone 617-523-7595 • Fax 617-523-6373www.massbankers.org

Subscribe: (toll free) (866) 931-7933

OFFICERS

Chairman: Dorothy A. Savarese, President

Cape Cod Five Cents Savings Bank, Orleans

Vice Chairman: Michael E. Tucker, President

Greenfield Co-operative Bank, Greenfield

Treasurer: Richard E. Holbrook, Chairman

Eastern Bank, Boston

President: Daniel J. Forte

Massachusetts Banker is the official publication of the Massachusetts Bankers Association, which is solely responsible for its written content. The magazine is produced quarterly by

Editor Bruce E. Spitzer Associate Editor Barbarajean Adams

Design / Production / [email protected]

©2012 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The

Warren Group Inc. No part of this publication may be reproduced in any form or by any

means, electronic or mechanical, including photocopying, recording, or by any information

storage and retrieval system, without written permission from the publisher.

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

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

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

D E P A R T M E N T S

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

New Comptroller of the CurrencyThomas J . Curry . . . . . . . . . . . . . . . . . 16

C O L U M N S

F E A T U R E S

Third Quarter 2012 n M A S S A C H U S E T T S B A N K E R 3

C O V E R S T O R Y

26

20

14

When former MBA Chairman Ken Brennan pulled a tal-ented group of member

CEOs together last winter to tackle updating the Massachusetts Bank-ers Association strategic plan for the

next three years, it was apparent that this was not a simple task. I had the privilege of joining that group, and imme-diately appreci-ated the forward-

looking tenor that was appropriately tempered by the recognition that the unprecedented pressures on our in-dustry meant there were constraints. Feedback received from our mem-ber survey underscored the fact that traditional banks are facing threats on multiple fronts. In addition to the prolonged and painful recession, our traditional banks continue to grapple with an artificially flat interest rate environment, rising costs of technol-ogy and difficulty recruiting the most talented young people to the field.

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

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

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

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

Telling Our StoryWe’re New Englanders. We don’t

like to toot our own horns. But I think we all have seen that there is not a widespread understanding that there is a difference between Wall Street firms and Main Street banks. I recently attended an American Bankers Association meeting where some research was presented that showed that consumers have a very negative reaction to the word “bank-ing industry” and even “banks,” but the majority of consumers like their own traditional bank. As the old say-ing goes, people hate Congress but like their Congressman.

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

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

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

Small Business Lending GrowthWe all know demand has been

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

Financial EducationWe have all engaged in finan-

cial education for years (in some cases, over a century) in one way or

Passing the Torch is not Limited to the Olympics

CHAIRMAN’S COLUMN b y D o r o t h y A . S a v a r e s e

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

another. Sometimes this is as simple as the interaction between our plat-form staff and a customer in need of explanation. We must build upon this by reaching out and being proactive. The financial crisis brought home how important financial education is in terms of helping people sustain or attain financial stability and indepen-dence. Educated consumers provide a foundation for a better commu-nity, even a relatively small percent-age of struggling people can cause great harm to a community, thus the need for far-reaching financial edu-cation is pressing. We encourage you to support the inclusion of financial education in all curricula, from kin-dergarten through college. We also encourage you to become involved in financial education or share your good experiences with others. We have an active committee at MBA fo-cused on this and are collaborating with many other players.

Developing Our Banking Leaders of Tomorrow

Let’s get ready to pass the torch! Our younger and mid-level manag-ers are key to the future of our busi-nesses. They need to understand how the MBA works and to carry this torch into the future with the passion and zeal that has always been a hallmark of our industry. The MBA has a number of grass-roots ef-forts underway for our future lead-ers to get involved. Make participa-tion in these efforts a part of what you expect of your personnel.

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

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

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

Influence stands upon the shoul-ders of reputation.

At our core, you are our Associa-tion and it exists for you. So call me at any time, or send me a note with your ideas and suggestions, and to-gether we’ll do our best to keep moving toward a better banking fu-ture in the year ahead. n

Dorothy A. Savarese is chairman of the MBA and president and CEO of The Cape Cod Five Cents Savings. She can be reached at [email protected] or (508) 247-2104.


A MassHousing Mortgage is now available with NO PMI

•New!And available only through MassHousing, the state’s affordable housing bank.

•Upto97%home financing for purchases and refinances with no mortgage insurance hassles or costs.

• Low interest rates without MI that provide monthly payments significantly lower than FHA insured loans.

•All offered and serviced by MassHousing, the most trusted name in affordable housing and home financing.

www.masshousing.com


DOSSIER

A few years ago, Nicholas Christ’s Citizens-Union Sav-ings Bank of Fall River spon-

sored a road race that he hoped would heighten his institution’s market profile and garner good will among current and potential bank customers.

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

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

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

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

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

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

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

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

BayCoast is Coasting Nicely

Bank: BayCoast BankHeadquarters: Fall River

CEO: Nicholas Christ

Charter: Mutual

Assets: $916 million

Branches: 14

ATMs: 17

Founded: 1851

Employees: 193

Nicholas Christ

b y J a y F i t z g e r a l d

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

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

“Frankly, at first, I wasn’t optimistic about finding a good name,” said Christ. “I knew we needed to change. But I thought we wouldn’t come up with something special. I was wrong.”

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

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

As part of its new “Just Right” cam-paign, BayCoast also launched a num-ber of other efforts to get its name out there to customers. One such effort was BayCoast’s “Just Right” contest to de-termine a “Philanthropist for a Day.”

Thousands of area residents were asked at branches, through newspaper ads, and on the bank’s Facebook page, what the “Just Right” phrase meant to them. After an “intense competition” and voting, Lakeville resident Nina Mach was declared the winner for her answer: “Treating people well and being thankful every day. Simple as that.”

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


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

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

The unique and quirky marketing idea worked.

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

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

As many community banks dis-covered over the past four years,

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

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

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

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

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

Despite the economic and regu-latory challenges ahead, Christ ex-pressed optimism and even pride in his market’s resiliency and potential for economic growth.

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

“We’re optimistic,” said Christ. “We’re very excited about the future.” n

...and they’re not games

...they’re productivity solutions for banks!

Learn how COCC apps and

other core processing

innovations can help your

bank succeed.

We Do!Got Apps?

Core ProCessinG serviCew w w . c o c c . c o m - 8 8 8 . 6 7 8 . 0 4 4 4

In 1776 John Adams described his concerns that the Continen-tal Congress would be driven by

“noise, not sense; by meanness not greatness; by ignorance not learn-

ing; by contracted hearts, not large souls.” It is well documented that the early lead-ers of our nation – George Wash-ington, Thomas Jefferson, Alex-

ander Hamilton and John Adams, et al – often were bitter rivals and did not like each other. Yet they found a way to work together to set up a gov-ernment that, while it struggled, has survived and prospered. Can our elected officials do the same?

Since 1973 Gallup has surveyed Americans to say how much confi-dence they have in a variety of U.S. institutions. In its June 2012 annual survey, Americans rank the military number one at 75 percent, small businesses second at 63 percent, police third at 56 percent and the church or organized religion next at 44 percent. Confidence in pub-lic schools has crashed from 58 per-cent in 1973 to 29 percent in 2012. HMOs come next at 19 percent; and banks, big business and organized labor are in a race toward the bot-tom at 21 percent. To no one’s sur-prise, Congress ranked last, at only 13 percent.

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

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

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

Clearly this is a very highly charged election. At stake is control of the White House, the Senate and House, and selection of nominees to the Supreme Court for the next four years. Most observers predict that the House will remain solidly Republi-can, with little net gain or loss in the number of seats each party controls. Control of the Senate appears fluid as Republicans must have a net gain of four seats to wrest control of the Senate. As of late July, the respected Cook Political Report predicted 12 seats leaning or strongly for Demo-crats with eight leaning or strongly Republican, with 10 toss-ups, includ-ing Massachusetts and Maine.

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

Brown and challenger Elizabeth Warren is one of the most watched and expensive campaigns in the na-tion. By October we’ll all be clam-oring for the return of car and anti-aging medicine ads peddled on TV. Do not underestimate both the sub-stantive and symbolic importance of this race.

Also worth noting is the brewing race in the Sixth Congressional Dis-trict between eight-term incumbent John Tierney and Republican chal-lenger Richard Tisei, former Massa-chusetts Senate Minority Leader.

With no statewide races for con-stitutional offices, elections focus on state Senate and House districts. Notably, 23 of the 37 incumbent Sen-ators running have no opponent in either the September 6 primary or November 6 general election. There are three open seats. In the House, 90 of the 152 incumbent House mem-bers have no opponent either in Sep-tember or November, with eight open seats. Compared to 2012, there are far fewer open seats and more legislators that have no opponents. What does that mean? Less voter dis-tress, more apathy or accepting the status quo? We’ll see in November.

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

All this discussion pales in com-parison to the financial angst bil-lowing in the nation’s capitol in ad-vance of the fiscal cliff looming in

LEGISLATIVE REVIEWb y D a v i d F l o r e e n

The Lost and the Founders

continued on page 10


VERSION: DATE: JOB: BY SIGNING YOUR INITIALS BELOW, YOU ARE STATING THAT YOU HAVE READ AND APPROVED THIS WORK.

BLEED:

TRIM:

LIVE:

PUBLICATION(S):

TRAFFIC:

AE:

DESIGNER:

PROGRAM:

FILE FORMAT:

COLOR: CD COPYWRITER AD

ACCT SERVICE PROD PROOFING

77 North WashingtonBoston MA 02114617412 4000 telctpboston.com

1 03/23/12 12-MD-046--

7.25”x9.75”

--

In Design Tara

PDF Selena

4C

Banker & Tradesmen

Kyle

Build. Create. Innovate.www.massdevelopment.com

InnovatIve fInancIng that oPenSa window of opportunity.

LOANS

BONDS

GUARANTEES

DEVELOPMENT

PLANNING

Stergis Aluminum Products has made window and door fixtures for 48 years, so when

the chance to expand presented itself, MassDevelopment was ready to pitch in. Thanks to

$500,000 from the Brownfields Redevelopment Fund and $792,000 in general funds, Stergis

has a bigger, better manufacturing space, plus 48 new employees. It’s just one of the

many projects benefiting from our dedicated staff, creative financing, and flexible terms.

See how we can help you.

Go to massdevelopment.com or call 800-445-8030 today.

Mass Banker 7/16 (Q3) Issue

Legislative Reviewcontinued from page 8


December. The upcoming perfect storm of the expiration of the Bush income and estate tax cuts, increases in Social Security payroll taxes, elim-ination of extended unemployment benefits, and potential mandatory $500 billion in defense spending, plus reduced Medicare reimbursements to physicians, all kick in on Janu-ary 1, 2013 unless Congress acts. Re-ports from Washington are beginning to surface that serious conversations within both parties and branches of Congress, not unlike the conversa-tions referred to earlier among lead-ers, could evolve into a comprehen-sive plan that Congress could accept after the November elections. Mean-while the uncertainty continues, re-sulting in hesitant behavior and in-hibiting new investment.

Beacon Hill ReportThe Massachusetts Legislature

concluded its formal sessions at mid-

night on July 31. Informal sessions continue throughout the year, but any action requires unanimous con-sent and no roll calls are possible. Given the external forces pressing the banking industry, this was a good year. Just prior to the close of the session, the Legislature enacted and Gov. Deval Patrick signed a compro-mise foreclosure bill that did not in-corporate several features sought by housing and legal rights advocates and strongly opposed by the Asso-ciation: mandatory mediation, lan-guage guaranteeing that a foreclosed owner could remain a tenant in his/her home until it was sold, or man-datory judicial review. The new law, Chapter 192, establishes a commer-cially reasonable standard for lend-ers to offer borrowers with certain types of loans a loan modification prior to proceeding to foreclosure. The lender must perform an assess-ment of the borrower’s current cir-

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

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

The state budget for fiscal year 2013 included a special $250,000 ap-propriation for a three-year pilot grant program run by the Depart-ment of Elementary and Second-ary Education (DESE) to establish a financial literacy program in up to 10 high schools in “gateway” cit-ies across the commonwealth. The budget also establishes a special ad-visory committee to help develop, implement and monitor financial lit-eracy activities and progress within DESE which includes a designee from the Association. The banking industry strongly supported this ini-tiative as an important first step to-ward enhancing the financial literacy of our high school students.

Equally significant is that no neg-ative bank or bank customer legis-lation advanced so far this session, such as limits on bank or inter-change fees or activities, data secu-rity, lending practices or corporate governance.

Perhaps the most significant ac-complishment of the session is the enactment of a new health care cost control law on the last day of the session. Details are still forthcom-ing, and more information will be

The Pangburn Group

Completely Independent fee only record keeper and compliance partner.

Represents over 750 financial institutions across the nation.

Kaeding & Company - Leader in Integrated Employee Benefits420 Lakeside Ave | Suite 303 | Marlborough, MA 01752 | 508.460.0165 | www.kaedingco.com

“Your Go to Resource to Solve the Benefit Puzzle”

…. Thirty years of success protecting corporate Human and Financial Resources. and “Solving the Benefits Puzzle”

Executive Compensation/Benefits Attract/Retain Executives & Directors• Financing Strategies to Offset Costs and Increase to Earnings• Compliance/Monitoring•

“Your Go-To Resource to Solve the Benefit Puzzle”


Fallon | Minneapolis

Bleed: 8.875" x 11.375"

Trim: 8.375" x 10.875"

Live: 7" x 10"

Media: FP 4C Bleed

Fonts: Freight Sans Pro Bold Italic, Parisine Std Clair Bold and Regular

Ink Colors: CMYK

Notes: N/A

Creative Director: Darren Spiller

Art Director: Ryan Peck

Copywriter: Scott O'Leary

Production Artist: Brett Hudoba

Project Manager: Liz O'Reilly

Art Buyer: Jason Hall

Print Producer: Tom Beckel

Account Executive: Dan Ryan

Account Supervisor: Marc Mason

Publications: Issue: Close: Ext:Massachusetts Banker 07/16/12Western Banking, Bank News, Texas Banking, Hoosier Banker, Western Independent Banker, Community Bankers of Wisconsin, In Touch (newsletter), Community Bankers Assoc. of Kansas, Community Bankers of Washington, Tennessee Banker, Banking of New York

Client: Travelers

Job Number: SPBRD2PM425

File Name: SPBRD2PM425v1_8-37x10-87

Description: Community Banks – Wall Hole

Date/Time: 06/05/12

In the real world, uncovering exposures businesses face takes skill and experience. That’s where we come

in. For more than 110 years, our local presence and industry-leading underwriters have combined to offer

a comprehensive suite of coverages designed to protect you from these hidden exposures. Contact your

independent agent today to learn more about our Travelers SelectOne® for Community Banks.

travelers.com

©2012 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

Believe it or not, the hole in their insurance is a much bigger issue.

ALC Job#: 216075File Name: SPBRD2PM425v1_8_37x10_87

Date: 12/07/11Rev.#: 00

Legislative Reviewcontinued from page 10


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

Washington ReportFrom now until after the Novem-

ber elections, all financial indus-try eyes in Washington will be fo-cused on the Consumer Financial Protection Bureau (CFPB). The bu-reau celebrated its first anniversary on July 21, and is working on a very aggressive agenda to draft and im-plement dozens of regulations man-dated by the Dodd-Frank Act (DFA). Key issues are the recently released 1,100-page proposed regulations

and model forms integrating RESPA and Truth-in-Lending disclosures. The proposal covers all closed-end mortgages plus home equity lines of credit, reverse mortgages and loans secured by mobile homes. CFPB is already considering an expansive proposal to define a qualified mort-gage (QM) and meet the goals man-dated by DFA requiring mortgage lenders to assess a customer’s abil-ity to repay before extending a mort-gage loan. This process likely will last well into the fall and the out-comes on both remain unclear at best. These initiatives are a key part of the CFPB’s Know Before You Owe mortgage disclosure integra-tion project.

In mid-July, CFPB released a final rule expanding oversight over con-sumer reporting agencies and is pushing forward on initiatives to reg-ulate consumer general purpose re-loadable prepaid debit cards and a

comprehensive new model for dis-closing student financial aid to pro-spective and returning students. Reg-ulators are still carefully reviewing the tens of thousands of pages of comments on the proposed Volker Rule, a subject garnering enhanced attention due to the LIBOR scandal. Discussions on Basel III capital re-quirements also continue to gener-ate real concerns as the outcome could reshape the future of commu-nity banks, with higher risk weights for home mortgages and many equity investments as well as an elimination of trust preferred securities as Tier I capital for all banks.

It appears that the Senate may ap-prove legislation to protect banks from frivolous lawsuits by repeal-ing the outdated, duplicative require-ment that in addition to on-screen disclosures, a placard must be at-tached to ATMs stating that a fee may be charged. Another bill would protect confidential bank exam in-formation given to the CFPB by pro-viding the bureau with the same express rules on privilege of infor-mation as those already established at the federal banking regulators.

Finally, banks continue to ag-gressively oppose S 2231, a bill that would more than double the credit union member business-lending cap. Only a small number of large credit unions would bene-fit from the bill, as 70 percent of all credit unions do no member busi-ness lending at all and many smaller credit unions actively oppose the legislation. Nevertheless, banks can-not rest easy as credit unions are pushing this matter hard.

Congress is now on its August re-cess, scheduled to return the week after Labor Day for about three weeks before recessing again until late No-vember, when their agenda during the lame duck session will be overflow-ing. Enjoy the rest of the summer. n

David Floreen is senior vice president at the MBA. He can be reached at [email protected]

Actuarial and Benefits Consulting | Investment Advisory Service | Defined Contribution Services

The benefits that only come with experience.

Contact Richard Sych, FSA, President 860.521.8400 | hhconsultants.com


The New England School for Financial Studies (NESFS) recently graduated another fine group of 71 rising stars in our banking industry from

all over New England. Now more than 50 years old, the school provides banking professionals with the tools needed to manage effectively in today’s changing financial world.

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

Two one-week resident sessions one year apart pro-vide students with 135 hours of classroom instruction conducted by distinguished faculty members chosen for their expertise in both the academic and business worlds. Classes combine lectures with case studies to involve

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

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

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

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

New Graduates of the New England School for Financial Studies

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


New Graduates of the New England School for Financial Studies

Nicole M. AlmeidaBayCoast Bank

Brian J. BernierNorway Savings Bank

Jennifer BoyleUnited Bank

Philip A. BraceyWinchester Co-operative Bank

Jo-Ann P. BurnettNeedham Bank

Susan R. BurnsBraintree Co-operative Bank

Coleman L.M. CardenWinchester Co-operative Bank

Brady D. ChianciolaPeoplesBank

Jason M. ConsalvoSalem Five Cents Savings Bank

Kevin C. CooteSouth Shore Savings Bank

Karen K. CornellBank of New Hampshire

Ben R. CraigieStonehamBank - A Co-operative Bank

Susan D. DagoumasBank of New Hampshire

John C. DaLombaWebster Five Cents Savings Bank

Eric R. DevineCountry Bank for Savings

Bruce G. DonovanThe Savings Bank

Emily K. DrapeauEasthampton Savings Bank

Pamela S. DuvalAdams Community Bank

Kelly FlanaganDean Bank

James E. GarfieldBank of New Hampshire

Paul P. GarganigoSeamen’s Bank

Debra A. GarvinHampden Bank

Steven B. GathStonehamBank - A Co-operative Bank

James C. GordonNeedham Bank

Peter J. HalberstadtCambridge Trust Company

Debbie HendersonLake Sunapee Bank, FSB

Kyle Hill Southbridge Savings Bank

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

Ann M. KaneWebster Five Cents Savings Bank

Carrie L. KeechFederal Savings Bank

Heidi-Jo KempCountry Bank for Savings

Barbara A. KennedyMiddlesex Savings Bank

Deborah J. KirbyBristol County Savings Bank

Lindsay H. LaddenBlue Hills Bank

Clare A. LadueChicopee Savings Bank

Stacey A. LaliberteEasthampton Savings Bank

John T. Latino Jr.Millbury National Bank

Stacie A. LongBristol County Savings Bank

Heidi MacSweeneyNorthmark Bank

Tabatha R. MagnussonCommerce Bank & Trust Company

Kara W. McCormicPeoplesBank

Melinda E. McLaughlinCanton Co-operative Bank

Robyn A. MasiUnion Bank

Brendan P. MeehanNorthern Bank & Trust Company

Christine MurphyStonehamBank - A Co-operative Bank

Astric G. NalbandianWatertown Savings Bank

Dianne E. NicolLake Sunapee Bank, FSB

Teresa OliveiraBankFive

Peter J. PiekarskiThe Cooperative Bank of Cape Cod

Lori M. PiperMerrimack County Savings Bank

Bennet B. PorterMartha’s Vineyard Savings Bank

Daniel J. PulitCape Cod Five Cents Savings Bank

Mary J. RawlsGreenfield Co-operative Bank

Lucia RebeloBayCoast Bank

Linda RodriguezBayCoast Bank

Peter A. RogersBank Rhode Island

Gerardo SanchezFlorence Savings Bank

Teresa D. SarnoEastern Bank

James P. ShanleyThe Cooperative Bank of Cape Cod

Sharon E. SpellmanBristol County Savings Bank

Angela M. StrozewskiMerrimack County Savings Bank

Brian SullivanMiddlesex Savings Bank

Nelson R. TeixeiraBankNewport

Anabela F. VasconcelosCanton Co-operative Bank

Sheila M. VeidemanSouthbridge Savings Bank

Matilda VolpicelliPeople’s United Bank

Amy WernerLowell Five Cent Savings Bank

Donna J. WileyPeoplesBank

James H. WojtaszekGreylock Federal Credit Union

Heather L. ZautnerBay State Savings Bank n

The 2012 Class of the New England School for Financial Studies

Talk about starting a new job at a tough time.Soon after Thomas J. Curry took office as

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

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

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

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

A lot of people these days are keenly interested in Curry’s new role and how he views his new responsibil-ities – from his philosophy on banking regulation to his thoughts on the giant Dodd-Frank Financial Reform Act.

In a wide-ranging interview with Curry, the comptrol-ler talked about some of those issues, as well as his past role as commissioner of banks in Massachusetts, how his state experience prepared him for today’s national bank-ing issues, how he views the relationship between federal and state bank regulators, and what he hopes to achieve as Comptroller of the Currency during a particularly criti-cal time in the history of the U.S. banking system.

b y J a y F i t z g e r a l d

The New

Comptroller

CurrencyThomas J. Curry

of the


Cover Story Photos by James Kegley

Massachusetts MiracleOne thing is clear: Curry knows about controversy and

pressure when it comes to banking regulation.As former deputy commissioner and later commissioner

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

“It was really a depression in New England – a real es-tate bust, widespread unemployment, a banking system that didn’t have the capital to lend,” recalled Curry, now 55 and who still maintains an apartment in Boston’s North End.

Curry served as commissioner of state banks from 1990 and 1991, arguably the worst period following the crash of the Massachusetts Miracle, and then as full-time commis-sioner again from 1995 to 2003, as the state’s economy and banking system slowly recovered and eventually prospered during the so-called “dot-com” Internet era.

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

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

Indeed, Curry, who eventually became a director at the Federal Deposit Insurance Corporation after leaving his state post, found himself in a unique position when the national housing market crashed and the financial crisis ensued.




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

Becoming Comptroller, whose of-fice oversees about 2,000 institutions, is “kind of going back to the basic job description” that he had in Massachu-setts, albeit at much larger and compli-cated level, Curry said.

Curry said he’s not the only one to have learned from past experiences. He thinks bank executives and regula-tors across New England and in Texas and Oklahoma also learned some “very painful” lessons from seemingly long-ago economic bubbles and subsequent banking woes – well before the recent subprime-mortgage frenzy got out of control elsewhere. That’s one of the rea-sons why the New England and Texas-Oklahoma regions today are “two fairly bright spots” in terms of their healthy banking systems: They had learned from past mistakes, he said.

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

Ready for a ReboundThough bank earnings “could be

a little better,” he noted that nation-ally chartered banks, on average, have much stronger capital posi-tions and “generally strong manage-ment” today.

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

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

the general economy leads to a “corre-sponding improvement in banks.”

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

Some concerns have been raised about the OCC potentially apply-ing one-size-fits-all requirements on both national banks and small insti-tutions, such as for capital and lend-ing concentrations.

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

Some industry players have also ex-pressed concern that many institu-tions that now fall under OCC oversight might switch from national to state charters, partly to avoid what some per-ceive as real or potential regulatory bur-dens under the Dodd-Frank reforms.

“Charter choice is really a deci-sion that individual boards and direc-tors have to make, weighing the pros and cons of each charter,” Curry said. But the OCC has a “vibrant charter” and there “really is no need to switch” charters, he emphasized.

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

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

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

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

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

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

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

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

Scandals in the PressTwo of the bigger issues now fac-

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

New Comptrollercontinued from page 17

“We’re very sensitive to

the impact of what we do to

smaller community-based

institutions.”


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

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

While declining to talk about JPM-organ Chase’s problems, Curry did note that one of the biggest challenges moving forward for the banking sys-tem is how do deal with the risks in-volved with an increasingly more com-plex and global finance market.

“Credit risk is always one of the prob-lems for the banking industry,” he said. Specifically, an emerging area of con-cern, for all institutions, is “operational risk” and the “failures of people, pro-cesses, and procedures at institutions.”

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

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

Citing international calls for such requirements, Curry said “higher levels [and] better quality of capital” are nec-essary for institutions to withstand fu-ture financial shocks.

Recognition of Small BanksOne of the biggest concerns ex-

pressed by community bank exec-utives is that the Dodd-Frank Act and the new CFPB will put too many burdens on their institutions, treat-ing all banks as if they’re the same. Curry said he hears and understands those concerns, especially concerns about capital-reserve requirements for smaller banks.

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

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

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

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

He supports the idea of a dual bank-ing system consisting of federal and state institutions and regulators. “It’s ac-tually healthy competition,” he said, re-calling the late U.S. Supreme Court Jus-tice Louis Brandeis’s famous metaphor of how states can serve as important “laboratories” for policy experiments.

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

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

Europe are among his biggest con-cerns at this moment.

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

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

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

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


The Massachusetts Bankers As-sociation (MBA) has elected 10 executives to serve in new

positions on its board of directors, including Dorothy A. Savarese, presi-dent of Cape Cod Five Cents Savings Bank, as the chairman of the MBA, serving a one-year term.

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

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

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

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

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

“The banking industry is experienc-ing a great deal of change and pressure from numerous sources,” said Savarese. “Our challenge is to educate, inform and let consumers and businesses know that we’re here to help. In Massachusetts, our banks never deviated from our mis-sion and expanded our small business lending throughout the recession. We’re on course to stimulate economic devel-opment and create wealth in all of the communities we serve.” n

MBA Elects 10 Members to BoardDorothy A. Savarese Named Chairman

The 10 executives and their new MBA board positions include:Chairman of the BoardDorothy A. SavaresePresident, Cape Cod Five Cents Savings Bank, Orleans

Vice ChairmanMichael E. TuckerPresident, Greenfield Co-operative Bank

TreasurerRichard E. HolbrookChairman, Eastern Bank, Boston

Immediate Past ChairmanNorman S. SeppalaPresident, Granite Savings Bank, Rockport

At-Large Director, Three Year TermRichard K. BennettPresidentMarlborough Savings Bank(Re-appointment)

Richard E. Bolton Jr.President, LowellBank

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

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

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

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

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

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

T he current financial environ-ment is complex and challeng-ing, with wealth firms com-

peting to improve profitability while increasing transparency and expand-ing their client bases. As these firms face unique profitability challenges, they are increasingly looking to out-sourcing partnerships. By leveraging an external provider’s scale and lead-ing-edge capabilities, firms acquire the means to significantly enhance their own service offerings, while meeting the challenges to their bottom line.

Reducing costs, increasing efficiency

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

There are three pivotal ways that wealth managers benefit by outsourcing their technology needs: • Best-in-ClassTechnology–Out-

sourcing can easily accommo-date the varied needs of clients that want to migrate, wholly or in part, to providers’ platforms. These systems offer scale, speed and modular flexibility that even the largest wealth management firms could, until recently, only aspire to.

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

• SupportofClient-SpecificInfra-structure – Some firms opt todevelop their own proprietary systems as a competitive advan-tage. Leading outsourcing pro-viders can support this client-specific infrastructure, enabling firms to deploy their own tech-nology while relying on exter-nal leading-edge expertise.

More specifically, sharing in a scalable platform can enhance profitability by: converting costs from fixed to variable, as firms achieve the ability to align costs with revenues; reducing future costs by decreasing the need to invest in technology infrastruc-ture; enabling long-term plan-ning through inclusion in a pro-vider’s technology roadmap and upgrades to meet regulatory re-quirements; and allowing for on-demand capacity through the flex-ible support of servers, systems and staff to meet peak demand.

New, better client relationshipsThe right outsourcing provider

can also enable a private wealth firm to expand its potential client base. By leveraging a scalable platform that includes multi-base, multi-cur-rency accounting systems, the firm can make its services accessible and attractive to a diversified clien-tele. Leading outsourcing providers may maintain a presence, and com-mensurate expertise, in more than 100 markets. With the backing of the providers’ resources, smaller organi-zations now have access to these op-portunities.

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

Whether it’s to save resources, in-crease profitability or improve client service, more and more wealth firms are looking to outsource their tech-nology needs. By partnering with a third party, these firms gain oppor-tunities to access cutting edge so-lutions, leading expertise and ex-panded client bases. ■

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

Outsourcing for OpportunitiesLeveraging external technology resources pays off

THE FOLLOWING IS A PAID ADVERTISEMENT


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

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

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

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

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

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

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

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

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

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


OntheMove Osman AcheampongCheri CartyDaniel BriandAmy Mitchell Gina PalmerSusan LincolnRichard De Almeida

Dennis LeahyDiana Carvajal-Hirsch Patrick Murray Jr.Donald Murano Leonard Sullivan Bob DeMora Julie Chapman

Nelson BragaMichele Roberts Donna OliveiraKevin McCarthy Kathleen Mulhern Mariano Pimentel Renee Vallee


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

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

FIDUCIARY TRUST – Promotes Michael Mullaney, chief investment officer.

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

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

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

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

NEEDHAM BANK – Promotes Mark Whelan, president and COO.

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

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

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

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

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

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

Lisa Lassiter Susan Nelson Bruce Williams

Tom Cern Lisa Forman Deborah Anderson Ann Gonyea Michael Tuite Jacqueline Champagne Charles Dunne

Thomas MoschosAlyssa Gorgone Gilda Nogueira Michael Mullaney

Susan Wassmus

Brad Dillman Kerry MorganCharles Dwyer

Dianne Bukis Laura Duncan Nicole Pecorelli

PHOTO SUBMISSIONS:Submit photos and text for consideration for inclusion in Massachusetts Banker to Barbarajean Adams at [email protected].

Sheilla WattsCharles BaumannMadelyn Phelan


OntheMove

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

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

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

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

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

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

continued from page 23

Mark Wheelan Anthony Piermarini Donna Tiso

Rick EganPatricia OstroutErica Floyd Lillian Carlson Betzi De La Rocha James Sherbo Michael Healy

Noreen CahillJeff Ryan Adrian RawnRandal Webber Lisa Kirkwood Thomas Evans Katherine Bonadies

Elyson dos Santos Joanne Shea Scott WisdomThomas Creed Eliot KleinMichael Pappas Jeffrey Marquis

Manuel BolivarThomas SmithJames Truden Teresa FlynnTammy SalisburyChristine ChiltonIvette Korecki

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

October 1-3, 2012The Bellagio HotelLas Vegas, Nevada

For more information about the conference, scan the code or visit

pulsenetwork.com/conference12

©2012 PULSE

Jeanna VenetoPaul van CorbachJulie Balunas Aida Monteiro

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

October 1-3, 2012The Bellagio HotelLas Vegas, Nevada

For more information about the conference, scan the code or visit

pulsenetwork.com/conference12

©2012 PULSE


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

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

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

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

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

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

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

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

PEOPLESBANK – Donates over $1 million to local charities.

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

GoodNeighbors

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

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

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

PHOTO SUBMISSIONS:Submit photos and text for consideration for inclusion in Massachusetts Banker to Barbarajean Adams at [email protected].


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

SPENCER SAVINGS BANK donates $1,000 to Hearts for Heat (Spencer Chapter) to support its program of providing heat to residents in need during difficult times. Pictured, from left: Priscilla L. Berthiaume, vice president and mortgage officer, Spencer Savings Bank; Sharon Legasey, president, Hearts for Heat, Spencer Chapter; and Lori L. Kowal, assistant vice president of marketing, Spencer Savings Bank.

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

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

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


GoodNeighborscontinued from page 27

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

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

ROBERT S. KARAM, CLU, ChFC, REBC (left) [email protected]

STEPHEN R. KARAM, CLU, ChFC, REBC (right) [email protected]

Karam Financial Group • 456 Rock Street Fall River, MA • [email protected] • www.karamfg.comSecurities offered through LPL Financial Member FINRA/SIPC

TIME FOR A NEW BOLI PARTNER?

GoodNeighborscontinued from page 27


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

Currency Recyclers

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

50 Y EARS1 9 6 1 - 2 0 1 1

Self-Service Coin Centers

Contact us: 800-347-1414 ext. [email protected] visit www.magner.com

Currency Dispensers

Doing Things the Right Way

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

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

30 M A S S A C H U S E T T S B A N K E R n Third Quarter 201230 M A S S A C H U S E T T S B A N K E R n Third Quarter 2012

September6 Writing an Effective Credit Memo Marriott Courtyard, Marlborough

7 Risk Forum Marriott Courtyard, Marlborough

10-14 Annual Bank Compliance Academy Marriott Courtyard, Marlborough

19-21 New England Conference Equinox Resort, Manchester Village, VT

October5 Professional Development Forums for Sr. Mortgage Lenders Middlesex Savings Bank Training Center, Westborough

16 IT Workshop Marriott Courtyard, Marlborough

18-19 Advanced School of Commercial Lending Sheraton Hotel Framingham

18 Annual Bank Security Certificate Program and Webcast

22-26 School of Commercial Lending Sheraton Hotel Framingham

November9 CFO Forums Middlesex Training Center, Marlborough

15 BSA/AML Conference Doubletree Hotel, Westborough

16 CFO Forums Middlesex Training Center, Marlborough

30 Annual Trust and Wealth Management Conference and Exhibit Sheraton Hotel Framingham

2012 MBA CalendarDates are subject to change. Announcements are mailed approximately six weeks prior to event. For additional information, contact the education department at 617-523-7595. Visit our website at: www.massbankers.org

NUTTER MCCLENNEN & FISH LLP • ATTORNEYS AT LAWWWW.NUTTER.COM

Leading with over 130 years of successful practice in the region. Delivering a wide range of legal

services from a single point of access. Focused on building lasting relationships with consistently

excellent work. Find out more at nutter.com.

We’re experienced.

We’re innovative.

We’re Nutter.

SPOTLIGHT EVENT:

Nov. 30, 2012Annual Trust and Wealth Management Conference and ExhibitSheraton Hotel Framingham

Diebold ATM security. Not like a security guard, like a security army.

With losses at $1 billion a year, threats to ATM security are increasing and alarming. It’s why Diebold is relentlessly proactive with an entire team dedicated to keeping its customers

safe. From ATM security alert e-mails and ATM educational seminars to developing security solutions that combat sophisticated attacks, Diebold delivers a multilayered security

approach. It’s another example of Diebold doing more to build the relationships that have inspired us to become security leaders and innovators for more than 150 years.

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

1.800.806.6827 www.diebold.com [email protected]

die7614-06_ATM Security_ConnBanker_v01AR_20120627.indd 1 6/27/12 10:14 AM

DRLARCHITECTS

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

From site evaluation to building design to

construction administration, DRL Associates

can help you realize your vision, goals and

budget for your bank’s new facility or branch

renovation. Contact us and discover the value

of working with an experienced design partner.

From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to From site evaluation to building design to

construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates construction administration, DRL Associates

can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and can help you realize your vision, goals and

experiencethe difference is

Date post:	31-Mar-2016
Category:	Documents
Upload:	the-warren-group
View:	230 times
Download:	0 times

Massachusetts Banker 3Q 2012

Documents