billion evenly split between residential and commercial loans, Mascoma has further distinguished itself as the only bank in its market with a Community Development Financial Institution (CDFI) designation. As a result, Mascoma can receive New Markets Tax Credits (NMTC) allocations from the U.S. Treasury CDFI Fund to direct capital investment into underserved communities. Since 2015, Mascoma has received two rounds of funding totaling $105 million, and has recently applied for a third round. “First and foremost, the CDFI designation allows us to fulfill our mission as a community bank, and, in particular, serve underserved communities,” Adams said. “The program is primarily for job creation. We’ve had some success in parts of our market that have not seen job growth. The program also helps us as a source of non-interest income. And competitively, it helps us distinguish ourselves.” Among the projects Mascoma has helped fund are a new state-of-the-art steel fabrication plant in Berlin, New Hampshire, a food co-op, an automotive group and has several more projects in the pipeline. “If they all close, we will be fully subscribed,” Adams said. Mascoma was also the first mutual bank in New Hampshire and Vermont to form and fund a charitable foundation (1988). Since then, the Mascoma Community Foundation has contributed nearly $4 million to local charities and nonprofits, including $937,000 in 2016. This year, Mascoma started a volunteer time off program that gives employees two paid days off annually to volunteer in their communities. “I view it as a catalyst to get people involved in their communities, if they are not already,” Adams said. Another of Adams’ first initiatives was to hire a chief information officer – someone with a software background, rather than banking – “We wanted that perspective,” Adams explained. “And we have the scale to do it.” He said the flip side of technology – the bank’s branch network – “will look different tomorrow than it does today, whether that means expanding in different places or finding different ways to serve customers in existing communities, it all gets back to being relevant down the road.” One of the biggest challenges facing Mascoma and other northern New
England banks is demographics. Maine, New Hampshire and Vermont are among the oldest states in the country, all experiencing alarming losses of young people. “Demographic trends are affecting everything from recruitment to new business,” Adams said. “With the exception of certain markets, growth is flat or declining in most of our region.”
Increased regulation is another challenge, but Adams said being new to banking gives him a different perspective. “I have nothing to compare it to. I don’t know what it was like before,” he said. “My view is it’s just something we have to adapt to. With our scale and products, New Markets program, commercial lending, retail lending and products, technology and people, we have a lot to offer customers and communities.” BNE
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