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David J.

Banking Commissioner

Cotney takes the


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Cover Story Photos: Matt Stone


MBA AWARDS SCHOLARSHIPS . . . . . . . . . . . . . . . . . . . . . . . 14 LIGHTS, CAMERA...


David J. Cotney Takes the Helm at the Division of Banks . . . . . . . . . . . . . 20

It’s the ‘Common Cents’ Financial Ed Program . . . . . . . . . . . . . . 16

THE ART OF BRANCH DESIGN Middlesex Savings Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18


Chairman’s Column . . . . . . . . . . . . . . . . . . . . . . . 4 Legislative Review . . . . . . . . . . . . . . . . . . . . . . . 10

PHOTO FEATURE MBA’s New England Conference . . . . . . . . . . . . . . . . . . . . . . . . . 24



Dossier: The Cooperative Bank of Cape Cod Charting a New Course on the Cape . . . . . 6 On the Move . . . . . . . . . . . . . . . . . . . . . 26 Good Neighbors . . . . . . . . . . . . . . . . . . . 30 MBA Calendar of Events . . . . . . . . . . . . . . 38


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OFFICERS Chairman: Norman S. Seppala, President Granite Savings Bank, Rockport

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

Chairman CEO & Publisher President Group Publisher & Editor in Chief ©2011 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.

Vice Chairman: Dorothy A. Savarese, President Cape Cod Five Cents Savings Bank, Orleans

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R



Sweet Charity “If you haven’t got any charity in your heart, you have the worst kind of heart trouble.”

– Bob Hope


hanks for the memories, Bob Hope. Who could argue with the late comedian who spent so many holidays away from home and did so much charitable work for the USO for so many years? As another holiday season approaches, perhaps it’s time to reflect upon the state of our giving. I’m proud to say that the banks in Massachusetts are very generous. The last time we looked

(we’re about to survey again) banks doing business in Massachusetts were contributing more that $40 million a year to local causes, not including the countless man- and woman-hours that our employees devote to community work. Nationwide, charitable contributions from all corporations and individuals total some $300 billion a year. Nonetheless, if you’re like me, I’ll bet you occasionally get frustrated because it never seems like enough. It’s not surprising that during this recession and slow recovery, combined with nature’s fury in New England – hurricane flooding, tornado winds – there

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seems to be more need than ever locally. And across the nation there are regions that have been hit much harder than we by economic forces and natural disasters. Given how we’ve stepped up, it’s hard to believe that only 5 percent of that $300 billion nationwide comes from corporations. The rest includes 13 percent from foundations (many of which are supported by corporations), and 82 percent from individuals. Perhaps it’s not surprising when you realize that individual Americans are religious about their giving. According to Giving USA, of that $300 billion annual total, 34 percent goes to religious organizations, 14 percent to education, 10 percent to human services, 8 percent to health organizations, 7 percent to arts/culture, and 2 percent to environmental causes. The remaining 21 percent presumably is spread among other causes. In 2010, according to the Chronicle of Philanthropy, the 50 top individual philanthropists in America donated a total of $3.3 billion, the smallest total in the history of the rankings. Here’s a sad but true factoid: during good times and bad, the poor give away, on a percentage basis, more of their annual income. How are companies doing now? According to the Chronicle, charitable giving by America’s biggest companies will probably be flat in 2011, after a sharp rebound in 2010. Infer what you will about corporate America’s confidence in the current state of the economy and the short-term outlook. So, you might say it’s all so predictable. Charitable contributions drop during difficult economic times. The continued on page 9


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

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Charting a New Course on Cape Cod by Bruce E. Spitzer Bank:

The Cooperative Bank of Cape Cod


Hyannis, Mass.


Joel G. Crowell


State, Mutual holding company


$630 million








120 Joel G. Crowell


ometimes a little change can make a big difference. Cape Cod Cooperative Bank just announced it is changing its name to The Cooperative Bank of Cape Cod. A subtle change, you say? For the management and staff of the bank, that reaction is a good one. They want to preserve the institution’s rich history and accomplish what in the branding business is called “brand equity transfer” – making the transition to a new image while preserving what is good about a company’s wellknown attributes. However, the recent change signifies a lot. “We’ve put ‘cooperative’ where it needs to be,” said CEO Joel G. Crowell. “It’s now a descriptor, not a legal term.” It builds on the bank’s reputation, he explained. People, who know the company, know it cooperates well with customers and the community. Crowell recently hired industry veteran John Fulone as senior vice president, chief marketing officer, to help re-position the brand and


the company’s image. Fulone made market research the cornerstone of the re-positioning. “When I arrived here [in February], one of the first things I did was launch a brand awareness study,” he said. “Joel was spot-on when he said we were a best-kept secret, because the people that knew us well loved us to death.” Fulone said they asked people who weren’t banking with the institution why they were not doing so. “They said they didn’t know enough about who we are or what we stand for. So, using that research, we started to look at the strengths and weaknesses of the company. And we were fortunate to have a 90th anniversary here in 2011 that was going to give us a milestone to launch our new initiative. It’s not really rebranding. It’s telling our story.” The history of the Hyannisbased mutual bank, now operating under a mutual holding company structure, is indeed a compelling story. The roots of the bank go back much farther than 90 years, to the 1860s, when the old First

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

National Bank of Yarmouth was formed. Then, in 1921, Cape Cod Cooperative Bank was founded by some of the same managers in the Bank of Yarmouth. “We were actually formed by people who worked for First National Bank of Yarmouth when, as a commercial bank, it reached its maximum statutory limit to issue residential loans,” said Crowell. “In those days, they could form a cooperative bank with the same individuals. This worked for the first 30 years out of pretty much the same building. You would walk in one door and you could go back and forth. It was truly amazing – overlapping boards, overlapping employees. Then over time, the banks grew separately, and it wasn’t really until the early 1960s that they had separate staffs following the establishment of their own buildings.” In the same decade, the Hunt Commission stipulated that all banks must have separate boards.

Back to the Future Crowell said in the mid 1970s through the mid 1990s, the bank moved from what could be described as a savings and loan model to a community bank model. “We first offered checking accounts when that barrier was removed from a regulatory standpoint, and then in the mid-’90s we came to the conclusion that living as a residential lender didn’t provide enough revenue to be relevant going forward, so we added commercial lending, thus expanding our offerings as a community bank,” he said. continued on page 8

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Dossier (Interestingly, Yarmouth National disappeared in the 1970s after its separate board made the choice to sell to the First National Bank of Boston. Following the genealogy and merger waves, that branch of the banking tree is now part of Bank of America.) As for more recent changes, Crowell reported he and the board have been working very hard to position the bank for the future, including a demonstrated commitment to mutuality. “We’re proud of our mutuality,” said Crowell. “Four years ago, we changed our structure to form a mu-

Nonetheless, Crowell, who has been CEO since 1983, doesn’t regret the move. “Having a holding company puts in place a structure that could facilitate conversations, perhaps more people coming under our umbrella, perhaps keeping their own name. So we see it as an asset that we can use to facilitate a future addition.” John Fulone will be the first to tell you that a name change alone does not a company make. Thus the new Cooperative Bank of Cape Cod is also changing its logo. Out are the dual scallop shells that had been the bank’s hallmark – not a particularly singular logo on Cape Cod – and in

tual holding company because we thought there would be some opportunities that would present themselves. “We knew we needed to grow because we were not as broad across this peninsula as we needed to be,” he said. “You either open de novo branches or you need to be able to purchase branches. We felt there was going to be an opportunity to purchase branches when the regionals moved away from them or consolidated. As we studied the issue, we believed that the use of trust preferreds, which were counted as capital, would allow us to be a bidder, which was a good strategy. The downside is that the recent Dodd-Frank legislation no longer considers them capital so, they are, for all intents and purposes, not available to us for what we thought.”

is a modern stylized graphic, a brush stroke that is open to interpretation. Some folks have been calling it a splash and others, rather symbolically and fittingly, have been calling it a wave, as in new wave. “The new logo graphically symbolizes how we do business – open, not rigid – sort of customized to the individual and to the needs of that individual or small business owner,” said Fulone. “So there’s a new logo, a new name, a new typeface, and new tagline [for advertising].” The bank’s former tagline: “A Part of the Cape. A Part of Your Life,” is being replaced with “POSITIVELY DIFFERENT.” Like moving the word cooperative in the bank’s name, the new tagline is rooted in the research, said Fulone. “Customers described that banking with us was a positive ex-

continued from page 6


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

perience and quite different from other banks on the Cape,” he said. The entire campaign was introduced to employees first, and they have enthusiastically embraced the changes. In fact, the unveiling received a standing ovation from the many employees and board members in attendance at the recent event. They will be responsible for communicating what the bank is doing, and thus their understanding and support was viewed as mission-critical. “This is a change for this company, and it’s critically important to get colleagues onboard so that they understand why we’re doing what we’re doing, and how to communicate it to a longstanding customer base who may not always understand why changes are made,” said Fulone. The Cooperative Bank of Cape Cod has been running local print and broadcast ads introducing existing and potential customers to the company. Some have taken the form of an open letter from Crowell. John Fulone said, “It’s important to celebrate the first 90 years, and explain the transition into the next 90 years. Combined with different ads in print, radio, on television and online, it’s hard not to see us.” The bank has also undertaken the positively Herculean task of applying the new logo on everything from branch signs, letterhead, business cards, debit cards, and even engaging in some branch redesign. All of that and more come with the shifting sands of brand management and banking in the 21st century. “This is a company on the move,” said Crowell. With all that’s going on at The Cooperative Bank of Cape Cod, that new tagline encapsulating both the company and its new image seems quite appropriate: Positively Different. n Bruce E. Spitzer is editor of Massachusetts Banker magazine and director of Communications for the MBA.

Sweet Charity continued from page 4

good news? Americans continue to be the most charitable citizens on earth. In short, it’s a mixed bag, and there are an awful lot of people and the charities that support them still needing help. Consider this from a recent article in the Chronicle of Philanthropy: The downturn has changed both how companies give and what charities tell businesses they need. Tim Hanlon, president of the Wells Fargo Foundation, said he and his colleagues at other companies receive many requests from nonprofits that want help to cover everyday expenses, such as utility bills. “That’s been a very big shift,” he said. “Organizations are coming to us with basic keep-thelights-on requests.” That’s a topic that’s getting a lot of conversation among corporate grant makers. Charities are barely

raising enough money from new and repeat donors to keep up with the losses from people who have stopped giving. Here’s what Massachusetts bankers can do to help: If you haven’t done so already, we need you to give financially to our industry’s local foundation. Hopefully, you have already nominated the charities in your region that you wish to support through the Massachusetts Bankers Association Charitable Foundation. It’s not too late to contribute to the foundation if you have not done so this year. Now, I know that most of the banks in our association do lots of charitable work on their own. However, as already mentioned, there is a tremendous amount of need right now. We are giving special consideration to small charities, especially those working in disaster relief and, as we always have, to those doing small but important work. If you’ve contributed already, thank you. If you still want to make a donation, contact Bruce Spitzer at the asso-

ciation offices at Dorothy Savarese of Cape Cod Five, chairman of the foundation, or I, certainly would be glad to discuss any of this further with you. This is a gift that goes beyond your individual institution’s commitment to your local communities – it still reaches those communities – but it is more than that. The gifts from the MBA Charitable Foundation send a message about our industry, a message that is focused on caring and giving as one. A nice signal to send during the holiday season. Every donation that we make helps the Foundation provide a gift to a worthy organization. Foundation donations are truly unexpected – and greatly appreciated – by organizations providing an ever-expanding range of services. Thank you for your donation and participation in the selection process.n Norman S. Seppala is chairman of the MBA and president and CEO of Granite Savings Bank, Rockport. He can be reached at



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Sustained Turbulence


t’s been nearly three years since the economy was jolted by the credit market freeze in September 2008, although clear signs of distress were evident far sooner. Since then the stock market has recovered much of its loss, large corporation profits have grown, businesses are sitting on large amounts of cash and investing in capital equipment. However, housing remains stagnant, unemployment and underemployment remain stubbornly high, consumer confidence ebbs and flows, and energy prices only fuel uncertainty for business and consumers alike. Tornadoes, earthquakes, hurricanes, wild volatility in the equity and bond markets, combined with a certain distrust of government action, have generated sustained turbulence for businesses, consumers and legislators alike. Late summer normally provides some respite from the hectic pace of Wall Street and Beacon and Capitol hills, but not this year. The political brinksmanship in Washington over raising the debt ceiling cap and the ongoing struggles in European banks and governments over their fiscal challenges kept both the media and the markets’ attention on economic matters. Public trust in governments, particularly Washington, is the lowest in decades. The delayed fallout from the messy, protracted and nasty partisan bickering clearly has eroded consumer and business confidence. Bill McInturff, the Republican pollster who conducts the Wall Street Journal/NBC News poll with Democrat Peter Hart recently said, “This collapse of economic confidence


is not an independent event driven only by economic reality. This sharp drop in consumer confidence is a direct consequence of the lack of confidence in our political system and its leaders.” History is replete with examples when times are tight, jobs are scarce, and the gap between the wealthy and the middle and lower classes is wider than ever. Voters have become disenchanted, angry and much more willing to endorse simplistic, radical or irrational policies or candidates who respond to consumer angst with dubious solutions. Voters want the economy to get better fast and they want it now, like those screaming ads on TV for structured settlement companies: “It’s MY money and I want it now!” Members of Congress have heard from their constituents, reinforced by several opinion polls, that their approval ratings are the lowest of 30 professions. Bankers, don’t be too smug, according to a recent Gallup poll the percent of the public who held a positive rating of banks has slipped to 30 percent, barely ahead of lawyers, airlines, health care and the oil and gas industry. No surprise, federal government was dead last at 17 percent favorable. These extremely low favorability ratings, combined with continued high unemployment, widespread frustrations over what and how to address the fundamental challenges with the housing market, and escalating deficits, create a very difficult political environment and stifle the ability to attain a consensus on almost anything. Nevertheless, immediately after Labor Day, President Barack Obama and leading Republican presidential candidates sought to jumpstart their administration or campaigns by introducing their plans

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

to stimulate the economy and create jobs. Obama’s plan focuses on extended payroll tax cuts and targeted stimulus packages paid for in part through increased taxes on the wealthy, Republican candidates’ plans generally are aimed almost exclusively on cutting taxes and regulatory burdens on businesses. All of these plans, however are somewhat overshadowed by the bicameral, bi-partisan super committee who are charged to develop and reach agreement on a $1.5 trillion deficit reduction plan by Nov. 23, which Congress must approve by Dec. 23. Massachusetts Senator John Kerry, the 10th most senior senator, is the only New England member of that key panel. If they fail, then $1.2 trillion in automatic across the board cuts in social programs will occur by January 2013, including a $500 billion cut in defense spending – anathema to Republicans. Under the nation’s current budget, approximately 70 percent of government revenues fund Medicare, Medicaid, Social Security, and senior citizen prescription drugs, defense spending accounts for another 20 percent, while the remaining 10 percent accounts for the discretionary goods and services consumed or offered by the federal government. This doesn’t event account for the trillions in federal debt payments. In a September interview with The Boston Globe, Kerry said: “The single biggest question for this committee, in my judgment, is are people prepared to make tough decisions and show some political courage and step up to do things that some other people in their party may not want, at first blush, but it is the only way to get an agreement.” That likely means some tax increases. Be prepared for continued on page 12

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Legislative Review continued from page 10

several skunk fights – the odor will be pervasive. With that backdrop, what’s on the fall agendas that is of interest to bankers on Beacon and Capitol Hill?

Beacon Hill Update The Massachusetts Legislature resumed formal sessions the second full week of September and wasted no time addressing major issues. As in all odd-numbered years, legislative rules prohibit formal sessions after the third Wednesday in November, so much of the fall activity is at the committee level, continuing hearings and developing priorities that may be acted on in 2012. The Senate approved part two of a public pension reform measure that is now before the House. After three years of high drama, legislative leaders and Governor Deval Patrick reached a consensus on a comprehensive gambling/casino bill for Massachusetts. After two


days of debate, the House approved by a wide margin a bill that closely tracked the version supported by the leadership. The Senate approved a similar bill in October and most leaders now anticipate that Massachusetts will have in place by Christmas a framework for allocating destination casino licenses, allocating revenues and regulating their activity. While many casino supporters based their votes on the thousands of construction and permanent jobs these casinos are projected to generate, no casino can be approved for months and no jobs are likely to be created for over a year. Included in the casino package is a new state money laundering law, Chapter 267A. Sought by Attorney General Martha Coakley and other law enforcement officials, this law is viewed as an essential tool to oversee, manage and establish penalties for the movement of money by gambling establishments. Massachusetts is one of very few states without a state money-laundering law. Final

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

language prescribing how banks and other financial institutions provde copies of currency transaction reports to the attorney general are part of the negotiations. Redistricting is the biggest issue on Beacon Hill this fall. Under the Massachusetts Constitution, all members of the House and Senate must reside in their districts for one year prior to the date of their election. Since the November 2012 election is on Nov. 7, all candidates must be official residents of their new district by Nov. 7, 2011. The Special Committee on Redistricting has been working hard for months and in midOctober released its long-awaited plan to realign the 40 Senate and 160 House seats to comply with the new 2010 federal census data and meet the population standards. There are multiple legal, socio-economic, racial and political factors that play into re-drawing district lines, with the goal of avoiding any legal challenges, a Herculean task. Once the state House and Senate seats are approved, the Legislature must enact a new Congressional district plan that cuts the seats from 10 to nine. The legislature had no choice but to carve up existing districts to meet the new allocation and population targets of about 740,000 each, up from the current target of 630,000 (based on the 2000 Census). In late October, Rep. John Olver (1st District-Amherst) announced he was not seeking re-election, adding an unforeseen dynamic to the reshaping process, especially in western and central Massachusetts. What about banking issues? Very few banking bills pass or even come out of committee in the first year of the two-year election cycle. This year has been no exception, consistent with patterns in most states. State legislatures are reeling from dealing with protracted budget deficits and program cuts far worse than in Massachusetts. More significantly, state legislatures are trying to figure out how the Dodd-Frank Act (DFA) impacts their ability to enact laws that seek to regulate, restrict or mandate certain actions by banks,

mortgage companies, credit unions or other entities. The Committee on Financial Services did give a favorable report to H 1209, a bill filed by the Association to update a number of bank administration, governance and reporting laws. Not surprisingly, mortgage lending, foreclosures, and bills to help underwater homeowners stay in their homes and refinance to take advantage of historically low rates, are high on the potential action list. In fact, the fiscal year 2012 budget includes a provision establishing a special commission to examine ways to help underwater homeowners. The Association will have a designee on that project, although the report is not due until Dec. 31, 2012. The Senate is still considering S 1994, a comprehensive bill that will mandate the teaching of financial education concepts in the K-12 mathematics curriculum beginning in September 2013. We are hopeful the House will consider this matter early in 2012, as the bill has wide-

spread support from many groups including the Association. Late this fall the Legislature is expected to give final approval to the Massachusetts Uniform Trust Code. A key priority of the trust, wealth management and probate bar, this bill will codify centuries of trust law and provide practitioners and beneficiaries clear standards of practice and rules in dealing with trust and probate matters. It is scheduled to take effect Jan. 2, 2012, along with the new Massachusetts Uniform Probate Code.

Washington Report Washington is almost exclusively focused on fiscal matters this fall. Included on that agenda is housing – a huge challenge with no clear path to resolution. Many economists point to housing as the best way to stimulate the economy. Housing is a large portion of the economy, yet with home sales well below 2006 peaks, so many homes underwater or in foreclosure and with high un-

employment, it is difficult to craft programs that do not require some or all affected parties to take a loss: lenders (both senior and junior), borrowers, bondholders and governments (aka, taxpayers). The future of Fannie Mae and Freddie Mac and what role they can/should play in fixing the housing conundrum is a huge unresolved challenge. The recent suit filed by the Federal Housing Finance Agency against 17 banks to recover unspecified damages on about $200 billion in risky mortgage investments and the ongoing efforts by the 50 state attorneys general to reach an agreement with large banks and mortgage companies over alleged robo-signings and misrepresentations on mortgage security sales only adds to market uncertainty. Lenders want a full release from further legal liability while a number of attorneys general are unwilling to provide that continued on page 38

Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


MBA Awards Scholarships


he Massachusetts Bankers Association (MBA) Scholarship Foundation has awarded four $1,500 college scholarships to the children of eligible bank employees. The MBA Scholarship Foundation Awards are open annually to entering college freshmen who are the children of Massachusetts bank employees. The foundation reviewed a record 87 applications and chose four recipients to receive an award of $1,500 each. In addition to submitting GPA, SAT, ACT scores, and

extra-curricular activities, the entrants were required to answer the essay question: “What are the values, skills, ethics and talent that young people can bring to the financial services industry as employees? How would you prepare?” “The scholarship award recipients are shining examples of the best of our youth,” said Daniel J. Forte, president and CEO of the MBA. “We hope that one day they will want to follow in the footsteps of their parents and join the banking industry.”

Emily Dias accepted a scholarship award from the Massachusetts Bankers Association Scholarship Foundation with Douglas Smith-Petersen, president, Fiduciary Trust Company (left) and dad James Dias (right center), along with David Floreen, SVP, of the Massachusetts Bankers Association. Emily is attending the University of Missouri.

Alexandria Ciejka holds the scholarship award from the Massachusetts Bankers Association Scholarship Foundation with dad Gerald Ciejka (lef), Westfield Bank President James Hagan (center right), and Bruce Spitzer, director of Communications, Massachusetts Bankers Association. Alexandria is now attending Georgetown University.

Ivan Velev holds the scholarship award from the Massachusetts Bankers Association Scholarship Foundation with Elizabeth Jones (left), president of Everett Co-operative Bank, proud mom Radka Veleva, and Bruce Spitzer, director of Communications, Massachusetts Bankers Association. Ivan is now attending Boston University.


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Caroline Hulin (center) recently received a scholarship award from the Massachusetts Bankers Association Scholarship Foundation flanked by her mother Cheryl Hulin and Peter Segerstrom, president, of Winchester Savings Bank. Caroline is attending Bentley University.

2011 MBA SCHOLARSHIP WINNERS Emily Dias University of Missouri-Columbia Parent: James Dias Fiduciary Trust Company, Boston Caroline Hulin Bentley University Parent: Cheryl Hulin Winchester Savings Bank Alexandria Ciejka Georgetown University Parent: Gerald Ciejka Westfield Bank Ivan Velev Boston University Parent: Radka Veleva Everett Cooperative Bank

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In addition, five “Honorable Mention” students earned $200 savings bonds for their answers to the essay questions. SAVINGS BOND RECIPIENTS

Ryan Steiblin Parent: Louis Steiblin Citizens-Union Savings Bank, Fall River Brendan Rastello Parent: Sarah Rastello Salem Co-operative Bank Amanda Quink Parent: Michael Quink Spencer Savings Bank Kevin McManimon Parent: Karen McManimon Enterprise Bank, Lowell Molly Davis Parent: Frank Davis, III First National Bank of Ipswich n

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


Lights, Camera … It’s ‘Common Cents’ by Jay Fitzgerald


he Massachusetts Bankers Association isn’t exactly going Hollywood. Nonetheless, it is using entertainment as a way to reach out to high school youths and others about the importance of financial literacy, from knowing what it takes to get and maintain a good credit rating to understanding how to put together a personal budget. As part of a statewide industry push for more financial education in schools and elsewhere, the MBA – along with Bank of America, Cape Cod Five Cents Savings Bank, Danversbank, CitizensUnion Savings Bank and PeoplesBank – has produced a new educational video

president, senior policy advisor of the Federal Reserve Bank of Boston. Think television quiz show. Fifty students from eight high schools throughout the state gathered last spring in the State House to participate in the educational contest. In the program, Ramiro fires off basic questions about finances – such as the proper definitions of a “financial plan,” “budget,” “deductible,” “credit” and other items and terms. The enthusiastic students – separated into “blue” and “green” teams – were given multiple-choice options to choose from and then used handheld electronic meters to answer each question.

Fifty high schools students from across the commonwealth participated in “Common Cents,” a new financial education quiz show sponsored by the MBA and Bank of America, Cape Cod Five, Citizens-Union, Danversbank, and PeoplesBank intended to entertain and teach students about the world of finance. The program has been made available to the commonwealth’s high schools and cable access channels and can be viewed online at Left to right: co-hosts Ramiro Torres from JAM’N 94.5 and Jeff Fuhrer from the Federal Reserve Bank of Boston.

that it will distribute to hundreds of high schools throughout Massachusetts in the coming months. Plans also call for “Common Cents” to be distributed to community-access cable channels across the state, in an attempt to garner even wider viewership. There are no stern lectures from teachers in “Common Cents.” No football coach or sports star giving rahrah speeches. Instead, the 40-minute video is cohosted by popular radio personality Ramiro Torres of JAM’N 94.5, and economist Jeffrey C. Fuhrer, executive vice 16

For the record, the “blue” team won the contest, 105-95. “You have won one million dollars!” exclaimed Ramiro. And also for the record: He was joking about the prize. But there was no joking about the students’ positive response to learning about financial issues, and they did leave with some cool gifts. Rep. Alice Hanlon Piescho (D), who made a cameo appearance on the quiz show, asked students about whether financial education should be taught in schools. The 50 students

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

unanimously raised their hands in support of the idea. Many in the banking industry believe it’s time for teaching children about the basics of finances in school, something that many banks have done their best to do individually over the years. “Americans under the age of 25 are filing for bankruptcy faster than any other age group,” said Daniel J. Forte, president of the MBA. “We have to better educate our future consumers about finance or they and the country as a whole could struggle.” The MBA and a number of financial institutions and groups are backing legislation now on Beacon Hill that would launch a statewide effort to formally introduce financial literacy into K-12 school curricula, via math classes. The bill, which won approval in the House, has been reported out of the Joint Committee on Education, is now in the Senate Ways and Means Committee. As it stands now, the legislation would: • Require that personal financial literacy be integrated into existing math frameworks for all schools in the commonwealth. • Require the Department of Elementary and Secondary Education (DESE) to develop standards and objectives for personal financial literacy. The curriculum would include: understanding loans, borrowing money, interest, credit card debt, and online commerce; rights and responsibilities of renting or buying a home; saving, investing and planning for retirement; and awareness of banking and financial services. • Require the DESE to assist with the implementation and provide resources to aid schools in the selection of materials. • Create an advisory committee charged with reviewing existing financial literacy programs and materials and submitting recommendations to DESE. Sen. Jamie Eldridge (D), lead sponsor of the bill, said financial education makes sense, as well as cents. “The reality is too many kids who graduate from high school don’t have basic financial skills,” he said.

Students need to know about credit cards, interest rates, loans, mortgages and other financial matters – and yet they’re often not formally taught the subjects, Eldridge said. A similar financial-education bill has been filed in the past at the State House, but the recent events on Wall Street have given supporters a sense of urgency to pass the bill, he said. “In light of what’s happened in the financial world, it’s more important than ever to make sure our kids know about finances,” he said. “They’ll have better skills to deal with [financial] problems if they’re taught about them.” Eldridge expressed confidence that financial literacy wouldn’t cost schools extra money, as long as its core principles are integrated into normal math classes, using financial terms, problems and situations to simultaneously teach the basic lessons of math. Margaret Miley, a member of the Massachusetts Financial Education Collaborative and executive director of the nonprofit Midas Collaborative, said she’s optimistic the legislation will pass. Today’s turbulent financial markets are giving impetus to the concept of teaching financial literacy in schools, she believes. “The present economic conditions shout out for it,” she said. Students need to be ready to deal with a wide range of financial issues, after they leave high school, attend college and later enter the workforce, she added. “They’ll be better prepared,” said Miley of the benefits of financial education. “They will be financial initiators, not passive targets. They will be more involved and in control.” David Floreen, senior vice president of government affairs at the Massachusetts Bankers Association, said a number of schools and banks are already involved in trying to teach our youth about finances. But a more concerted statewide effort is needed, he said. “You need to inoculate kids with some basic concepts on an ongoing basis,” he said. “To some parents,

it’s almost easier to talk to their children about drugs, alcohol and sex than it is to talk about money. There are simply a lot of folks who haven’t

Many in the banking industry believe it’s time for teaching children about the basics of finances in school, something that many banks have done their best to do individually over the years. been given the tools to grapple with finances.” The video “Common Cents” proves financial topics can be an interesting, even fun, subject for youths, said Floreen. The “Common Cents” program was initiated about a year and a half ago, when the MBA sought a more entertaining way to teach young

adults about financial matters, and as a means to support the legislation. The program was produced by the MBA’s Director of Communications, Bruce Spitzer, with a lot of input from the five bank sponsors. The Rendon Group in Boston was the production company that managed the program. After shooting the “Common Cents” show, Floreen said he knew they had a winner when he showed the video to several high school kids. “We really struck a chord,” he said of the positive reactions to the sneak preview. “It’s not preachy. It’s informative and fun.” In addition to being shown in schools and on cable access channels statewide, the video can be viewed by anyone soon at “It’s one of many useful tools that can and should be employed to teach children about finances,” said Floreen. The MBA is now looking for bank sponsors for another Common Cents show to be recorded in the coming year. n

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


The Art of Branch Design


Kristen Day at the community wall.

Barbara Kennedy at the community wall.


cratch the surface just about anywhere in small-town America and you’ll find hundreds of reasons why people take pride in their community – interesting and unique forebears, tales of economic dynasties, and entrenched institutions. That’s what the leaders of Middlesex Savings Bank kept in mind when they decided move a bank branch in the tranquil town of Millis, Mass. (pop. 8,000). When the bank recently moved from one part of the Milliston Commons Shopping Center to a better location in the same center, the bank recognized an opportunity. The objectives included reconfiguring the teller line and platform area to address a developing trend toward fewer – but lengthier – visits by customers, introducing new technology, and adding local aesthetic touches. “This was the first time that we looked to the exterior of a branch to recognize the uniqueness of the community we’re serving,” commented Jim Briand, marketing director of Middlesex Savings Bank. “What better way to welcome people and recognize the unique character of Millis than by displaying photographs of the town’s iconic images for everyone to see and enjoy?” In addition to the exterior, Briand and his colleagues also decided to adorn the interior of the branch with photos and artwork that paid homage to the special history of Millis. A suburb about 23 miles southwest of Boston, Millis was once the home of Christian A. Herter, international statesman, congressman, governor and Secretary of State under President Dwight Eisenhower. Detained briefly in Germany during World War I on suspicions of spying, Herter was also a delegate to the Paris Peace Talks in 1919 at the close of the war. Of course, the town sent generations of sons and daughters to fight in all of America’s foreign wars.

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Millis was once the home of Cliquot Club Ginger Ale, the most popular soft drink in America in its day. The Cliquot Club Eskimos, an orchestra led by renowned banjoist Harry Reser, had a weekly show on nationally syndicated radio from 1923 through 1936. Millis citizens were no strangers to houses of worship, or to the bells that rang forth from church steeples. The Holbrook Bell Foundry, established by a former apprentice to Paul Revere in a section of Millis formerly known as East Medway, cast more than 11,000 bells and was the only place in America to make bells from 1816 to 1820.

A Visual Statement Middlesex Savings had done business in Millis for 23 years, so its management and branch staff had a strong sense of what images were meaningful to local residents. But they also made sure to consult a range of customers and citizens of the town, to be sure that they’d properly represented the community’s distinguished past. The result? From the exterior, large window shades with historic images can be seen hanging in the branch’s seven picture windows. It is a virtual Hall of Fame of the town of Millis. Depicted on the window screens and on internal wall panels are the estate of Gov. Herter; the towering smokestack of the old Cliquot Club bottling plant; Christ Church, a tallsteepled edifice whose congregation dates back to the town’s first Meeting House in 1714; Oak Grove Farm, now a recreation area but built originally as a summer home for Boston steel magnate Lansing Millis, for whom the town was named in 1885; a Holbrook Bell in the yard of the town’s former train station, which is now a library; and the Niagara Engine House, now an office building, built in 1878 for horse-drawn firefighting apparatus.

Local citizens, both customers and non-customers, are pleased with the bank’s special attention to the town’s heritage. Nate Malpinsky, chairman of the Millis Historical Commission, said that “everyone on the historical commission felt it was a great idea and liked it … and we’ve had several people from the town comment on it was well.” Branch manager Barbara Kennedy agreed. “We have had a number of people stop in here, both customers and non-customers, just to tell us how much they like and appreciate the pictures and displays.” Inside, photos of the town’s Memorial Day parade and military veterans who earned Purple Hearts are mounted on the walls. The branch’s “Community Wall” holds center stage and is unmistakably the star attraction. “You don’t see bank posters and big signs around here,” said Bruce Weisberg, the bank’s senior vice president and retail property manager. “There’s just no need to have a big ‘Middlesex-everywhere’ look throughout the branch. Millis and its people are the focus here.” The branch, designed by Bostonbased architects Margulies Perruzzi, is the newest example of Middlesex’s evolving approach to community banking. Bank executives acknowledge the increased importance of technology for all age groups. There is a demo station where customers can bring up the bank’s website and review its products. Middlesex Savings has also been changing the pattern and feel of branch offices to address today’s needs. Frequent customer visits to the teller window are not as common

as they once were, yet now they tend to be more involved and substantive. The Millis branch has only three teller stations. They are not arrayed in a straight line; rather, each station is bent into an angled niche with wide counter space. Low-rise glass panels along the sides keep the conversations between teller and customer shielded from anyone who may be at a neighboring window. The teller also has a swivel screen that can show account balances and demonstrate products right at the counter. “We had two goals when we set out to build this new branch,” notes Dana Neshe, executive vice presi-

dent for retail banking at Middlesex. “First, we wanted to use the design to express our commitment to the Millis community. Second, we wanted to create an environment that makes it easy for customers to get to know their banker and find solutions for their financial needs. We think this new design achieves those goals.” Teller Kristen Day, a 17-year resident of Millis, sums it up. “Lots of natural light from the windows, space to do business with privacy and confidentiality – this is community banking the way it should be.”  n

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


David J.

Cotney takes the


by Jay Fitzgerald


s the new Commissioner of the Massachusetts Division of Banks, David J. Cotney has been closely monitoring recent stock market volatility, the seemingly never-ending debt crisis in Europe, the possibility the U.S. might slip into a double-dip recession, the housing market slump – and how all of those things could impact the Bay State’s banking industry. Cotney, 44, who’s spent his entire professional career at the Division, is grateful for one thing: That he’s not the head bank regulator in another harder-hit state, where banks have been reeling and closing, and entire communities have been consumed by a bad economy and foreclosures tied to the subprime-mortgage debacle. 20

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

By comparison, Massachusetts, which has seen only one bank failure in the past 16 years and which has a jobless rate far below the national average, is doing relatively well, though problems still exist. “In talking to my banking counterparts in other parts of the country, I try not to complain too loudly,” said Cotney, who was appointed interim commissioner late last year and permanent commissioner in January by Gov. Deval Patrick. “Looking at what’s happening in other parts of the nation, with all the foreclosures and other problems, there’s some pretty scary [banking] numbers out there. But it’s a very different story here in Massachusetts.” Not that Cotney, the former No. 2 man at the Division before assuming command, is chortling. He knows full well how easily a regional economy and banking system can change, based on his own experience in his early years as a Division bank examiner, when the Massachusetts Miracle had collapsed by the early ’90s and area banks were closing. “You could feel the tension within the Division,” Cotney, who joined the state agency in 1990, said of the dark days of the Bay State’s banking system in the immediate post-Massachusetts Miracle years. “It was a pressure-cooker time. They were very difficult times.” Going forward, Cotney said he sees his job as trying to maintain a common-sense balance between the Division’s two main duties –

protecting consumers and preserving a stable banking system – during turbulent economic times. A native of Massachusetts who later grew up in New Hampshire, Cotney seems to be in a good professional position to achieve those goals, economic forces beyond his control not withstanding, based on his years of experience at the Division. A 1989 graduate of Tufts University, with a bachelor’s degree in political science, Cotney got his professional start when he was working at a temporary job at the New England School of Law and heard that a law-school alum was currently working for the state Division of banks. His name: Andrew Calamare, who just so happened to be commissioner of banks at the time. On his very first day at the Division in 1990, Cotney met another person who would later have a huge influence on his career: Steven Antonakes, who started work the very same day as Cotney, also as a lower-level bank examiner. Antonakes would later become commissioner of banks and Cotney’s immediate predecessor as head of the Division. “We cut our teeth together and rose to the top together,” Cotney said of his years working side by side with Antonakes.

“It was a great time to learn and be in the banking community and regulatory community.” The banking Division – as well as the industry – has changed a lot since Cotney first arrived on the scene 20 years ago. First, forget the notion that every examiner had his or her own computer, despite Massachusetts being then, as now, a high-tech industry leader. “We didn’t get laptops until about 1993 or 1994,” recalls Cotney, then an examiner within the agency’s Community Reinvestment Act (CRA) compliance unit. “We used to hand-write our examination reports and mail them into the office, where they were put into the old Wang system by a typist, then printed up on really noisy printers.” Before the onset of the email and Internet era, field visits to banks were more common and necessary – including surprise-inspection visits. Examiners would pore over printed account books, audit reports, board minutes, loan-transaction documents and other materials to gauge the strength of banks and whether they were complying with regulations. “We’d spend countless man hours doing this stuff,” said Cotney, slowly shaking his head and chuckling, continued on page 22 Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


Cotney Takes the Helm continued from page 21

almost in wonder, about the old regulatory procedures. Thanks to technology improvements and new management reforms, bank regulators here and elsewhere have since adopted more streamlined “risk scoping” procedures when reviewing the health of banks. Examiners still read through balance sheets, audit reports and other bank documents, but the goal now is to more quickly and closely identify “trouble spots” that need immediate regulatory attention, from a bank’s capital reserves to possible weaknesses in management oversight. “We want to make a determination about how much time we want to spend on any given issue and concentrate on those areas that need focus,” said Cotney. The Division’s staff level has shrunk over the years, the result of a combination of budget cuts and the adoption of new technologies that have eliminated the need for some jobs. In the 1960s and 1970s, there were as many as 400 employees at the Division, many of them typists and clerical workers keeping track of mountains of documents. Many of those jobs are no longer necessary and have since been eliminated. As for budget and staff cuts, in the early 1990s, there were about 220 employees at the Division, dipping down to as low as 140 early last decade. After the dot-com bust hit, state tax revenues forced state government to implement hiring freezes and early-retirement plans. The Division’s payroll is now back to about 160 workers. Since assuming permanent command in January, Cotney said he hasn’t yet encountered many management surprises on the job, partly because he was previously so involved with the agency’s day-to-day operations as a manager who had slowly moved up the ranks over the years. “I’ve been working side by side with the previous commissioners,” Cotney said. “I think we’re blessed to have a very strong staff, from top to bottom.” 22

Clearly, his biggest goal is adhering to the Division’s twin missions. “My number-one priority is to maintain the high standards of excellence at the Division, as they apply to ensuring continued protection of consumers and banks,” said Cotney, whose office oversees 135 state-chartered banks, 89 credit unions, and several non-bank companies.

Most community banks are lending far more than they’re being credited for in tough economic times. Cotney said he doesn’t see a conflict between the Division’s dual roles of watching out for consumers while at the same time maintaining the health of banks. Successful banks are usually ones that treat their customers with respect and courtesy, making sure they’re satisfied with top-quality services and competitive fees, he noted. “They’re complementary,” he said of sound consumer policies and banking stability. “One really feeds off the other.” Asked about his own personal management style when it comes to dealing with bank executives, Cotney responded, “I firmly believe listening accomplishes more than talking. There has to be a feedback mechanism.” It’s critical for a bank commissioner to learn about emerging issues and trends impacting the financial industry – and the only way to learn is to listen to those in the banking trenches, he said. So far, Cotney said the state’s financial system is “strong fundamentally” and, despite some media reports to the contrary, he finds that most community banks are lending far more than they’re being credited for during tough economic times.

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Cotney said community banks have been unfairly painted with the same broad brush as Wall Street institutions, but he said most consumers understand the difference. Despite ongoing concerns about the economy, Cotney said he’s impressed how Massachusetts has fared, at least until now, in terms of having a relatively stronger economic recovery and a more stable banking industry, compared to elsewhere across the country. Part of the reason is that New England’s banking community and regulators learned a lot from the severe recession of the late 1980s and early 1990s, when many banks were failing under the heavy weight of bad housing and commercial loans, he said “If you look at the late 1980s and early 1990s, New England and Texas were really the epicenters of bank failures,” said Cotney. “And if you look at the map today, it’s almost the exact opposite. New England is relatively untouched. Texas is relatively unscathed too. We’ve learned a lot of lessons.” It’s something Texas Gov. Rick Perry – the Republican presidential candidate who has been recently bashing the economic performance of Massachusetts – probably doesn’t want to acknowledge. But facts are facts: Both Massachusetts and Texas are financially and economically doing better than other states these days. Yet there remain storm clouds hanging over the entire U.S. economy – and state regulators and state banking-industry executives ought to be on guard, Cotney warned. “There are plenty of things to worry about,” he said. “We’re not going to jump based on the wild swings in the stock market. But we are monitoring things closely.” Another thing he’s monitoring are all the regulations coming out of Washington as a result of the 2008 Wall Street meltdown. Cotney said he’s heard numerous complaints by bankers about all the red tape and new requirements resulting from the recently passed DoddFrank federal legislation.

“They’re clearly concerned about the volume of regulations coming out of Washington,” said Cotney. In many of the cases, Cotney said he agrees with bankers. “They have some legitimate concerns.” One concern stemming from the new federal regulations is that they may financially hobble and weigh down smaller banks, forcing them to take drastic action that they might not normally take, such as consolidating with other institutions. Future bank mergers are inevitable and the Division isn’t opposed to them, but banks shouldn’t be merging because they can no longer afford the financial costs of complying with new rules, Cotney said. “My fear is there will be some institutions that throw in the towel,” he said. Fortunately for Massachusetts, there are a number of ex-Bay State regulators now in Washington who Cotney said he could turn to in a pinch to express his opinions and concerns about banking matters. Steven Antonakes, Cotney’s careerlong friend and the state’s banking commissioner from 2003 through 2010, left for Washington late last year to become a top-level banking supervisor for the new U.S. Consumer Financial Protection Bureau (CFPB). Thomas J. Curry, also a former Division colleague and state bank commissioner from 1994 through 2003, has been nominated by Obama to head the U.S. Office of Comptroller of the Currency, after serving a full term as a board member of the FDIC. Those are two heavy-hitter regulatory contacts in Washington for Cotney, any Massachusetts banking executive, and the Massachusetts Bankers Association. In addition, the local financial-industry also has plenty of clout within the Bay State’s congressional delegation. Rep. Barney Frank (D-Newton), the former House Financial Services Committee chairman who played a key role in passing the recent Dodd-Frank banking-reform bill, remains a powerful figure within the banking system in Wash-

ington. Reps. Stephen Lynch (D-South Boston) and Michael Capuano (DSomerville) are also wired into financialservices oversight roles in Congress. That combination of regulatory and legislative influence in Washington should give Massachusetts a leg up in being able to monitor and consult about banking matters impacting the Bay State, Cotney said.

But there’s no substitute for the state keeping its own banking house in order. Cotney said his Division is now reviewing all Massachusetts banking procedures to make sure they’re as efficient and effective as possible. “We will do what we can right here,” Cotney said. “I’m confident moving forward.” n

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R



MBA’s New England Conference Senior executives and board members from many New England financial institutions attended the annual New England Conference in September for an opportunity to listen, learn and strategize. Attending sessions, leafing through folios, and enjoying the foliage at the MBA Charitable Foundation Golf Tournament were common activities at the historic Mount Washington Resort at Bretton Woods, N.H.


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


OntheMove Paul Corcell

Timothy Piggott

David Perez

Allan Costello

James McGlynn

Anne Dillenbeck

Jason O’Connell

Thomas Anderson

Carl Young

William Lavelle

Teresa Vieira

Timothy Chaves

Ian MacDonald

Stephen Coukos

Elaina Romano

Steven Peters

Anthony Antonopoulos

Henry Downey

Elizabeth Maroney

Maribel Torres

BANK OF CANTON – Hires Paul Corcell, regional lending manager. BAY STATE SAVINGS BANK – Hires Timothy Piggott and David Perez, vice presidents and commercial loan officers. BERKSHIRE BANK – Promotes Kim Riggs, vice president and regional manager; hires Allan Costello, senior vice president and audit and compliance manager; Heather Lashway, vice president and regional branch manager; James McGlynn, branch manager; and Anne Dillenbeck, mortgage originator. BOSTON PRIVATE BANK & TRUST COMPANY – Promotes Jason O’Connell, director of research, and Christopher O’Connell, sales manager; hires Thomas Anderson, senior vice president and chief investment officer; Carl Young and David


Goss, senior vice presidents; and William Lavelle and Kelly McKernan, vice presidents and portfolio managers. BRISTOL COUNTY SAVINGS BANK – Promotes Teresa Vieira and Timothy Chaves, compliance officers and commercial loan officers. CAMBRIDGE SAVINGS BANK – Hires Ian MacDonald, vice president and director of marketing; Stephen Coukos, vice president and general counsel; and Elaina Romano, assistant vice president and sales and service manager. CAPE COD FIVE CENTS SAVINGS BANK – Hires Joel Brickman, general counsel. CHICOPEE SAVINGS BANK – Promotes Anthony Antonopoulos, Henry Downey, and Elizabeth Maroney, vice presidents; hires

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Maribel Torres, assistant vice president, and Martha Rickson, branch officer. CITIZENS-UNION SAVINGS BANK – Hires Adam Lynch, controller and vice president. CLINTON SAVINGS BANK – Promotes Joan Moran, vice president and senior retail lending officer, and Kathleen Flaherty, assistant vice president and lending compliance officer. THE COMMUNITY BANK – Hires Martie Dwyer, senior vice president and senior loan officer, and Claudette AzarKenyon, vice president and compliance and BSA officer. THE COOPERATIVE BANK OF CAPE COD – Promotes Susan Medeiros, vice president and treasurer; hires Nancy Mahoney, director of risk management; and Steven Peters, marketing manager.

Martha Rickson

Joan Moran

Kathleen Flaherty

Maureen Gillis

David Fama

Arthur Santos

Jennifer DeSisto

Mark Haranas

Jaimye Hebert

Christine Beaudoin

Julie King

Aida Monteiro

Mark Whalen

Danielle Walsh

James Roberts

Melissa Richter

Christopher O’Connor

Michael Pandolfi

Eric Luukko

Cynthia Tonucci

Maureen Mellen

EAST BOSTON SAVINGS BANK – Hires Maureen Gillis, vice president and branch officer, and David Fama, business development officer. ENTERPRISE BANK – Hires Arthur Santos, senior vice president. FIDUCIARY TRUST COMPANY – Hires Jennifer DeSisto, vice president and investment officer. FRAMINGHAM CO-OPERATIVE BANK – Promotes Mark Haranas, president and chief executive officer. MONSON SAVINGS BANK – Hires Jaimye Hebert, vice president and commercial loan officer. MUTUAL BANK – Promotes Christine Beaudoin and Julie King, branch managers and assistant treasurers, and Aida Monteiro, branch manager.

NEEDHAM BANK – Promotes Mark Whalen, chief operating officer; Danielle Walsh, vice president, treasurer and controller; and James Roberts, vice president; hires Kenneth Fishman and Paul Sodano, vice presidents and commercial loan officers; and Callie Huff, vice president of organizational information. PEOPLESBANK – Promotes Melissa Richter, branch manager. ROCKLAND TRUST COMPANY – Hires Christopher O’Connor, senior vice president; Michael Pandolfi, vice president and loan officer; Eric Luukko, vice president and collateral manager; Cynthia Tonucci, vice president, loan officer and relationship manager; and Maureen Mellen, vice president and commercial real estate appraiser.

PHOTO SUBMISSIONS: Submit photos and text for consideration for inclusion in Massachusetts Banker to Barbarajean Adams at Photos must be full color, high resolution (300 dpi or higher), at least 1200 by 1800 pixels (4 by 6 inches) and have a file size of approximately 1 MB, or they may not be usable. In the caption, first describe what is happening in the photo and then list all of the people, from left to right. (Unless it is a head shot.) Copy submissions without photos are also welcome.

continued on page 28 Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


OntheMove Tracey Kelley

Christopher DeFronzo

Glenn Silverberg Jr.

Katelyn Drake

Joanne Tercho

Charles Phillips

Beth Chea

Eric Bancroft

Clarke Cronin

Brian Sutton

Jennifer Curran

John Wong

Kara Halas

Tracy Beaudoin

THE SAVINGS BANK – Promotes Raichelle Kallery and Maria Melo, senior vice presidents; Marla Snyder, vice president; Bruce Donovan, assistant vice president; and Kimberly Cournoyer, retirement officer; hires Melissa Jacoby, Esq., chief operating officer.

SOUTH COASTAL BANK – Hires Tracey Kelley, senior vice president and finance and treasurer. TD BANK – Promotes Christopher DeFronzo, vice president and portfolio manager; Glenn Silverberg Jr., vice presi-

dent; Katelyn Drake, assistant vice president; Joanne Tercho, relationship manager; and Donna Geheb, store manager; hires Charles Phillips, Beth Chea, Eric Bancroft and Clarke Cronin, vice presidents; Brian Sutton, vice president and relationship manager; Jennifer Curran, vice president

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M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Mark Rollick

Martie Dwyer

Melissa Jacoby

William Mahoney

Christopher Foley

Barbara-Jean DeLoria

Milly Parzychowski

Edward Gaudette

Sam Bitar

Andrea Doucette

and commercial portfolio officer; John Wong, Kara Halas, Jennifer Osmani and Tracy Beaudoin, store managers; and Mark Rollick, senior trust advisor.

and Christopher Foley and Barbara-Jean DeLoria, senior vice presidents; hires Milly Parzychowski, assistant vice president and residential lending sales manager.

UNIBANK – Promotes William Mahoney, chief administrative officer,

WEBSTER FIVE CENTS SAVINGS BANK– Promotes Edward Gaudette, vice president,

MIS manager, and Sam Bitar, branch manager; hires Andrea Doucette, vice president and business lending officer.  n

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E QUA L H O U S I N G O P P O RT U N I T Y Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


GoodNeighbors BERKSHIRE BANK – Donates $441,864 to local non-profit organizations. . BRIDGEWATER SAVINGS BANK – Awards $22,000 in scholarships to local high school and college students for their achievements. CHICOPEE SAVINGS BANK – Raises $118,000 for communities affected by recent tornadoes. CLINTON SAVINGS BANK – Donates $500 to Hands On Nature Program. COMMONWEALTH COOPERATIVE BANK – Awards $6,000 in scholarships, and donates $1,000 to Hyde Park YMCA and $5,000 to Hyde Park Main Streets. COUNTRY BANK – Donates $75,000 to tornado relief.

FRAMINGHAM CO-OPERATIVE BANK – Donates $10,000 to Boys & Girls Clubs of Metrowest; $1,000 to Golden Tones Chorus; and $2,000 to MetroWest Free Medical Program. MECHANICS COOPERATIVE BANK – Awards $500 scholarship to a 2011 high school graduate of Bridgewater-Raynham Regional High School. MIDDLESEX SAVINGS BANK – Awards $34,000 in scholarships to high school graduates throughout the metro west region.

NEWBURYPORT FIVE CENTS SAVINGS BANK – Donates over $231,000 to 126 area nonprofit organizations; $25,000 to Opportunity Works; $60,000 to Newburyport Education Foundation; and $7,500 to Newburyport Youth Services. PEOPLESBANK – Donates $200,000 to various organizations in the area for tornado relief. STONEHAM SAVINGS BANK – Donates $12,500 to the Stoneham Theatre.

MUTUAL BANK – Donates $1,000 to Hanson Little League; raises over $12,000 in the American Cancer Society Relay for Life. NEEDHAM BANK – Donates $5,000 to the Charles River YMCA Reach Out campaign.

SOUTH SHORE SAVINGS BANK donates $2,500 to the South Shore Natural Science Center in Norwell to support its environmental educational outreach programs at Willow Brook Farm Preserve. Pictured, from left: South Shore Savings Bank President and CEO John C. Boucher, South Shore Natural Science Center Executive Director Martha B. Twigg, and Director of Education Philip Kyle.

FRAMINGHAM CO-OPERATIVE BANK donates $1,000 to Veterans Acupuncture Care (VAC) of Framingham to help provide free stress-relief acupuncture treatment after traumatic events, to interrupt the cycle of pain and chaos, and relieve suffering for members of the local veterans’ community. Pictured, from left: Nancy Devine, vice president, Framingham Co-operative Bank; Christine Lee, RN, Balance and Healing Center; and Rachel Stewart, administrative director, Framingham Co-operative Bank.

EASTHAMPTON SAVINGS BANK donates $25,000 to the Friends of Granby Free Public Library to support the construction of a new library. Pictured, from left: Kay Sordillo, assistant vice president and senior branch officer, Easthampton Savings Bank; Jeanne Yocum, vice president, and Jennifer Grant, director, Granby Free Public Library; Virginia Snopek, chairman of the board, library trustees; William S. Hogan Jr., president and CEO, Easthampton Savings Bank.

NORTH SHORE BANK donates $1,500 to Peabody’s Annual Kids Day Celebration in conjunction with the city’s 28th Annual International Festival to sponsor food, games and entertainment. Pictured, from left: North Shore Bank President and CEO David J. LaFlamme; Mayor Michael Bonfanti; Michael Zellen, North Shore Bank vice president and co-chairman of the International Festival; and Mary Bellavance, city of Peabody.


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

MECHANICS COOPERATIVE BANK awards a $500 scholarship to Kelsey Kerkhoff, a 2011 high school graduate of Taunton High School, and Jake DeSousa, a 2011 high school graduate of Somerset High School. Pictured, from left: Jake DeSousa, Somerset High School graduate; Deborah Grimes, executive vice president, Mechanics Cooperative Bank; and Kelsey Kerkhoff, Taunton High School graduate.

NORTH SHORE BANK’s President and CEO David LaFlamme presents a check in the amount of $1,500 to Audrey Gordon, president and executive director, The Progeria Research Foundation, to support its 10th Annual Progeria Race for Research.

continued on page 32

GoodNeighbors continued from page 30

SCITUATE FEDERAL SAVINGS BANK’s head teller Sarah Lawless, right, presents a $1,000 scholarship check to Jackie Perfetti, a 2011 graduate of Scituate High School.

SCITUATE FEDERAL SAVINGS BANK’s branch manager Sondra Krieg, left, presents a $1,000 scholarship check to Matthew Kelley, a 2011 graduate of Norwell High School.

SCITUATE FEDERAL SAVINGS BANK’s branch manager Lisa Kenney, right, presents a $1,000 scholarship check to Kathryn Conlon, a 2011 graduate of Marshfield High School.

SPENCER SAVINGS BANK’s president and CEO presents a check in the amount of $1,425 to Jeanne Cassavant, center director of Camp Marshall, to sponsor five local children to attend the camp this summer.

BANK OF CANTON donates $3,500 to the Massachusetts Hospital School (MHS) to sponsor its annual November class trip to Disney World. Pictured, from left: Stephen Costello, president and CEO, Bank of Canton; John, a student; and Kathleen Kalell, executive director of MHS.

Proven Commitment

to serving Massachusetts financial institutions Stifel, Nicolaus & Company, Incorporated has been serving banks and thrifts for over 40 years. Since 2000: • Managed 496 Public and Private Offerings, raising $68.8 billion in capital • Managed 50 Mutual-to-Stock Conversion Offerings, raising $13.7 billion in capital • Advised in 225 Financial Advisory Transactions, totaling $14.8 billion Over 250 Financial Service Companies under research coverage Large retail and institutional sales distribution channel

The information presented includes transactions effected and matters conducted by Stifel Nicolaus Investment Banking, the Capital Markets Division of Legg Mason Wood Walker, Inc. (acquired on December 1, 2005), Ryan Beck & Co., Inc. (acquired on February 28, 2007), Thomas Weisel Partners LLC (acquired on July 1, 2010), and their respective affiliates. Stifel, Nicolaus & Company, Incorporated and Thomas Weisel Partners LLC are affiliated brokerdealer subsidiaries of Stifel Financial Corp. which are collectively referred to herein under the marketing name Stifel Nicolaus Weisel.


Senior Executive Involvement For more information, contact: Rick E. Maples Head of Investment Banking (314) 342-2038 • Ben A. Plotkin Executive Vice President, Vice Chairman (973) 549-4025 •

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Michael F. Barry, Managing Director (212) 847-6458 • Mark B. Cohen, Managing Director (212) 847-6438 • Robin P. Suskind, Managing Director (973) 549-4036 •

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ROCKLAND TRUST COMPANY donates $5,000 to the Newton Wellesley Hospital Foundation’s HopeWalks to benefit the Vernon Cancer Center at the hospital. Pictured, from left: Thomas Banks, retail district manager, Rockland Trust; Elizabeth Pickman Flanagan, major gifts officer, Newton Wellesley Hospital; Joan Archer, president, Newton Wellesley Hospital Foundation; and Daisy Siddiqui, branch manager, Rockland Trust Company.

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CLINTON SAVINGS BANK donates $5,480 to WHEAT Community Services Agency to replace outdated, inefficient computer systems. Pictured at a demonstration of the new equipment are, from left: Robert J. Paulhus Jr., president and CEO, Clinton Savings Bank; Donna Jarvis, assistant to the executive director; and Jim Sheehan, executive director, WHEAT Community Services.

Contact Richard Sych, FSA, President 860.521.8400 |

ROLLSTONE BANK AND TRUST COMPANY donates $2,500 to the Cleghorn Neighborhood Center (CNC) to support its afterschool programs. Pictured, from left: Nathan Bilotta, CNC board president; Linda Racine, executive vice president, Rollstone Bank & Trust; Melanie Kuykendoll, CNC board member; and Joana DosSantos, executive director, CNC.

MECHANICS COOPERATIVE BANK’s senior vice president Nancy Stokes, right, presents a check in the amount of $1,000 to Executive Director Joseph Pacheco, Pro-Home, Inc., to support the Annual Capital Campaign and help continue the company’s mission to provide affordable housing.

continued on page 34

Sign up for financial alerts & learn more at Boston, MA • Portland & Augusta, ME • Portsmouth, NH • Providence, RI • Washington, DC Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


GoodNeighbors continued from page 33

NEEDHAM BANK’s branch manager Michelle DeSimone, right, presents a $4,000 scholarship check to Kaitlyn Shea, a 2011 high school graduate of Ursuline Academy.

COMMERCE BANK donates $1,500 to the Massachusetts Audubon Society (MAS) to support its 2011 Neighborhood Nature program, which allows children and families to learn about the plants and animals that can be found in Worcester. Pictured, from left: Lisa Carlin, education coordinator, MAS; Deborah Cary, director of central sanctuaries, MAS; and Michael Roy, senior vice president, Commerce Bank.

CHICOPEE SAVINGS BANK awards a total $18,000 in scholarships to six local 2011 high school graduates. Pictured, from left: high school graduates Amanda Pierce, Allison O’Shea and Kyle Benoit; William J. Wagner, president, Chicopee Savings Bank; and high school graduates Kaitlyn J. Baranowski, Trent Domingos and Alyssa Sawyer.

continued on page 36

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M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

With Online Compliance Consulting, you gain access to a Compliance Dashboard that has everything you need to prepare for upcoming compliance requirements: • Unlimited compliance questions to your personal compliance consultant • A review by your personal consultant of the policies and disclosures for new requirements • Semi-annual training for your Board of Directors by your personal compliance consultant • Monthly Compliance Alerts on new requirements with step-by-step compliance directions • A quarterly webinar that will help you organize, prepare, and implement new requirements • A calendar of upcoming regulatory deadlines • A progress tool that helps you manage your upcoming requirements and track your progress as you go • Access to our database of common compliance questions and answers from official regulatory sources • As an additional service, unlimited compliance reviews of your advertisements and website.

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GoodNeighbors continued from page 34

NEEDHAM BANK donates $7,000 to the Condon Park Playground construction project, Dedham’s first fully accessible recreational area. Pictured, from left: Michelle DeSimone, branch manager, Needham Bank; Sal Ledda, Dedham Parks and Recreation commissioner; Mark Whalen, executive vice president and COO, Needham Bank; and Donald Reisner, Dedham Parks and Recreation commissioner.


M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

ROCKLAND TRUST COMPANY donates $5,000 to American Consumer Credit Counseling (ACCC) to support its “Twenty Steps to Financial Health” money management and financial planning guide. Pictured, from left: Katherine Ross, education and development manager, and Donna Conley, vice president, American Consumer Credit Counseling, and Zepur Kahwajian, branch manager, Rockland Trust Company.

SPENCER SAVINGS BANK donates $5,000 to the American Red Cross of Central Massachusetts to support tornado relief via its recent fundraising efforts, in which employees donated money for the privilege to dress casually for the bank’s Customer Appreciation Day. Pictured, from left: Spencer Bank employees: Lori Kowal, Beth Shanley, Jamie Salerno, Paul Buonopane, Priscilla Berthiaume, Cindy Roberts, Patricia Ostrout, Jeanne Gaucher, Marianne Hosford, Lynne Esposito, Jennifer Anderson, Lucille Newton, Lisa Chaffee and Lisa Swift.

CLINTON SAVINGS BANK donates $5,000 to the Old Methodist Episcopal Church project to support its renovations and preserve the historic church building. Pictured, from left: Timothy Wheeler, board of directors and committee member of the Clinton Savings Charitable Foundation; Kristen Farragher, assistant vice president and branch manager, Clinton Savings Bank; Tim Wohlhueter, restoration specialist; Evy Dueck, restoration project manager; and Berlin resident and head volunteer Mark Smith.


For 30 years, we’ve been alongside our participants through calm seas and rough waters. Today you are faced with new regulatory developments and more uncertainty than ever before. As we face the unknown together, know that we’ll be by your side as an advocate and trusted advisor – empowering you to make smart decisions and build a successful debit program. We see debit opportunities in everything we do, because it’s all we do. Profit from our passion.

Stay informed by visiting our Durbin Amendment Resource Center at Collaboration

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Fourth Quarter 2011 n M A S S A C H U S E T T S B A N K E R


2011/2012 MBA Calendar Dates 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:

2011 November 16-17 18

Annual Two-Day BSA/AML Workshop Doubletree Hotel, Westborough CFO Forum Middlesex Bank Training Center,Westborough

2011 December 2 8

Annual New England Trust and Wealth Management Conference & Exhibit Sheraton Hotel Framingham Annual Year-End Fiduciary Seminar Omni Parker House, Boston

2012 January

26-27 CEO/Senior Management Workshop Newton Marriott Hotel

2012 February 6-7 9

Consumer Lending School Courtyard Hotel, Marlborough Mutual Conference Courtyard Hotel, Marlborough

2012 March

12 Fundamentals of Credit Analysis: Part 1 Marriott Courtyard, Marlborough 13 Compliance School TBD 19 Fundamentals of Credit Analysis: Part 2 Marriott Courtyard, Marlborough 20 Call Report Seminar Marriott Courtyard, Marlborough 26 Fundamentals of Credit Analysis: Part 3 Marriott Courtyard, Marlborough

Event Spotlight: 26-27 January 2012 CEO/Senior Management Workshop Newton Marriott Hotel

2012 April 2 9 23 30

Fundamentals of Credit Analysis: Part 4 Marriott Courtyard, Marlborough Fundamentals of Credit Analysis: Part 5 Marriott Courtyard, Marlborough Fundamentals of Credit Analysis: Part 6 Marriott Courtyard, Marlborough Fundamentals of Credit Analysis: Part 7 Marriott Courtyard, Marlborough

2012 May 7 14 20-25 21


Fundamentals of Credit Analysis: Part 8 Marriott Courtyard, Marlborough Fundamentals of Credit Analysis: Part 9 Marriott Courtyard, Marlborough The New England School for Financial Studies-Freshman Class Babson College Executive Conference Center, Wellesley Fundamentals of Credit Analysis: Part 10 Marriott Courtyard, Marlborough

M A S S A C H U S E T T S B A N K E R n Fourth Quarter 2011

Legislative Review continued from page 13

assurance – the classic dilemma of when to declare the problem over and move forward or continue litigation. Fortunately, in late September, Congress did extend the federal flood insurance program for five years. Adding to the cloud of uncertainty is the future of Dodd-Frank and the CFPB. In early September the Senate Banking Committee held a hearing on the nomination of Richard Cordray, former Ohio Attorney General to serve as the director of the CFPB. While Republicans treated Cordray with respect, 44 Senate Republicans have pledged to halt any nomination of a CFPB director until the governance of the CFPB is changed from a single director to a five-person board, is subject to the Congressional appropriation process, and bank regulators are authorized to override CFPB regulations that could cause bank failures. Since swift Congressional adoption of those changes is unlikely, the status of the CFPB and its authority to regulate nonbank lenders remains in limbo. Hopefully, the Senate will recognize the importance of having key banking regulators in place and approve the appointments of Martin Gruenberg as chairman of the FDIC and Thomas Curry, former Massachusetts commissioner of banks as Comptroller of the Currency. Both individuals are experienced regulators and well respected within the industry and in both parties in Washington. Finally, banks continue to deal with the onslaught of new and revised regulations as well as product and pricing constraints precipitated by DFA. With sustained turbulence in the economic and political marketplace, be prepared for more of a bumpy ride.  n David Floreen is senior vice president at the MBA. He can be reached at

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Massachusetts Banker 4Q 2011  
Massachusetts Banker 4Q 2011  

Cover story: David J. Cotney takes the helm as Massachusetts Commissioner of Banks; the ‘Common Cents’ financial education program; Middlese...