Maine Community Banker 2Q 2011

MAINEbanker community

Serving All Maine Banks And Credit Unions

Second Quarter 2011

Inside

Chase Bank Rights a Wrong Winning the Primaries Are You Talking to Me?

BACK FROM THE BRINK

New Leadership Saves Bank of Maine from Flatlining

SOMETIMES

Everyone Could Use a Little Help

Reaching Their GOALS

The road ahead is expected to be rocky for awhile: increased regulatory expectations and expenses,declining interest rates and revenues.

Now is not the time to go it alone as you try to reach your goals.

Make sure you have the expertise you need to conquer today’s uncertain environment. For more than 30 years, John M. Floyd & Associates has helped thousands of financial institutions improve their bottom line and productivity through innovative programs, guaranteed compliant products and unsurpassed service.

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12 c o v e r

story

Rescued from the Edge The Great Recession almost took out one of Maine's oldest community banks, but with the help of investor John Everets, Bank of Maine is back to doing what it does best.

MAINEbanker

Contents

community

features

Chase Bank Rights a Wrong A New Approach for Financial Institutions

7 8

Winning the Primaries

10

Overcoming Spreadsheet Inertia

16

Are You Talking To Me?

DEPART M ENTS

4

Maine Community Banker Magazine is published by

Editor's Note Vale of Secrets

5 Maine Community Page 6 Maine Housing Report 20 Maine Bankers on the Move

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280 Summer Street Boston, MA 02210 (617) 428-5100

www.thewarrengroup.com Maine Community Banker © 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. Subscription, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210.

For advertising call (800) 356-8805.

Staff Chairman Timothy M. Warren CEO and Publisher Timothy M. Warren Jr. President David B. Lovins Group Publisher & Editor in Chief Vincent Michael Valvo

Finance & Administration Director of Operations/ Controller

Jeffrey E. Lewis

Editorial Custom Publications Editor Associate Editor

Christina P. O’Neill Cassidy Norton Murphy

Advertising & Circulation Publishing Division Sales Manager George Chateauneuf Director of Events Sarah Cunningham Account Managers Richard Ofsthun

Cara Inocencio Advertising/Marketing/ Events Coordinator Emily Torres

Design & Production Creative Director John Bottini Senior Graphic Designer Scott Ellison Graphic Designer Ellie Aliabadi

SECOND Quarter 2011 | Maine Community Banker

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3

Vale Of Editor's Note

Secrets

So here we are amidst a crackdown on financial institutions, wondering what – shall we say, interesting? – ideas and restrictions are yet to come out of Washington, D.C. This is the formative stage of the Consumer Financial Protection Bureau, the new organization designed to help consumers ferret through the dark doings of bankers, to demystify the obscure world of finance.

And yet we wonder, if the CFPB is as benevolent as it professes to be, why is it insisting on secrecy and darkness over its own operations?

In April, Elizabeth Vale came to visit New England’s bankers. Vale is a former Morgan Stanley honcho who now is the CFPB’s liaison to community banks. The CFPB hasn’t even formally opened for business yet. It is in a fact-finding mode still – a sort of community outreach season – where Vale’s visit was supposed to be an early discussion about fears that bankers have over the new bureau’s aims. The setting was a special CEO luncheon at the annual BankWorld expo.

But Vale made the visit on one hard-and-fast rule: she wouldn’t speak, wouldn’t take questions, wouldn’t show up if there was any press around. Vale said she made the condition “on advice of counsel.”

There are certainly good reasons to have a closed discussion with bankers. The biggest one is to insure a candid and frank exchange. Bankers might be hesitant to speak their mind openly if they are afraid of being quoted. Which is why, even before Vale was invited, the bankers involved had worked that issue out with the press. Reporters would be allowed to be in the audience, but wouldn’t be allowed to quote any bankers.

The bankers, then, had no objection. And absent their concern, we are flummoxed at why the CFPB’s attorneys believe there would be anything in a question-and-answer session that needed to be hidden from publicity.

At roughly the same time, Elizabeth Warren was addressing Congress on its concerns about this powerful new organization. Republican were blunt with her about their misgivings over the aims and authority of the CFPB. The bureau was Warren’s brainchild, and she has been tasked by the president to

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Maine Community Banker | SECOND Quarter 2011

get it on its feet. She has repeatedly made the laughable assertion that hers is “the most constrained” agency operating in Washington. Those GOP leaders don’t believe her, and they don’t believe that the bureau is going to show any restraint in its assault on banks.

We would like to give Warren the benefit of the doubt. We would like to approach July, when the bureau officially goes live, with an air of acceptance and sanguinity that it will be an organization of moderate temper, not inclined to let banks undercut consumers, but also not inclined to endanger the financial institutions we all need to survive.

But Elizabeth Vale’s visit troubles us. Not because, as press, we were prohibited by her handlers from the luncheon. But because it should trouble us all when powerful government agencies seek to operate outside the glare of public scrutiny. In darkness and secrecy, hubris and corruption grow. It’s clear that Warren’s organization is already planting seeds in the shadows, rather than embracing the sunlight of operating transparently.

The question, of course, isn’t really what Vale said or didn’t say during her visit here. Reports from bankers who attended said the interaction was underwhelming. But what is important is that, when given the opportunity to set the example of being an open and honest agency, without reason the CFPB chose to do just the opposite.

As citizens, we should insist on government that’s accountable. We might cheer for an agency that’s supposedly our advocate against the big bad banks.

But history has few examples where unstoppable power ended in a good outcome for the masses.

As individuals, we should be aghast at the CFPB’s insistence on secrecy, and we should be wary of what it’s doing. As for bankers? Well, they should be trembling in their shoes. An organization that makes secret plans is one that’s intending on striking swiftly, decisively and definitively against its enemies. And this isn’t called the Bankers’ Financial Protection Bureau. n

Vincent Michael Valvo Group Publisher & Editor-in-Chief

Maine C O M M U NI T Y page

TD Bank: Green Goes Beyond Logo TD Bank celebrated two green events in April – the opening of two green stores in Maine, and its Auburn Call Center’s achievement of the highest level in the LEED-C1 green building certification system, LEED-CI Platinum.

The two new stores, which opened on April 30, have been built based on TD Bank’s new green prototype store design standard, are located at 878 Stillwater Ave. in Bangor and at 1410 Congress St. in Portland. The stores target LEED certification based on their overall environmental performance in five areas: the use of sustainable sites, low water usage, energy efficiency, recycled materials and resource use, and indoor environmental air quality.

Last year, TD Bank became the largest U.S.-based bank to be carbon neutral by building LEED-certified stores and offices, and making continuous significant investments in renewable energy. The bank’s Auburn Call Center, which opened on July 30 of last year, brought 250 new jobs to the Lewiston-Auburn region. It features a 1,600-square-foot skylight to provide abundant natural light and reduce lighting loads, and a nine-ton, mostly granite boulder that was mined from the Christian Hill Quarry in Auburn, and which TD Bank installed as a testament to the bank’s commitment to Maine.

The new stores will be TD Bank’s 24th and 25th green locations across its Maine to Florida footprint.

In May, the bank opened the first net-zero energy bank branch in the U.S. A June 2010 report by the U.S. Department of Energy defined a net-zero energy building as a residential or commercial building that produces in a year as much renewable power as the total energy it uses.

The Bank of Maine Donates $12.5K to Portland Public Library Annual Fund The Bank of Maine has formed a new partnership with the Portland Public Library and has pledged $12,500 to support the library’s Annual Fund. This partnership and pledge coincides with the June 27 opening of the bank’s 33rd branch and new offices at Two Canal Plaza in Portland. The donation from The Bank of Maine brings the library within $12,500 of its $115,000 goal. As the June 30 campaign deadline approaches, The Bank of Maine’s contribution is

intended to encourage other businesses and citizens to make the final donations that will help the library meet or exceed its fundraising goal.

The funds collected during the annual campaign are essential to the library, which will use them to purchase books, reference and audiovisual materials and computerized information resources for use by the library’s patrons.

“The public library is an important resource for the people of Portland. We couldn’t be more pleased to support the Library in its annual campaign,” said John W. Everets, chairman and chief executive officer of the bank. “As a new member of this vibrant community, we are proud to partner with an organization that provides the citizens of Portland with activities, events and resources that enrich their lives.”

Camden National Bank Receives SBA Award The Small Business Administration has recognized Camden National Bank as Maine’s Top Performing 7(a) Lender of the Year. The bank was honored

continued on page 9

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Ma ine Hou sin g R e p o rt

Maine Home Sales Decrease In March 2011

Maine home sales slowed in March 2011 compared with March 2010.

According to the Maine Real Estate Information System, Inc. (MREIS), statewide single-family existing home sales decreased 20.74 percent compared with March 2010. Maine’s median sales price (MSP) of $159,700 reflects a 3.15 percent decrease in that same time period. The MSP indicates that half of the homes were sold for more and half sold for less.

Nationwide, existing home sales were down 6.5 percent and the national MSP decreased 5.3 percent to $160,500 comparing March 2011 to March 2010.

The National Association of Realtors statistics also indicate a regional home sales decrease of 12.1 percent in the Northeast. The regional MSP decreased 3.0 percent to $232,900 in that same time period.

Mike LePage, president of the Maine Association of Realtors and broker/owner of RE/MAX Heritage in Yarmouth says it’s difficult to compare winter statistics in Maine: “The numbers are relatively small compared to the rest of the year, so small fluctuations seem statistically big,” he said. “The decrease was expected due to the impact of the $8,000 federal tax credit available last March. A rough winter, combined with mixed news in the financial markets [except interest rates] contributed to the March figures.

Activity has picked up recently and we’re starting to see momentum build.

Many Realtors I’ve spoken with are experiencing this positive shift.”

Short sales and foreclosures will continue to be a part of the market, he said.

“We encourage buyers to find the home they want, and if it happens to be a short sale or foreclosure, they need to evaluate if that process works for them;

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Monthly Real Estate Statistics March 1-31, 2010 – March1-31, 2011 County

STATEWIDE

#Units Sold 2010

#Units Sold 2011

Percent Change

Sale Price 2010

Sale Price 2011

Percent Change

815

646

-20.74%

$164,900

$159,700

-3.15%

Rolling Quarter Chart: From Jan. 1, 2010 – MarCH 31, 2010 and Jan. 1, 2011 – MarCH 31, 2011 County

#Units Sold 2010

#Units Sold 2011

Percent Change

Sale Price 2010

Sale Price 2011

Percent Change

STATEWIDE

1793

1664

-7.19%

$160,650

$159,900

-0.47%

Androscoggin

134

103

-23.13%

$132,461

$110,000

-16.96%

48

44

-8.33%

$67,250

$68,000

1.12%

455

424

-6.81%

$210,000

$211,500

0.71%

Franklin

40

51

27.50%

$119,750

$128,000

6.89%

Hancock

71

66

-7.04%

$175,000

$163,375

-6.64%

Kennebec

142

136

-4.23%

$117,000

$123,500

5.56%

Knox

55

67

21.82%

$156,000

$200,000

28.21%

Lincoln

42

41

-2.38%

$159,000

$157,000

-1.26%

Oxford

88

76

-13.64%

$113,000

$129,619

14.71%

Penobscot

198

177

-10.61%

$126,000

$107,000

-15.08%

Piscataquis

38

42

10.53%

$63,000

$76,000

20.63%

Sagadahoc

56

52

-7.14%

$156,450

$163,200

4.31%

Somerset

58

46

-20.69%

$75,450

$86,750

14.98%

Waldo

46

52

-13.04%

$131,000

$144,250

10.11%

Washington

10

16

60.00%

$113,500

$127,500

12.33%

312

271

-13.14%

$201,000

$192,000

-4.23%

Aroostook Cumberland

York

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide multiple listing service with over 4,600 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the system within the time periods indicated.

it requires more patience and a higher risk for disappointment, but for some the result is worth it.”

Above are two charts showing statistics for Maine and its 16 counties.

The first chart lists statistics for the

Maine Community Banker | SECOND Quarter 2011

month of March only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the months of January, February and March of 2010 and 2011. n

Chase Bank Rights a Wrong, Wins Award for Plain Language

I

n any industry, it can be difficult for the experts to convey to their clients and customers what it is, exactly, that they are trying to accomplish. In the financial industry, explaining to clients the recent regulatory changes is challenging at best, and downright byzantine at worst.

way to tell businesses, government and nonprofits that they are not communicating effectively,” said Cheek. “But the real reason for the awards is to act as a catalyst to encourage WonderMark recipients to go back to the drawing board and revise and improve their document so that it’s user friendly.”

Chase did just that. The new credit card member agreement has a higher likelihood of being read, and the new format provides readers with the information they need.

In recognition of the bank’s work, the center awarded Chase with the first-ever TurnAround Award. The TurnAround Awards are open to former WonderMark Award recipients. The Center for Plain Language will presented the TurnAround Award because the award judges believed that the former WonderMark document

recipient had significantly improved.

“Describing credit card conditions is a complex, daunting task. The regulations are dense, conditions are complicated, and the amount of information that has to be included is enormous,” said Deborah Bosley, a member of the center’s board, principal in The Plain Language Group, and associate professor at University of North Carolina, Charlotte. “Despite all these barriers, Chase worked diligently to overcome these issues. And that’s a true TurnAround.” n

For more information on the ClearMark Awards and a list of the 2011 national ClearMark and WonderMark recipients, visit www.centerforplainlanguage.org/ awards.

And so it was on Chase Bank’s 2010 Chase card member agreement, a poorlyorganized document of dense text with no graphics or white space, full of convoluted language and technical terms. The agreement caught the eye of the Center for Plain Language, a D.C.-area nonprofit that advocates for simple speech, which bestowed upon Chase Bank the WonderMark award – as in, “I wonder what they were thinking?” – a national award for the most confusing language in a document or website.

“Unfortunately, this is typical of similar documents from many financial institutions,” said Annetta Cheek, chair of the board for the Center for Plain Language.

But Chase took the award to heart.

Working with plain language experts who tested the revision before releasing it to customers earlier this year, the card member agreement now presents the information to credit card holders in a clear, concise and understandable format.

“The WonderMark Awards are a clever

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Managed Services

Offer a New Approach for Financial Institutions

By Matt Eaton

T

oday’s financial institutions, both banks and credit unions, not only need advanced network infrastructure and technologies to maintain a 21st century business, they must protect these systems from increasingly sophisticated security risks. The pace of change requires top-notch technical talent and a budget to support their ongoing training and certification. While major banks can hire top talent to cover multiple branches over a geographic area, community banks and credit unions can’t benefit from this type of scale. Partnering with a managed service provider offers a new option by offering leading-edge knowledge tech skills at affordable pricing.

Managed services is a newer type of information technology solution, where businesses contract with a provider to deliver a number of services at a set monthly cost. The benefits are clear: banks can access highly trained and skilled technical talent at an affordable cost, they can ensure the uptime of the technology, and they can learn about and have help deploying the leading-edge security practices that protect their business.

Securing the infrastructure Security threats are rampant in every business, but combating them is particularly crucial for financial institutions, which are responsible for safeguarding their patrons’ assets and identity. It is expensive to stay on top of every new threat, and managed service providers and can amortize the cost of educating and training staff across multiple customers.

Managed service providers also have

the benefit of partnerships with leading technology developers. Any business can invest in spyware, firewalls, and virus protection technologies, but it takes time to learn about new options. Companies such as Barracuda work with managed service providers to educate them on the leading technologies, and offer better pricing than most individual banks can get on their own.

In addition to technology purchases and threat expertise, managed service providers can offer a host of services to help banks and credit unions protect their environment with solid strategies, policies and monitoring services. Managed service providers generally start a new contract by conducting a security audit to determine vulnerabilities and recommend a plan of action to handle both internal and external threats.

Managed service providers can recommend and install network monitoring devices, and provide remote

MATT EATON is service manager for WGTECH, a Westbrook, MEbased provider of information technology solutions and support services for businesses of all sizes.

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Maine Community Banker | SECOND Quarter 2011

monitoring services to alert banks of any suspicious activity, including spyware, viruses and malicious network traffic, before they become a threat to operations.

Internal threats are just as important to banks and credit unions, and can be overlooked because they are rarely intentional. For example, a managed service provider can help an institution establish policies for employee Internet access use, which often is a source of malicious activity. Providers can develop policies and configure various levels of access for multiple individuals.

Supporting the technology infrastructure Banks and credit unions require significant technology, from desktop computers, to servers, to network infrastructure. Choosing and deploying that technology is one task; maintaining is another. Managed service providers can ease the burden of both sides, by recommending the best technologies and deploying them swiftly, and by providing ongoing support. Perhaps the most important service they provide is when

things go awry: managed service providers offer a highly skilled expert at the ready to get systems back up and running. This type of on-call service is invaluable for small businesses such as community banks and credit unions, because it can be prohibitively expensive to keep staff on the payroll to manage these emergencies.

What to look for in a partner Following are some factors to consider as you seek a provider: • Established vendor relationships: Technology vendors conduct special training courses and technology previews with their partners, so it’s important to find a managed service provider with solid relationships. Their volume of sales can mean better pricing, and they also have a much easier time “getting the ear” of a vendor for questions and support issues.

• Investments in technology personnel: Look for a partner that invests in the ongoing training, certification and education required to maintain an advanced-level staff.

• Remote capabilities: Managed service providers will conduct most ongoing support via sophisticated remote technologies, which both speed problem identification and reduce costs. Look for a provider that has invested in the technologies to deliver remote monitoring and support.

• Local geography: When problems arise, it’s important to get help fast. Most providers will establish regular on-site visits and check-ups, but be sure that they are close enough to manage a true emergency in a timely fashion.

• Options: Look for a provider that offers a tiered menu of solutions to fit your requirements and your budget while offering the options you might need in the future. One-size-fits all rarely does; flexibility is key.

A managed services partnership offers a high level of support at an affordable price for today’s banks and credit unions. But perhaps the most valuable feature is that these partnerships enable institutions to do what they do best: provide the type of banking services that their community wants and needs. A trusted provider can manage the technology and keep security threats at bay, and let the bank focus on its customers and its business. n

Community Page

continued from page 5 at a May 5 luncheon, held at the Spectacular Event Center in Bangor, at which the SBA recognized outstanding small businesses in Maine.

This is the first year Camden National has been named the Top Performing 7(a) Lender in Maine. Last year, the SBA recognized Camden National Bank as Maine’s Top Performing Third-Party Lender of the Year, which is awarded to the bank that made the most third-party lender loans in connection with the SBA’s 504 loan program during the previous year. The 504 loan program provides small businesses with long-term, fixed-rate loans to be used in acquiring major fixed assets, and is designed to encourage economic development within the community.

Recognition as the Top Performing 7(a) Lender of the Year is awarded to the bank that made the highest number of 7(a) loans in the previous year. The SBA’s 7(a) Loan Program offers financial help to small businesses with special requirements, including businesses that handle exports to foreign countries, businesses that operate in rural areas, and borrowers who are active duty military personnel. Through the program, small businesses and entrepreneurs in underserved communities are able to access capital, which helps drive economic growth and job development.

Town & Country Receives Diamond Award Town & Country Federal Credit Union, based in South Portland, was recently honored with a Diamond Award, which recognizes outstanding marketing achievement in the credit union industry.

The award was presented by the Credit Union National Association (CUNA) Marketing and Business Development Council, a national network comprised of nearly 1,000 credit union marketing and business development professionals.

Awards are given in each of 33 categories ranging from advertising to community events and beyond.

Town & Country won in the Social Media category for its entry, the Better Neighbor Fund charitable giving campaign.

Thirty-six local charitable causes and organizations submitted applications to receive a grant. A total of $25,000 was awarded in early 2011 to eight organizations. Winners were selected based on votes through Facebook. Grant winners included Big Brothers Big Sisters of Southern Maine, Center for Grieving Children, Cancer Community Center, the Stone Soup Food Pantry, Make a Wish Foundation of Southern Maine, Family Crisis Services, Sexual Assault Response Services of Southern Maine and Wayside Food Programs.

“The Diamond Awards recognize the best-of-the-best in credit union marketing, advertising and business development,” said Anne Legg, chairwoman of the council and vice president of marketing for Cabrillo Credit Union in San Diego, Calif. “It takes hard work, imagination, and perseverance to be selected as a Diamond Award winner from nearly 1,000 entries.” n

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Winning the Primaries

Finding, keeping and deepening relationships with your credit union’s members

By Bruce Clapp

A

primary financial institution (PFI) can be defined by the assets held, number of accounts, types of accounts, frequency of transactions, or some combination of these, but members often define a PFI as the institution that holds their primary checking account.

Primary checking is where the most transactions and types of transactions (checks, debits, online bill payments) are processed. Members often make multiple daily transactions. Primary checking accounts offer a number of opportunities for the credit unions that hold them: Low cost of funds. Most checking accounts are interest-free. As lending bears the weight of increased regulation, lowcost funds are an attractive alternative.

Revenue. Though we still refer to the primary direct deposit account as “checking,” a steady movement toward electronic transactions means less costly check processing and more revenuegenerating debit and ATM transactions.

Offer convenience overdraft and you’ll increase revenue opportunities.

Member intimacy. Track deposit and payment preferences via point of sale, check writing, direct debits, ACH transactions and ATM withdrawals. Using portfolio optimization tools will help you understand member behavior so that you can offer personalized products and incentives.

Depth. Most people use checking accounts to determine their selection of financial-institution partners for other financial needs. This “base” account is a predictor for additional products and services you can provide the household.

Winning the primary checking account

is key to forging a primary relationship with members. It’s an opportunity to prove your value as a financial institution, generate member loyalty, create advocates among your most-active clientele and optimize profitability across a variety of accounts.

Building Accounts, Building Relationships

The proliferation of free checking accounts in years past inspired many consumers to open accounts, often multiple accounts. It also encouraged a certain amount of attrition: Since accounts were free and available anywhere, transferring accounts was always an option. To grow primary accounts, credit unions must build checking products that are both appealing and sticky.

What makes an account appealing and sticky?

Debit cards. According to Pleasanton, Calif.-based Javelin Strategy and Research, debit card usage eclipsed credit cards in 2009 and is expected to remain more popular for the foreseeable future, both inperson and online. Also, debit card fraud detection has come into focus. Consumers want easy, fast, convenient and safe access to their money.

Online banking and bill pay. Encourage members to use online bill pay and you reduce the chances that they’ll switch financial institutions in the future.

Compelling: Debit card users who make recurring payments also spend 36 percent more than those who don’t, and are also less likely to stop using their cards in the future.

Mobile banking. Just as online banking

BRUCE CLAPP, CFMP, is a leading executive marketer and president of MarketMatch.

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Maine Community Banker | SECOND Quarter 2011

changed the way consumers interact with their financial institutions, mobile banking is fast becoming the norm, especially for Gen Y. Direct deposit. Virtually every household receives at least one direct deposit payment a month. It increases the chance that your credit union’s account is primary and decreases the chance that your members will switch accounts.

Rewards. These might come in the form of prize incentives, but might also consist of lower fees, more favorable rates, or premium services. By transitioning members from the “free checking” model to one that rewards them for being profitable, credit unions have the opportunity to boost their bottom lines while deepening customer relationships. A “soft dollar” rewards program that offsets fees and allows rate “buy-up or -down” is an effective member program and cost efficient credit union program.

Relevant value. Also known as “life stage,” this provides a tangible relationship and service value to each account. Loans, deposits, and/or financial assistance each play a value-based role in different life stages. Enticing members to establish primary checking accounts and/or increase usage on the casual accounts they have is a worthy marketing goal that provides inroads to even more profitable relationships down the road.

Better Checking and Beyond

How can credit unions inspire members to step up their relationships, either through increased usage, more accounts or greater advocacy?

One answer is to get to know them. For generations, providing friendly, human, in-person service has been a credit union cornerstone. Moreover, it worked. If a teller found out in conversation that a member was in the market for a home loan, it was easy and natural to introduce them to a loan officer. Not only was a cross-sell completed, but the member felt known and appreciated.

Relying heavily on in-person relationships doesn’t work as it once did.

Many members never visit a branch, or visit infrequently. Yet, cultivating a personalized knowledge of your members is as vital as ever. When viewed as a single group, clients are not inclined to pay a premium for various services. But when they are segmented by interest, people are indeed open to paying for services they especially value.

Understanding your members is the only way to provide a specialized experience on an organization-wide scale.

Increasingly, the only way to achieve this understanding is through technology.

Analyze your members’ behaviors and preferences and you’ll likely define their values, life stages and interests.

The benefit of using analytics to drive specialized promotions goes beyond sales.

Done well, targeted cross-sales efforts actually recognize members. Just as being called by name when they visit a branch makes members feel like they belong, being approached with relevant products and services makes them feel acknowledged.

It is a value proposition that cannot be replicated through a “rate special” or gift of the day from a competitor.

The Tech Connection

As relationships become increasingly virtual, adding a targeted, ongoing technology component to customer service and marketing efforts becomes less of a luxury and more of a necessity.

According to Bancography, a consulting firm in Birmingham, Ala., a customer who has one product with a bank will stay with that bank for about 18 months. Adding one more product extends the average to four years. Customers with three products average nearly seven years. What kinds of additional products might primary account holders like?

Business checking. According to Greenwich Research, only 45 percent of business owners with revenues between $1 million and $10 million keep their personal and business accounts at the same financial institution. Nearly half had never been approached about moving their accounts.

Business checking is a service-intensive (read: relationship building) product. Try relationship pricing as an incentive to keep both accounts with your credit union.

This approach works in reverse as well.

Ask business checking account holders if they’d like to set up a personal account.

The key is identifying the opportunity and acting upon this key knowledge.

Online personal finance. FinanceWorks, an online personal finance program, reports that its users buy 75 percent more products than regular online financial services users. They have higher average account balances and average one more product with their banks than the other households. Users of online personal finance programs may be more financially savvy and have funds to manage. On the other hand, here’s a service they’d clearly like.

Credit cards. The turmoil consumers (and card issuers) have experienced in recent years make this an excellent time to offer cards. You’ll increase revenue and generate loyalty. Like auto loans, credit cards are the hallmark of the credit union industry and offer a return to key accounts that helped you grow.

Advocating for You

In turn, strong relationships with your members can also increase sales. Nick Vaglio, former executive vice president of MarketMatch, believes it’s not enough to

have members who use your services. They should be advocates for your organization.

Advocates, on average, hold 14 percent more products than antagonistic customers, and the profitability of products held by advocates is 21 percent higher, Vaglio says. Advocates are five times as likely to be responsive to offers and communications, and over 17 times as likely to trust their bank. Further, only 26 percent of advocates believe that fees are too high, as compared to 80 percent of antagonists, he says.

If holding the primary checking account has an emotional counterpart, it’s holding your members’ esteem. Credit unions traditionally do a great job in this area, but with changing times come changing tactics.

As you look to revamp your PFI strategy, don’t overlook opportunities to connect: Maintain a high community profile.

Vaglio reports that during periods of economic hardship, consumers are more likely to support companies that are involved with their local communities.

Communicate. When you do something good, make sure your members know about it. Also, consider advertising, even if you’re skittish about spending the money. In a study of 600 companies from 1980 to 1985, McGraw-Hill Research found that sales at firms that had advertised aggressively through that recession increased 256 percent over those that hadn’t advertised.

Train. If you want frontline employees to engage members with cross-selling opportunities, provide them with plenty of fresh ideas for initiating these conversations.

Be a hero. Contact members who repeatedly experience overdraft fees. Would they like an overdraft line of credit? Also, don’t leave dispute resolution to chance.

Develop a structured, member-centric strategy for dealing with complaints.

You’ll reduce attrition and boost employee morale.

Improving your PFI profile won’t happen without effort. Consumers have many choices and short attention spans. Getting them to choose and then champion your organization is going to take a smart mix of excellent products and service that’s personalized in every way. But the rewards are great. With the right tools and strategy, you can win the primaries – and the day. n

SECOND Quarter 2011 | Maine Community Banker

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Back from the Brink

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Maine Community Banker | SECOND Quarter 2011

New Leadership Saves Bank of Maine from Flatlining

By Scott Van Voorhis Not long ago, one of Maine’s oldest community banks was on the verge of folding amid the worst recession in generations.

The Savings Bank of Maine saw capital plummet and bad loans quadruple in the dark days of 2009, triggering a series of warnings from federal regulators that culminated with a March 2010 edict: Raise tens of millions in new capital or face liquidation. It looked like lights out for yet another community bank amid the ongoing fallout from the Great Recession.

But instead of folding – with possibly devastating consequences as Maine’s business community slowly emerges from the recession – the bank was saved by a medical financing entrepreneur from Boston.

The bank’s new chief executive, John Everets, has brought both fresh leadership and perspective – and a deal with investors that provided the tens of millions in capital needed to keep the bank afloat. The new CEO also brought a new name: the 177-year-old local lender was renamed Bank of Maine on May 16.

With finances stabilized, Everets is now looking to the future, with hopes of turning the Bank of Maine into the main local alternative to national giants like Bank of America and TD Bank.

And so far, the revamp of the bank – and the sweeping leadership changes that have accompanied it – are getting a thumbs up from local business leaders, who are relieved to see a major local lender back on its feet again.

“I have been impressed with both [Bank of Maine’s President Willard Soper] and John [Everets],” said Peter Thompson, chief executive of the Kennebec Valley Chamber of Commerce. “They have just very compelling people, very professional and very conscious of their mission. They are going to show some results.”

SECOND Quarter 2011 | Maine Community Banker

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The fall of a bank

Back in the summer of 2009, the only name change that appeared likely for the embattled bank was one stemming from a rescue or acquisition by a larger financial institution. Battered by real estate and other loan losses, business at the bank had gotten so bad the federal Office of Thrift Supervision ordered the bank to draw up contingency plans, including merging with a larger lender.

Bad loans had more than quadrupled in 2009 from the year before, hitting $82.1 million. Equity capital had dropped more than 30 percent, to $64.7 million, while assets had dropped by more than $80

Needless to say, the local business community, especially in central Maine, where the Bank of Maine had long been a major presence, found itself watching anxiously from the sidelines. The bank is not only a major lender, but it also employs 400 residents.

“It is a very significant employer in the region and has been for a long time,” said Thompson.

Back from the brink

Behind the scenes, Everets, the bank’s white knight, was already readying his move, having spent the last few years researching a potential investment in the

Having been in the financial services business and lending for as long as I have, boring is beautiful.

— John Everets million, to $892.5 million.

The OTS let the last shoe fall in March 2010, giving the bank until the end of September to come up with $60 million in new capital or fold.

No single factor helped put thrust the bank into crisis, Everets notes, but rather a combination of developments. Along with a rise in bad loans, the old Savings Bank of Maine ran into problems after a decade of acquiring smaller local lenders. The bank had expanded its branch network and reach over the previous decade, acquiring Calais Federal Savings and Loan, Citizens Bank of Presque Isle and Augusta Federal Savings Bank. But its last bank purchase – Rivergreen Bank of Kennebunk in 2008 – proved to be one acquisition too much.

The Savings Bank of Maine defaulted on the loan it had taken out to buy its local rival and then found its bid to pay back the loan hampered by loan losses of its own.

struggling Maine lender and other local banks.

Former head of medical finance firm HPSC, Everets bought the firm from Chemical Bank in 1993. Over the next decade, he helped build the HPSC into a major lender to dental and medical practices, with assets of over $1 billion.

In fact, the growth was so hard to keep up with that Everets decided a deeppocketed partner was needed, opting to sell HPSC in 2004 to General Electric.

While he stayed on for a couple more years to help run the firm under GE, by 2006 he had decided to move and began researching his next career, this time in the banking industry. With the help of a veteran banker, he drew up a list of potential acquisition targets in Maine and the region.

Everets liked what he saw at the Savings Bank of Maine, with a hardworking and honest management team

Scott Van Voorhis is a freelance writer.

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Maine Community Banker | SECOND Quarter 2011

whose challenges stemmed from a need for capital, not other, potentially more devastating lapses.

“You need to be sure that the people who were running the company had integrity,” Everets said of evaluating potential bank deals. “You don’t want to get any sort of interesting surprises.

This company had some of the hardest working people.”

And after years working in the boom and bust Boston area economy, Everets was also seeking a steadier lending environment in which to do business.

Maine fit the bill with that, with the New England state’s economy missing the big highs and lows that have become a matter of course in its big neighbor to the south, Massachusetts.

“Maine isn’t a boom and bust economy,” Everets noted. “It doesn’t go as far up when the rest of the world is having an ebullient time.”

“Having been in the financial services business and lending for as long as I have, boring is beautiful,” he added.

In the first big move back from the brink, Everets and a group of investors announced plans in May 2010 to pump $60 million in the bank, transforming it overnight from a capital laggard to one of the best-capitalized banks in the region.

“We felt we had the right skill set,” Everets said. “We felt we could attract the capital.”

Changes came swiftly

But the infusion of capital is just one of a number of sweeping changes the bank has seen since Everets and his investors have come on board.

Arthur Markos, the bank’s long-time president, stepped down after more than 30 years on the job, and Willard Soper, a former top Shawmut Bank executive and former chief executive officer of Florida’s Kislak National Bank, stepped into the president’s job.

Everets took over as chief executive and chairman.

The Bank of Maine’s two new top executives, in turn, upped the wattage on the bank’s board, bringing in an area of

top Maine business and civic leaders.

While the new board includes the former president of the Maine Public Broadcasting Network, there are also a number of high-powered bank executives, such as David Ott, former chief banking officer of Banknorth; James Ozanne, former executive vice president of GE Capital; and Richard Field, co-founder of Lending Tree.

The latest local luminary to join the board: Angus King, the state’s former twoterm governor.

The newly revamped Bank of Maine also has faced some internal systems challenges as well, with the need to upgrade everything from its commercial lending department to its phone systems.

The OTS, when it lowered the boom on the former Savings Bank of Maine two years ago, cited a number of systems issues.

The federal regulators called upon the bank to reduce “higher risk” loans, to “correct underwriting and credit advance deficiencies,” and to revamp its commercial loan department.

One of the biggest needs was in IT, with different parts of the bank operating on different phone systems, Everets noted.

That was a legacy of the former Savings Bank of Maine’s rapid expansion, which saw it acquire other banks with other phone setups.

“That makes for some interesting situations,” he said.

Looking ahead, Everets envisions building a revived Bank of Maine into a major, statewide community lender, one that will be the top local alternative to giants like TD Bank and Bank of America.

In a first expansion move, Bank of Maine has started construction on its first-ever branch in Portland, which will become the 33rd branch in its network when it opens in a few months.

Everets is even hinting at hitting the acquisition trail again.

“We want to be Maine’s bank,” he said.

“It would be nice of us to make some additions. Hopefully we can find some like-minded people who would like to join us.” n

A corporate citizen balancing act

By Christina P. O’Neill

When Bank of Maine called in the $6 million loan of Associated Grocers, a 57-year-old grocery co-op, and put the company in receivership in late April, it didn’t do so without an eye to the economic impact to the community.

A total of 142 AG workers lost their jobs in May, and the co-op’s 300 independent member-grocers faced a liquidity crisis as they scrambled to find other distributors while paying COD, by certified or cashier’s check, for continuing and final shipments from AG. In a statement on AG’s website, AG said a continued loss of customers and sagging same-store sales contributed to a “significant operating loss” for the fiscal year ended March 25.

Bank of Maine did two things. Through the Finance Authority of Maine, it offered assistance to struggling AG members in good standing, to pay their accounts receivable to AG. It also made loans to members in good standing, to help them buy AG’s remaining inventory at a 20 percent discount.

It also announced it would give first preference to displaced AG workers for clerical and other jobs for which there might be a good fit.

“Everyone is working very hard to get the best possible outcome,” says Bank of Maine CEO John Everets, expressing hope that Bank of Maine’s actions would set an example for other entities facing a similar situation.

Christina P. O’Neill is editor of Maine Community Banker.

SECOND Quarter 2011 | Maine Community Banker

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Overcoming ‘Spreadsheet Inertia’ Steering away from Excel-Based Risk Management Practices

By James Adams

I

n 1687, Isaac Newton published a three-volume treatise which revolutionized humanity’s understanding of the physical world.

Philosophiæ Naturalis Principia Mathematica explained natural phenomena so thoroughly and effectively that, three centuries later, high school teachers and college professors still impart its tenets to their students.

Book One of Principia contains Newton’s three laws of motion, which describe the responses of physical bodies to forces acting upon them. Sir Isaac expressed the first law (also known as the law of inertia) as follows: “Every body persists in its state of being at rest or of moving uniformly straight forward, except insofar as it is compelled to change its state by force impressed.” Whether at rest or in motion, physical objects are heavily inclined to preserve their current status; change occurs only when an outside force acts upon them.

While Newton’s studies were devoted to exploring phenomena in the natural world, the inertia principle certainly applies to human behavior as well. That is, individuals and organizations tend to resist changing their course until powerful external factors compel them to do so. In the case of financial institutions, the global credit crisis of 2008-2009 and consequent regulatory reforms present a powerful impetus to change organizational behaviors and processes.

As the economy was expanding at a torrid pace during 2003-2007, asset growth may have been the primary focus of most commercial banks. Given the considerable loan impairments and business failures subsequently

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Maine Community Banker | SECOND Quarter 2011

experienced (not to mention elevated unemployment levels), risk management is the topic du jour, and will likely remain so for the foreseeable future.

Outside forces – heightened credit risks and regulatory scrutiny – have caused bankers to reconsider their approaches to underwriting and risk management.

However, one conspicuous form of technological inertia has remained largely unaddressed.

Microsoft Excel is a user-friendly spreadsheet application that is well-suited for an individual or small number of people to process a modest amount of data. Before they enter the workforce, most bank personnel are longtime users of the product, gaining initial exposure to it during high school and college courses.

Its familiarity and ubiquity (nearly all PCs and laptops contain the application) make Excel a popular choice for managing data.

Spreadsheets can be readily customized by loan officers and other commercial bank users without additional assistance from IT personnel.

Over the past two decades, bankers have become heavily reliant upon Excel for underwriting decisions as well as risk management reporting.

Despite its popularity, the “spreadsheet approach” entails a considerable number of drawbacks and limitations in both endeavors. Below, we consider the program’s deficiencies as they pertain to loan underwriting and risk management.

General Limitations

Excel is a spreadsheet application, not a database. Information stored on Excel spreadsheets is not centrally warehoused, rendering it difficult to access via ad hoc

James Adams is a senior analyst at Sageworks, a software provider to financial institutions.

queries. Further, as many spreadsheets contain a fair amount of manually-entered information, data integrity is a perennial concern.

Underwriting Limitations

While report customization may be advantageous to individual users, processing data in an idiosyncratic manner often becomes a liability for an organization. If borrower financial data is not centrally stored and readily accessible to multiple users, chief loan officers and risk officers may have great difficulty in verifying that underwriting standards are being consistently applied.

Loans made to borrowers with multiple business interests and loans supported by a guarantor require a “global” cash flow analysis. As Sageworks’ Vimal Patel has noted, proper global cash flow analysis “involves integrating multiple partnership and corporate tax returns, business financial statements, K-1 forms, and individual tax filings.” Excel is ill-equipped to readily integrate all the pertinent information from these disparate sources.

Risk Management Limitations

Excel is not designed to process large volumes of data. A comprehensive assessment of loan portfolio risk factors requires strenuous computations which cannot be adequately handled by spreadsheets.

Although data from other applications can often be imported into Excel, the program is not conducive to easily exporting data to other applications.

Any impediments to data sharing are a major constraint to thoroughly evaluating portfolio risks.

Unlike the inanimate subjects of Newton’s experiments (think falling

apples), banks’ courses are not wholly dependent on external stimuli.

Management decisions – especially those pertaining to information technology practices – have tremendous effects on profitability and balance sheet health.

As bank examiners and officers become

3

Steps TO

increasingly conscious of the limitations of an Excel-based approach to underwriting and risk management, the demand for alternative solutions will continue to rise.

Undoubtedly, other software applications will soon enable bankers to overcome “spreadsheet inertia” and prudently change their direction. n

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SECOND Quarter 2011 | Maine Community Banker

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Are You Talking To Me?

By Charles M. Budoff

A

client credit union wanted to branch into a new market that would expand their member base. But the demographic of the new market expressed a level of apprehension about doing business with any financial institution, much less one that was “new” and unknown.

The area was well banked with competitors’ branch offices, many in storefront locations with poorly designed floor plans. Tellers were behind bullet resistive glass and communication was poor and impersonal. Service areas were not easily accessible. There was little opportunity to establish rapport with the member, educate the member about relevant services or cross-sell products.

Client interviews gave us the basis for

their business and marketing objectives for establishing the branch. With those goals as a basis for design criteria, we endeavored to learn more about the potential member.

We visited the community in which the branch would be located, talking with residents and business owners. We shopped the local stores to experience the potential member’s comfort level when shopping and transacting business. Visiting the competitor’s branches, we noted their design and how their customers were serviced.

Our client’s objective in entering a new market was to educate the potential member about the services being offered and their relevancy to meeting the member’s specific needs.

Entering the branch, the member

Charles M. Budoff is EI Associates’ Financial Services Specialist, assisting financial institutions in the planning and development of their facility programs.

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Maine Community Banker | SECOND Quarter 2011

would encounter a bilingual “greeter,” who would ascertain their needs and provide direction. This is where rapport with the member would first be initiated.

Advancing from the reception area, the member would pass bilingual displays of graphic and multimedia information which are informative, educational and sales oriented. The member service representatives do not reside in “owned” offices. They engage the member on the floor, much as the member is accustomed to being served when shopping for other needs. The lobby is open and without communication barriers such as intimidating desks. With their needs identified, members are provided the required assistance or directed to a more private area where they are afforded additional personal service. Servicing the member in this non-intimidating manner reinforces the provision of personal attention, thus, promoting the opportunity for establishing rapport. The overall banking experience distinguishes our client from their competitors.

A multi-purpose, flexible meeting room was designed to accommodate off-hours educational seminars and community meetings. Enlarged photos of community landmarks in the meeting room and smaller reprints hung in the private offices reinforced the “we are part of your community” message.

Word quickly spread throughout the community that the new arrival”was accommodating, non-intimidating, nonthreatening and a trusted resource. The branch grew quickly and continues to grow as a result of community acceptance.

What can be learned from this case study?

• Understand your members' heritage, cultural differences, history and their perception of your business. Many members in our client’s market area came from economically distressed

countries where financial institutions were unreliable, marred by scandal, intimidating and condescending.

Learn how the member prefers doing business. Be sensitive to differences within a culture. Segments of a culture may perceive your message or graphic differently.

• Become active in the community.

Attend community meetings. Support local teams. Provide educational sessions on financial topics relevant to the community. Have credit union executives involved in community programs and projects.

• Be sensitive to stereotyping. The

member may not be as financially unsophisticated or un-creditworthy as may be perceived. Educate all staff members about the new customer; for example, the American Hispanic population’s spending power is expected to reach $1.2 trillion in 2011. Many in this community are upwardly mobile, tech savvy and loyal customers.

• Establish rapport. Build trust. The challenge is changing misconceptions or negative associations the member might have about banking. Teach rapport building skills to all staff members. Be non-condescending,

sincere and informational.

• Educate the member about how your services meet their specific needs. Many members may be savers, while for others sending money “back home” is a high priority. Services meeting these and other needs is the first step to building lasting relationships.

• Branch design should be nonintimidating, and convey professionalism and stability. The branch environment should provide the opportunity to educate the customer and effectively cross sell products and services. n

SECOND Quarter 2011 | Maine Community Banker

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Ma ine on t he M ove Camden National Bank

Gregory Dufour, president and CEO of Camden National Corporation and Camden National Bank, has announced the establishment of an executive management team, naming five individuals to the position of executive vice president.

The executive team will report to Dufour and, in addition to leading their respective areas of the company, will be responsible for determining the strategic direction of Camden National.

Joanne Campbell, executive vice president of risk management, is in charge of risk management, information security, internal audit, compliance and regulatory relations. She holds master’s and bachelor’s degrees in business from Husson University, is a graduate of the Maine Development Foundation’s Leadership Maine Program, and is a certified regulatory compliance manager (CRCM) from the Institute of Certified Bankers. Campbell also serves on the Legislative Committee for the Maine Bankers Association and the Community and Economic Committee for the American Bankers Association (ABA). She is president of the Camden Affordable Housing Organization, chair of the Camden Housing Committee, and chair of the board of directors of Community Housing of Maine. Campbell lives in Camden.

Peter Greene, executive vice president of operations and technology, is the senior operations and technology officer at Camden National. He is responsible for information technology, technology planning and the operations of the organization. He joined Union Trust in 1982 and Camden National in 2008 as a result of Camden National’s acquisition of Union Trust.

Greene holds a bachelor’s degree in business administration from the University of Southern Maine, is a graduate of the Northern New England School of Banking, the New England School of Banking, the Columbia University Executive Program in Management of Financial Services, and the Maine Development Foundation’s Leadership Maine Program. Currently, Greene serves on the Washington County Grant and Gracie Scholarship Fund committees of the Maine Community Foundation. He lives in Addison.

Deborah Jordan, executive vice president and CFO, is a certified public accountant. As the company’s principal financial and accounting officer, she is responsible for oversight of financial and regulatory reporting, asset and liability management, investments, strategic planning and forecasting. Jordan joined Camden National in 2008 after serving for 16 years as executive vice president and chief financial officer of Merrill Merchants Bank in Bangor, and five years as audit manager for Arthur Andersen & Co. in Boston. Jordan holds a bachelor’s degree in accounting from Husson University and an associate’s degree in business management from Eastern Maine Community College. She lives in Camden and currently serves on the board of trustees of the Camden Public Library.

Timothy Nightingale, executive vice president and senior lending officer, is responsible for the commercial lending division, the loan production center, and corporate services.

Nightingale holds a master’s degree in business administration from the University of Maine at Orono and a bachelor’s degree in business administration from Augusta State College in Augusta, Georgia, as well as a commercial lending certificate from the American Institute of Banking (AIB). He is also a graduate of the Maine Development Foundation’s Leadership Maine program. He currently serves on the board of directors of Maine Technology Institute, the Finance Authority of Maine’s Advisory Board, and the Commercial Lending Committee for Maine Bankers Association. Nightingale lives in Rockport.

Are your employees on the move? Email submissions to Cassidy Murphy at cnortonmurphy@thewarrengroup.com.

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Maine Community Banker | SECOND Quarter 2011

June Parent, executive vice president of retail banking, is Camden National’s senior retail banking officer. She oversees the bank’s retail branch network, mortgage and consumer loan origination, branch administration and branch security for the bank’s 38 branches across the state, and has been with Camden National for 24 years. Parent attended Fullerton College in Fullerton, California, and the National School of Human Resource Management at Purdue University. She is also a graduate of the Maine Development Foundation’s Leadership Maine program. She serves on the boards of both the New England Mortgage Insurance Exchange and the New England Insurance Trust, and is slated to be the next president of the CamdenRockport-Lincolnville Chamber of Commerce, where she currently serves as vice president.

Parent lives in Camden.

Ward Graffam

In other Camden National Bank news, Ward Graffam Jr. has been named vice president and commercial regional manager for the southern and central regions of Maine. Graffam is based in Lewiston and will oversee Camden National’s commercial banking activities for the bank’s 10 branches in the central and southern area. Most recently, he was vice president and commercial banking client manager for Bank of American (formerly Fleet National Bank) in Portland. Prior to his work in banking, Graffam gained business and management skills during his three years as director of new business development for Maine & Company, and as director of operations for Occupational Medicine Associates. Graffam received a bachelor’s degree from the School of Management at Babson College, and is a graduate of Fleet National Bank’s Corporate Banker training program. Graffam is also a licensed captain of the United States Coast Guard. He resides in Falmouth with his wife and two children.

Additionally, Carolyn Carson-Crosby, human resources director for Camden National, has been named senior vice president. In her role, Carson-Crosby oversees all human resource and development efforts for Camden National Corporation's 425-person employee base.

She has been part of the Human Resource team that has led the organization to be a twotime recipient of the "Best Places to Work in Maine" award. Carson-Crosby has been with the bank since 1996, previously serving as human resources generalist, human resources officer and human resource manager. Prior to Camden National, she had extensive human resources experience, which included work as a human resource consultant for Irving Oil Corporation and a human resource specialist for Fleet Bank of Maine. Carson-Crosby holds a bachelor's degree in psychology from the University of Maine in Orono and an associate's degree in business management from Lasell College in Boston, Massachusetts. She is also a certified Senior Professional in Human Resources (SPHR), and a member of the National Society for Human Resource Management.

Skowhegan Savings Bank

Vicki Alward

Vicki Alward of Conville has been named senior vice president of operations. She has been with the bank since 2006, most recently in the position of compliance officer. Her new role reflects her current oversight of the bank’s operational areas, including deposit and loan operations, branch administration, audit and compliance, and facilities. Prior to joining Skowhegan Savings, Alward worked as a loan review officer at Bangor Savings Bank and as a senior accountant at Berry, Dunn, McNeil, and Parker, CPAs. She serves as a board member and treasurer for the Somerset Economic Development Corporation and serves on the board of mPower Adaptive Equipment Loan Fund.

TD Bank

Patricia Hannigan

Patricia M. Hannigan has been named the manager of the TD Bank store located at 10 Tibbetts Drive in Brunswick. An assistant vice president, she is responsible for new business development, consumer and business lending, and managing personnel and dayto-day operations at the store serving customers throughout the area. Prior to joining TD Bank, she served as branch manager at Town & Country Federal Credit Union in Portland.

Hannigan is a member of the Southern Midcoast Chamber of Commerce. A Portland resident, Hannigan volunteers with the Preble Street Food Kitchen in Portland. She attended Ricker College in Houlton, Maine.

SECOND Quarter 2011 | Maine Community Banker

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Ma ine on t he M ove

Kennebunk Savings

Kevin Gray

Andrew Lederer

Julie Perreault

Kevin Gray has been promoted to vice president. He serves as branch manager of the Eliot office. He previously managed the Berwick office and the York office on Woodbridge Road.

Prior to that, he worked as a vice president for Arista Lending Solutions in Dover, NH. A graduate of Duquesne University in Pittsburgh, where he received a bachelor’s degree in business administration, Gray is also a Maine licensed property and casualty insurance representative. He is an active member of the South Berwick-Eliot Rotary Club and a volunteer assistant coach with the Noble High School and Middle School wrestling programs.

He lives in Berwick.

Andrew Lederer has been promoted to vice president of business processing. Previously the bank’s assistant vice president and branch automation and delivery administrator, he will now look for ways to enhance and improve business processes. A graduate of York County Community College with an associate’s degree in applied technology, he received his certification in business process management through Boston University. He currently serves as a board member for the York County Community College Foundation and is also an adjunct faculty member for the Applied Science Department at the college. Lederer is in his fifth year of coordinating Kennebunk Savings’ Master Teller Program. He lives in Sanford.

Julie Perreault has been promoted to vice president. Perreault is the manager of the bank’s Kittery office and was formerly the assistant manager of the York office on Woodbridge Road. A graduate of the two-year American Institute of Banking program at Babson College, she is also one of Kennebunk Savings’ top volunteers. Perreault donates her time to the Money Minder Program through Southern Maine Agency on Aging, as well as Hospice of York. She is also an active member of the Kittery Rotary Club and previously named their Outstanding Rotarian of the Year. She lives in Eliot.

Toby Boyd has been promoted to assistant vice president. She serves as accounting manager and financial reporting administrator. She holds a degree in banking from the Massachusetts Banker Association and has been working in the field since 1976. Boyd lives in Shapleigh.

Sharon Royce

Sharon Royce has been promoted to assistant vice president. She has extensive experience in consumer lending and mortgages. Her responsibilities as a senior underwriter and team leader include processing and underwriting mortgage loans. Royce worked in similar positions in Brattleboro, Vermont for Chittenden Corporation and Banknorth. She is a volunteer for the Special Olympics in New Hampshire and Vermont and lives in Berwick.

Linda Chisholm has been promoted to vice president of deposit operations. Chisholm manages the deposit services team and oversees operations for 15 branch locations. Chisholm is a past president of the Kittery Rotary and serves as a volunteer for various organizations.

She lives in York.

Linda Chisholm

Paul Dewhurst

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Paul Dewhurst has been promoted to commercial credit officer. He joined Kennebunk Savings in 2009 as a commercial credit analyst, and is responsible for analyzing commercial accounts and financial statements and reporting to management. He formerly worked at MFA Cornerstone Consulting, LLC in Tewksbury, MA. He is a graduate of the University of Massachusetts with a Bachelor of Arts in Political Science. He received his certificate in Accounting from Framingham State College in Framingham, MA. Since 2002 he has been a member of the American Society of Appraisers and holds the Accredited Senior Appraiser designation in Business Valuation. n

Maine Community Banker | SECOND Quarter 2011

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