Forging A Niche In Tough Banking Climate: Q&A With James F. Paulhus, President & CEO Unibank For Savings
James F. Paulhus, President & CEO Unibank For Savings
As our Sept. 17 edition pointed out, some smaller banks in Central Massachusetts have been growing and thriving over the past few years. Between 2009 and 2012, with James F. Paulhus at the helm, UniBank for Savings topped all other banks based in the region in asset gains.
You’ve experienced tremendous asset growth over the last three years. How did you accomplish that amid a tough economy?
Our growth coincided with a couple of things: first, the issues with major financial institutions, what I would call a “flight to community banks.” We, in particular, had tremendous growth in '09 and '10 … (partly) because we had the Deposit Insurance Fund (enacted at the federal level in 2006) behind the FDIC. So, if I'm accurate that there was a flight to quality and everybody was worried about safety, then we certainly would have been safe because all our deposits are fully insured, between the FDIC and the Deposit Insurance Fund.
On top of that, I think we've done a very good job in … letting the markets know that we are someone they can trust … and someone that will reinvest that money back into the communities.
You’ve worked for a large bank — Bank of America — before moving over to this community bank. What’s different about the large bank environment versus that of the small bank?
You're not bound by a procedural book that requires you to follow certain practices and policies and procedures. We have flexibility to tailor the solution to the client's need. That was the reason I got excited to come here to begin with.
And what are the similarities?
Product sets are all basically the same. We all have mobile banking solutions … we all have online banking. We all have branches that generally do the same thing. We all have commercial loan strategies that are generally the same. The one big distinction for us, particularly in the consumer and small business side, is the opening of the Gold Star Boulevard branch (in Worcester).
What’s different about that delivery model at Gold Star?
The model is (an) open branch, no teller line, no glass windows protecting the bankers from the customers, and a pod-style transaction station, rather than the traditional teller with the cash drawers. The client comes into the bank and ... unlike some other institutions, some big institutions in particular, they're not greeted (with) “How can I help you today?” “I want to make a deposit.” “Well, go stand in line.” They're greeted and (the) relationship banker can do every transaction that that client may need, except for something that might require a license, like investment advice. It's a very different experience.
How would you characterize today’s regulatory environment for community banks compared to, say, 10 years ago?
Very burdensome. Dodd-Frank was intended to deal with the issues that caused the crisis from '07 to (today) in the mortgage industry. And unfortunately, the acts and the regulation were done with a broad brush to include community banks that didn't create the problem. … . It might cause some smaller institutions to rethink their strategy and possibly create some more merger-and-acquisition activities.
How has UniBank begin to adjust to that change?
We bulked up in the compliance area … we've brought in some talented people both on the IT and the regulatory compliance sides.
Even the smallest of banks seem to be getting in on mobile banking. Does that have the potential to affect the “personal touch” that small banks such as yours take pride in offering?
We don't think so. We have a client base that is very diverse and our long-term existing markets, like Whitinsville, Douglas, Uxbridge. The demographics are a little bit older … and those folks will always want to go visit somebody and get to know their teller or their branch manager and conduct business in a branch. On the other hand, as the younger generations start to become banking customers and need banking services, mobile is something that they grew up with.
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ames Paulhus, UniBank for Savings
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