120-year-old bank looking toward future
By Paul Leighton Salem News Staff writer
BEVERLY — July 15, 2008 — The Beverly Cooperative Bank is marking its 120th anniversary this year. But for all of the emphasis on history, bank president Bill Howard is more inclined to talk about such forward-looking topics as banking on your Blackberry.
With the bank set to celebrate its anniversary, we asked Howard a few questions about the future of the bank, which has 70 employees and four offices, including one in Salem.
How is the bank doing?
We had $84 million in assets in October of 1997 (when Howard became bank president). In May of 2008 we had $273 million. That's good growth, but we need to continue to grow. You have to continue to grow to be relevant.
How do you do that?
Technology is a big deal. Online banking, generating checks and deposits electronically. A lot of it is generational. My kids generally don't go into banks a lot. They don't write checks a lot. They use ATMs, online banking, direct deposit. It's never going back the way it was. We've got to have products and services that the marketplace demands. The day of the big brick-and-mortar banks is gone.
But isn't personal service the strength of smaller community banks?
People still want to be able to deal with people when they choose. You walk in here and you can walk into my office. Personal contact is still important. We service all of our loans. They're not someplace in Arkansas this month, Missouri next month.
How can you keep up with the big banks when it comes to investing in technology?
It costs you a lot of money, but if you don't do it then you're not going to be able to keep up. Frankly, I don't think you have a choice if you want to be relevant.
How else has the bank changed over the years?
The bank was started 120 years ago by a group of local people to enable working-class people to buy their own homes. We're very much a commercial bank today. We have more commercial loans on the books than residential loans within the last year.
How has the mortgage crisis affected your bank?
We did not do one subprime loan. We have zero mortgages in foreclosure. We always thought it was bad business. Most community banks didn't do them. Frankly, I think th
Beverly Cooperative Bank has offices at 254 Cabot Street, North Beverly Plaza and 48 Enon Street in Beverly, as well as an office at 73 Lafayette Street in Salem. The bank is a member of FDIC and member of SIF, and the SUM ATM network, as well as an Equal Housing lender. More information can be found at beverlycoop.com.
Copyright © 1999-2008 cnhi, inc.