Connie Loveland

Connie Loveland
Title: CFO, Fidelity Bank
Age: 46
Experience: 20 years

Although less than $1 billion in assets and competing with the likes of Berkshire Hills Bancorp-owned Commerce Bank, Avidia Bank, UniBank and several credit unions, Leominster-based Fidelity Bank is having a big year. In August it snagged the naming rights for the $18 million Fidelity Bank Worcester Ice Center, the practice ice for the Worcester Railers hockey team – the ECHL affiliate of the New York Islanders – and other local teams. Shortly after, the bank announced plans to merge with Colonial Co-operative Bank and incorporate Colonial’s two branches in Gardner and Winchendon under the Fidelity Bank charter. Most recently, Fidelity Bank hired Connie Loveland as its new CFO. Loveland has worked at Rhode Island community banks for just short of 20 years. She was for eight years vice president of management information systems and strategic planning at Washington Trust Co. in Westerly, Rhode Island. She was then in various senior vice president roles for four years at Bank Rhode Island, which was acquired by Brookline Bancorp about six years ago, followed by six years at Bank Newport. But Loveland says she was wooed to Massachusetts by Fidelity Bank’s “LifeDesign” philosophy, which she describes as “doing the right thing because doing the right thing is good for business.” Loveland says her goal as the new CFO is to help the company grow, but in a way that is beneficial to the bank’s clients and communities they serve.

Q: What is the central Massachusetts market in Leominster and Worcester like for community banking? Do you expect to see future loan and deposit growth opportunities? 

A: The Worcester market is really competitive. There is a variety of banks and credit unions of all sizes. But there are always opportunities; you just need to be proactive to find them. The city has made a big revitalization effort, and I believe they have already invested $2.6 billion in the private and public sector. One aspect of the investment was toward the new Worcester skating rink, which Fidelity Bank has the naming rights to.

We feel good about the market and continue to invest in the market. We are opening our second branch in the downtown Worcester area in early 2018. In Leominster, we remain committed to the community. Unemployment in Massachusetts is some of the lowest in the country so the economy is great. The economy needs to continue to move forward and make progress so we don’t go back into recession. Municipal deposits are very competitive, but there are always opportunities and we currently do have a large portfolio of municipal deposits. It’s a growing market, and I’m new to this area, but from what I understand, there are a lot of people working in Boston that have moved to areas like Worcester, so it is definitely a growing market.

Q: Fidelity Bank recently announced it has reached a merger agreement with Colonial Co-operative Bank. Can you tell B&T’s readers about this move and how it will help the bank going forward?

A:The merger, which is still awaiting approval from regulators, was a great opportunity for both institutions. It allows us to continue to serve the customers in our communities while reducing the costs associated with the complexities of banking. We will be at $870 million in assets after the merger with 12 branches. We hope the combined entity will make us more competitive in our markets. As part of the merger, Fidelity Bank also contributed $500,000 to support charities in Gardner and Winchendon and small local businesses through the creation of the Colonial Bank Loan Fund.

Q: What is the biggest challenge facing banks under $1 billion in assets? How does the banking landscape differ for banks below $1 billion and community banks in the $4 billion and higher bucket? 

A: Publicly held banks – I don’t want to say they are not as invested in their communities as mutual banks – but because there is that sense they are driven by shareholders and to perform, and we are driven by our customers and communities, there is not the same pressure for us to perform as at larger, publicly traded banks. In my opinion, community banks are good for the economy. If they went away, I feel like there would be a gap for customers, who would not be able to have that good conversation with a banker who is going to really listen to you versus fitting you in a slot and moving on.

But one advantage for larger banks is they have a larger revenue base to diversify their costs. Costs are the same. Whether you are $1 billion or $5 billion in assets, there are still the same challenges to address. Data security is one of the highest priorities for every institution, and making sure you are keeping up with the highest standards in technology is not an inexpensive proposition. You have to make sure you have the right resources. It’s growing and managing the bank with the rising costs of the regulatory burden and risks associated with data security. Small banks need to be more innovative and distinguish themselves in the community to grow and support infrastructure.

Loveland’s Five Truths About The Current State Of Banking:

1. Increased regulatory requirements, accounting standards and technology advancements are driving change.
2. Setting measurable metrics leads to consistent progress.
3. Banks need to be well positioned to any interest rate environment.
4. Numbers speak louder than words in financial education.
5. Employees drive bank success.