After 40 years of involvement with Scituate Federal Savings Bank, it’s near impossible to just walk away. That’s why Joseph C. Hayes is staying on as chairman of the bank following his recent retirement from his post as chief executive officer.
Earlier this year, Richard L. Rowe Jr., formerly the president and chief operating officer, succeeded Hayes as CEO when he retired on Jan. 8. The two spoke recently to Banker & Tradesman about the challenges of turning around the bank when they joined in the early 1990s and the opportunities ahead.
Hayes had acted as the bank’s attorney for about 18 years before he came into a leadership role in 1991.
Rowe was his first hire.
"Even though it was a smaller bank, it provided me with a tremendous challenge. That’s really important, especially when you’re working for a small bank," Rowe said. "I think we mutually enjoyed the conversation. I saw the challenge and the opportunity to turn things around at Scituate along with Joe."
And the early ‘90s certainly posed a wealth of challenges for Bay State bankers.
"Every recession is different and difficult," Hayes said. "At that point in time, our problems were in residential loans. This last recession, at least for us, residential property has not been a problem for us."
"Back then, it was very difficult for us to weigh between what the bank needed to do for its greater base of customers and what it wanted to do for these people who were struggling," he said.
Of course, sometimes the simplest explanation is the best one.
"We got back to basic banking, knowing people and knowing who we could lend to," Hayes said. "I had a law background and Dick had an accounting background. We were able to bring that to the table and bring that to the community bank setting without upsetting our apple pie customers."
Like any other banker, Rowe will be dealing with capital requirements and margin pressure in the years ahead. And given that Hayes will stay on board as chairman, he expects a smooth transition.
"We do have a strategic plan in place. We’re in the midst of looking to update that and get a read on what’s happening to the community banking world and how it’s going to affect us," Rowe said. "We have some very important goals to achieve," chief among them increasing Scituate Federal’s visibility.
"We’re now at a point with our senior management going forward that I’m not worried about future transitions," Hayes added. "We have a great team together now, and in a small community bank, that mix of camaraderie is very important."
