Bank Of Newport Hudson Savings Bank Newport Federal Savings Credit Union Central Falls First & Ocean National Bank
Client: Bank of Newport, Middletown, Rhode Island
Bank of Newport approached COMPASS for assistance in meeting the bank's objective of establishing branch offices outside of its primary market, Aquidneck Island. Bank of Newport was interested in expanding into Rhode Island's East Bay market, but was uncertain as to which communities and locations offered the greatest potential. The bank was also concerned about how consumers in this market area would react to a new competitor with which they might be unfamiliar.
COMPASS performed an extensive review of communities in the region near Newport, analyzing demographic trends and determining and prioritizing potential branch sites within these communities. Simultaneously COMPASS conducted a telephone survey to determine the likely response Bank of Newport might receive should it establish a branch office in one or more of these East Bay communities. COMPASS' report suggested that the bank would receive a very positive response in all three communities, but suggested that Barrington and Bristol offered the greatest opportunities for expansion. The Bank of Newport has implemented these recommendations, acquiring and renovating an office in Barrington which was divested by Fleet, and constructing new banking offices in Bristol and Warren, RI, over the past three years. Bank of Newport's Barrington office opened in 1996, quickly becoming one of the bank's top performing offices and today has over $40 million in deposits. Bank of Newport opened a new office in Bristol in late 1998 and less than three years later this office has more than $20 million in deposits.
Office: 326 County Road, Barrington, RI Opened: 1996 Deposits: $53.5 MM (6/30/03) |
"COMPASS helped resolve our doubts about our ability to be successful in the East Bay market. However, we have had even greater success than we expected!"
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Office: 6 Gooding Avenue, Bristol, RI Opened: 1998 Deposits: $27.3 MM (6/30/03) |
Client: Hudson Savings Bank, Hudson, MA
Office: 256 Maple Street, Marlborough, MA Opened: 1997 Deposits: $43.6 MM (6/30/03) |
Hudson Saving Bank asked COMPASS to evaluate the possibility of branching into one of three neighboring communities. The bank had no offices outside of Hudson at the time and desired to expand its base of operations. COMPASS' research included analyses of demographic trends, residential, retail, and commercial development, and the competition in each market. Each of these communities had been impacted heavily by industry consolidation, leaving some vacant offices and under served markets. The research showed that one community, Marlborough, most closely resembled the bank's existing market, where it had historically been very successful, and appeared to offer the greatest opportunity for the bank going forward. COMPASS suggested one area of town near the Southborough line appeared particularly attractive for a banking office. Based on COMPASS' recommendations, Hudson Savings constructed a beautiful and spacious banking office in Marlborough on Maple Street near the Southborough line. Deposit growth at the branch exceeded the bank's expectations, with approximately $25 million after three years of operation. |
Client: Newport Federal Savings Bank, Newport, RI
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Headquartered in Newport, RI, Newport Federal Savings Bank had been operating an office in Middletown since the late nineteen seventies. By 1996 the Middletown branch had grown to a level of only $16 million, a level that did not meet Management's expectations. COMPASS was contacted by the management to review the bank's present office and to determine whether changes and enhancements to the office might increase traffic and deposits. At the same time, COMPASS was asked to also conduct an independent market analysis and branch site review to evaluate the possibility of relocating the branch to a nearby site. COMPASS recommended that the Middletown branch be relocated to a location on East Main Road to improve its visibility and accessibility to customers in Middletown, Portsmouth and Newport. In 1999 Newport Federal opened its branch in the new location less than two miles away from the old office. Since then the branch has more than doubled its deposit base to $40 million and customer traffic has far exceeded the bank's expectations! |
Office: 165 East Main Road, Middletown, RI Opened: 1999 Deposits: $39.9 MM (6/30/03) |
Client: Credit Union Central Falls, Central Falls, RI
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Office: 1391 Mendon Road, Cumberland, RI Opened: 1996 Deposits: $100 MM estimated |
Credit Union Central Falls, a community credit union which had operated exclusively from its main office in Central Falls, requested that COMPASS evaluate the possibility of expanding with a new branch in a neighboring community. The property in question was a former office of New Bedford Institution for Savings, which was acquired by Fleet Bank. Following the acquisition of NBIS, Fleet decided to close and divest itself of the particular office. Credit Union Central Falls wanted to know not only if it would make sense to move into this location, but also whether a branch of the credit union would attract sufficient loans and deposits to render it profitable within a reasonable time period. Since this was to be the credit union's first branch, management wanted to make certain that it would be successful. COMPASS' analysis of the credit union's deposit and loan balances showed a significant percentage of member households resided in Cumberland, while another large percentage came from an adjacent community. An analysis of banking competition in the area showed that the area was somewhat underbanked and that residents did not have many banking alternatives, especially in terms of community banks or credit unions. After reviewing COMPASS' recommendations, the credit union purchased and renovated the office, adding a remote derive ATM among the improvements. Today the branch has more than $100 million in deposits. |
Client: First & Ocean National Bank, Seabrook, NH
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First & Ocean National Bank, originally headquartered in Newburyport, MA contacted COMPASS for assistance in researching what they believed was an underserved banking market in southern New Hampshire. A great deal of change had occurred within two NH communities, Seabrook and Hampton Falls, in recent years as a result of bank consolidation. First & Ocean management thought that consumers and businesses might be looking for a new community bank alternative. COMPASS employed a multi-phased approach for this project. Phase I included a study of demographic characteristics and trends, retail and commercial activity, banking and mortgage lending competition and deposit growth. Phase II involved telephone interviews to a random sample of residents in the two communities. Phases III and IV were devoted to personal interviews and focus groups among local business people. COMPASS concluded that there was a real opportunity for the bank in Seabrook and recommended that the bank construct a branch near the border of the two communities. Particularly important to the site location were considerations related to traffic patterns and how far residents were willing to drive in this busy resort area. In 1997, the bank opened its first office in New Hampshire, which included offices for small business lenders and an investment center. Until the bank's recent acquisition by Banknorth, the office also served as the First and Ocean's legal headquarters. |
Office: 332 Lafayette Road, Seabrook, NH Opened: 1997 Deposits: $48.6 MM (6/30/03) |
