Hartford Business Journal

19 HARTFORDBUSINESS.COM | May 9, 2022 What better banking's all about sm . westfieldbank.com Member FDIC Having a vision for your business is great. Adding our insight? Commercial Lending Term Loans n Lines of Credit n Commercial Real Estate Loans n Letters of Credit n SBA Loans You don't just want a loan. You want solid advice from an experienced business banker. You want a fair rate, flexible terms, and local decisions by a bank that's invested in your community and your success. That, plus a whole lot more, is what you can expect from Westfield Bank. How can we help your business? Call 860.265.3920. That's better. being offered too. The first branch reinvention was finished two years ago. A fourth branch upgrade is expected to be finished in mid-May. Three more will be done later this year, with the remaining branches to be upgraded by 2024, Dufficy said. Even teller interactions have been redesigned to be more approachable, without big barriers between customers and bankers, she said. Rauh declined to comment on the cost of the physical branch makeovers. He does, however, believe the changes have led to new business. "In all of the places that we have done the reinvention, we see the benefits of the newly-created spaces in terms of deeper, longer, more meaningful conversations with customers," Rauh said. That has translated to new accounts and relationships, and referrals for commercial loans and wealth management, he said. "The metrics that we use to determine success are all still the same, we are generating business in a slightly different way," Rauh said. CGB saw its overall assets increase 10.1% in 2021 to $1.59 billion, while its deposit base grew 16.7% to $1.3 billion, according to its annual report. Its 2021 net income was $17.4 million, up 33.3% from a year earlier, according to its annual report. A fresh focus According to Rauh, Chelsea Groton Bank's reinvention, and the level of focus it has on hosting in- branch events, seems to be unusual for the banking industry. "We haven't seen anybody doing this to the extent we are doing it," Rauh said. "[Other banks] are reconfiguring their branches, but the emphasis is on saving expenses or doing the same old things in a slightly different way. There isn't anybody who has really rethought the business model in this way." Other financial institutions have heard what CGB has been doing, and have reached out asking the bank to mentor them, Dufficy said. John S. Carusone, president of the Bank Analysis Center Inc. in Hartford, said there have been other banks around the country, particularly community lenders, that have been hosting events too. "To the extent they can provide space for activities in branches, it allows them to attract new relationships and clients," Carusone said. "It's one way of preserving the branch system without resorting to strictly electronic banking. There is a lot of logic to it, and it has proven effective." Middletown-based Liberty Bank, for example, offers credit building workshops, first-time homebuyer seminars, and an Academy for Small Business aimed at helping new entrepreneurs, according to Amy Helbling Crafa, Liberty's corporate communications officer. CGB's reinvention has been years in the making, and the bank has continued to make improvements as it gets feedback. "Every time we reinvent a branch, we are taking feedback from staff and customers and making it better," Dufficy said. Another change through the CGB reinvention has been in technology and making staff more mobile. Historically, bank employees have been attached to computers at a fixed location. CGB has shifted to having mobile devices and laptops for staff, so they aren't tethered to one spot, Rauh said. CGB is also moving away from staff members having one role, such as teller or customer service representative. When asked if CGB's strategy might just be the key to helping brick-and- mortar banks not only survive, but thrive, Rauh says, "Yes, absolutely." "That is certainly what we are betting on," said Rauh, adding he thinks long term there is growth opportunity for his bank in Hartford and New Haven counties. "For us, we really think this is a key to our long-term survival. I used to have a boss who said, 'You can't cut your way to success.' " NO. OF CT BANK BRANCHES SHRINKS 14% OVER LAST 7 YEARS 2015 1,235 1,212 1,183 1,159 1,129 1,093 1,058 2016 2017 2018 2019 2020 2021 1,500 1,200 900 600 300 0 Source: FDIC

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