Hartford Business Journal

12 HARTFORDBUSINESS.COM | JULY 10, 2023 On The Record | Q&A After being named Windsor Federal's president on Jan. 1, Luke Kettles will take over as the community bank's CEO later this month. HBJ PHOTO | STEVE LASCHEVER Incoming CEO Kettles aims to maintain Windsor Federal's independence, grow commercial loan business By Greg Bordonaro gbordonaro@hartfordbusiness.com W hen Luke Kettles was hired by Windsor Federal as chief lending officer in 2016, the community bank was undergoing a major strategy shift, led by CEO George Hermann. Just over a decade ago, about 70% of the mutual bank's loan portfolio was tied up in resi- dential and consumer loans, while 30% were commercial loans. Windsor Federal was trying to flip that ratio to transition into more of a commercial lender as part of an overall growth strategy. Having spent most of his career as a commercial lender, Kettles was a key part of leading that transition. It required hiring new bankers, investing in technology and adopting new risk mitigation strategies, among other changes. Today, Kettles said, Windsor Federal has successfully made that shift, a move that has helped the bank remain independent at a time when many small community lenders with under $1 billion in assets have been gobbled up by larger competitors. Since Kettles joined the bank, Windsor Federal's balance sheet has grown about 70%, from $440 million in assets to $755 million today. "It was a conscious decision to move to that commercial model," Kettles said in a recent interview. "It's almost a necessity in today's day and age with the growing costs of tech- nology and compliance. A lot of the residential and consumer products have really become commoditized. On the commercial side, you can build relationships over the long term, and that's really where we've been successful and look to continue to grow." Windsor Federal recently announced that Kettles, who was promoted to president on Jan. 1, will take over as the bank's new CEO on July 19. He'll have big shoes to fill, as he replaces Hermann, a well-re- spected and veteran banker who is stepping down as chief executive after 11 years. Hermann will remain involved with Windsor Federal as executive chairman. Kettles has been a banker for more than three decades, having spent time at both small and large banks. Before joining Windsor Federal in 2016, he was chief lending officer at Massachusetts-based Hampden Bank, and a commercial regional executive at Berkshire Bank. Kettles said he prefers working at community banks, and was attracted to Windsor Federal because it's a mutual lending institution, which means it's owned by depositors rather than shareholders. That allows management to plan longer term, rather than having to make rash decisions to meet quarterly shareholder targets. Like most community banks, Kettles said Windsor Federal has been able to avoid the negative aftershocks caused by the high-pro- file U.S. bank failures that occurred LUKE KETTLES President & Incoming CEO Windsor Federal Education: Bachelor's degree in management/finance, Westfield State University; MBA, University of Massachusetts Amherst Age: 53 Leadership style: "I'm a straight shooter. I try to lead with integrity and clear intent and make sure I communicate where we're going, why and how, and that everyone at all levels in the organization understands that. I use the phrase, 'relentless reliability.'" George Hermann

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