Worcester Business Journal

14 Worcester Business Journal | September 18, 2017 | wbjournal.com F O C U S B A N K I N G & F I N A N C E Avidia Bank rides the industry expansion and growth wave Growing beyond Hudson BY GRANT WELKER Worcester Business Journal News Editor Avidia by the numbers A vidia Bank has spent its nearly century and a half based right around the Assabet Valley, where it keeps its headquarters in Hudson. But now the bank is making a bet on an eastward expansion toward a much more crowded Boston market. The bank borrowed $25 million this summer to finance growth that starts with a new branch in Framingham scheduled to open Sept. 25 at 270 Cochituate Road. "We feel that the opportunities are east of here," said Margaret Melo Sullivan, Avidia's executive vice president, chief financial officer and treasurer. "That's where we feel the opportunities are and where we can grow our business lines." The grander plan The Framingham branch will be slightly bigger than Avidia's existing locations, a two-story building with a glass facade that marks the company's new presence closer to Boston. There isn't yet a plan for even more physical locations. Instead, Avidia plans to move into a denser market with more busi- ness and personal lending opportuni- ties. Avidia plans to focus more on lend- ing areas where it can differentiate itself, Sullivan said, such as commercial and industrial loans, and projects such as solar farms. "It's part of the grander plan, if you will, to continue to expand commercial presence," Sullivan said. Without an immediate expansion of physical branches, the eastward push will rely on billboards, TV and radio spots and other marketing online. Avidia Bank was formed in 2007 by a merger between Hudson Savings Bank and Westborough Bank, which both opened in 1869. The bank has never ventured far beyond its geographic base, but the merger of the two entities, which didn't have overlapping territo- ries, gave Avidia a greater economy of scale that has brought accelerated growth in recent years. The company has grown to $1.2 bil- lion in assets, a growth of more than $196 million, or 16 percent, in just two years. Deposits hit $964 million last year. Banks branching out Avidia isn't the only area bank look- ing eastward. Berkshire Bank, based in the western Massachusetts city of Pittsfield, said it will move its headquarters to Boston, where it has only three branches. Berkshire is buying Worcester's Commerce Bank but will not change the name of Commerce branches. Another bank that's the result of a new merger, Fidelity Bank, has its own expansion plans: southward into Worcester. The 10-branch Leominster bank made a splash earlier this sum- mer by signing a 10-year naming-rights deal for the Worcester Railers' two-rink facility. The Fidelity Bank Worcester Ice Center will open next month. Fidelity Bank — whose merger with Barre Savings Bank was completed last year — plans to open its second Worcester branch next spring at the 145 Front at City Square apartment complex. The branch will be at the cor- ner of Front and Foster streets, bring- ing Fidelity's name to another high- profile spot. "For our company, we think there's great opportunity in Worcester," said Chris McCarthy, Fidelity's president and COO. Fidelity's longtime branch on Shrewsbury Street in Worcester has done especially well, he said. Opportunity for more growth A year and a half after Fidelity and Barre merged, the pairing has gone well, McCarthy added, with high reten- tion of consumer and business clients. Avidia Bank's assets and loans have grown quickly in recent years, even as the Hudson bank has stayed close to its Hudson base. Margaret Melo Sullivan, CFO, Avidia Bank Avidia Bank's new Framingham branch, opening later this month, is the start of an eastern expansion that focuses on more than physical branches. $1.39B 0 $300M $600M $900M $1.2B $1.5B 2010 2011 2012 2013 2014 2015 2016 $1.1B Loans Assets Numbers rounded to nearest million Source: Avidia Bank annual reports Where Avidia is located: 1073 Main Street, Clinton 270 Cochituate Road, Framingham (Opening Sept. 25) 42 Main Street, Hudson 221 Washington St., Hudson 17 Pope St., Hudson 470 Lancaster St., Leominster 256 Maple St., Marlborough 53 W. Main St., Northborough 23 Maple Ave., Shrewsbury 100 E. Main St., Westborough Source: Avidia Bank P H O T O / C O U R T E S Y

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