Hartford Business Journal

www.HartfordBusiness.com • October 16, 2017 • Hartford Business Journal 9 FOCUS PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. Shiloh Baptist Church | Hartford, Connecticut This project included 10,000 square feet of historical renovations. The exterior renovations consisted of new doors, handrails, roof and repointing. Interior renovations to the 1st and 2nd floor lobby and handicap lift. This job was completed on time and within budget. Project Size: 10,000 SF 107 Old Windsor Road, Bloomfield, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: Religion PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD lysts said. Its stock price plummeted, raising doubts about its independence. Then, in Nov. 2008, Webster raised eyebrows when it agreed to $400 million in federal assistance through the U.S. Treasury Department's former Capital Purchase Program that was an adjunct of the agency's controversial Troubled Asset Relief Program (TARP). Although created to provide liquidity to banks and insur- ers in the aftermath of the near-global financial meltdown, Webster's acceptance of TARP funds may have been misunder- stood, Smith said. "We didn't take it right away,'' he said. "We hemmed and hawed because we weren't sure we wanted a direct invest- ment by the government. We were healthy and were urged by the regulators to take it. We practiced what my father liked to call 'the belt-and-suspenders approach.' " "We said, 'this is the right thing to do. We'll pay it back as soon as possible,' which is what we did," he added. By Dec. 2010, Webster had repaid every TARP penny, Smith said, plus $57.6 million in dividends and stock warrants — essen- tially the government's return on its short- term investment. But would Smith and Webster Bank accept TARP money again? "Yes, I would,'' he said. "You want to know why? It was the right thing to do. Even though we weren't even close to needing it, it was the right thing to do to ensure no matter how bad the downturn, we'd remain strong for our bankers and our customers.'' 'Mr. Fix It' It was during the slump that Smith said he and his aides recognized shortcomings in the bank's risk-assessment protocols, from weighing the creditworthiness of borrowers, to assessing specific industry sectors and the overall economy. That's where Ciulla, a New Haven native and a veteran lending executive at banks in and outside Connecticut, who was hired by Webster in 2007, stepped in with his risk- assessment and strategic-planning skills. Ciulla is known as a "Mr. Fix It'' in and outside Webster, Fitzgibbon said. "If there was an area that needed fix- ing,'' he said, "they threw John at it and it would end up excelling. He's really smart. He thinks a lot like Jim. They're like-mind- ed in how to run a large organization.'' Serving as Webster's chief credit risk officer "was an inflection point in my career," Ciulla said. "That was a three-year crash course about effectively under- standing risk management and effectively running a bank." Ciulla established a permanent risk- assessment apparatus that will benefit Webster Bank long term, including insu- lating it from the Northeast's economic headwinds, Smith said. Indeed, Smith said that once Ciulla got his arms around the bank's risk- assessment shortcomings, the outgoing CEO realized Webster had his successor aboard. In 2015, Ciulla was promoted to president of Webster Bank and its holding company parent. "Our succession-planning process has been a model,'' Smith said of the bank's focus on identifying and grooming leaders from within. "It's been something companies aspire to. We're making this choice at a time of strength for the company.'' Charting Webster Bank's Growth 1995 was a big year for Webster Bank. Founder Harold Webster Smith retired as chairman giving full reins to his son, James C. Smith, who had taken over as CEO in 1987. In 1995, the bank was also renamed Webster Bank from First Federal Savings of Waterbury. Here's a snapshot of Webster Bank's growth since that milestone year. Dec. 1995 Today % Change Full-time employees 774 3,256 321% Assets $3,165,345,000 $26,167,932,000 727% Deposits $2,417,191,000 $20,596,694,000 752% Net loans and leases $1,995,984,000 $17,113,485,000 757% Branches 64* 168 163% * Branches as of June 30, 1996. Sources: Federal Deposit Insurance Corp. Webster Financial President John R. Ciulla, who will soon become the first Webster CEO outside the Smith family, is touted for his risk-assessment and strategic-planning skills. PHOTO | STEVE LASCHEVER

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