Reading Cooperative Bank in Massachusetts is nearing $1 billion in assets. Its 10 branches, all north of Boston, now stretch from the New Hampshire/Massachusetts border to the Atlantic Ocean. But even as the bank grows, president and CEO Julieann Thurlow is making a concerted effort to fortify ties to its communities.
Prior to 2022, everyone from branch managers to Thurlow herself handled community development. "As we have gotten bigger, we recognized that we needed people who understood what was happening in certain regions," said Thurlow.
When the $828 million-asset institution acquired two branches of Coastal Heritage Bank in 2021, that sealed the deal in making Reading Cooperative "a solidly North Shore bank, not just a Reading bank," she said.
Thurlow promoted three branch managers to community development officers last year. They are responsible for identifying resources that the markets they oversee need and strengthening relationships accordingly, with the understanding that there is no one-size-fits-all across the bank's footprint.
This idea stemmed from the success of a temporary branch Reading Cooperative opened in Lawrence, Massachusetts, 18 months ago. (It recently opened a permanent Lawrence branch.) The area is predominantly Hispanic, and senior leadership at Reading Cooperative sought insight from residents about their needs through focus groups and meetings with community groups, business groups and pastor associations. Employees also volunteered at food pantries, nonprofits, served on boards and provided financial education to students, adults and businesses.
"That experience allowed us to reflect on how successful we are with our ground game," said Thurlow. "The Lawrence office was profitable before it even opened." The community development roles are Reading's attempt to replicate that success more broadly across its branches.
As the bank has grown larger — doubling in size over the last eight years — Thurlow has reorganized its structure. For example, she promoted Phil Bryan from chief lending officer to the newly created role of chief banking officer in 2022. He is in charge of growth and oversees the retail, lending and marketing divisions, which previously reported to Thurlow. She hired a new chief operating officer, Marianela Vazquez, from digital lending platform Numerated so the bank could lean harder into innovation.
Beyond creating the community development division, Thurlow also hired a project manager and started a training department.
Outside of the bank, Thurlow is taking on a new leadership role herself: She becomes chair of the American Bankers Association in October 2023.
Thurlow also tasked her team with rethinking overdraft fees in 2022 by weighing what was fair and reasonable and examining who was paying them. They found that 10% of the bank's customers were paying the bulk of the overdraft fees.
The rehauled fee schedule cuts overdraft fees from $30 per item to $15 per day, and ensures that they only kick in when an account is overdrawn by more than $100.
The bank also eliminated transfer fees for linked accounts, inactivity fees and sustained overdraft fees.
"It got us to a place where we all are comfortable that the bank is paid adequately for the work and risk of loss without being punitive to our most vulnerable customers," said Thurlow.
