With a deal to acquire the largest local lender in southeastern Massachusetts – Compass Bank’s parent, Seacoast Financial Services Corp. – for $1.1 billion, Sovereign Bancorp is poised to become a major player in the rapidly growing southeastern Massachusetts market.
This deal comes on the heels of another proposed banking acquisition. Just three months ago, Webster Financial Corp., based in Connecticut, moved forward with a plan to purchase FirstFed America Bancorp Inc., of Swansea, the second-largest local bank in the region.
Philadelphia-based Sovereign officials have acknowledged that some of Compass Bank’s 750 employees will find themselves out of work, while at the same time talking about “building a presence.”
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There is justifiable concern in southeastern Massachusetts.
“The loss of jobs will be a big issue and we don’t know exactly what Sovereign has in mind in terms of its downtown (New Bedford) location,” said Robert J. Luongo, executive director of the New Bedford Economic Development Council.
A community losing locally run banks is not good news. In an interview with this newspaper in May of 2002, Seacoast Financial Corp. President and CEO Kevin G. Champagne acknowledged as much, saying that “there is no secret that bigger banks make it difficult for customers to do business with them.”
Last week, Champagne suggested that Sovereign – while big – is different.
“We at Compass Bank employ a philosophy to empower the customer with the ability to make decisions,” he said. “We see that same philosophy in Sovereign Bank, with their red-carpet services. It isn’t always the case that large means less personal service.”
Champagne and Compass Bank have been important cogs in the southeastern Massachusetts economy for two decades. He and other bank representatives serve on many boards – the bank has sponsored countless events and activities.
Officials from the United Way of Greater New Bedford and the New Bedford Area Chamber of Commerce remain confident that Sovereign will continue to be a strong supporter of the local community.
We would certainly hope so. For one thing, it’s good business. For another, southeastern Massachusetts deserves nothing less.
