The Webster Way

An Interview with James C. Smith, Chairman and Chief Executive Offi cer, Webster Bank and Webster Financial Corporation

EDITORS’ NOTE In 1982, James Smith father and I have been the only two minority-owned, and veteran-owned businesses. was elected President, Chief Operating chief executives of a company that was We also work to leverage state programs that are Offi cer, and a director of Webster Bank founded in 1935 to help people buy out there. and was named Chief Executive Offi cer and build their homes. My father laid What emphasis have you put on the of the bank and its holding company, down the principles that we adopted as private bank and what is your vision for it? Webster Financial Corporation, in our values in 1995, when we renamed When we were looking at transitioning the 1987, upon the retirement of his father, the bank in his honor – his middle company’s business model in today’s rapidly Harold Webster Smith, who founded name was Webster. changing banking environment, it was clear that the bank in 1935. He succeeded his fa- Our mission has evolved, our vi- we had to rely less on attracting accounts and ther as Chairman in 1995. Smith re- sion has expanded, and the values more on building out relationships. We’re trying cently completed a three-year term as have endured. They are the bedrock of to pull in as many new clients as we can with the a member of the board of directors of the organization and bind us together goal of serving their full fi nancial needs as op- the Federal Reserve Bank of Boston and James C. Smith in pursuit of our common goal to make posed to just giving them a transaction account. was a member of the Federal Advisory a difference in the lives of those that Our evolving strategy requires a shift in the Council from 2004 to 2007. He is a member of the rely on us for services and advice. way we invest our marketing dollars; in the way executive committee of the Connecticut Bankers How challenging is it to differentiate we align the customer segments that we pursue Association, Co-Chairman of the American Bankers and show what makes Webster unique? in the market; and in the way we invest more Council, and a member of the board of directors of We try to gain competitive advantage by fo- in relationship businesses, like small business, The Financial Services Roundtable in Washington, cusing on what we do best, and our values and middle market, jumbo mortgage lending, pri- D.C. Smith is a member of the boards of directors of connectivity to our local communities are a big vate banking, and cash management services Waterbury, Connecticut-based Saint Mary’s Health part of that. Simply put, we’re a regional bank for commercial clients. System and the Palace Theater, where he served as that is community focused and values driven. On the private banking side, we decided to Chairman from 2002 to 2005. He earned a bache- Even though we have a relatively dense fran- integrate Webster Financial Advisors – our invest- lor’s degree from Dartmouth College. chise across four states from Southern New England ment management division – more closely with our into New York, we further bifurcated that into deposit and lending functions. Private banking be- COMPANY BRIEF Since 1935, Webster Bank seven regions. Every region has a president who comes the primary relationship manager with the (www.websteronline.com) has been helping is responsible for the relationships in that region. client and introduces Webster Financial Advisors to individuals, families, and businesses achieve So we have a local presence and we make lo- the extent that the client may have a need for that. their fi nancial goals. With $19 billion in assets, cal decisions at the local level. The regional president In the meantime, we’ll meet clients’ depository, Webster Financial Corp. provides business, con- works with all the other people in the market to make lending, and cash fl ow needs and we’ll give them sumer, and mortgage banking; fi nancial plan- sure we’re responding to our customers’ needs. special credit cards, as well as develop a meaning- ning; and trust and investment services through We are also big enough that we can invest ful relationship opportunity for the client. So we a network of 168 banking offi ces in Connecticut, in the technology we need to achieve parity created a fourth business unit along with commer- Massachusetts, Rhode Island, and New York. with the biggest players in the market. cial bank, consumer fi nance, and the retail bank. Webster is the largest independent commercial So if we create a strong sense of commu- Now we’re actively in the market courting bank headquartered in New England. nity in our markets, we then have the opportu- internal and external clients. Though we are still Webster Financial Corporation is the holding nity to differentiate ourselves from the biggest relatively new at it, we’ve already seen a signifi - company for Webster Bank, National Association. players and grow as we have. cant increase on the lending and deposit side, and Webster Bank owns the asset-based lending fi rm Are there opportunities for small busi- our assets under management are rising as well. Webster Business Credit Corporation, Webster nesses to get the capital they need? How critical is community engagement Capital Finance Corporation, an equipment fi - Most small businesses have little problem and is that a key responsibility of busi- nance company headquartered in Farmington, accessing capital – the banks would be tripping nesses today? Connecticut and provides health savings account over each other to fi nd high quality customers We’re a community-based organization and trustee and administrative services through HSA to whom they can lend. always have been; they invest in us and we in- Bank, a division of Webster Bank. On the other hand, when you go through a vest in them. They make our success possible, long period of recession, the demand for loans and we never lose sight of that. For example, in Webster Bank has a set of values built around is naturally down. Small businesses may not be early 2009, we cut our dividend from 30 cents personal responsibility, respect, ethical be- as creditworthy as they were and banks have to a penny. But we didn’t cut our charitable havior, community, and achieving results. tightened their standards. contributions because that was part of our re- How critical are those core values to the suc- We try to be as creative as we can in fi nd- sponsibility as a citizen of our communities. We cess of Webster? ing ways to fi nance clients because we want to continued to provide millions of dollars and The values are the single differentiating fac- help fi nance the economic recovery. more than 70,000 volunteer hours per year, and tor and the most important foundational element We’re the largest originator of SBA loans our United Way campaign increased every year in the company. There is continuity in that my in Connecticut as well as for women-owned, during the recession.• VOLUME 35, NUMBER 3 POSTED WITH PERMISSION. COPYRIGHT © 2012 LEADERS MAGAZINE, INC. LEADERS 45