For Immediate Release - March 11, 2013

Small Business Banking Partnership Tops $300 Million on Deposit

Additional $5 Million Deposit in East Boston Savings Brings Partnership Tally to $302.75M

Treasurer Steven Grossman today announced that a $5 million deposit in East Boston Savings Bank has brought the total amount of money the Treasury’s Small Business Banking Partnership has at work in Massachusetts community banks to $302.75 million.

“The Small Business Banking Partnership is all about creating jobs and opportunity and putting our public resources to their optimal use,” said Grossman.  “East Boston Savings Bank joins 50 other banks in every corner of the Commonwealth that are committed to supporting small business and the entrepreneurial spirit that make our communities and our state great places to live.”

The Small Business Banking Partnership uses Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $10 million in Massachusetts community banks.  In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses with a particular focus on women-owned and minority-owned enterprises.  According to the most recent reporting data, participating banks have made nearly 4,000 loans worth $570 million, many of them attributable to the Partnership.

Founded in 1848, East Boston Savings Bank operates 26 full-service branches in the greater Boston area and offers a wide variety of deposit and loan products to both individuals and businesses.  The bank, which prides itself on community involvement and investments in local business enterprises, also operates the East Boston Savings Bank Charitable Foundation, which has distributed over $1 million to deserving community causes.

“East Boston Savings Bank is committed to helping small businesses throughout our market area succeed” said Richard Gavegnano, EBSB Chairman and CEO.  “Since we began our participation in the Treasury’s Small Business Banking Partnership in 2011, we have originated over $19 million in loans to 68 small business owners throughout our communities.  The business sectors receiving the loans include; automotive, retail, restaurants, machine shops and transportation.  By providing funding to smaller businesses we hope to help create jobs which helps stimulate the local economy.  The Bank, which is celebrating its 165th Anniversary this year, is proud to participate in the Small Business Banking Partnership assisting small business owners with their financing needs.”

“I’m proud of the work the Treasury is doing to support community banks and job growth across the Commonwealth through the Small Business Banking Partnership,” said House Speaker Robert A. DeLeo (D-Winthrop.) “By depositing funds into community banks, such as East Boston Savings Bank, the Treasury is helping to create jobs in neighborhoods, such as East Boston, and the communities of Winthrop and Revere I represent.”

When it was created in 2011, the Partnership was envisioned as a $100 million program with a deposit limit of up to $5 million per bank.  Because of the overwhelmingly positive feedback that Treasury received from participating banks and the demonstrated increase in loan activity and job creation, the Partnership was expanded to allow more banks to participate and to increase the maximum deposit amount.  Participating banks are required to post their loan activity on their website every quarter, information that is also posted on the Treasury website.

The Small Business Banking Partnership kicked off in Haverhill in May, 2011 with a $5 million deposit in Pentucket Bank.  All deposits that the Treasury makes in these community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives at out-of-state financial institutions.

A complete list of banks participating in the Partnership is attached.

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Location

Bank

Wired/On Deposit 

   

Arlington

Leader Bank NA

$ 10,000,000.00

Ayer

North Middlesex Savings Bank

$ 5,000,000.00

Belmont

Belmont Savings Bank

$ 10,000,000.00

Beverly

Beverly Cooperative Bank

$ 1,000,000.00

Boston

East West Bank

$ 5,000,000.00

Boston

First Trade Union Bank

$ 5,000,000.00

Cambridge

Cambridge Savings Bank

$ 5,000,000.00

Chicopee

Chicopee Savings Bank

$ 10,000,000.00

Dorchester

Meetinghouse Bank

$ 1,000,000.00

East Boston

East Boston Savings Bank

$ 10,000,000.00

East Cambridge

East Cambridge Savings Bank

$ 5,000,000.00

Easthampton

Easthampton Savings

$ 5,000,000.00

Everett

Everett Co-operative Bank

$ 10,000,000.00

Fall River

BankFive

$ 5,000,000.00

Fall River

Bay Coast Bank (formerly Citizens-Union Savings Bank)

$ 10,000,000.00

Fitchburg

Rollstone Bank and Trust

$ 2,500,000.00

Gloucester

BankGloucester

$ 5,000,000.00

Greenfield

Greenfield Co-operative Bank

$ 2,000,000.00

Haverhill

Haverhill Bank

$ 5,000,000.00

Haverhill

Pentucket Bank

$ 10,000,000.00

Hudson

Avidia

$ 2,000,000.00

Hyannis

Bank of Cape Cod

$ 10,000,000.00

Hyannis

Cape Cod Cooperative Bank

$ 5,000,000.00

Leominster

Fidelity Bank

$ 5,000,000.00

Lowell

Lowell Cooperative

$ 5,000,000.00

Lowell

Lowell Five Cent Savings Bank

$ 5,000,000.00

Lynn

Eastern Bank

$ 5,000,000.00

Marlborough

Marlborough Savings

$ 5,000,000.00

Medford

Century Bank and Trust Company

$ 10,000,000.00

Newburyport

Newburyport Five Cents Savings Bank, The

$ 5,000,000.00

Newton

Village Bank

$ 2,000,000.00

North Adams

Hoosac Bank

$ 5,000,000.00

Orleans

Cape Cod Five Cents Savings Bank

$ 10,000,000.00

Oxford

Hometown Bank, A Co-operative Bank

$ 10,000,000.00

Pittsfield

Berkshire Bank

$ 5,000,000.00

Reading

Reading Co-operative Bank

$ 5,000,000.00

Rockland

Rockland Trust Company

$ 5,000,000.00

Rockland

South Coastal Bank

$ 5,000,000.00

South Weymouth

South Shore Savings Bank

$ 10,000,000.00

Southbridge

Savers Co-operative Bank

$ 10,000,000.00

Southbridge

Southbridge Savings Bank

$ 5,000,000.00

Springfield

Hampden Bank

$ 5,000,000.00

Springfield

Nuvo Bank and Trust Company

$ 250,000.00

Taunton

Bristol County Savings Bank

$ 10,000,000.00

Taunton

Mechanics' Co-operative Bank

$ 5,000,000.00

Wakefield

Savings Bank, The

$ 2,000,000.00

Walpole

Walpole Co-operative Bank

$ 10,000,000.00

Westfield

Westfield Bank

$ 5,000,000.00

Whitman

Mutual Bank

$ 5,000,000.00

Worcester

Bay State Savings Bank

$ 5,000,000.00

Worcester

Commerce Bank & Trust Company (formerly Mercantile Bank and Trust Company)

$ 5,000,000.00

  

$ 302,750,000.00