LEAD STORY
CEO Bill White Reflects on Coastway’s Conversion from Credit Union to Community Bank
Coastway Community Bank – formerly Coastway Credit Union – has existed in its new form for a year now. And what a time it’s been, says President and CEO Bill White.
“It’s been a very good year,” White said. “It’s been very hectic, too, trying to enter into a whole new field for us. But the opportunities that are out there for us and what we’ve been able to accomplish have made the whole process worth it.”
Coastway’s busy year included a conversion from a credit union to a community bank, the first ever in Rhode Island. The move has freed Coastway from rules governing credit unions that limited the number of business loans they could issue.
Small business lending has always been a central goal for Coastway, but as a Community Bank it has been able to increase its capacity in this arena. In the nine-month period following the conversion, Coastway made more than $14 million in SBA loans.
“We’re very happy with our position in the area of small business lending,” White said. “We put more SBA dollars out there to work than anybody else in the state of Rhode Island, and it goes exactly where it’s intended to go: creating more jobs.”
Coastway’s conversion from a credit union to a community bank required a vote of the members, 80% of whom voted “Yes.”
“That favorable vote, and by such a large margin, was a real vote of confidence by our members in our team here at Coastway,” said White. “It was very gratifying.”
In addition to the internal Coastway team, White noted the key role in the successful conversion vote played by David Preston of New Harbor Group, who also serves as communications counsel to the RISCPA.
“David helped us communicate with our members in a clear, understandable and ultimately persuasive way,” White said. “He was indispensable.”
For the first time, Coastway sponsored the annual RISCPA golf tournament this summer. White said the sponsorship of the event helped get Coastway’s name out to one of the groups that will matter more now that it serves the community in its new role.
“Because we were a credit union, we weren’t able to get out as fully into the CPA community and identify the needs that CPAs are having with their clients, and see if Coastway can play a role,” White said. “Name-recognition and being looked at by folks like the CPAs as an important resource is important to us. We don’t have a multi-million-dollar marketing budget, so it’s about face-to-face interaction and getting involved.”
As it continues serving the community in the ways it always has, it’s important to Coastway that it adapts to a changing world and takes advantage of new opportunities. With that in mind, White says the bank might build some new branches within the next year. An emphasis on cutting-edge technology will likewise be a part of their upcoming mission.
“In the old days, there was a sense that you needed a branch in every community,” White said. “But now with technology, a lot of it can be supplemented with online tools.”
With the use of debit cards, online bill pay and money management, the idea is that members will be able to easily bank with Coastway from far-flung regions of Rhode Island. Even those who live out of state should be able to continue membership if they like, says White, whose own children do just that.
As for further community involvement, Coastway will continue to grow its Coastway Cares foundation, White said, which raises money to serve local non-profits and charities. White also encourages employees to volunteer their time, even during work hours.
It’s all part of the greater mission of Coastway, which can now do even more than it could before conversion from credit union to bank.
“We gather money from the community, and we are the first to put it back via small business loans, car loans, mortgages and job creation, and also in the non-profit area to serve those in need,” White said.
