Cranston-based Domestic Bank is a relatively small institution that got entangled in the subprime mortgage mess. The bank was tagged with $1.8 million in penalties by the government for “unsafe and unsound, deceptive” lending practices at a mortgage subsidiary. The bank founder and longtime president and CEO Nathaniel Baker then retired, a move that the bank says was unrelated to the fines. In his place now steps Dean T. Holt, a former Fleet Bank Rhode Island chairman, president and CEO who has been in retirement for a few years. Domestic long has put a priority on attracting Latino customers, a growing segment of the Rhode Island population.
Holt answered a few questions about himself and the bank he now leads.
PBN: You have spent more than 35 years in banking before retiring. What convinced you to jump back in?
HOLT: In July of this year, [Baker] called me at home to ask if I would be interested in going back to work. The thought intrigued me, and I had lunch with him along with [other bank officers] the following week. After many discussions, I found the opportunity to be able to utilize my skills very appealing and agreed to join Domestic Bank as its new president and CEO. Domestic Bank has a wonderful group of employees as well as a unique group of customers.
PBN: You’re replacing Nathaniel Baker, the bank’s founder, chairman, president and CEO, who recently retired. His sons, Jeff and Craig Baker, are executive vice presidents. Had you been familiar with the Bakers? If so, in what context?
HOLT: I’ve known Nat for at least 20 years through the banking community, in addition to the fact that we were neighbors on the East Side of Providence.
PBN: In what direction do you plan to take Domestic?
HOLT: As our customer demographic grows, we will continue to provide excellent service, good products, and a cheerful interaction between our customers and bankers.
PBN: What is your take on the current troubles in the financial industry and the $700 billion rescue plan? How has it affected Domestic? Is there a light at the end of the tunnel?
HOLT: In terms of your question concerning the current troubles in the financial industry, I will tell you it has not dramatically affected Domestic Bank and that we are well capitalized and continue to provide our customers with the products, (including loans) that they need. During my entire career, I have never seen the economy of the United States, as well as the world, in the condition we are facing today. I believe if there is cooperation with our business people and those in power in Washington, we will come through this storm in a more balanced and hopefully productive economy.
PBN: In July, Domestic agreed to pay $1.8 million in penalties and to establish a $5 million reserve account to reimburse some home-loan borrowers who might have been hurt by the questionable lending practices of a mortgage subsidiary. How has that affected the bank, financially as well as in the way it operates now?
HOLT: The [Office of Thrift Supervision] order and penalties were related to concerns about product initiatives and third-party relationships that had been in place at the bank from 2003 through early 2007. Those relationships have been terminated for a very long time and bear no impact on the bank’s present or future stability. Issues with past practices, products and procedures have been addressed, and I am extremely optimistic about the outlook for this bank as a whole maintaining a commitment to and focus on our community and employees.
Domestic Bank, founded in 1967, is a federally insured bank serving Rhode Island and nearby Massachusetts via its Cranston headquarters plus eight in-store branches. It is the parent of the now-inactive Intervale Mortgage Corp. To learn more, visit www.DomesticBank.com.
