Five Questions With: Doug Scala

Doug Scala is senior vice president, regional president of Webster Bank’s Rhode Island and southeastern Massachusetts region, which includes 29 banking centers and a regional office in Providence.
He assumed the position in May from former regional president Bob Twomey and he’s now responsible for all middle-market lending, deposit growth and all other revenue-generating activities in the region.
He talks with Providence Business News about the region, the middle-market business climate and where it all fits into Webster’s overall growth strategy.

PBN: Tell our readers a little bit about your professional background.
SCALA:
I started my professional career at Price Waterhouse in Washington, D.C., where I worked in audit and litigation consulting groups for a few years. I then moved back to my hometown to start my banking career, working for Fleet National Bank, where I stayed for over 20 years, the last four with Bank of America. At Fleet, I learned from some great bankers, who were very entrepreneurial, and always looked for a creative ways to get deals done. That was my school ground and I learned invaluable lessons there that I still use today. I then worked for seven years with The Hudson Cos. as their chief operating officer and chief financial officer, until we entered into a long-term lease deal with a group that took over the asphalt operations. That was my chance to get back to my roots in banking, where I have been at Webster for the last 15 months. The experience I had at Hudson has certainly made me a better banker, as I now have been on the “other side of the desk,” which better prepares me to be a strong consultative banker.

PBN: Where are some key areas of growth within the region and how does Webster Bank plan to tap into them?
SCALA:
It’s no surprise that government, not-for-profit, health and education have been a growing segment of our business. Webster is well positioned to provide financial service solutions to these industry segments, while providing this expertise at the local level. We have been able to grow in this area through our grass roots efforts. In addition, we are stepping up in the upper end of the Middle Market space where I have strong ties. In the past, Webster had focused on the smaller end of this market segment, and my directive is to use our strong balance sheet and expertise to provide middle-market lending to the larger users of capital.

PBN: With a background in middle-market banking, what trends do you see in the regional middle market business community?
SCALA:
New England is a tough business climate. I tell business owners, “If you can make it in New England, you can be successful anywhere.” High labor and utility costs, a tough regulatory environment, which is difficult to wade through, and an unfriendly business and personal tax structure make it very tough to operate and attract new businesses. Our new governor has provided some great ideas and energy in this area and working with a legislative body that seems to understand the dire position we have put ourselves in, gives rise to an optimism I haven’t seen here during my career.
Middle-market businesses are generally healthy as they have recovered from the Great Recession of 2008. Many have strengthened their balance sheets and are more liquid than they have been in years. This should lead to increased investment, acquisitions, and hiring provided they want to expand and grow here. Although it’s been approximately seven years since the Great Recession, business owner have not forgotten how quickly their fortunes changed. As such, they may be a bit more conservative than in the past. However, with such a low level of long-term interest rates, borrowing money has never been cheaper. It makes sense to invest capital now, and that is what we are seeing for the most part.

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PBN: What role does the region play in Webster’s strategy for future growth?
SCALA:
Rhode Island and southeastern Massachusetts is an important region for Webster as it extends its franchise into contiguous markets. Webster, founded in 1935, is a $23 billion regional bank, based in Waterbury, Conn., and is very committed to the southern New England market place. We have built a strong team in RI of very experienced bankers that take the Webster slogan “Living Up to You” very personally. Webster continues to build market share in this region and our goal is to be one of the top three commercial banks in the marketplace.

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