Webster First envisions more growth
Matt Volpini
Michael Lussier, president & CEO, Webster First Federal Credit Union, Worcester
When Q&A last spoke in April with Michael Lussier – who has led Webster First since 1990 – the credit union had just announced its planned purchase of Boston-based Industrial Credit Union. After being largely based in Central Massachusetts, the move was Webster First’s first foray into the Greater Boston market. The credit union now has 15 community branches throughout the central and eastern regions of the state. It assets totaled $642 million at the end of 2014, and the new financial metrics showing the impact of the merger are expected to be revealed later this year.
How has the acquisition of Industrial Credit Union in Boston been received?
Good. I think we had a very successful merger at the end of May. I think the conversion went through in July as far as all the data. The retention has been incredible. I think about only 6 percent of the members chose to change once we merged, which was one of the best retention rates we ever had in a merger.
How were you able to keep 94 percent of Industrial Credit Union’s members?
We brought more availability of services today that they needed. The electronic world has mandated the need for online banking and the remote deposit, and we brought all those services to the table that they didn’t have before.
Is there a difference between the Greater Boston and Greater Worcester credit union markets? If so, what is it?
The cultures are different. There are far more credit unions in Boston than there are in the Worcester community. The demands by the consumer are much more aggressive in Boston. There is more competition in that market, and we have to stay focused to keep our customers happy. The good thing for us is we have very strong customer service, so that sets us apart, just like it does in Central Mass. The growth hasn’t hampered that.
How has Webster First grown in five years?
We have grown in both assets and field of membership. Our field of membership was originally just in the Worcester County area, and in the last five years, we’ve added in the specific marketing areas of Middlesex, Essex and Suffix counties. That has allowed us to outreach further east in the Boston area. We have grown in the number of members by approximately 30,000 new members. Our number of employees has grown by more than 140 employees over the last six years. The number of services and products continues to grow as new products and services are requested.
Are you actively looking to acquire more credit unions?
Our eyes are always open. The opportunity out in the Boston area will remain an opportunity for anyone. I think the credit union industry and the banking industry are going to see some changes with the new interest rate changes that are coming. The opportunity to review various areas with other credit unions is going to be widespread throughout the state.
What advice would you give to a Worcester County firm looking to expand into Boston?
I don’t know if I have the exact answer for that, but I do know that by moving from Worcester to Boston that it becomes a little more aggressive. The cost of labor is higher. The marketing penetration is more difficult if you are new and virgin to the area. I think we have done a fantastic job at that.
Six months ago, no one in Boston knew who we were, and today – with approximately four branches in the area – everyone knows who we are now. We put a good piece of marketing out there in the open marketplace with journals and advertising and billboards and radio and television. People know we are in Boston now, but it took a lot of time and effort to do that.
You have been with Webster First for a long time. What is next for you?
I have been here since ’87. I have been president since ’90, and I imagine I would retire from here some day.
When?
Some day.
Not today?
Not today.
This interview was conducted and edited for length by Brad Kane, WBJ editor.
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