South Shore Bank CEO John Boucher on Small Community Banks Vs Bigger Banks

We asked the question where are you doing your banking 339 says he switched from. USAA. I didn't know you could do that a million USAA offered banking services. Five always says I have metro credit union they refund all other bank ATM fees and they have a savings account with 4% interest. Not point four Berry but really 4% that is hard to imagine -- -- -- -- that Null call me skeptical. I it's got to be attached she you know sometimes the banks of the -- these banks -- say we'll give you 4% interest. We have to get direct deposit FDA electronic statements and you have to usury TM card like ten times a month club that'd be easy for you use yours about ten times. Ten times a day and that's a damn right -- -- -- -- like suspects like so nineteen two yet. Run it -- opening bell ringing five minutes ago how's the market -- engine not too good the Dow's down 86 points we've got the NASDAQ down twenty S&P down twelve thank you US treasury thank you. And it is at 1784. That's not against pompano mightily that there -- decades. Gold is down 22 dollars oil trading down two dollars four cents now Barrett at the big ones in 948. You know I gotta tell -- and I think the JPMorgan. Story last week is just providing additional incentive to American depositors and people who do banking. To get away from the big banks because I gotta tell -- If JPMorgan has billion dollar losses two billion dollar losses may be speculated could be a three billion dollar loss from. Think a lot of people Warner will what's Wells Fargo got on -- was Bank of America got on with Citigroup Dylan you know. JPMorgan was supposed to be that pristine banked in -- with a genius banker Jamie -- you gotta wonder if it's just a matter of time before at some of these other ones not make these mistakes as well now and and we asked that question 68680 is they're text number we wanna know where you're doing your banking. And why. Our next guest is John O'Shea he's the CEO of the South Shore bank. Now many people around you know more about the banking industry than John John welcome to the show Daria Dolan. About a very how you doing. Good day you know what to do that make it a JPMorgan story last week is this it is it the in the beginning is every other other. Banks that are in similar circumstance. Well that's pretty scary to think that you could lose two billion billion dollars overnight to. That that's such a huge bank that it it's kind of amazing that I heard on the radio this morning that that probably -- still -- approach that the squad. And and and it's probably a small portion of their ticket about ninety billion dollars in capital -- But it's a big mistake if it would certainly be a big mistake -- all black -- -- can -- us. John have you seen -- since the crisis in 2008. Have you seen people switching to the community banks I was looking for statistics on this -- subject and I had a great deal of difficulty finding itself. If your bank are you seeing people switch from the big banks to the community banks. Yes we are I I I couldn't cite any statistics myself -- but we have had. Pretty decent core product are commercial products and our not checking accounts and and I -- and had early hero or want your comments were talking about every -- checking account that. It is simplistic to do the following things stand now we've had great great group to map product because what timing you know people I used in the Democrats. And I would do -- he banking and so -- so so that's a pretty attractive product. But I actually think it's mostly about that whole -- discussion. When the -- see discussions started with BankAmerica or -- peace deal -- people start to pay attention to what direction propane. And then on top of that you know does the big banks -- a -- was a waste of time and some other way to tragically perhaps it's not that way. So I think you know people commander in the first question is do -- protected. They won't say yes we do have totally -- -- and they -- -- ago. And so we have had some pretty decent growth in and you should people do parity with becoming a problem and it is almost always responds to big packs. What about the -- in the business side of the equation John what are you seeing there are -- because. For so long the big banks they would even talked to a business owner about making a commercial loan. Because they were they were under water relief that they couldn't make them until they heal their spot there there are -- balance sheets for our our small banks making business loans. While that was going to be my next point I I think that small business people have clearly. Driven themselves to a local Baxter but -- statistics available on that the -- -- -- -- A study last year that showed that in 2011. One of the reasons that could get our economy was doing a little bit better than the rest of the country. Is because a community banks were lending to small businesses. In record numbers and and we got about a 15% growth -- our commercial business last year. And and a lot of it came from the big backs. That it has to do I think completely live local decision making. For small business comes in here and applies for a alarmed. Chances appropriate for Russia -- just know about it the next day. You're gonna play every figures don't locally are commercial loan officers returned -- call somebody. They can you know. Talk to me about any launch so so bad because -- that a group of growth period of course would that comes to bishops checking account so. So we've done well in in that area. I'd like to think too that you know people realize now for the first time. That just devote all of the services that big bank saw can be done on the local level. Technology that costs technologies come down so much as you know we have just about every product of the big banks. We -- differently -- and -- it differently you know by local people and I think people work. Becoming aware that in our bank has been around for 179. Years in this community. And and we support hundreds of non profits from the so sure that people know that that's you know -- will be we make money here we give money back to the community and. Like -- loaded in the community to sort of lighthearted and community I try CD from South Shore bank core. And the adding that there's a lot to be sent to that what's -- John I appreciate your time thanks for for joining us today are very -- attractive that's got to push that John O'Shea he's the CEO of the South Shore bank.