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COVER STORY

"The neighborhood bank, if that's what you want to call it, is alive and well." Joseph B. Reilly, president and CEO of Centrix Bank.

Beyond the attractive deposit and loan rates and beyond the smiling tellers and the free lollipops, Seacoast banks are battling homelessness, hunger, animal cruelty, and urban blight. The list of causes goes on and on, often overlooked as these institutions compete for customers or please shareholders.

The financial contributions made in various philanthropic endeavors are part of an obligated community reinvestment program, but bankers say the good corporate neighbor role strengthens their market and their livelihood.

"The neighborhood bank, if that's what you want to call it, is alive and well," said Joseph B. Reilly, president and chief executive officer of Centrix Bank.

For Reilly, a New Hampshire native with 28 years in the business, being a good partner in community development is more than mere marketing. It is central to a bank's mission: to serve its community.

The giving and partnerships are more than simply living up to the Community Reinvestment Act, enacted in 1977 as a way to encourage banks to meet the needs of low- and moderate-income neighborhoods. But it is part of the same community-centric mission. The projects are many and the charitable arms of banks are more sophisticated than a few years ago.

TD Banknorth has a charitable-giving arm, the TD Banknorth Charitable Foundation, to serve individuals, families and businesses in each of its markets. The bank supports a long list of nonprofits, including the United Way of the Greater Seacoast, New Hampshire Audubon Society, childrens' museums, and child-care centers.

Ocean National Bank last year gave a $3,000 grant to help the Children's Museum of Portsmouth bring some of its programs to under-served areas in Manchester, Nashua and Concord.

Some donations are quite steep. Last year, Ocean National announced a $30,000 commitment to the Currier Museum of Art for its expansion and $12,500 for revitalization efforts in downtown Rochester.

"This is a strong group and a very worthwhile endeavor," said Danny H. O'Brien, Ocean National president and CEO, at the time. "We know this program will make a tremendous difference for the Rochester community, and we're pleased to be a part of it and support it."

Sovereign Bank, with 21 banking offices in New Hampshire, has a "spirt of your neighborhood" campaign as a mechanism to distribute financial support to nonprofit agencies. The guidelines call for 35 percent to 45 percent to be invested in economic development programs, including affordable housing, and 15 percent to 25 percent invested in each health and human services and youth and education programs. Arts and culture initiatives get the remainder. Habitat for Humanity is among Sovereign Bank's beneficiaries.

Citizens Bank, through its charitable arm, is giving $85,000 to help homeless shelters across New Hampshire with their heating bills this winter.

"What we have learned is that more and more individuals in New Hampshire are turning to shelters in times of need, for housing, for food, for support," Cathy Schmidt, president and chief executive officer of Citizens Bank New Hampshire, said in announcing the contribution late last year. The Citizens Bank Foundation focuses on charitable efforts on housing, community development and basic human needs.

Centrix Bank last year pledged $5,000 to the Animal Rescue League of New Hampshire, $12,500 to the New Hampshire Alliance of Regional Development Corporations, and $10,000 to the Market Square Steeple Fund to support the restoration of the North Church steeple in Portsmouth.

When the contribution was announced, Centrix Senior Vice President Stephen Witt Jr. said it was in living up to the bank's responsibility to be a community partner. "This is one of those projects that just can't be overlooked," he said.

As other banks have done, Centrix Bank restructured its community development and reinvestment efforts to better meet an increase in requests for donations. In November, the bank announced a policy to better prioritize contributions, thus establishing the Community Investment Policy and the Community Outreach Program. Charitable causes are evaluated annually and contributions made based on several factors, including community need.

"As a smaller organization, we're proud of what we've done," said Reilly.