Newburyport native leads historic bank into future

By STEVE LANDWEHR
Special to Essex County Newspapers

From its massive mahogany doors, flanked by brownstone columns and arched windows, to its graceful cobblestone pathway, the Institution for Savings looks like an elegant grande dame. That befits its status as the nation's oldest continuously operating mutual savings bank.

Originally chartered in 1820, the bank operated in numerous locations, including the Selectmen's Office in Town Hall, before land for its current building on State Street was purchased in 1870.

To accommodate the need for greater space, an addition was constructed behind the bank in 1980, and a lending office across the street is opening this year.

As the bank strides confidently into the modern, high-tech world, its president, Donald D. Mitchell, is keenly aware of the tradition that became his responsibility in 1992.

"We live on our reputation and heritage," Mitchell says. "One of our biggest responsibilities is preserving this antique building. This is the oldest mutual savings bank in the country, and we have a tremendous history and reputation. I think anybody who ever sits in this chair has to be very conscious that they can either preserve it or destroy it."

The 60-year-old Newburyport native began working at the bank as a teller in 1961, after completing four years' study at Bentley College. He was facing military service and had every intention of going into the Air Force until the bank treasurer suggested he join the National Guard for six months and then come to work at the bank. "It sounded like a good alternative, and it was probably one of the best decisions of my life," Mitchell says.

Following their marriage, he and his wife moved to West Newbury in 1965 where they raised three children.

When Mitchell began at the bank, he was one of only eight employees, who pitched in on whatever task needed doing.

That teamwork continues to this day. Mitchell says the bank's 36 full-time employees are about half the number at similarly sized banks, and that each of his employees deals with three times the number of deposits employees at other banks handle.

"I think a lot of it has to do with the nature of our employees," Mitchell says. "Many of them have a lot of longevity with us, and they remember the days past when you did whatever needed to be done. It didn't matter what your job description was _ you knew the work needed to be completed, and if it was there, anybody did it. There's still a lot of that mentality, from me on down, and I think it works."

But Mitchell is well aware that the bank, despite its grand history, couldn't do what it does now or what it hopes to do in the future without the help of the computer. He views technology as the best way to reach more customers and compete with larger banks that might have numerous branch offices.

Automatic teller machines allow the bank to provide expanded hours and expanded locations, and plans are under way to provide full-service banking needs on the Internet.

But while the bank seeks to expand its customer base, Mitchell says it remains committed to Newburyport and the surrounding area, noting that because a mutual savings bank is owned by its depositors, it has a responsibility to invest in its community.

"You can't look at an establishment that's been around Newburyport since 1820 and has been as successful as the bank, and has earned the tradition and reputation the bank has, without giving an awful lot of credit to the community," he says.

"We are the community. Our depositors in this community have made the bank what it is, and it's up to us to give back in support of the community. And the success of the community flows back to us, some of it very indirectly, by our nature. But the success of Newburyport is seen in the bank and vice versa.

"We like to think we've always been a great supporter of the community, that we've always been here to answer needs, and I think the majority of people would agree with that."

Mitchell, who was named bank treasurer in 1967 before taking over as president seven years ago, is unconcerned about the merger mania sweeping the banking industry. He believes that as those banks get larger and larger, some of their customers will turn to smaller banks, seeking a personal touch and familiar faces.

"There is a segment of the population that feels they want to come home and sit down and talk to somebody. And that's the enjoyable part of banking," he says. "Ninety percent is processing, but 10 percent is where you really get involved with people and that's what it's all about, that's the reward."