4 min read August 2023 — In an interview with Invest:, Daniel Griggs, president of the Greater Boston Region at OceanFirst Bank N.A., discussed the bank’s milestones in the past year, opportunities in the Boston market, strategies to navigate challenges, employee recruitment and retention, diversity initiatives, technology leverage and the banking industry’s outlook in the region.
What milestones has OceanFirst Bank achieved in the Greater Boston market over the past year?
I am pleased to share that our first 24 months since we began providing commercial banking services to the greater Boston area have been tremendously successful. Within 12 months, we attracted multiple significant client relationships and although there have been challenges as a new bank in the market, we believe we are well-positioned. When you consider the top 25 banks in Massachusetts, there are around six to eight national super regionals, then about 80% with assets under $10 billion. OceanFirst is a $14 billion bank headquartered in New Jersey, so we are operating in that desirable middle range of the top 25 banks serving Massachusetts which has proven to be a sweet spot for us in terms of success.
OceanFirst’s entry into Boston is part of an expansion strategy that began about five or six years ago, successfully entering the New York City and Philadelphia markets. Two years ago, we further expanded into Boston and Baltimore. Our approach involves identifying markets with potential and building strong operations there, a strategy that has been successful for us.
I joined as the Boston region president just over two years ago, amid the pandemic. Establishing OceanFirst in Boston involved hiring new Boston-centric team members and securing office space. Initially, we operated with three people. However, despite the circumstances, we had a fantastic six months, conducting successful business and have steadily grown our team to nine individuals
What opportunities do you see in the Boston market and what trends have you noticed in the industry?
There are tremendous opportunities to provide financial services to companies in our vibrant Boston market. When OceanFirst initially launched, our primary focus was on the commercial real estate segment. However, the recent rise in interest rates has caused a slowdown in that particular area. Fortunately, 80% of our lenders are seasoned bankers dedicated to creating customized loan solutions, specifically in the commercial and industrial (C&I) sector. We have been gaining excellent traction in this area and it is our current focus. We aim to provide a comprehensive range of services, including lines of credit, owner-occupied loans for real estate, treasury/cash management and deposit services. Commercial clients who choose OceanFirst benefit from our full suite of products and services that are comparable to those offered by larger banks, however often more affordable, while tending to exceed the options provided by smaller banks.
What potential challenges are you monitoring and what strategies do you have in place to navigate them?
While interest rates have posed challenges for borrowers, it’s important to note that businesses thriving in the current environment may not be as heavily affected by interest rate fluctuations. For instance, this year, we financed a new boat for a transportation company that is experiencing growth and making smart capital expansions. In such cases, the rise in interest rates may have minimal impact compared to the slowdown observed in the investment real estate sector. Overall, if businesses are performing well, they often continue with capital expenditures despite the increase in interest rates. At OceanFirst, initially, our main challenge revolved around brand recognition. However, having spent my entire career here, I would describe Boston as a small big city, and leading a team of Boston-centric bankers we are making great strides in introducing OceanFirst in our communities.
What strategies are you implementing to recruit and retain employees?
One of the appealing aspects of joining OceanFirst is the opportunity to have access to senior management. This is a benefit we offer both internally to colleagues and externally to customers. It was attractive to me personally and it’s also a draw for the individuals we hire. Our CEO, president, and even our chief credit officer regularly visit our Boston office and the OceanFirst board of directors even planned a routine monthly meeting in Boston, which further emphasizes the accessibility of the bank’s leadership.
We recruit and hire banking professionals who are knowledgeable about the local market and have established relationships throughout the Boston region. The allure of joining OceanFirst lies in being part of a flexible, growing organization. The access to leadership is very attractive to me but also resonates with our clients and colleagues who have joined us.
How does the bank promote diversity, equity and inclusion?
We have a series of bank-wide seminars and webinars where employees can attend and gain valuable insights. We have been fortunate to host an excellent variety of speakers who discuss various topics, including challenges faced by the community. As a result, we have developed a deep appreciation for these discussions.
One message I always emphasize to team members, both within my office and across the Bank’s franchise, is the importance of active community involvement. It doesn’t matter what activities they choose to engage in, whether it’s through their community leaders or supporting local youth softball or baseball teams. The key is to contribute in some way.
How is OceanFirst Bank leveraging technology?
We have embraced technology in a forward-thinking manner and this has enabled us to establish our commercial banking office here in Boston. The progress made in technology over the past decade has been instrumental in this endeavor. Our OceanFirst Boston office is currently operating primarily to serve commercial banking clients. Our customers can conduct all their banking activities online, thanks to our advanced technology infrastructure. With features such as remote deposit capture and the ability to transfer funds, we offer comprehensive treasury and cash management services. The suite of products we provide for our commercial customers leverages technology to deliver a seamless and efficient banking experience. It is truly exciting to witness how technology has transformed the industry, not only for retail banking but also for commercial banking. The same convenience and accessibility available to personal banking customers can now be enjoyed by our commercial clients — a capability that would have been inconceivable a decade ago.
What is your outlook for the next two years in the banking industry in the region?
Throughout the industry, banks are now prioritizing deposit growth, which has proven to be very competitive in recent months and will likely continue throughout 2023 and 2024. Our approach at OceanFirst Bank aligns with this trend, as we also focus on deposit growth while balancing resources to assist our clients with borrowing needs. Specifically, we concentrate on offering commercial lines of credit and catering to businesses in the commercial and industrial (C&I) sector.
When it comes to economic indicators, we closely watch stock market performance, interest rates, and unemployment. OceanFirst Bank, as a Main Street bank, focuses on strong employment rates, ensuring the banking industry’s strength. Recent data, including employment figures and inflation numbers, indicate a positive trend and many are optimistic that we will have the “soft landing” that has been discussed for so long. Robust employment is beneficial for many industries, including banking.
Our Commercial Banking Center in Boston serves clients from various sectors. For example, a transportation company operates efficient boater ferries, serving commuters and holding contracts with the Mass Transit Authority. Near Cambridge, a renewable energy lab startup accommodates tenants and focuses on renewable energy. Boston’s strength is enhanced by the presence of the medical and educational sectors, known as “eds and meds.” The city’s excellent medical facilities and prestigious educational institutions foster advancements in life sciences, driving the local economy and creating optimism for a two-year outlook in the region.
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