History
The Beginning
Early on the morning of May 6, 1873, seven-year-old Clayton Davis and his three-year-old sister, Ina, stood with their father, Nelson, on the front porch of the Davis Block. Built in 1870 on Main Street in the village of Florence, Massachusetts, the three-story brick building was home to Mr. Davis' pharmacy, the family's living quarters, and a number of other tenants, including the offices of Henry H. Bond, Attorney at Law.
Mr. Davis and his children entered the building, climbed the stairs to the second floor, and entered Attorney Bond's office. There, a small assembly of people greeted the Davis family. Young Clayton was ushered to a desk where Mr. Bond was waiting for him. Taking ten dollars from his pocket, he gave it to Mr. Bond who duly recorded "Clayton H. Davis, deposited $10.00" on the first line of a ledger book. Mr. Bond, acting in his capacity as the first secretary and treasurer, had just recorded the first transaction of the Florence Savings Bank. Clayton's sister Ina was next in line, and by the end of the day, 25 savings accounts, totaling $826.72, had been recorded in the ledger.
Community Roots
From the beginning, Florence Savings Bank has been a community venture. At the end of the Civil War, the village of Florence and its economy were expanding with the influx of new industries taking advantage of the water power provided by the Mill River. For the workers of the many mills and businesses in Florence and the neighboring Hilltowns, access to a bank was difficult. At the time, the nearest bank was miles away in Northampton, too far for frequent visits for most working people. Local civic and business leaders, led by Alfred T. Lilly, became concerned that the working citizens of their community needed a place to save their hard-earned money. In 1872, they formed a committee to petition the state for a charter for a local bank. On February 14, 1873, they received the charter and set about to open the bank.
With Alfred T. Lilly as its founding president, the bank opened for business and was an immediate success. Its trustees and corporators represented a cross section of the village, including business owners, merchants, farmers, and community leaders such as Samuel L. Hill who had created the Hill Homestead Fund, which provided home loans for village workers.
Success and Growth
During its first 20 years, the bank experienced rapid growth, which mirrored the success of the local mills and manufacturing businesses. In 1880, Henry Bond died unexpectedly and the trustees appointed Mary W. Bond, his sister, as his successor as secretary and treasurer. Ms. Bond was the first woman in the state to hold such a post. In 1891, having outgrown the rooms in the Davis Block, the bank moved into a two-story brick building next door.
By 1893, the bank's deposits had grown to $280,323. Mortgages were the main outlet for the bank's funds although there were also loans for horses, carriages, and some lines of credit for local businesses. By 1913, deposits had reached $629,000. In addition to regular savings accounts, the bank also offered a school savings program and Christmas Club accounts, all of which are still offered today.
By the late 1970s, the small brick building, occupied since 1891, was no longer able to accommodate the needs of either the customers or the staff. In 1978, with assets of $42,000,000, the bank constructed its present Main Office at 85 Main Street in Florence.
By 1986, success and growth had once again overtaken the bank's facilities. To meet the growing need, the bank opened its first branch office at the corner of King and Finn Streets in Northampton. Two years later, the bank added another branch in Williamsburg.
Beginning in the early 1990s, Florence Savings Bank's role as a community-based bank grew dramatically as many other local banks were taken over or merged with larger banks from outside the region. By continuing to emphasize its customer service and its commitment to the community, the bank experienced phenomenal growth, adding new branches throughout the Hampshire County area. Today the bank has offices in Florence, Williamsburg, Northampton, Hadley, Easthampton, Amherst, Belchertown and Granby as well as 7 stand-alone ATM locations.
As the bank has grown, it has continually added new products and services designed to improve customer service and customer convenience. These include drive-up ATMs, a 24-Hour Access Line, and FSBlink online banking with FREE bill pay.
A History of Commitment
Despite its rapid growth in recent years, Florence Savings Bank remains committed to serving the community as a local bank. Over the past few years, the bank has been a leader in community giving, distributing over $1,000,000 in the past three years alone. In 2002, the bank launched the Customer Choice Community Grants Program. This program, now an annual event, allows the bank's customers to vote for their favorite nonprofit organization to receive a share of a $50,000 grant.
Over 130 years after its founding by a group of local citizens, the bank is still depositor owned and its trustees and Corporators are all members of the local community. Now the largest independent Hampshire County bank with assets over one billion dollars, Florence Savings Bank has been the number one mortgage lender for the past fourteen years, is one of the area's top SBA lenders, and is one of the fastest growing local banks in the state.
