JOSEPH P. CAMPANELLI – ‘Unique markets’

After almost five years as Sovereign Bank New England’s chairman and chief executive officer, John P. Hamill will relinquish his day-to-day duties and focus his time as non-executive chairman of the bank’s board beginning in January.

“Under John’s stewardship, Sovereign has flourished since entering New England in 2000,” Jay S. Sidhu, Sovereign Bancorp chairman and chief executive officer, said. “His knowledge of the region and experience with the financial landscape have been invaluable to our success in this market. We understand this decision at this stage in his life to play a different role and are fortunate that we will continue to benefit from his expertise and counsel.”

Joseph P. Campanelli, president and chief operating officer of Sovereign Bank New England, will replace Hamill and will have complete responsibility for all bank operations in New England.

Campanelli has played a major role in the bank’s growth since joining Sovereign in 1997. In 1999, he was active in the acquisition and conversion of the Fleet Bank divested business units. He was appointed to vice chairman of Sovereign Bancorp in September 2002.

Campanelli said both he and the bank have specific goals.

“We want to be a household name,” Campanelli said. “My goals are to significantly increase the rate of growth.”

Campanelli said he is confident the bank’s structure will allow it to grow to become a $100 billion bank. Currently, the bank has $60 billion in assets.

Attracting and retaining the best bankers in the marketplace is also a key priority, Campanelli said.

Campanelli said while he wants to see all of Sovereign’s activity in the New England area channeled to the bank’s headquarters, it is important to make managers at each local bank feel as if they are the bank’s leaders.

He recently announced that the bank’s leadership has been realigned to serve local markets with local decision-makers. The bank is touting the local appeal while still offering products and services typical of larger banks.

According to Campanelli, there will be five banking divisions in the New England sector with a chief executive officer or market chief executive managing each division. Market chief executives will be responsible for all business growth in their area and providing leadership to team members and the community.

“This is a deepening of our commitment to serving the communities in which we live and work,” Campanelli said in a statement announcing his promotion. “By aligning our leadership with the markets we serve, we will strengthen our ability to meet customers’ needs. With local leaders in place who know the community and by empowering them to make decisions based on what is right for their respective marketplace, we will have even more flexibility to respond to market demands. With the recent loss of local ownership and decision-making affecting New England’s largest banks, there is an opportunity to provide better community banking services to consumers, government, not-for-profits, small businesses and middle-market businesses. Sovereign Bank is totally committed to being the best community bank for customers in New England.”

Campanelli said Sovereign Bank is aware of the unique markets that exist in New England and explained how some of the areas will be divided. Western Massachusetts, because of its proximity to the Interstate 91 corridor, will be condensed into one sector with Connecticut, while Martha’s Vineyard and Nantucket also will be combined into one specific division.

“We are recognizing they are a unique market,” said Campanelli. “In New England, all banking is local … people really enjoy the opportunity to be recognized.”

The way a bank is structured depends on several factors, according to John Carusone, president of the Bank Analysis Center in Hartford.

“The decision to structure an organization is a personal one that is designed for ease in management oversight according to a CEO’s decisions,” he said.

How a bank is structured also has an impact on how effectively an organization functions, Carusone added.

Campanelli’s knowledge of the banking industry comes from many years of experience. Before joining Sovereign Bank in 1997, he spent almost 20 years serving in a myriad of executive positions with both Fleet and Shawmut Bank. Over more than two decades in the business, Campanelli has been instrumental in establishing key economic development programs with a variety of agencies and industry groups.

Campanelli also stays active in the communities that he serves. He works with the Boys and Girls Clubs of Boston and is a trustee of Tufts New England Medical Center. Campanelli also plays a leadership role with the United Way of Massachusetts Bay and will serve as the co-chairman for the organization’s 2005 fund drive. In addition, Campanelli will co-chair the 2005 National Conference for Community Justice. He is a member of the executive committee with the Boston Minuteman Council of the Boy Scouts of America and the board of overseers of the Boston Museum of Science.

Getting Even

Hamill, who will turn 65 in March, previously served as president of Fleet National Bank of Massachusetts from 1992 to 2000. Prior to that, he spent more than 12 years with Shawmut Bank as president. Before joining Shawmut, he served as president and chief executive officer of Banc One Trust Co. Hamill began his banking career in 1965 as deputy general counsel at Chemical Bank in New York.

Although his responsibilities will lessen at Sovereign, Hamill will remain involved with the bank by helping to attract new business and assisting in developing new talent for the organization.

Hamill said the bank will continue to be successful if it continues to grow at the same rate as the last five years. He said by naming local leadership to the bank’s various divisions, the bank is taking steps to have a more local feel.

Hamill also will work with the community boards that Sovereign has established throughout New England. In addition, he will continue to assist with acquisitions and mergers.

Like Campanelli, Hamill is heavily involved in community organizations. He is a member of the Tufts’ board of overseers of the Fletcher School of Law and Diplomacy and director of the United Way of New England. He serves as an overseer of the Boston Symphony Orchestra. He is chairman of the board of advisors to the Carroll School of Management at Boston College.

Both Campanelli and Hamill said the bank’s employees are a large part of the institution’s success.

“If you have great team members, you are sure to attract customers,” Hamill said.

According to Campanelli, there are 4,000 Sovereign employees in New England. He said it is important for each employee to understand that each community is unique.

The two men have worked together for many years and Hamill said passing the torch to Campanelli makes sense because his leadership in the New England market has been an integral part of Sovereign’s success over the last seven years.

Both Hamill and Campanelli said the bank has proved it could survive in these last few years.

“Many people doubted that we could make it,” said Campanelli. “It’s nice. You don’t get mad; you get even. We are up and running; we have a lot of momentum in New England.”

Sovereign is the 17th largest banking institution in the United States.