‘Wonderful Life’ bank: A bank doing the right thing

With their high fees, foreclosures and the number of families left scrambling to keep their homes, these days banks are known more for taking than for giving.

James C. Smith, president Webster Bank, is working to change that perception. He doesn't believe that all the George Baileys, the kind-hearted banker from the holiday classic "It's A Wonderful Life," have vanished.

"George Bailey was there to help his customers when they needed him, and I think that's a lot of what we're all about, and that's why it's so meaningful to us," said Smith.

Smith's father founded Webster Bank during the Great Depression to help those who were struggling to buy and build their homes. The bank expanded over the years, and now has more than 150 branches in four states. Despite the growth, Smith said the notion of profiting by helping people is still its bedrock.

Instead of moving quickly to foreclose and cover losses, Webster Bank is committed to helping families stay in their homes.

"We have a responsibility to our customers to work with them. I think of it as being in our DNA. We're there to work with our clients, to help them through a very difficult time," Smith said.

Webster Bank owns 75 percent of the loans it services, so customers don't have to deal with mystery lenders. Customers also know who to go to when in trouble, because the bank assigns all customers a loan modification officer who works with them one on one.

Bonuses at Webster Bank are also tied to the number of loans modified, not foreclosures, and to families such as the Carapasos, that makes all the difference.

Read on.