Ivy Leaguer leaves key post at NBT Bancorp of Norwich

CNY Business Journal (1994-95), Apr 17, 1995 by Grossman, Naomi

Normally, options are reserved for existing employees as an incentive to stay and help improve the total shareholders' equity. Asked about the decision to grant stock options to Butare when he was leaving the bank, Forsythe said through a spokesman that it is "between the board and Mr. Butare and will stay that way." All of Butare's new options expire on January 31, 1997.

After Butare left, the board decided to elect Forsythe, who was a director of the bank since 1988 but has no other banking background, to succeed him. Forsythe previously was general manager of the B.F. Goodrich Aerospace engine electrical systems plant in Norwich and has held several management positions in the aerospace industry.

Forsythe acknowledges his lack of experience in the banking industry. "It is unusual, but the people who work for me have good banking skills, and I have the management skills, so I think it is a good combination," he says. "I am a known commodity in this area and so far, so good."

Forsythe is quick to add that he and his wife are presently househunting in Norwich. Along with Forsythe, the old guard is stepping back into NBT to straighten things up. Everett Gilmour reclaimed the position of chairman of the board of NBT Bancorp, Inc., which he had for 16 years until 1989, when he retired. John D. Roberts returned to his former position as head of the trust division.

One of the first things Forsythe did was open up the doors both to his office and to the bank's conference rooms, where he allows local organizations to hold their meetings.

The lending authority is back in the local branches, and Forsythe says that the goal of the bank now is to restate its roots. "We were looking to grow, but we may have lost focus," he says. "We will be looking to build the community loan base and the retail base. We will also be looking at customer service so that we can be a better community bank." Forsythe says that his dream is to grow the bank and keep it independent.

Warren Heller, research director at Veribank, a bank-rating firm, says that NBT is still considered a strong, well-capitalized institution, and it has recently received special recognition for meeting unusual standards for safety and soundness.

The final word, however, may come from the community itself. "I am looking forward to doing business with the new president," says McNeil, the jeweler. "I think the bank is going to be more stable now."