2015 annual report - coastal enterprises, inc. · pdf fileei changes lives through a holistic...
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© Copyright 2016 Coastal Enterprises, Inc.
Investing for Good
A N N UA L R E P O RT 2 0 1 5
CEI 2015 ANNUAL REPORT2
CEI FINANCES BUSINESSES AND PROJECTS IN MAINE, THE NORTHEAST, AND ACROSS RURAL AMERICA
CEI Loans and Investments
This is Ron Phillips’ final CEI annual
report. Ron’s vision, creativity,
indefatigable energy and leadership
have been critical to CEI and a
driving force for the welfare of
people in Maine and rural America
since he rode his motorcycle up the
coast 38 years ago. Ron, we thank
you and wish you all the best on
the next leg of your journey.
THE BOARD AND STAFF OF CEI
Our sincere thanks to Ellen Golden,
SVP and Managing Director of
CEI Investment Notes, Inc. and
Alice Hudyberdi, Executive
Associate, who both stepped away
from CEI in 2015 after 38 and 32
years respectively. Our organization
would not be what it is today without
their countless contributions and
commitment to our mission.
CEI 2015 ANNUAL REPORT 3
Dear Friends,
Over the past 38 years, our organization has steadily invested in people, places, and
enterprises in Maine and in rural communities throughout the United States. Our
mission is to help create economically and environmentally healthy communities in which
all people, especially those with low incomes, can reach their full potential. We believe in
the power of investment as a means to build a more equitable world.
CEI changes lives through a holistic approach to community economic
development. Our promise to create change means understanding the sectors and
systems that support a vibrant, sustainable economy. We lead efforts to strengthen
agriculture and food systems, fisheries and aquaculture, forestry, nature-based tourism,
renewable energy, community facilities, affordable housing, and sustainable real
estate development. Directly and with our many partners, we provide a wide array of
financing solutions and advising services for business owners. We advance policies that
create opportunity.
With total assets of nearly $120 million, a net worth of $43 million, and
overall capital under management of $770 million, CEI is a proud member of the
Community Development Finance Institution (CDFI)/Community Development
Corporation (CDC) industry. Since its inception in 1977, CEI has mobilized $1.2
billion in financing for over 2,555 businesses and community development projects.
Throughout CEI’s history, our strategy has been to anticipate and mitigate the
impacts of a changing world that has not always been kind to the communities
we serve. In the past year, we saw broader attention to both climate change and
inequality—two of our long-time concerns. Pope Francis’ landmark encyclical,
The Care for Our Common Home, called for climate change awareness and action
around the world. This was followed by the United Nations Conference on Climate
Change in Paris, where 195 nations convened to address the impact of human
existence on our planet. Inequality has become the focus of much attention and
rhetoric; we hope policy change and community engagement will turn this nation
toward greater equality of both opportunity and outcome.
There is good news: individual and institutional investors and asset managers
increasingly apply “ESG” (Environment, Social and Governance) criteria to the
businesses and markets in which they invest, a practice commonly referred to as
“impact investing.” The CDFI/CDC industry’s approach to impact investing for
social and environmental benefit is gaining traction with investors, while targeting
resources to low and moderate income communities, individuals, children, and
families who are suffering. Please join us on our journey to make a difference,
from Civil Rights to Sustainable Solutions.
Ronald L. Phillips Ellen Seidman President and CEO Chair, Board of Directors
Capital Under Management/Committed $770 million
Businesses Financed 2,555
Amount Financed $1.194 billion
Amount Leveraged $2.43 billion
Businesses/People Advised 49,786
Full-time Jobs at Loan Closing 33,103
Affordable Housing Units Created/Preserved 1,882
Child Care Slots Created/Preserved 5,806
2015 IMPACT CEI AND ITS SUBSIDIARIES
INVESTED $38 million
CREATED/RETAINED 374 jobs
FINANCED 3 businesses
CCMLCEI CAPITAL MANAGEMENT LLC
INVESTED $829,900
CREATED/RETAINED 713 jobs
FINANCED 5 businesses
CVICEI VENTURES, INC.
CHI
PROVIDED 278 affordable housing units
LOCATED in 17 communities in seven counties in Maine
SERVED 560 individuals, seniors, and families
NUMBER OF PROJECTS 20
PORTFOLIO VALUE $35.4 million
CEI HOUSING, INC.
C7a
SMALL BUSINESS LENDING COMPANY (SBLC)
LICENSE ACQUIRED
Open for business in 2015
CEI 7(a) Financing LLC
LOANED/INVESTED $20.6 MILLION Microloans $1 million
Small Medium Enterprise $12.5 millionHousing $6.6 million
CREATED/RETAINED 1,388 JOBS
FINANCED 97 BUSINESSES
CREATED/RETAINED 195 CHILD CARE SLOTS
ADVISED 3,287 BUSINESSES/PEOPLEHousing Counseling 959
Business Development Services 2,328 CREATED/RETAINED 212 AFFORDABLE
HOUSING UNITS
CEIINVESTED $2.2 million
CREATED/RETAINED 93 jobs
FINANCED 17 projects
CREATED 11 units of affordable housing
CEI NOTESCEI INVESTMENT NOTES, INC.
CEI CUMULATIVE IMPACT
1977-2015
CEI 2015 ANNUAL REPORT4
CEI FINANCING: $480,000 for Greenhouse purchase and construction
CEI TEAMS : CEI Investment Notes, Inc.; Lending & Investing, Sustainable Agriculture and Food Systems Program
WEBSITES: littleriverflowerfarm.com archsolar.net
Less than 30 minutes west of downtown Portland, Maine, Bruce and Nancy Stedman have been growing MOFGA certified flowers and produce at Little River Flower Farm for over 15 years. Looking to diversify and scale their production and grow year-round, the Stedmans invested in an ArchSolar integrated solar greenhouse. The project was financed with loans from CEI and CEI Investment Notes, Inc.
CEI’s understanding of the renewable energy and agricultural sectors was critical to closing the loan. The greenhouse features flexible solar panels integrated into the glazing, supplemental
lighting and heat storage systems, making it economically and environmentally sustainable. These factors informed the loan process, a “first” for CEI in terms of greenhouse technology underwriting.“One challenge of helping small farms scale production and adopt year-round agriculture is capital. CEI is filling that need, allowing farmers to increase their margins and contribute to regional food systems more predictably and with better returns,” said Tony Kieffer, Founder, ArchSolar.
Little River Flower Farm BUXTON, MAINE “CEI understood the innovative nature of the project from the get-go and worked with us at every step to see us through to closing.”
BRUCE STEDMAN Owner, Little River Flower Farm
CEI CAPITAL MANAGEMENT LLC
CEI 2015 ANNUAL REPORT 5
CEI 2015 ANNUAL REPORT6
Maine’s grassy, rocky pastures have supported dairy herds for centuries, contributing to a long history of dairy farming. In recent decades, however, Maine has been losing dairies at a steady pace. Since dairy is largely considered the backbone of agriculture infrastructure, the loss of dairy farming can be devastating to agriculture as a whole. Despite this challenging economic reality, bright spots dot the landscape. Bo’Lait Farm is one of them—a ray of hope to a sector in decline – illustrating the future of dairy and agriculture in our rural Northeastern state.
In launching Bo’Lait, Conor and Alexis Macdonald are bringing life back to a farm that had been out of operation since the mid-1970s. With extensive farming and animal husbandry experience, they represent the next generation of organic dairy farmers building viable, profitable farm businesses, and continually striving to adopt best herd health and pasture management practices. Certified as an organic dairy by Maine Organic Farmers and Gardeners Association (MOFGA), Bo’Lait sells milk to Organic Valley, the leading source of organic milk in the nation.
Bo’Lait Farm WASHINGTON, MAINE
“CEI worked with us through the loan process, developing everything that goes into that. There were a lot of roadblocks, but they stuck with us the entire time - we didn’t quit, and they didn’t quit either. People stop by and they love seeing the cows out in the pasture, and they love seeing us milk the cows. There used to be four or five dairy farms here 30 years ago, and until we got here, there were no dairy farms, so it’s something that’s vanishing in the landscape in Maine. People are excited to see it coming back.”
CONOR MACDONALDCo-owner, Bo’Lait Farm
CEI FINANCING: $168,600 for 45 organic dairy cows, a new barn, and milking parlor equipment
CEI TEAMS: Sustainable Agriculture and Food Systems Program, Lending and Investing, CEI Investment Notes, Inc., Business Development Services
PARTNERS: Farm Services Agency
CEI 2015 ANNUAL REPORT 7
To reach Lana’i, Hawaii’s smallest publicly-accessible inhabited island, there are two options: a $200 roundtrip flight from Honolulu or a $60 ferry ride from Maui. For the 44% of the island’s population that live at or below 200% of the Federal Poverty Level, the only option for affordable on-island health care is the Lana’i Community Health Center (LCHC). LCHC previously operated out of a converted three-bedroom home, unable to provide adequate healthcare to the remote island community. Missing services included obstetrics, mammography, psychiatry, inpatient substance abuse treatment, and oral health care. Typically, babies were born in Honolulu or Maui, and mothers-to-be relocated pre-term to avoid endangering themselves or their babies.
In order to improve access in this remote rural community, CEI Capital Management LLC (CCML) utilized the New Markets Tax Credit (NMTC) program to attract private capital to the project, constructing a 6,800 square foot health care facility built to LEED standards. The facility nearly doubles LCHC’s patient capacity, accommodating 856 additional patients annually. It includes nine exam rooms, dental x- ray machinery, two dental operatories, lab facilities, conference and administrative offices and a community activity room.
NEW MARKET TAX CREDIT INVESTMENT: $8 million
COMMUNITY BENEFIT: $80,000 to support an internship program
CEI TEAM: CEI Capital Management LLC
PARTNERS: U.S. Bancorp Community Development Corporation, Pacific Growth Associates
Lana’i Community Health Center LANA’1, HAWAII “CEI’s show of faith in our organization and our project was tremendous. This was a complicated project and it would have been easy to walk away, but CEI stayed involved, listened to the truth, and proceeded with our project. Mahalo nui loa, Maraming Salamat. We are forever grateful for CEI’s efforts and belief.”
DIANE V. SHAW, PhD, MBA, MPH, FACMPE
Executive Director, Lana`i Community Health Center
CEI FINANCING: $150,000 Loan for wharf expansion and dredging.
CEI TEAMS: Sustainable Fisheries and Aquaculture Program, Lending and Investing
PARTNERS: Key Bank, Maine Department of Marine Resources, Land for Maine’s Future Program
CEI 2015 ANNUAL REPORT8
By all measures Maine’s lobstering industry is an economic powerhouse, providing thousands of jobs and adding more than $1 billion annually to the state’s economy. This bright picture, however, belies two startling statistics: a very small percentage of Maine’s 3,500 mile coastline provides commercial access to fishermen and nearly half the licensed lobstermen are over the age of 50. Transitioning this industry to the younger generation, while preserving working waterfront access, is crucial to the future of Maine’s economy.Purchased in 1978, Millers’ Wharf in Tenants Harbor serves as home base for a lobstering business operated by the four Miller brothers and their extended families.
Over twelve years, CEI worked closely with the Millers, providing a loan in partnership with Key Bank to expand the wharf and dredge so that bait and catch can be off-loaded regardless of the tide. With CEI financing, the Millers added four hoists, increasing efficiency and the number of boats they could serve. CEI also helped the Millers secure the property through the Working Waterfront Access Protection Program, ensuring access not only for future generations of Miller fishermen, but to other Tenants Harbor fishermen as well.
Millers’ Wharf Lobster LLC TENANTS HARBOR, MAINE “Without CEI, this project never would have flown. It was clear from the start that CEI had an in-depth knowledge of the fishing industry and understood the importance of preserving the working waterfront.”
HALE MILLER Co-owner, Millers’ Wharf
CEI 2015 ANNUAL REPORT 9
CEI VENTURES INVESTMENT: $250,000 for working capital and expansion
CEI TEAMS: CEI Ventures, Inc., Sustainable Agriculture and Food Systems Program
PARTNERS: FreshTracks Capital and Village Ventures
Global water resources are under pressure due to dramatic increases in demand and climate change. The World Bank notes that about 700 million people lack access to safe drinking water. That number is expected to rise as water scarcity and sanitation issues plague developing countries.NativeEnergy develops, structures, and finances impact projects providing investment opportunities that further the sustainability and business goals of its corporate partners. The company’s water filter distribution projects in Kenya, Ghana, Ethiopia, India, and Honduras help prevent waterborne illness, a leading cause of
death for young children. Families in these countries have to make a daily choice: use polluting woodstoves, fueled by scarce and expensive charcoal or wood to purify their water, or risk serious disease. NativeEnergy brings private-sector funding to solutions that reduce greenhouse gases and give families sustainable, healthy alternatives. With help from CEI’s Sustainable Agriculture and Food Systems program, NativeEnergy got a CEI loan that positioned them for a $250,000 investment from CEI Ventures to expand project origination and development capabilities.
NativeEnergy BURLINGTON, VERMONT “CEI is an ideal partner for NativeEnergy. Their long-term view on sustainability and understanding of the impact investing space provides value to our evolving Corporate Impact Investment practice. We look to them not only as a board member but also a business partner.”
JEFF BERNICKE CEO and President
Native Energy
CEI 2015 ANNUAL REPORT10
At ARWO Learning Center, located in Portland, Maine, you find faces of the future: ARWO’s young charges, and its founder, Naima Abdirhmon, who immigrated here from Somalia. Naima’s mother, a successful business owner, was one of StartSmart’s first clients. Naima attended Portland public schools and then earned a Doctorate of Pharmacy Degree from University of New England. While volunteering at Deering High School, she decided she also wanted to educate young people and help them succeed. And with that, ARWO Learning Center was born.
ARWO opened in April 2015 on Forest Avenue, a hub for immigrant and refugee businesses in the city. In just under a year, the center has grown to an enrollment of 47 children. ARWO means “prosperous” in Somali—the center’s wish for every child in its care. Naima worked closely with CEI’s StartSmart business development program for immigrants and refugees and the Portland Jobs Alliance to identify, train, and hire six staff members, including five new Mainers.
ARWO Learning Center PORTLAND, MAINE “It has been a blessing to have a CEI StartSmart business counselor on my team. My business counselor and mentor Tae Chong has been my biggest cheerleader – he is insightful, experienced, and always has my company’s best interests at heart.”
NAIMA ABDIRHMONOwner, ARWO Learning Center, LLC
CEI FINANCING: $35,000 working capital loan
CEI TEAMS: StartSmart, Workforce Solutions, Lending and Investing
PARTNERS: Portland Jobs Alliance
WEBSITE: arwochildcare.com
Artesan, hand-painted yarn is a premier product for knitters, highly coveted for its unique attributes and character. Paula and Stephen Farrar of Charlotte, Maine, a small town in rural Washington County, capitalized on the market demand for this niche product to build a successful business. Former organic sheep farmers, the Farrars purchase almost all of their wool from small domestic farms in the area. With help from CEI’s Women’s Business Center (WBC), the Farrars built their fledgling home business from the ground up, starting in their basement in 2011. Four years later,
Paula and Stephen were recognized as the New England and Maine SBA 2015 Home-Based Business Champions of the Year and subsequently moved Done Roving into a 5,000 square-foot state-of-the-art manufacturing facility.“With a strategic plan, diligence, and creativity, the Farrars methodically grew their business, taking on sales representatives from competitors who had closed and innovating with new products,” says WBC Business Counselor Ruth Cash-Smith.
Done Roving CHARLOTTE, MAINE “Running any business is challenging. Running a business with your spouse can be even more so. Ruth [Cash-Smith] helped us build on our individual strengths and kept us focused on our plan and growth strategy. She understood the nature of our business as well as our challenges and opportunities.”
PAULA FARRAR Owner, Done Roving
CEI Participation: 42 hours of business advising
CEI TEAM MEMBER: Women’s Business Center at CEI
PARTNERS: Camden National Bank, U.S. Small Business Administration
WEBSITE: doneroving.com CEI 2015 ANNUAL REPORT 11
CEI 2015 ANNUAL REPORT12 CEI 2015 ANNUAL REPORT12
The remarkable resurgence of craft breweries over the past decade sparked founder Joel Alex’s dream of using local grains in the crafting process. With financing from CEI and CEI Investment Notes, Inc., and support from numerous individuals and organizations in Maine and beyond, Blue Ox Malthouse is poised to become the premier supplier of conventional and organic malt from Maine-grown grains.
The company connects the 5,000 acres (equivalent to 14 million lbs. or 7,000 tons) of malting barley grown in Maine to the $35
million in-state market opportunity of Maine-based breweries. Blue Ox Malthouse also provides an ancillary benefit to Maine’s agriculture sector by creating a market and increased opportunity to supply more crops to local retailers. In addition to financing 40 percent of the debit capital for Blue Ox Malthouse’s equipment costs and line of credit, CEI’s Business Development Services and Sustainable Agriculture and Food Systems program advised Joel throughout the earliest stages of this compelling business startup.
Blue Ox Malthouse LISBON FALLS, MAINE “From my first visit with CEI Small
Business Development Center
counselor Janet Roderick as a
budding entrepreneur, through
our successful loan application,
CEI has been an integral support
system for growing our company–it
still is.”
JOEL ALEXOwner and founder, Blue Ox Malthouse
CEI TEAMS: Business Development Services, Sustainable Agriculture and Food Systems Program, Lending and Investing, CEI Investment Notes, Inc.
PARTNERS: Maine Institute of Technology, Maine Center for Entrepreneurial Development, Maine Manufacturing Extension Project, Maine Grain Alliance, Libra Foundation and many others
WEBSITE: blueoxmalthouse.com
CEI 2015 ANNUAL REPORT 13
CE I STAFF
ADMINISTRATION and GENERAL MANAGEMENT Officers Ronald L. Phillips, President & CEO Corenna Howard, COO David Wedick, CFO Accounting Crystal Burnham, Senior Staff Accountant Debra J. Gibb, Director of Accounting David A. Pease, Housing Staff Accountant Beth L. Raburn, Accounting Administrator Jessica D. Stover, Accounting Administrator Izabela Werner, Staff Accountant Mark Wrenn, Staff Accountant
Data Management Kevin Smith, Data Analyst
Human Resources Sarah Brown, HR Generalist Colleen Ippolito, Director of HR
Office Keith Burrell, Office Coordinator Michelle Smith, Special Projects Coordinator
Policy, Research and Corporate Development Keith R. Bisson, SVP, Program Management & Development Laura Buxbaum, SVP, Public Policy & Resource Development Carla B. Dickstein, SVP, Research & Policy Development Elizabeth Rogers, SVP, Marketing & Communications
Information Technology Jesse Cole, Director Eric Cordeiro, Systems Administrator Jeremy Johnson, Systems Administrator
BUSINESS DEVELOPMENT SERVICES Jennifer L. Sporzynski, Senior Program Director
Maine Small Business Development Center
Betty J. Egner, Certified Business Advisor Thomas L. Gallant, Bangor Center Director, Certified Business Advisor David R. Hill, Center Director, Certified Business Advisor J. Ann McAlhany, Certified Business Advisor Janet M. Roderick, Certified Business Advisor W. Bradshaw Swanson, Maine Master Certified Business Advisor
StartSmart Tae Chong, Certified Business Advisor Jill M. Lorom, IDA Project Coordinator John E. Scribner, Director, Business Advisor
Women’s Business Center Ruth Cash-Smith, Certified Business Advisor Betty J. Gensel, Program Director, Certified Business Advisor Kate Curran, Training & Outreach Coordinator Sarah Guerette, Program Director, Certified Business Advisor
LENDING & INVESTING
Thomas P. Burnham, Director, Loan Quality & Compliance Michelle L. Chartier, Loan Services Administrator John Egan, SVP, Lending & Investing Mark A. Jennings, Loan & Investment Officer Sarah Matel, Chief Credit Officer Cole Palmer, Loan & Investment Officer Bethany A. Richards, Loan Group Administrator
Tyrell A. Russell, Loan Services Administrator Arthur M. Stevens III, Loan & Investment Officer
HOUSING COUNSELING & EDUCATION Margaret J. Grant, Administrative Assistant Linda E. LaJoie, Housing Counselor Mechelle I. Nash, Housing Counselor Jason W. Thomas, Director
HOUSING & PROPERTY MANAGEMENT Chris Kelley, Construction Analyst
NATURAL RESOURCES & SUSTAINABLE COMMUNITIES Sustainable Agriculture & Food Systems Gray Harris, Director Daniel E. Wallace, Associate Director
Sustainable Fisheries & Aquaculture Richard D. Clime, Project Developer, Working Waterfront Hugh S. Cowperthwaite, Director, Fisheries Project
WORKFORCE SOLUTIONS Christa S. Baade, Program Developer Elizabeth Love, Program Developer Paul J. Scalzone, Director
SUBSIDIARIES AND AFFILIATES CEI Capital Management LLC Tad S. Atwell, Executive Vice President, Lending & Investments Aimee E. Cates, Asset & Relationship Manager Elizabeth Chenevert, Compliance Assistant Patricia Crafts, Office Manager & Executive Assistant
Thomas J. Dolan, COO Jane Elvidge, Staff Accountant Didier P. Hakizimana, Senior Accounting Manager David A. Hays, CFO Jackie Lynds, Treasury and Loan Servicing Manager D. Jesse McKinnell, Revenue & Fund Development Officer Charles J. Spies III, CEO Leah B. Thibault, Director, Executive Administration & Special Projects Marilyn H. Thomas, Senior Asset & Relationship Manager Traci R. Vaine, Chief Compliance Officer Ruth E. Vinal, Accounting & Cash Manager Niels Zellers, Revenue & Fund Development Officer
CEI Community Ventures, Inc. Nathaniel V. Henshaw, Manager
CEI Investment Notes, Inc. Elizabeth Rogers, Managing Director
CEI Ventures, Inc. Thao H. Duong, Fund Administrator Nathaniel V. Henshaw, President Chandler Jones, Principal
CEI 7(a) Financing LLC Mary Childs-Mayer, SVP, Origination & Relationship Manager Charles J. Spies III, President Colette Twigg-Rowse, SVP, Portfolio & Credit Manager F. Robert Wilson, CEO
CEI 2015 ANNUAL REPORT14
CE I BOARDS
Non-CEI affiliations are provided for information only
CEI Board of DirectorsDavid L. Bennell, Freeport, ME VALUE CHAIN ADVISORSBetsy Biemann, Brunswick, ME (Vice Chair) Harvard UniversityErin Cooperrider, Edgecomb, ME Community Housing of Maine, Inc.Glenn Cummings, Portland, ME University of Southern MaineLaura C. Foye, Cape Elizabeth, ME TD BankKarin A. Gregory, Biddeford, ME Furman Gregory DeptulaSusan Hammond, Bangor, ME Four Directions Development Corp.Dwight G. Havey, Falmouth, ME Capricorn Products, Inc.Susan B. Inches, No. Yarmouth, ME Tilson Scott Kenney, Gray, ME Farm Credit EastKevin Lewis, Winthrop, ME Community Health OptionsJohn A. Moore, Orono, ME Bangor Savings BankChip Newell, Portland, ME New Height GroupRonald L. Phillips, Waldoboro, ME CEIPeter R. Pitegoff, Yarmouth, ME University of Maine School of LawCordelia T. Pitman, R.A., LEED AP, Portland, ME Wright-Ryan Construction, Inc.Ellen Seidman, Washington, DC (Chair) Urban InstituteDavid Vail, Brunswick, ME Bowdoin College EmeritusChrista Velasquez, Chicago, IL University of ChicagoIan Yaffe, Ellsworth, ME Mano en Mano
CEI General CounselMichael E. High, Portland, ME DrummondWoodsum
CEI National Target MarketAdvisory Board of Directors Suzanne Anarde, Fowler, CO Rural LISCCathy Dolan, Philadelphia, PA Opportunity Finance NetworkJim Ferris, Silver Springs, MD NeighborWorks CapitalSusan Hammond, Orono, ME Four Directions Development CorporationMoises Loza, Washington, DC Housing Assistance CouncilHubert Van Tol, Rochester, NY PathStoneKenneth A. Willis, Boston, MA Federal Home Loan Bank of Boston
CEI Capital Management LLCBoard of DirectorsRobert A. Burgess, Portland, ME Bangor Savings BankElaine DiPietro, Columbia, MD Enterprise Community Investment, Inc.Laura C. Foye, Cape Elizabeth, ME TD BankLisa C. Hook, Portland, ME People’s United BankCorenna Howard, Hallowell, ME CEIMarten R. Jenkins, Shepherdstown, WV Natural Capital Investment Fund, Inc.Erin M. Piper, Portland, ME (Chair) Maine Public Employee Retirement SystemCarlton N. Owen, Greenville, SC U.S. Endowment for Forestry and CommunitiesRonald L. Phillips, Waldoboro, ME CEIMatthew Polstein, Millinocket, ME New England Outdoor CenterChristopher Sikes, Holyoke, MA Common Capital, Inc. David Wedick, South Portland, ME CEI
CEI Capital Management LLCAdvisory BoardWill Belongia, Waterbury Center, VT Vermont Community Loan FundSusan Hammond, Bangor, ME Four Directions Development Corp.
Michael S. Levine, Brooklyn, NY Local Initiatives Support CorporationJennifer Novak, Minneapolis, MN Community Reinvestment Fund, USASheila T. Saxton, Bethesda, MD Calvert FoundationScott Sporte, Oakland, CA NCB Capital ImpactHubert Van Tol, Rochester, NY PathStone Enterprise Center
CEI Community Ventures, Inc. Board of DirectorsTimothy P. Agnew, Yarmouth, ME Masthead Venture PartnersJohn F. Burns, East Blue Hill, ME Maine Venture FundNathaniel V. Henshaw, Brunswick, ME CEI Ventures, Inc.Ronald L. Phillips, Waldoboro, ME CEI
CEI Investment Notes, Inc. Board of DirectorsDavid L. Bennell, Freeport, ME Value Chain AdvisorsJohn Egan, Freeport, ME CEIEllen Golden, Woolwich, ME CEI Investment Notes, Inc.Corenna Howard, Hallowell, ME CEIChip Newell, Portland, ME The NewHeight GroupRonald L. Phillips, Waldoboro, ME (Chair) CEIKenneth Spirer, Portland, ME David Wedick, South Portland, ME CEI
CEI Investment Notes, Inc.Advisory BoardMaria Arabatzis, Boston, MA Fresh Pond CapitalBetsy Biemann, Brunswick, ME Harvard UniversityJoel D. Davis, Hallowell, ME Cribstone Capital ManagementNicole Dolan, Portsmouth, NH Veris Wealth Partners LLCRandall P. Rice, Boston, MA Trillium Asset Management
D. Robinson Snow, Cumberland Center, ME Concord Trust CompanyAlan Spear, Portland, ME Coffee By Design
CEI Ventures, Inc. Board of DirectorsElizabeth R. Butler, Brunswick, ME Butler Law Offices LLCFrank Governali, Cape Elizabeth, MEKarin A. Gregory, Biddeford, ME (Chair) Furman Gregory DeptulaCorenna Howard, Hallowell, ME CEICarlos Mello, Augusta, ME Finance Authority of MaineRonald L. Phillips, Waldoboro, ME CEIDean Plaisted, Kennebunk, MEF. Stephen Ward, Damariscotta, ME The First, N.A. David Wedick, South Portland, ME CEI
CEI Ventures, Inc. Advisory Board Art Casavant, Bridgeport, CT People’s United BankJohn C. Everett IV, Cape Elizabeth, ME KeyBank N.A.Deborah Jordan, Camden, ME Camden National BankCarl Kopfinger, Philadelphia, PA TD BankBruce G. Nickerson, CPA, Bangor, ME Bangor Savings Bank
CEI 7(a) Financing LLCBoard of DirectorsKevin Boes, Chicago, IL (Chair) LISC, New Markets Support CompanyHeidi DeArment, Missoula MT Montana Community Development CorporationPender J. Lazenby, Falmouth, MESarah Matel, Bristol, ME CEIJohn A. Moore, Orono, ME Bangor Savings BankAnna Tefft, Winston-Salem, NC Natural Capital Investment Fund, Inc.David Wedick, South Portland, ME CEI
CEI 2015 ANNUAL REPORT 15
CE I BOARDS DONORSCEI thanks the following entities who
represent CEI’s past and current funding sources:
Private Foundations, Nonprofits andIntermediaries39th Street Giving FundAid to Artisans, Inc.The Harold Alfond FoundationAmerican Express FoundationAmerican Express PhilanthropicAmeriprise FoundationAnnie E. Casey FoundationAnonymousAspen InstituteAvesta HousingBangor Savings Bank FoundationBank of America FoundationThe Betterment FundThe Bingham ProgramBirch Cove FundFrancis Hollis Brain FoundationBroad Reach FundThe Margaret E. Burnham Charitable TrustCalvert Social Investment FoundationCarpathian FoundationThe Carrot ProjectCenter for the Study of Social PolicyCitizens Housing and Planning
Association, Inc.Sam L. Cohen FoundationCommunity Development Venture
Capital AllianceCorporation for Enterprise DevelopmentJessie B. Cox Charitable TrustEdward Daveis Fund of the Maine
Community FoundationDavis Conservation FundEducation Network of MaineDwight D. Eisenhower FoundationEmpower LewistonEuphoria Revocable TrustFannie MaeFannie Mae FoundationFederal Home Loan Bank of BostonFord FoundationFranklin Research & Development
CorporationGenesis Community Loan FundGeorges River EstuaryGoodwill Industries of Northern New
EnglandJohn T. Gorman FoundationGulf of Maine Council on the Marine
EnvironmentThe William Randolph Hearst FoundationsHeifer InternationalF. B. Heron FoundationHousing Assistance CouncilHousing Partnership NetworkHudson FoundationInstitute of International EducationInstitute for Social and Economic
DevelopmentIsland InstituteJane’s TrustW. K. Kellogg FoundationStephen and Tabitha King FoundationThe Kresge FoundationEmanuel & Pauline A. Lerner FoundationThe Libra FoundationLilly Endowment, Inc.
Local Initiatives Support CorporationLutheran Social ServicesJohn D. and Catherine T. MacArthur
FoundationMaine Bar FoundationMaine Community FoundationMaine Farmland TrustMaine Fishing Industry Development
CenterMaine Health Access FoundationMaine Initiatives Harvest FundMaine SBDCMaine Technology InstituteMaine Women’s FundMaineShareThe John Merck FundThe Monterey FundMorton-Kelly Charitable TrustCharles Stewart Mott FoundationNational Center for Appropriate
TechnologyNational Congress for Community
Economic DevelopmentNational Cooperative BankNational Economic Development and Law
CenterNational Equity FundNational Farm to School NetworkNational Fish and Wildlife FoundationNational Network of Sector PractitionersNational Rural Funders CollaborativeNetwork for GoodNew England Housing NetworkNewman’s Own FoundationNorthern Forest CenterOpportunity Finance NetworkParaprofessional Health InstitutePenobscot East Resource CenterPeople’s Regional Opportunity ProgramPeople’s United Community FoundationThe Perkins Family TrustRichard F. Perkins Charitable Lead TrustPlum Creek FoundationThe Rockefeller FoundationThe Saint Paul Foundation Wicklow FundThe Sandy River Charitable FoundationThe Schwab Charitable FundElmina B. Sewall FoundationSmall Enterprise Growth FundSmith Richardson FoundationSouthern New Hampshire UniversityThe Sudbury FoundationSunshine Hill FundSurdna FoundationThe Doree Taylor Charitable FoundationTD Charitable FoundationUnited Way of Mid Coast MaineVan Winkle FoundationWestern Massachusetts Enterprise FundWholesome WaveWiscasset Female Charitable TrustWomen, Work and Community
Religious InstitutionsAmerican Baptist Churches USABrunswick Friends MeetingDamariscotta Baptist ChurchThe Episcopal ChurchFirst Universalist Church of AuburnMennonite Mutual Aid – Community
Development InvestingMercy Partnership Fund
National Council of Churches Domestic Working Group on Hunger and Poverty
Pelham Fund for Economic JusticeSecond Congregational Church, NewcastleSisters of Charity of CincinnatiSisters of Charity of IowaSisters of Charity of St. ElizabethSociety of MarySt. Andrew’s Episcopal Church,
DamariscottaSt. Philip’s Episcopal Church, WiscassetUnitarian Universalist Church,
Veatch FoundationUnited Church of Christ, BathUnited Methodist ChurchUnited Presbyterian FoundationU.S. Catholic Conference of Bishops
Campaign for Human Development
Businesses, Banks, and IndividualsAlex AgnewTimothy AgnewSusan AlbergAndroscoggin Savings BankAndroscoggin Trust and Head InvestAnonymousMaureen Anthoine-OrlandiniBeth AnshelesSusan AvrutickPhil BaileyCamden National BankCarilynn BalboBangor Savings BankBank of AmericaBanknorth Group, Inc.Bar Harbor Bank and TrustKevin BartonBath Iron Works (A General Dynamics
Company)Bath Savings InstitutionJessica BeanL. L. BeanDaniel BeckCarol BendallDavid BennellBernstein ShurBerry Talkbot RoyerBetsy BiemannBig Sky Bread CompanyKeith BissonWendy BlochAnna BradburyNancy BrainKatherine BranchRoberta BrezinskiTom BroussardBlake BrownLaura BrowneEstate of Eric BruumDeborah BurdLaura BuxbaumPaula BuxbaumRobert and Ann BuxbaumCamden National BankPatricia CampbellYoshi CampbellSally CartwrightArthur CasavantRuth Cash-SmithRosalie and David CatesAnn and John CarmanCentral Maine Power CompanyAnthony Chang
Mary Childs-MayerPierre ClavelGrace Cleaves and Michael MilesHarold ClosseyCoastal Economic Development Corp.Brandon CollenCommon Sense Computing, Inc.Community Concepts, Inc.Community Investment AssociatesConstant ContactErin Cooperrider and Michael MayneDiane CowanErica CranecPort Credit UnionBill CreightonBrooke CurranKatherine CurranCurtis Thaxter LLCDamariscotta Bank & Trust CompanyDavidson AssociatesJoel D. Davis and AssociatesLeverett B. and Megan T. Davis, Jr.Nicole DavisWilliam DehaisCarla DicksteinCohnReznickDodge Cove Marine Farm, Inc.Drummond & Drummond LLPDrummondWoodsum & MacMahonDudley VenturesMil DuncanEast Shore Studio & PrintCaroline EliotJane ElvidgeMary Lynn EngelEmily EschnerMarya FaustEdward F. FeibelDeborah and Mark FelderAnne FinestoneThe First, N.A.First Federal Savings & Loan AssociationFirst National Bank of DamariscottaFive County Credit UnionWilliam FloodSusan FooteGore FlynnAndrew FosterLaura FoyeSandy GalvanRobert H. GardinerGardiner Savings InstitutionKathryn Gardner and Michael Newsom
in the name of Virginia NewsomRyan GeorgeStephanie GilbertWilliam GinnThomas GioiaEllen F. GoldenGorham Savings BankJody GouldChristen GrahamGreater Portland Building FundJohn and Katie GreenmanPeter and Harriette GriffinSarah GueretteGigi GuytonSarah HalpinKenneth HandlerHannaford BrothersElizabeth HanscomGray HarrisDwight Havey
Mary Ann HaxtonMary Ann HayesMarsha HermanHeidi HetzMichael HighHodgdon Yachts, Inc.The Home Depot FoundationRobinson G. HollisterAmanda HollydayJames HollydayLisa HookHowe and CahillLeslie HunterSusan Inches and Bob SessumsIntuitJDA Consulting, Inc.Marten and Lucetta JenkinsJohnson & McCaa LLCDavid JonesCarolyn KellTheresa KellyKennebec Valley Community Action
ProgramScott KenneyKeyBank N. A.Mitch KihnEleanor KinneyJ. Edward Knight & Co.Carl KopfingerJoy KubitMark LappingLanman Rayne PLLCRoger LevesqueMichael LevinePeter LordDonna LoringMartha LynchLyme TimberMabe’s Kitchen, LLCMacdonald Page and Co. LLCMachias Savings BankMaine Association of Realtors FoundationMaine Community Reinvestment Corp.Maine Hosting SolutionsMaine Housing Investment FundMaine Life PhotographyMaine Warmers LLCMaine Women’s JournalMaine Yankee Atomic Power CompanyMainebizMarine Trade CenterMASS MoCASteven MastersJ. Ann McAlhanyJanet C. McCaa, Esq.Diana McCainRichard McGoldrickDavid McKinnellRyan McKissonMEMICMerrill Lynch & Co., Inc.Metaphor Bronze TileworksRev. Carolyn and Dr. Eric MetzlerMark and Victoria MillarWendy MillerS. Peter MillsMorgan StanleyJosephine MorrisonMt. Auburn AssociatesHeidi MurphyJustin NadeauAnn NaimieNBT Bank
NeighborworksS.P. “Chip” Newell and Susan MorrisSally NewhallBruce and Sharon NickersonEliza Cope NolanNortheast BankNorthern New England Housing FundOakes & Parkhurst GlassBuck O’HerinPaul OLearyNathan OLearyLennart OlsonOneBeacon Insurance CompanyJanet ParkhurstRichard ParkhurstCamille ParrishMichael Payson, Jr.Perkins Family TrustRonald L. and Suzanne PhillipsLinda PiperPeter Pitegoff and Ann CasadyCordelia PitmanSandra PlettePlum Creek FoundationPortland Financial Planning Group, LLCPortland Models and TalentPortland Press HeraldPreti FlahertySusan PullenF. L. PutnamBarbara RachelMarlowe RafelleK. RainCraig RancourtRobert RapozaFrederick P. Rector IIICatherine RenaultBethany RichardsAshley RobedeeRockland Savings BankElizabeth RogersSharon RosenSandra RosenblithRonald RobinetteRonald B. and Jeanne J. RussellChristopher St. JohnSherene SalahshoorNadine SalleyPaul ScalzoneAnthony SchmitzEllen SeidmanKarl SeidmanMiriam SharkShaw’s Supermarkets, Inc.Stephen SheaKristel SheesleySilly’sSkowhegan Savings BankCynthia SmithKevin SmithMaggie SmithSnowdrift Farm WorldwideSparkes Hearing ServicesJorma SpazianoCharles SpiesKenneth SpirerJennifer SporzynskiStealthcat Computer ConsultingSandra StoneSally StreuverNancy E. StrojnySundog CompanySunrise County Economic Council
CEI 2015 ANNUAL REPORT16
W. Bradshaw SwansonAnnee Tara and Tom RumpfTD Bank, N.A.Tides Foundation – Exploring ElfTompkins, Clough, Hirschon & LangerTom’s of MaineCarrington TutwilerUnion TrustUNUMProvident CorporationU.S. Trust CorporationUS Bank Community Development Corp.David and June VailVerizon FoundationVillage Veterinary, Inc.Vino Bodega, Inc.Gary VogelWachoviaDaniel WallaceLisa WallaceJennifer WalkerAshley WardF. Stephen WardMatthew and Anne WareWarren, Currier & BuchananEstate of Lee S. WatermanLee WebbDavid WedickWells FargoIzabela WernerShane WhalenCatherine WhitneyBo YerxaJennifer YoungDiane YorkEthan Zuckerman
Local, State, Federal, andTribal Government SourcesCity of Auburn, MaineCity of Bangor, MaineCity of Bath, MaineCity of Clyde, KansasCity of Lewiston, MaineCity of Portland, MaineCity of Rockland, MaineCorporation for National and
Community ServiceFinance Authority of MaineFour Directions Development
CorporationHancock County Planning CommissionLewiston Housing AuthorityLincoln County CommissionersLincoln County Regional Planning
CommissionLincoln County – State of MaineMaine Bureau of Consumer Credit
ProtectionMaine Bureau of Vocational EducationMaine Commission for Community
ServiceMaine Community College SystemMaine Department of Agriculture,
Conservation and ForestryMaine Department of Behavioral and
Developmental ServicesMaine Department of Economic and
CommunityDevelopmentMaine Department of EducationMaine Department of Environmental
Protection
Maine Department of LaborMaine Department of Marine Resources –
Land for Maine’s Future Program Maine Department of TransportationMaineHousingMaine Office of Energy Independence
and SecurityMaine Office of Multicultural AffairsMaine Office of TourismMaine Science and Technology
FoundationMaine State Housing AuthorityMaine State Planning Office,
Coastal ProgramMaine Treasurer’s Council on Financial
LiteracyMount Desert Island and Ellsworth
Housing AuthoritiesNational Oceanic and Atmospheric
AdministrationFisheries Aquaculture ProgramFisheries Saltonstall Kennedy Grant
ProgramNational Sea Grant College Program –University of MaineNew Hampshire Department of Health
and Human Services – Office of Minority Health and Refugee Affairs
Southwest Harbor Housing AuthorityTanana Chiefs Conference, Inc.Town of Boothbay, MaineTreasure Coast Regional Planning
CommissionU.S. Agency for International
DevelopmentU.S. Department of Agriculture, Rural
DevelopmentCooperative State Research, Education
and Extension Service Risk ManagementAgency Rural Economic and CommunityDevelopment Program Trade Adjustment
Assistance ProgramU.S. Department of Commerce Economic
Development AdministrationU.S. Department of Health and Human
ServicesAdministration for Children and Families,
Child Care Bureau Office of Community Services, & Office of Refugee Resettlement
U.S. Department of Housing and Urban Development
U.S. Department of Labor, Employment and Training Administration
U.S. Department of the Treasury, CommunityDevelopment Financial Institutions Fund
U.S. Environmental Protection AgencyU.S. Gulf of Maine AssociationU.S. Small Business AdministrationUniversity of MaineWestbrook Housing Authority
Investors, CEI Community Ventures Fund LLC
Coastal Enterprises, Inc.Community Development Venture
Capital AllianceFinance Authority of MaineJohn D. and Catherine T. MacArthur
FoundationMaine Employers Mutual Insurance
CompanyThe Sandy River Charitable FoundationU. S. Small Business AdministrationThe Vermont Community Foundation
Investors, CEI Investment Notes, Inc.AnonymousAileen and Tim AgnewBarbara AsnesJoAnne and Michael BanderBangor Savings BankThe Betterment FundBetsy BiemannJames G. BlaineFran BodellSamuel F. BrownRobert C. and Ann BuxbaumPatricia L. CampbellAnn R. CarmanCircle of Friends TrustClients of Fresh Pond CapitalClients of the Sustainability GroupClients of Trillium Asset ManagementClients of Veris Wealth Partners Coastal Enterprises, Inc.William CreightonSusan M. DeutschMichael L. and June Pasternack FinneganGore FlynnThe Frances FundOdette GalliEllen F. GoldenCarol GoloffJim GrahamKarin GregoryPeter and Harriette GriffinDeborah Y. HawthornJ. Christopher HormelLois and Albert HowlettMichael Herz and Kate JosephsSusan B. InchesJohn and Linda IsaacsonAnne and Steve KemperPeter Lamb and Faith HarringtonAdam and Diana LeeCatherine Lee and Robert MoyerJonathan S. LeeJoan LeitzerSteven LydenbergMark MillarJeanne MillerGreg and Linda MillertSusan MorrisChip NewellKaren E. OrsoParnassus Core Equity FundPax World Balanced FundTina PetraRonald L. and Suzanne C. PhillipsSydney and Terry PlumEllen RemmerSarah RheaultThe Rocking Moon FoundationMargaret RosenauBonnie RukinThe Sandy River Charitable FoundationThe Schocken FoundationJennifer Schuberth and John UrangEllen SeidmanSarah ShedHildy J. SimmonsAlison Smith
Kenneth SpirerEmily SwanBetts SwantonAnnee TaraCarlisle ToweryMartha TracySuzanne TrazoffBenjamin and Mariana TupperJune and David VailCarol WishcamperIan Yaffe
Investors, Coastal Ventures Limited Partnership
Androscoggin Savings BankAnonymousBangor Savings BankBank of AmericaBath Savings InstitutionThe Bingham Betterment FundCalvert Social Investment FoundationCoastal Enterprises, Inc.Kennebunk Savings BankKey Community Development
CorporationKeyBank N. A.NCB Capital ImpactJessie Smith Noyes FoundationThe Sandy River Charitable FoundationTD Bank N.A.
Investors, Coastal Ventures II LLCAnonymous (3)Bangor Savings BankBank of AmericaBar Harbor Bank & TrustBath Savings InstitutionThe Bingham Betterment FundCamden National BankCoastal Enterprises, Inc.Community Development Venture
CapitalAlliance Central FundFinance Authority of MaineThe First, N.A.Gorham Savings BankKennebec Savings BankKennebunk Savings BankKeyBank N.A.John D. and Catherine T. MacArthurFoundationMachias Savings BankPeople’s United BankOpportunity Finance NetworkTD Bank, N.A.The Sandy River Charitable FoundationSkowhegan Savings Bank
Investors, Coastal Ventures III Limited Partnership
Anonymous (8)Bangor Savings BankBar Harbor Bank & TrustBath Savings InstitutionCalvert Social Investment FundCamden National BankCoastal Enterprises, Inc.Finance Authority of MaineThe First, N.A.Gorham Savings BankKatahdin TrustKennebec Savings Bank
Kennebunk Savings BankMachias Savings BankNorway Savings BankPeople’s United BankSaco & Biddeford Savings InstitutionThe Sandy River Charitable FoundationSanford Institution for SavingsSkowhegan Savings BankTD Bank, N.A.
Operational Assistance, CEI Community Ventures LLC
Brown & CompanyChittenden BankCoastal Enterprises, Inc.Cook, Little, Rosenblatt and MansonCope & Associates, Inc.Ernst & YoungEthos Marketing & DesignGallagher Flynn & Company LLPHeadwaters Strategy LLCMichael HorvathMaine Department of Environmental
ProtectionNew Hampshire Community
DevelopmentFinance AuthorityPierce Atwood LLPRooks CommunicationSurdna FoundationUniversity of MaineUniversity of Southern Maine Small
Business Technology Development Center
University of VermontYale Goldman Sachs Nonprofit Business
Plan Award
Tax Credit Investors/Lenders, CEI Capital Management LLC
Appalachian Mountain Club (AMC)American Process, Inc.Andover HoldingsAssociated Hardwoods, Inc.Axio Green LLCBangor Savings BankBank of America, N.A.Bank of Western MassachusettsBBP Financing LLCBLD PropertiesThe Boston ConservatoryCapital Hotel CompanyCapital Regional Development CouncilCapmark Capital, Inc.CEI Housing, Inc.Champlain Housing TrustCitibank, N.A.Citicorp USA , Inc.Citizens Bank of MassachusettsClaremont Development AuthorityCommonwealth Dairy HoldingsCommunity Guaranty Savings BankThe Conservation FundCooperative Fund of New EnglandCOUNTRY Mutual Insurance CompanyCrowley Development LLCCurators of the University of MissouriDaniMer Scientific, LLCEducare Central MaineEmmi (USA ) Inc.First Colebrook BankThe First, N.A.
Foremost FarmsFranklin Savings BankGalvan Initiatives FoundationGE Commercial FinanceGenesis Community Loan FundHabitat for HumanityHartland GroupHorsehead CorporationHousing VermontIngrahamJP Morgan ChaseKatahdin Trust CompanyKestrel Aircraft Co.KeyBank N.A.Lewiston/Auburn Economic Growth
CouncilLocal Enterprise Assistance FundLyme Timber CompanyMarshall Engines, Inc.Mascoma Savings BankMorgan StanleyThe Nature ConservancyNCB Capital ImpactNew Forest RenewableNew Hampshire Business Finance
AuthorityNew Hampshire Community
Development Finance AuthorityNew Hampshire Housing Finance
AuthorityNewWood Corp.Northampton Cooperative Community
MarketOchoco Lumber CompanyOhio National Life Insurance CompanyPBS Lumber Holdings LLCPioneer Valley Solar LLCPowerPayRC FundingRichford Health CenterRochester Economic Development CorpSovereign BankSpeare Memorial HospitalStearns Bank, N.A.TD Bank, N.A.Trans Pecos BanksTrust for Public LandTransCapitalU.S. Bancorp Community Development
Corp.USDA Rural DevelopmentVermont Community Loan FundVermont Economic Development
AuthorityWainshal Partners LLCWainwright BankWebb Development of BuffaloWells Fargo Community Investment
Holdings LLCWestern Massachusetts Enterprise FundThe Westervelt CompanyWhite Mountain Apache TimberWoodland Finance Co., LLCWoodsville Guaranty Savings BankWorcester Center for Performing Arts, Inc.ZeaChem, Inc.
COASTAL ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position September 30, 2015 (with comparative totals as of September 30, 2014)
CEI 2015 ANNUAL REPORT 17
ASSETS 2015 2014 Current Assets Cash and cash equivalents $25,185,746 $22,904,315 Accounts receivable, net of allowance 3,951,011 3, 583,349 Interest receivable 718,928 679,066 Notes receivable, current portion 5,527,840 3,143,532 Grants receivable 624,317 646,755 Prepaid expenses 272,275 208,093 Total Current Assets 36,280,117 31,165,110 Land, Property and Equipment, Net 21,147,522 15,694,224 Other Assets Notes receivable, net of current portion and net of loan loss reserve 27,904,965 28,688,609 Restricted cash 8,602,397 10,484,762 Due from affiliates 149,058 326,371 Investments 24,494,547 20,182,646 Security deposits 74,850 57,150 Deferred tax asset 8,902 9,261 Intangible asset (SBLC license) 1,000,000Total Other Assets 62,234,719 59,748,799TOTAL ASSETS $119,662,358 $106,608,133 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable $1,323,776 $259,059 Accrued expenses 1,467,493 1,110,395 Long-term debt, current portion 16,114,236 12,523,171 Line of credit 1,035,219 1,035,219 Deferred fee income 2,807,561 2,761,657 Unapplied grant funds 2,216,748 2,016,463 Total Current Liabilities 24,965,033 19,705,964 Other Liabilities Security deposits 65,862 60,074 Subordinated debt 3,216,000 3,315,963 Long-term debt - net of current portion 48,504,954 40,653,280 Total Other Liabilities 51,786,816 44,029,317 Total Liabilities 76,751,849 63,735,281 Net Assets Unrestricted net assets, controlling interests’ portion 31,847,139 29,905,889 Temporarily restricted net assets 2,707,792 3,781,738 Permanently restricted net assets 2,956,187 2,956,187 Subtotal - net assets of controlling interests 37,511,118 36,643,814 Unrestricted net assets, non-controlling partners’ capital 5,399,391 6,229,038 Total Net Assets 42,910,509 42,872,852
TOTAL LIABILITIES AND NET ASSETS $119,662,358 $106,608,133
COASTAL ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position September 30, 2015 (with comparative totals as of September 30, 2014)
Management has prepared and is responsible for the condensed financial information and selected financial data which are presented in this report. The data is excerpted from complete financial state-ments audited by Macpage LLC. The reader wishing for further information about Coastal Enterprises, Inc. and its subsidiaries should contact our office.
CEI 2015 ANNUAL REPORT18
Revenues 2015 2014 Interest and dividend income $2,171,312 $1,832,935 Federal and state sources 2,839,517 2,575,955 Private/public sources 2,803,914 1,526,342 Rental income 1,307,259 1,265,448 In-kind income 173,284 41,157 Fee income 6,843,701 8,440,835 Other revenue 361,761 518,256 Forgiveness of debt 266,868 266,868 Realized gain on investments 871,031 8,358,348 Net change in unrealized appreciation (depreciation) of investments 115,848 (4,246,018) Total Revenues 17,754,495 20,580,126 Expenses Salaries and fringe benefits 8,568,310 8,720,383 Consultants and contract services 1,493,171 1,373,133 Provision for loan losses 1,213,849 1,056,822 Provision for bad debts- net (153) (17,901) Interest expense 1,689,342 1,434,077 In-kind service expense 143,237 91,793 Grants to third parties 131,752 14,474 Depreciation and amortization expense 502,111 457,927 Travel 277,071 288,577 Office expense 358,644 365,558 Occupancy 567,295 663,925 Communication expense 245,728 214,698 Staff and Board development 133,598 135,256 Advertising and promotion 144,378 163,557 Insurance 480,981 454,002 Property taxes 175,285 161,780 Operating and maintenance expense 468,529 477,279 Organizational costs 98,928 254,488 Income taxes 831 (1,636) Miscellaneous expense 141,237 166,085 Total Expenses 16,834,164 16,474,277 Increase (Decrease) in Net Assets Before Activities of Noncontrolling Interests 920,331 4,105,849 Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings (53,027) (2,254,295) Increase (Decrease) in Net Assets, Controlling Interests 867,304 1,851,554 Net Assets Beginning of Year (Restated) 42,872,852 45,091,416 Noncontrolling Partners’ Net Capital Distribution (882,674) (6,324,413) Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings 53,027 2,254,295 Net Assets End of Year $42,910,509 $42,872,852
COASTAL ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Activities September 30, 2015 (with comparative totals as of September 30, 2014)
CEI 2015 ANNUAL REPORT 19
Revenues 2015 2014 Interest and dividend income $2,171,312 $1,832,935 Federal and state sources 2,839,517 2,575,955 Private/public sources 2,803,914 1,526,342 Rental income 1,307,259 1,265,448 In-kind income 173,284 41,157 Fee income 6,843,701 8,440,835 Other revenue 361,761 518,256 Forgiveness of debt 266,868 266,868 Realized gain on investments 871,031 8,358,348 Net change in unrealized appreciation (depreciation) of investments 115,848 (4,246,018) Total Revenues 17,754,495 20,580,126 Expenses Salaries and fringe benefits 8,568,310 8,720,383 Consultants and contract services 1,493,171 1,373,133 Provision for loan losses 1,213,849 1,056,822 Provision for bad debts- net (153) (17,901) Interest expense 1,689,342 1,434,077 In-kind service expense 143,237 91,793 Grants to third parties 131,752 14,474 Depreciation and amortization expense 502,111 457,927 Travel 277,071 288,577 Office expense 358,644 365,558 Occupancy 567,295 663,925 Communication expense 245,728 214,698 Staff and Board development 133,598 135,256 Advertising and promotion 144,378 163,557 Insurance 480,981 454,002 Property taxes 175,285 161,780 Operating and maintenance expense 468,529 477,279 Organizational costs 98,928 254,488 Income taxes 831 (1,636) Miscellaneous expense 141,237 166,085 Total Expenses 16,834,164 16,474,277 Increase (Decrease) in Net Assets Before Activities of Noncontrolling Interests 920,331 4,105,849 Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings (53,027) (2,254,295) Increase (Decrease) in Net Assets, Controlling Interests 867,304 1,851,554 Net Assets Beginning of Year (Restated) 42,872,852 45,091,416 Noncontrolling Partners’ Net Capital Distribution (882,674) (6,324,413) Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings 53,027 2,254,295 Net Assets End of Year $42,910,509 $42,872,852
COASTAL ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Activities September 30, 2015 (with comparative totals as of September 30, 2014)
LEVERAGE 67%
9%
6%
CEI CUMULATIVE LENDING AND INVESTING BY FISCAL YEAR
2015 SOURCES OF REVENUE
41%
24%
13%
CEI 33%
CUMULATIVE CEI SHARE OF FINANCING AND LEVERAGE
$1.00 CEI Financing Leverages$2.03 From Other Sources
INTEREST & DIVIDEND
FEE INCOME
RENTAL INCOME
FEDERAL & STATE
PRIVATE
OTHER
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$0
BILL
ION
S
NEW MARKETS TAX CREDITS
HOUSING
VENTURE
MICROLENDING
SMALL/MEDIUM ENTERPRISE
7%
Coastal Enterprises, Inc. (CEI) is a mission-driven lender and investor specializing in rural economic development in Maine and throughout the U.S. CEI combines financing, advising services and policy leadership to help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.
© Copyright 2016 Coastal Enterprises, Inc.
30 FEDERAL STREET, SUITE 100 BRUNSWICK, MAINE 04011
207.504.5900 207.882.7308 fax [email protected] www.ceimaine.org
The board and staff of CEI value diversity in all aspects of program participation and employment. CEI is an equal opportunity lender, provider and employer.