founding in 1869, that’s been our guiding
TRANSCRIPT
When exceptional people work together for a common goal, we all succeed. Since our founding in 1869, that’s been our guiding tenet. At Machias Savings Bank, we believe if we work together hand-in-hand, trust each other and serve one another with open hearts, and never give up until the work is done—together, we can achieve our dreams, enrich our communities, and build an exceptional and thriving Maine for generations to come.
“Coming together is a beginning. Keeping together is progress. Working together is success.”
– Henry Ford
in every relationship,in every product developed,in every service rendered,and in every promise made.
O U R M I S S I O N :
We will be
Excep tional
We began the year from a position of strength, powered by an exceptional 2017
which was, by many measures, our best year ever. And yet 2018 gave us pause, and a
collective opportunity to take a focused and genuine look inward. “What gets us out
of bed in the morning?” “Why do we do what we do?” “Who are we to our employees,
our customers, and our communities, and what responsibilities do we have to them?”
Not coincidentally, this year we celebrate a rare milestone, 150 years in business. And as we revisit our storied roots and pioneering heritage, we realize how little has changed. We were created quite simply to make a difference in our community; a difference that would help our community grow and prosper. That purpose remains unchanged. 2018 saw many achievements, including an 11% increase in total bank assets to $1.5 billion and customer deposit growth of $130 million, far surpassing our expectations. For the third year in a row, we placed in the top three large employers in the Best Places To Work In Maine and were named the #1 Best Bank To Work For in New England by American Banker Magazine. For the third consecutive time, we have received the FDIC’s top rating of “Outstanding” under the Community Reinvestment Act, a mark achieved by less than 5% of the banks in New England and 8% of banks nationwide. In support of our statewide growth, we announced the exciting expansion of our headquarters in Machias. And once again, our commitment to our communities across the state
increased over the previous year, with over $750,000 in giving and over 11,500 hours of volunteer service to over 500 organizations. From the first deposit of two dollars and fifty cents 150 years ago to over $1.1 billion in customer deposits today, our customers across the state continue to place their trust in Machias Savings Bank to be their financial partner of choice. While strategies, tactics, and even goals change, our purpose has not. And while increasingly difficult to imagine 150 years from now, we have set our sights squarely on the future, continuing our unwavering mission established a century and a half ago to markedly improve our state’s financial health and prosperity one person, one business, and one community at a time. Finally, thank you to our exceptional employees for your hard work and commitment to making a difference in our communities! You are not just the face, but truly the heart and soul of Machias Savings Bank.
Larry BarkerPresident and CEO of Machias Savings Bank
If I were to sum up 2018 in a single word, it would be “Purpose.”
In short, what is our purpose?
OUR V IS ION :
TO PROVIDE THE MOST EXCEPTIONALBANKINGEXPERIENCEIN THE
STATE OF MAINE.
President’s Award Winner
Jennifer TuellFSS II, Machias
Manager of the Year
Ben PerryVP, Regulatory & Security Manager
Employee of the Yearfor Support
Jeremy CloughInformation Security Officer
Employee of the Yearfor Customer Service
Kali BoulierAssistant Branch Manager, Bangor
Employee of the Yearfor Sales
Leann BealMortgage Specialist, Ellsworth
Edward L. Hennessey Jr.Volunteer of the Year
Tim Goff Branch Manager, Presque Isle
Employees of the Year 2018 “We have the deepest and most talented team in Maine, helping businesses across the state best manage their cash efficiently and effectively and build greater value in their companies and our communities.”
– Larry Barker
CommunityImpactWe don’t just write checks. We get involved and join forces with our community partners to make a significant difference.
Total Volunteer Hours:
11,491 HOURSTotal Contributions:
$751,710 Number of Non-Profits Served:
420
2018INVESTMENT INCOMMUNITYWe once again expanded our commitment to Maine’s communities, investing statewide in community wellness, youth and education, and economic development, with a targeted focus on financial literacy, workforce development, and entrepreneurship.
Pathways To Prosperity2018 brought numerous new community-driven partnerships, including a multi-faceted initiative with Sumner Memorial High School’s alternative learning and graduation program, Pathways. The program targets at-risk students, many of whom are homeless, transient, or must work to support their family.
The initial aspect of the effort began with a grant to create a collaboration with Northern Technical Institute, the goal of which is to prepare up to four students with job readiness certifications in a variety of disciplines. This led to a deeper relationship, with MSB employees teaching classes in financial wellness to a broader group of Pathways students. As the partnership grew and students’ needs became more apparent, we stepped up our commitment, enlisting our employees at-large in a call for contributions from our Casual For A Cause program. The monies raised were used specifically to provide business attire and work clothing to Pathways students.
Since 2013, 59 at-risk students have graduated through Pathways.
Every one of them is currently in a post-graduate program or fully employed.
Opening Windows To SavingsWe remained active and engaged in our communities in 2018, pledging employee merit dollars and volunteering our time to a wide range of causes including four dedicated quarterly initiatives - Giving Tree, End Summer Hunger, Backpack School Supplies, and Window Dressers. This year marked the fifteenth year offering our Community Reinvestment Grant program and the first time Rockland-based Window Dressers was a recipient. Window Dressers is a nonprofit dedicated to helping Maine residents reduce home heating costs and CO2 emissions by providing low cost and free, volunteer-made, insulating window inserts. Throughout the fall, over thirty-five of our Community Impact Ambassadors contributed over 200 volunteer hours to Window Dressers in Rockland, Bangor/Brewer, Ellsworth, Portland, Bar Harbor, and Machias, building hundreds of custom inserts and saving thousands of dollars in heating oil annually. Over 50% of these went to benefit low to moderate income families. This coordinated effort was just one part of our fervent commitment to community giving and volunteerism, all of which resulted in our receiving our third consecutive Community Reinvestment Act mark of “Outstanding,” a federal designation less than 8% of banks nationwide achieve.
Statement of Condition 2013ASSETS 12/31/18 12/31/17
Cash and Deposits Due from Banks 191,563,000 53,848,000
Federal Funds Sold 0 0
U. S. Government and Agency Securities 59,027,000 63,808,000
Other Bonds, Notes and Debentures 7,120,000 5,879,000
Corporate Stock and Other Marketable Securities 10,878,000 13,177,000
Real Estate Loans 858,448,000 839,483,000
Other Loans 324,877,000 329,484,000
Allowance for Loan and Lease Losses (17,106,000) (20,891,000)
Bank Premises and Fixed Assets 24,431,000 25,000,000
Other Assets 39,423,000 38,475,000
Total Assets 1,498,661,000 1,348,263,000
LIABILITIES + RESERVES
Savings Deposits 418,201,000 353,040,000
Time Deposits 253,552,000 269,983,000
Non-Interest-Bearing Demand Deposits 191,394,000 172,657,000
Interest-Bearing Demand Deposits 442,546,000 331,259,000
Total Deposits 1,305,693,000 1,126,939,000
Borrowed Funds 984,000 40,000,000
Other Liabilities 11,390,000 14,025,000
Surplus and Undivided Profits 179,619,000 165,196,000
Net Unrealized Gains on Marketable Securities 975,000 2,103,000
Total Liabilities and Reserves 1,498,661,000 1,348,263,000
Letters of Credit Outstanding(not included in the above figures)
10,712,000 10,028,000
Statement of Condition 2018
INTEREST INCOME 12/31/18 12/31/17
Interest and Fee Income on Loans 61,675,000 57,781,000
Interest and Dividend Income on Securities 3,563,000 1,578,000
Total Interest Income 65,238,000 59,359,000
INTEREST EXPENSE
Interest and Dividend on Deposits 9,099,000 5,802,000
Interest Paid on Borrowed Funds 239,000 406,000
Total Interest Expense 9,338,000 6,208,000
NET INTEREST INCOME 55,900,000 53,151,000
Other Operating Income 10,470,000 9,968,000
Other Operating Expense 45,511,000 45,287,000
Provision for Loan Losses 2,882,000 1,440,000
Income Before Taxes and Security Transactions 17,977,000 16,392,000
Realized (Losses)/Gains on Securities (72,000) 2,109,000
Income Before Income Taxes 17,905,000 18,501,000
Income Taxes 3,483,000 8,296,000
NET INCOME 14,422,000 10,205,000
Statement of Earnings 2018
Edward L. Hennessey, Jr. Chairman
Robert W. Foster Vice Chairman
Telford M. Allen, III
LuAnn C. Ballesteros
Lawrence L. Barker
Brent K. Hartley
Zachary P. Means
Donald E. Reynolds
Edward L. Hennessey, Jr. Chairman of the Board & Clerk
Lawrence L. Barker President & CEO
Donald E. Reynolds Executive Vice President & Treasurer
Telford M. Allen, III
Kim Allen-Wadman
LuAnn C. Ballesteros
Lawrence L. Barker
Joanna S. Bradeen
Albert C. Carver
Peter D. Chase
Paul T. Cook
Frederick G. Crowe
Gregory P. Dorr
Thomas G. Ellis
Carey L. Fister
Robert W. Foster
Chad R. Francis
Timothy C. Francis
Jeffrey R. Gammelin
Thomas W. Gardner
Mary Jane Good
Roger G. Grant
Stephen W. Hanington
Donald L. Hanscom
Brent K. Hartley
Edward L. Hennessey, Jr.
Michael E. Hennessey
Joseph F. Hogan
John D. Linnehan, Jr.
Gene A. Lynch, II
Philip E. McPhail, II
Zachary P. Means
Thomas A. Michaud, Jr.
Amy K. Mulkerin
Hans S. Peterson
Steven M. Pineo
David W. Pinkham
Ian J. Pratt
Darren J. Prout
John D. Raymond, Jr.
Donald E. Reynolds
Sidney N. Reynolds
Oliver P. Smith
Tyler S. Smith
Stephen L. Spencer
Denis P. St. Peter
Jane Towle
Cony L. Upton
Nicholas S. Vachon
Mike W. Varney
Rick L. Varney
Timothy W. Varney
Steven I. Weisberger
Susan L. West
David M. Whitney
J. Scott Whitney
Jeffrey Woodman
Susan M. Woodman
Matthew C. Worthen
Thad B. Zmistowski
Machias Bancorp, MHCDirectors, Officers & Corporators
2018 CORPORATORS
2018 DIRECTORS
2018 OFFICERS
Jason W. Appleby
Leann M. Beal
JR Belanger
Ryan J. Callahan
Jessica L. Cloukey
Karen M. Coffin
Stacey L. Connolly
Rebecca A. Crane
Alexander R. Currier
Ronald J. Gardiner
John F. Gibbons, Jr.
Timothy R. Goff
Lisa A. Holmes
Matthew R. Horton
Matthew C. Jarrell
Gregory S. Jones
Kristen M. Keith
Cindy L. Leighton
Cheryl C. Locke
Jeanine M. Mallar-Heald
Lisa Mallock
Eryn L. Meeker
Jacqueline D. Morse
Barbara A. Pettit
Kari A. Reynolds
Jillian F. Saucier
Miranda F. Smith
Joshua J. Stevens
Patricia L. Theriault
Cindy L. Thibeau
Karen A. Thibodeau
LeeAnne B. Vaughan
Machias Savings BankDirectors, Officers
Retail BankingChairman of the Board & Clerk
Edward L. Hennessey, Jr.
President & CEO
Lawrence L. Barker
Executive Vice Presidents
Chris A. FitzpatrickBusiness Banking Management
Donald E. ReynoldsChief Financial Officer
Senior Management
Danielle S. Caricofe Human Resources Management
Chris A. FitzpatrickBusiness Banking Management
Christian A. LyfordChief Operating Officer
Nate J. MartellRisk Management
Nicole M. PellenzDeposit Relationships Management
Donald E. ReynoldsChief Financial Officer
Traci L. SanbornChief Customer Experience Officer
Business Banking & Cash Management
Peggy G. Anderson
Rachel M. Anderson
Todd S. Christiansen
Dean T. Clark
Francine V. Cram
Tristine M. Currier
Jeffrey C. Dalrymple
Sean R. Daye
Andrew C. Dorr
Bradley N. N. Galley
Jessica L. Giles
Vicki L. Hall
Elizabeth A. Hayward
Michael H. Kelley
Shawn R. Leger
Elsa B. McGary
Scott R. Peasley
Kenneth J. Stewart
Bobbi-Jo Thornton
Matthew D. Veith
Operations & Support
Jonathan S. Alley
Tara M. Bartko
Jill E. Blanch
Lucille J. Bragg
Charlene D. Cates
Brent A. Colbeth
Jeremy T. Clough
Rainya E. Davis
Melissa G. Moffett Denbow
Charity H. Dennison
Jody B. Dennison
Thad R. Dolley
Kelli R. Emery
Catherine T. Farren
Gregory J. Fuller
Vicki L. Garnett
Peter F. Greene
John W. Larkin
Annette M. Lease
Shauna M. MacDonald
Gary D. Martell
Lucas G. Morris
Kenneth H. Page
Stephanie L. Page
Ben M. Perry
Angela M. Rackliff
Wendy L. Schors
Robert A. Simpson
Matthew A. Smith
Joseph S. Tuell
Heather L. Vose
Robert E. Wood, Jr.
4 Center Street | PO Box 318 | Machias, ME 04654-0318 | Member FDIC | Equal Housing Lender