2012 - AbbyBank

2012
{ }
ANNUAL REPORT
ABBOTSFORD
WAUSAU
WESTON
401 East Spruce Street
P.O. Box 648
Abbotsford, WI 54405-0648
715.223.2345
715.223.6385 Fax
305 South 18th Avenue
Suite 100
Wausau, WI 54401
715.848.1610
715.845.4157 Fax
2405 Schofield Avenue
Suite 100
Weston, WI 54476
715.241.6336
715.241.6337 Fax
800.288.2229 • www.abbybank.com
{
}
Financial
• AbbyBank Total
Assets $324 Million
(6.9% increase)
• AbbyBank Loan Loss
Reserve $3.8 Million
• AbbyBank Stockholder
Equity $30.6 Million
• Abby Bancorp, Inc.
Dividends are $3.05
per share
We are pleased to report that 2012 was another successful year for AbbyBank.
The sluggish economy and the changing regulatory environment continued to
challenge the banking industry. In spite of these challenges, there were many
positive outcomes.
Gradual improvement was experienced by some sectors of the economy in
2012. Prices in the housing market appeared to have stabilized with home
purchase/sale activity increasing. The unemployment rate showed a slight
decrease. Foreclosure rates appeared to slow. Business and agriculture
communities also appear to have stabilized.
The improvements noted above allowed AbbyBank to have another year of
solid performance in 2012. Total assets increased from $303 million to $324
million (6.9% increase). Bank income and loan loss reserve increased to $3.1
million and $3.8 million respectively. Stockholder equity (capital) remained
strong and reached a new high of $30.6 million.
Although there is a substantial amount of economic uncertainty at this time,
AbbyBank remains guardedly optimistic that the economic improvements
noted in 2012 will continue in 2013. The new Wausau facility and the recently
remodeled Abbotsford location will improve customer convenience and
services in 2013 as well.
With the continuing hard work from our employees and the support of our
customers and communities, I am confident AbbyBank will have another
successful year.
As always, I appreciate your support and patronage.
Patrick D. McCrackin
President/CEO
2
Years Ended December 31, (Dollars in thousands, except per share amounts)
OPERATING RESULTS FOR THE YEAR
Total Operating Income
Total Operating Expense
Net Income
2012
2011
2010
2009
$15,014
$10,394
$3,126
$15,105
$11,241
$2,664
$16,233
$12,104
$2,865
$16,810
$13,402
$2,447
$10.42
$102.11
$8.88
$97.70
$9.55
$88.48
$8.16
$83.99
$323,838
$292,290
$222,426
$3,792
$30,634
$302,562
$271,843
$214,981
$3,710
$29,311
$292,175
$265,181
$209,870
$3,422
$26,543
$273,936
$247,444
$220,714
$3,455
$25,196
76.10%
1.00%
10.43%
58.12%
9.46%
1.68%
79.08%
.90%
9.54%
58.24%
9.69%
1.70%
79.77%
1.01%
11.07%
56.31%
9.08%
1.59%
89.20%
.92%
9.98%
54.79%
9.20%
1.54%
PER SHARE DATA
Net Income
Book Value
BALANCE SHEET AT YEAR END
Total Assets
Total Funding
Net Loans
Loan Loss Reserve
Stockholders’ Equity
SELECTED FINANCIAL RATIOS
Net Loans to Total Funding
Return on Average Total Assets
Return on Avg. Stockholders’ Equity
Efficiency Ratio
Stockholders’ Equity to Total Assets
Loan Loss Reserve to Total Loans
DIR ECT ION & FI NANCIA L HI GHLI GHTS
MILESTONES
TO OUR SHAREHOLDERS AND FRIENDS…
3
2012
H I G H L I G H T S
{ }
{ }
Future
Trends
RESPONSIVE
The existing banking industry challenges
have reinforced our focus on how to keep
our products and services simple and
easy to use. Now more than ever before,
customers are demanding electronic
services to manage their finances to save
time, money and allow for banking to
Assets per Employee
Efficiency Ratio
Industry Standard 3- 5 Million
Industry Standard .73
Loans
0.8 Outstanding
$409.3 Million
.766
0.7
Internal
0.6
illion
0.5
$182.5
$141.4
.582
$197.5
$190.9
AbbyBank
External
$183.4
Peer
.664
5
4
AbbyBank
Millions
4.48
4.39
Peer
4.66
3.88
.581
3
0.4
2
0.3
$219.8
$210.3
0.2
$210.2
$216.3
$225.9
1
0.1
2008
4
Million
0.0
2009
2010 9/30/11
2011
Demand Deposits
$162.9 Million
2012
9/30/12
0
9/30/11
be done any time of day or night. In
2012, we started focusing on these
demands by not only rewarding
customers for using our electronic
services, but also communicating
with our communities through more
electronic channels (Facebook, Email
Newsletters, etc.). With the electronic
banking channels evolving faster every
day, we will continue to focus more on
our technology based services for our
customer’s convenience.
GROWING
Physical Growth
Many new changes occurred in
2012. As AbbyBank continues to
offer personal, professional growth
opportunities for our existing staff,
new experienced staff was also
engaged to join the AbbyBank team.
With these new additions, more work
space was needed in our Abbotsford
location. The remodeling project at
the Abbotsford location created an
additional seven work spaces
and/or offices which will greatly
increase efficiency and productivity.
In addition to our Abbotsford
remodeling project, AbbyBank opens
its new location on February 4, 2013,
at one of Wausau’s busiest and most
visible intersections at 305 S. 18th
Avenue. The bank’s Wausau location
had been in the Union Station building
on Stewart Avenue since 1998. The
move from the Stewart Avenue
location to the new building will allow
a more convenient location with easy
access for our customers. The bank
will occupy the main level of the new
building and space will be available for
other tenants.
refinance their homes in 2012. Total
conventional mortgage originations
were over $53.6 million. AbbyBank
continues to service a total secondary
market portfolio of over 1,500 loans,
totaling over $174 million. Despite
continuing challenges, AbbyBank
remains steadfast in helping our
customers reduce their interest costs
and achieve the dream of home
ownership in north central Wisconsin.
AbbyBank continues to support our
commercial, agricultural and home
mortgage customers with a variety of
conventional and enhanced loan products.
Our lenders’ use of Freddie Mac, Farmer
Mac, Farm Service Agency, WHEDA, SBA
and local Revolving Loan Funds helped
more borrowers qualify for loans in 2012.
We feel the bank is positioned to take
Loans Outstanding
advantage of measured
$409.3 Millionloan growth as the
Million
economic
recovery
gains
steam External
in 2013.
500
Internal
The bank’s net in-house portfolio
achieved growth in 2012, increasing to
$225.9 million at year end. Internallyheld loan balances grew by $9.6 million
or 4.4%. Although this may not be
statistically significant growth, many of
our competitors struggled with zero
growth or shrinking loan portfolios.
400
Total
Million
Loan Growth
2012 ushered in yet another round of
refinance activity for the mortgage
department at AbbyBank. With
yet again “record low rates,” our
mortgage lenders helped over
500 borrowers either purchase or
$182.5
$183.4
0
Industry Standard .73
200
$210.3
150
$219.8
$210.2
$216.3
2010
2011
2012
$51.6
2008
4.66
Checking
$38.7
$30.3
2
$396 $274
4.48
Peer
$44.1
3
$34.6
$225.9
0
2009
2012
AbbyBank
4.39
Savings
3.88
$31.2
$31.2
50
2008
2011
Assets per Employee
Demand
Deposits
Millions
5 $162.9 Million
4
100
Million
200
2010
$141.4
Efficiency Ratio
Peer
$190.9
100
9/30/12
AbbyBank
$197.5
External
2009
Industry Standard 3- 5 Million
Million
Internal
400
200
2008
Loans Outstanding
$409.3 Million
500
300
loans under management
are$183.4
now
$190.9
$197.5
$182.5
over$141.4
$409 Million. AbbyBank’s level of past
300
due, non-accrual, and non-performing
$225.9
200
$216.3 our
loans
are all$219.8
significantly
below
peer
$210.2
$210.3
group. AbbyBank’s reputation as a safe
100
and solid bank continues to show from our
0
loan
growth in 2012.
$110.9
$118.8
$108.6
$80.8
1
$920
0
2009
9/30/11
2010
2011
9/30/12
2012
Efficiency Ratio
Demand Deposits
$162.9 Million
TRE NDS & FUTU RE GROWT H
AbbyBank continued to stay strong
in 2012. Not only did AbbyBank hire
12 new employees in 2012, but the
average number of years of service
per employee is still almost 10 years.
AbbyBank’s efficiency ratio continues
per among
Employeethe industry’s
to remainAssets
strong
Industry Standard 3- 5 Million
average and our peer
group. When
AbbyBank
Peer
Millions
5measuring efficiency, the lower the
4.66
efficiency ratio, the better.
In 2012,
4.48
4
4.39
AbbyBank3.88
achieved an efficiency
3ratio of .581 in comparison to that
of our peer group at .664 (see charts
2
below). In 2012, we achieved the
average Assets per Employee ratio of
1
4.48 in comparison to that of our peer
0group at 4.66 (see charts below). Even
9/30/12
9/30/11
though our assets per employee is a bit
lower than our peers, we are pleased.
In comparison to 2011, our assets
per employee has increased with the
addition of numerous positions within the
bank. We are strategically positioned to
naturally grow our customer base and still
provide the quality service our customers
deserve and enjoy.
Industry Standard .73
0.8
AbbyBank
5
Peer
CONFIDENT
G R O W T H
{
}
{
Abbotsford
S T O R Y, I N C .
}
THE ABBOTSFORD STORY
The Abbotsford Story, Inc. was formed in 1986
as a private charitable foundation of AbbyBank.
Since the foundation was formed, AbbyBank
has made contributions totaling over $908,300
to the foundation. From the interest earned,
the foundation makes donations to worthwhile
community projects that benefit the greatest
number of citizens possible. Since 1986,
the foundation has made donations to the
Abbotsford, Wausau, Weston and neighboring
area organizations totaling $558,586.
For information on how to send in a charitable
request from The Abbotsford Story, Inc., contact
AbbyBank at 715-223-2345 or 1-800-288-2229.
ORGANIZATIONS RECEIVING DONATIONS DURING 2012
Abbotsford Ambulance Service
Abbotsford Christian Academy
Bethlehem Lutheran Church
Catholic Charities of Wausau
Clark County Sheriff’s Department
Colby Choir Parents
Colby Public Library
Horace Mann Middle School
I.D.E.A. Foundation of Colby Schools
Jamison Kampmeyer Memorial
Junior Achievement of Medford
Junior Achievement of North
Central Wisconsin
Marathon County Literacy Council
Mountain Bay Elementary School
Page Forward
Rothschild Elementary School
The Women’s Community Inc.
Trinity Lutheran School
St. Anthony’s School
Zion Early Childhood Center
Junior Achievement
of Medford
St. Joseph’s School
The Women’s Community, Inc.
Newman Catholic
Elementary Schools
Mountain Bay Elementary School
Horace Mann Middle School
7
6
Child Advocacy Center of Dorchester Community
North-Central Wisconsin Emergency Services
QUAL ITY PER FORMANCE
Donation Pictures 2011-2012
{
}
Community
Abbotsford Christmas Parade
Abbotsford-Colby Area Chamber of Commerce Events
Abbotsford Crazy Days
Abbotsford First City Days
Abbotsford School to Work Program
Abbotsford High School – EverFi
Financial Education Program
Abbotsford High School Student of
the Month Program
Ag Adventure Tent for Children
Appreciation Picnic and/or events
Angel Tree Collection and Donations
Angels Among Us – St. Clare’s
Hospital Foundation
Animal Purchases at Local Fairs
Area School Booster Clubs
Athens Fair Parade
Athens Fair Horse Show
Big Brothers Big Sisters Bowl for Kids Sake
Colby Cheese Days and Parade
Colby Public Library
8
Community United Pantry (CUP)
DC Everst High School Career Fair
Dorchester Days Parade
Festival of Trees – Butterfly Luncheon
Financial Wellness Conference
Get Smart Wausau Coalition
Junior Achievement of Clark County
Junior Achievement of Marathon County
Junior Achievement of Medford
Kiwanis Club of Wausau
Money$mart Week Sponsor
Multiple Area Dairy Breakfasts
Owen Withee Ice Fishing Contest
Peyton’s Promise Holiday Meal
Matching Funds
Post Prom Celebrations
Producing Future Leaders Video Contest
Rib Mountain Business Association
Showcase Players
Wausau Area Builders Association
Home Show
Wausau Area Jaycees
Wausau Community Theatre
Wausau East High School – EverFi
Financial Education Program
Wausau Hmong New Year Celebration
Wausau Kayak Races
Wausau Parade of Homes
Wausau West High School – EverFi
Financial Education Program
Wausau West Side Business Association
Wausau Woodchucks
Weston Fest
Community
Involvement
Chamber Outings
Exhibitour
Local Parades
Wausau Home Show
Producing Future Leaders Video
Contest
Abbotsford Angel Tree
Abbotsford Picnic
Holiday Collection, Abbotsford
Peyton’s Promise
Shred Safe Day
Ag Adventure Tent
Angels Among Us
BBBS Bowl for Kid’s Sake
WestonFest Kids’ Carnival
Colby Show Choir
Community
Enrichment
Community
Sponsorship
CO MM UNITY I NVOLVEMENT
You can count on AbbyBank to continue to
support the community through many area
donations, contributions, sponsorships and
service within local nonprofit organizations.
AbbyBank is committed to being a positive
influence in the communities we serve.
In 2012, AbbyBank touched our area
communities through various sponsorships,
donations or employee time for the
following events or organizations:
9
H I G H L I G H T S
}
{
AbbyBank’s strength is contributed to all of our hardworking
employees. The average AbbyBank employee has over ten
years of experience at AbbyBank. This level of experience
helps AbbyBank keep our customers happy and keep the
internal functions running like clockwork. We commend all of
the AbbyBank employees for their dedication and hard work!
ANNIVERSARIES (pictured below) :
5 YEARS
Rhonda McBride
Kerry McKenzie
Jennifer Ovyn
Stacy Retterath
Youa Taylor
10 YEARS
Carol Buchholz
Heidi Hamilton
Philip Pesanka
10
15 YEARS
Betsy Briski
JoAnne Goessl
Tracy Meyer
20 YEARS
Diane Kulas
25 YEARS
Dawn Klieforth
Lorraine Wagner
35+ YEARS
20 + YEARS:
Bernette Allemann
Diane Kulas
30+ YEARS:
Karla Feldbruegge
MaryAnn Spranger
Gary Thielman
15+ YEARS:
Betsy Briski
Debbie Hardrath
JoAnne Goessl
Sharri Stroinski
Tracy Meyer
STAFF DEDICATION…
Jean Jakel
Jennifer Jakel
25+ YEARS:
Caroline Pietrowski
Darlene Kunze
Dawn Klieforth
Josie Schoelzel
Karen Soyk
Lorraine Wagner
Patricia Suttner
Penny Searer
Teri Schorer
10 + YEARS:
Carol Buchholz
Cindy Jantsch
Heidi Hamilton
Lori Schmitt
Patrick McCrackin
Philip Pesanka
Tina Heeg
Vicki Halopka
5 + YEARS:
Amanda Preu
Angela Esselman
Carol Krause
Dick Wagner
Faith Zarnke
Jennifer Ovyn
Jenny Dommer
Joanne Mast
Joe Wojtasiak
Kerry McKenzie
Lia Chang
Mandi Schreiber
Molly Pinter
Rhonda McBride
Stacy Retterath
Susan White
Terra Orth
Tim Petersen
Youa Taylor
Front row, left to right: Rhonda McBride, Kerry McKenzie, Jennifer Ovyn, Stacy Retterath, Heidi Hamilton, Betsy Briski, Tracy Meyer, Lorraine Wagner
Back row, left to right: Carol Buchholz, Youa Taylor, Philip Pesanka, JoAnne Goessl, Dawn Klieforth, Diane Kulas
Harold K. Christensen, Jr.
President
Christensen Sales, Inc.
L.C. Christensen & Co.
Abbotsford, WI
D I R E C T O R S
}
Dennis Kramer
President
Kramer Enterprises, LLC
Kramer’s County Market
Kramer-Schiferl, LLC
Abbotsford, WI
Patrick D. McCrackin
President/CEO
AbbyBank
Abby Bancorp, Inc.
Abbotsford, Wausau,
& Weston
Donald A. Meyer
President
Meyer Manufacturing Corp.
Dorchester, WI
David Diesen
President
Diesen Dental Studio
Weston, WI
Gregory Strasser
Attorney
Strasser & Yde, S.C.
Wausau, WI
Curtis Day, CPA
Certified Public Accountant
Wausau Tax &
Accounting, Inc.
Wausau, WI
TH E A BBY BAN K T EA M
S T R E N G T H
Board of
11
{
AbbyBank