2015 Annual Report: The Pace of Change

Officers and Corporators
Officers
Christopher W. Emmons President and Chief Executive Officer
Daniel P. Hunter Chief Operating Officer and Chief Financial Officer
Eric A. Andrews Chief Banking Officer
Roger C. Levesque EVP, Senior Loan Officer
Kimberly A. Donnelly SVP, Director of Business Banking
Matthew W. Early SVP, Commercial Loan Officer
Richard J. Ranaghan, Jr. SVP, Public Finance
Karl H. Suchecki SVP, Commercial Loan Officer
Christine M. Weymouth SVP, Director of Cash Management
Rebecca L. Winslow SVP, Director of Sales
M. Daniel Hancock RVP, Cash Management & Bus. Dev. Officer
John N. Lufkin RVP, Regional Senior Business Officer
Todd M. Abbotoni VP, Commercial Loan Officer
Beth C. Ahmida VP, Commercial Loan Portfolio Officer
Toni A. Bailey VP, Customer Service Center Manager
Julie D. Brooks VP, Senior Risk Officer
Jane W.S. Cirone VP, Finance & Accounting Manager
Jeremy T. Clough VP, Information Security Officer
Linda T. Cooper VP, Senior Operations Manager
Lisa M. Cormier-Smith VP, Director of Human Resources
Katherine E. Damon VP, Regional Senior Business Officer
Gloria A. Fredette VP, Loan Servicing Manager
Mark S. Girr VP, Director of Marketing & Communications
Jody L. Hamilton VP, Regional Banking Center Manager
Lindsay Harris VP, Commercial Loan Portfolio Officer
Kevin M. Heatley VP, Senior Information Systems Officer
Gorham Leasing
Group, LLC
Frederick G. Proctor, Vice President
Directors
Daniel G. Willett, Chairman
Anne M. Haskell, Vice Chairman
Katherine B. Coster
Dennis P. King
Joseph Malone
Jere G. Michelson
Richard M. Roderick
Paula D. Silsby
Bradford A. Wise
Honorary Corporators
John B. Alden*
Elmer H. Alley
Richard T. Barden
Richard A. Boyman
Burtis Brown, Jr.
D. Brenda Caldwell*
Carroll T. Cutting
Geraldine A. Day
Harvey C. Donald
F. Paul Frinsko*
John J. Godfrey
Natalie L. Hague
George V. Hall
Donald G. Marean
Eldon L. Morrison
Mary Pennell Nelson
John D. Phinney*
William W. Rust
Sally G. Vamvakias
Ralph B. Willis*
Herbert H. Woodbrey
*Honorary Directors
Kathleen O. Kalicky VP, Deposit Operations Manager
Ronald W. Knott VP, Director of Consumer & Residential Lending
Jill M. LaFlamme VP, Commercial Loan Portfolio Officer
Susan E. Laliberte VP, Retail Loan Processing & Underwriting Manager
Marie L. Morin VP, Senior Business Officer
Cynthia M. Nichols VP, Commercial Loan Portfolio Officer
Melanie T. Nunan VP, Mortgage Loan Officer
Kelly M. O’Donnell VP, Core Systems & Emerging Payments Officer
Holly A. Pepin VP, Commercial Loan Officer
Frederick G. Proctor VP, Commercial Loan Officer
Julie Landry Viola VP, Business Banking Portfolio Loan Officer
Katie L. Bellerose AVP, Advertising & Events Coordinator
Jessica J. Burbank AVP, Regional Banking Center Manager
Martha L. Conley AVP, Senior Financial Analyst
Troy A. Hendrickson AVP, Senior Business Officer
Lisa M. Hughes AVP, Senior Business Officer
Donald G. Joly AVP, Network Administrator II
Alden L. Joy AVP, General Services Manager
Kim M. Kenney AVP, Marketing & Communications
Troy R. Levesque AVP, Recruitment Officer
Matthew G. Palmer AVP, Commercial Senior Credit Analyst
Tracey L. Sardella AVP, Compliance Officer
Jason N. Straetz AVP, Credit Analyst II
Sue E. Strout AVP, Regional Banking Center Manager
Lisa M. Thomas AVP, Employee Development Officer
Corporators
David J. Abbott
Mark Adams
Timothy P. Agnew
Richard Berman
Tom Biegel
Leo W.C. Binette
Sheri Boulos
Michael Boyson
Samuel B. Broaddus
Joseph Bruno
Steve Campbell
Christopher Claudio
Russell J. Collett
Matthew Cook
Philip A. Cook, Jr.
Katherine B. Coster
Andrew D. Couch
Stephen Crockett
Albert R. Curran
Mark Curtis
Steven DiMillo
Susan J. Doliner
Robert H. Dorr
Diane M. Doyle
Christopher W. Emmons
Donald Esty, Jr.
Fred Forsley
Katie Fullam Harris
Kenneth Grondin
Charles F. Hahn
Anne M. Haskell
Barry J. Hobbins
Horace Horton
John R. Huard, Sr.
Janice A. Jongerden
Dennis P. King
Kenneth M. Lefebvre
Renee J. Lewis
Burleigh H. Loveitt
Joseph Malone
Anne M. McBrady
Daniel McCormack
Bradley C. McCurtain
Edward S. McKersie
Peter L. Michaud
Jere G. Michelson
Thimi Mina
John P. Nolan
Brian H. Noyes
Daniel J. O’Halloran
Timothy O’Neill
Gregory R. Palmer
Michael J. Phinney
Sheila Phinney-Levine
Charlie Poole
Malcolm Poole
Ford Reiche
M. Parker Roberts, III
Richard M. Roderick
Kenneth A. Ross
Linda F. Sanborn
Timothy W. Seavey
Paula D. Silsby
Jon Shaw
Jonathan Smith
Walter P. Stinson
Lisa Toner
Dana Totman
David E. Warren
Anna Wells
Daniel G. Willett
Jeffrey S. Willis
Bradford A. Wise
Nicole Witherbee
Printed with soy inks on recycled paper
with100% post-consumer content.
2015 Annual Report: The Pace of Change
Gorham Bancorp, MHC and Subsidiaries
This past year saw its share of change, and while some of it was the continuation of
initiatives taken and decisions made in prior years, much of it was exciting and new.
Perhaps most exciting is that this was one of our best years in recent history.
ASSETS
Our Commercial and Business Banking teams had another impressive effort, with
outstanding loan balances increasing by $40 million. New commercial loan and
lease originations exceeded $100 million and now account for 47% of total assets.
Included in that number is $28 million of business loans originated by our Business
Banking group.
Business development efforts within the retail area of the Bank were impressive as
well, with Residential and HELOC loan originations up 37% and 30%, respectively.
Business and consumer checking and savings accounts increased by $39.5 million.
“
2014 saw its share
of change, and while
some of it was the
continuation of initiatives
taken and decisions
made in prior years,
much of it was
exciting and new.
”
Another exciting change was the decision to expand our presence in Kennebunk –
extending our capabilities to meet customer demand for a full-service branch. This
expansion also provided us with an excellent opportunity to take a market-leading
position and introduce the Interactive Teller Machine. The “ITM” offers video teller
capabilities along with standard ATM functionality, allowing customers to conduct
nearly all traditional teller line transactions via video link.
Technology is becoming more and more important in delivering the convenience all
customers demand. Adding solutions like the ITM, along with mobile check deposit
and support for ever-evolving personal devices, is a process of change we are
committed to keep pace with.
We rely on our Board of Directors to provide vital insight that helps us measure
change and keeps us on a course for success. This year, we’ve added the fresh
perspective of Jere Michelson to the Board – whose keen financial expertise and
business acumen enhance our forward momentum. As we welcome Jere, we will
undoubtedly feel the loss of Anne Haskell, who retires from our Board in August.
Anne has been a key contributor for more than 25 years, serving as Vice Chair
and leading several Board committees. Her passion for serving the community will
continue in her role as one of our most effective State Senators.
Bringing about positive change in the communities we serve is perhaps what makes
me most proud. Employee volunteer hours – that is to say the time and effort our
people devote each year in support of nonprofits — truly exemplifies what it means
to be a community bank.
Yes, change is constant, and I’ve touched on just a fraction of what has occurred in
the past year. The future promises more change, and Gorham Savings Bank is well
positioned to anticipate, evaluate and respond.
Summary Consolidated Statements of Condition (UNAUDITED)
March 31, 2015 and 2014
2015
Cash and due from banks
$
2014
16,774,429
$
24,871,110
Investment securities
168,872,791
195,817,835
Total loans and leases
738,234,778
684,679,335
Less allowance for loan and lease losses
Net loans
Other assets
TOTAL ASSETS
$
(6,431,533)
(6,280,117)
731,803,245
678,399,218
52,304,751
52,014,843
969,755,216
$
596,486,327
$
951,103,006
LIABILITIES AND NET WORTH
Deposit accounts
$
568,863,995
Brokered deposits
152,369,646
124,347,111
Total borrowings
118,995,904
165,231,302
Other liabilities
13,492,094
9,031,683
Total liabilities
881,343,972
867,474,091
88,411,245
83,628,915
Net worth
TOTAL LIABILITIES AND NET WORTH
$
969,755,216
$
951,103,006
Standby letters of credit outstanding,
not included above
$
3,163,785
$
2,563,381
$
30,563,271
Summary Consolidated Statements of Income (UNAUDITED)
Years Ended March 31, 2015 and 2014
Total interest and dividend income
$
Total interest expense
32,272,561
6,121,184
7,957,146
26,151,377
22,606,125
800,000
300,000
25,351,377
22,306,125
5,758,406
5,958,236
(19,334)
33,289
-
1,734,407
25,668,684
24,197,298
Income before income taxes
5,421,765
5,834,759
Income tax expense
1,165,680
1,166,952
Net interest income
Provision for credit losses
Net interest income after provision for credit losses
Non-interest income
Gain (loss) on sale of securities
Net gain on sale of subsidiary
Non-interest expense
Net income
$
4,256,085
$
4,667,807
This statement has not been reviewed or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation.
Chris Emmons
President and Chief Executive Officer
The Numbers
The President’s Letter
Change, as they say, is constant, and arguably what matters most is how we
manage the pace of change. Whether it’s change in our market environment,
operations, organization, customer demand, products, tools or technologies –
having the right people and processes in place is critical to facilitate all change.
Chairman of the Board update.
This year we sincerely thank and honor
Director Anne Haskell on her retirement from
the Board of Directors. For nearly 30 years,
Anne has been steadfast in her commitment
and stewardship at the Bank – first as a
Corporator in 1987 and then as a Director in
1990. Anne’s passion for assisting the less
fortunate members of our community suffering
from hunger and inadequate housing closely
mirrors Gorham Savings Bank’s corporate
social compact. Anne’s principled leadership
in Maine State Government has also set the
bar high in Augusta. Thank you, Anne; your
many contributions to the fabric of the Bank
will be greatly missed.
Avesta Housing is a not-for-profit organization committed
to providing affordable housing opportunities throughout
southern Maine.
Recognizing the organization’s importance to the
communities we serve, Gorham Savings Bank has long
supported Avesta’s efforts. Often, that support comes
in the form of construction loans, which allow Avesta to
create new housing units in communities where demand
invariably outstrips supply.
This past year, Gorham Savings supported Avesta’s
development of more than 100 affordable housing units in
Portland, including:
• 57 new construction units at 409 Cumberland Avenue
• 56 historic rehab units at 77 Pine Street and 218 State Street
Although filling Anne’s
shoes is a tall order, we
are pleased to welcome
Jere G. Michelson.
Butler School – 77 Pine Street, Portland
With more than 40 years of success to its credit, Avesta now stands as one of the largest
not-for-profit developers of affordable housing in New England. And at Gorham Savings Bank,
we’re proud to provide the support they need to bring hundreds of Maine people home – year after year.
Running hard for
a common cause.
Over the course of the past 15 years, the
Maine Marathon, its partners and its committed
contingent of volunteers have combined forces
to raise more than $3.2 million for Maine
charities. Proceeds from the event are
directed to nonprofits benefiting children
with each primary beneficiary remaining the
same for a two-year cycle.
Chambers Photography
We at Gorham Savings Bank are all looking
forward to many new accomplishments
in 2015!
Dan Willett, Chairman
Gorham Savings Bank ITMs:
high tech with heart.
In a continuing effort to leverage state-of-the-art
technology while maintaining the vital personal
relationships we share with our customers, Gorham
Savings Bank will open two new Interactive Teller
Machines (ITMs) in early 2015. Part ATM and part teller,
ITMs provide direct video access to a Gorham Savings
Bank Customer Service Representative. A variety of
transactions are coordinated via speaker or over a
telephone handset, and they’re every bit as secure as
an ATM or branch transaction – and even more efficient.
Look for ITMs at our Kennebunk branch and soon at our
new Portland location on Munjoy Hill.
Again this year, Gorham Savings Bank is proud
to sponsor this inspirational Maine event and
embrace the healthy lifestyle shared by the
thousands of racers who log countless miles
each year to prepare for race day.
With employees that include many avid
runners and fitness aficionados, we welcome
the opportunity to support healthy lifestyle
choices, and to encourage families and
communities to join forces in support of a
common cause. And when all of those
objectives come together, everyone wins.
Jere, the Executive Vice
President and Chief
Financial Officer for
the Libra Foundation,
was elected to the
Gorham Savings Bank
Board of Directors in
November 2014. He’s been a Corporator of
the Bank since May 2013, and his financial
expertise and business experience are a
tremendous addition to our Board. Jere’s
strong commitment to the community and
active involvement with numerous nonprofits
are consistent with our mission and values.
Kennebunk asked –
and Gorham Savings Bank
delivered.
30
Main Street
With each year, we’ve seen increased demand at
our Kennebunk Loan Center. In response to the
community’s expressed desire for more services,
we’ve expanded our Kennebunk location to offer
full banking services and greater convenience.
As our customers’ needs change, it’s our job to
keep pace – and the Kennebunk branch is proof
of our commitment.
Gorham Savings Bank Update
In the Community
Avesta Housing and
Gorham Savings Bank –
putting community first.
The Business Community
The Business Community
Gorham Savings toasts Shipyard’s climb
to the nation’s top 25 craft breweries.
Over the past several years, the microbrewing industry
has seen incredible growth. With more than
20 years of experience in the business, Fred Forsley’s
Shipyard Brewing Company is one of the best-known
and best-loved microbreweries in the business. And
since 2006, Gorham Savings Bank has been proud to
play a role in Shipyard’s continuing growth and success.
Savings Bank’s
“ Gorham
understanding of our
business and support
of our growth plan has
enabled us to expand
over the years.
”
Fred Forsley
The relationship began in 2006, when Gorham Savings
worked with Forsley to provide financing tied to a close
affiliate of Shipyard – Federal Jack’s Restaurant and
Brew Pub. Based on the success of that relationship,
Shipyard Brewing Company chose Gorham Savings as
its banking partner, and the rest, as they say, is history.
Since the relationship began, Shipyard has continued
its aggressive growth trajectory. Between 2009 and
2013, the company doubled its sales, turning to
Gorham Savings for equipment loans required to bring
production in line with demand. Gorham Savings has
also helped Shipyard to expand its Sea Dog Brewing
Company chain, which now includes locations in
Clearwater and Orlando, Florida.
With its recent recognition by the National Brewers
Association as one of the nation’s top 25 craft
breweries, Shipyard continues to demonstrate its
capacity for smart, sustained growth in a competitive
industry. As Shipyard looks to an even brighter future,
Gorham Savings Bank welcomes the opportunity to play
a strong supporting role.
LaunchPad winner Bixby & Co.
savors the sweet taste of success.
It’s one thing to have a terrific idea for a business. It’s something
else entirely to see that idea through to success. That’s why
Gorham Savings Bank developed the LaunchPad competition –
providing Maine entrepreneurs with the opportunity to share
their stories, with the promise of a $30,000 grant to one finalist.
Now in its third year, the LaunchPad competition continues to
receive innovative business ideas from all over Maine. Over the
course of the competition, the entries are narrowed down to
five finalists who present their business idea to a panel of three
judges at a live competition.
Last year, after presenting a compelling pitch to the panel
of judges, Bixby & Co., a Rockland-based confectioner
specializing in organic chocolate bars, emerged victorious.
Kate McAleer, the company’s founder, announced plans to
use the $30,000 to purchase equipment, helping increase
production and expansion into the national market.
Like many Maine entrepreneurs, McAleer expressed her plans
to pursue broader national exposure while keeping her business
where it began, adding strength to the local economy. Kate is
also pleased to act as a role model for other young aspiring
businesswomen here in Maine.
As of March 2015, Bixby Bars are sold in over 800 stores
across the country. They expect to be in 1,500 stores by the
end of 2015.
gave us
“ LaunchPad
the ability to grow at
a time when demand
was outpacing capacity.
Now, we’re perfectly
positioned to continue
expanding.
”
Kate McAleer
The Business Community
The Business Community
Gorham Savings toasts Shipyard’s climb
to the nation’s top 25 craft breweries.
Over the past several years, the microbrewing industry
has seen incredible growth. With more than
20 years of experience in the business, Fred Forsley’s
Shipyard Brewing Company is one of the best-known
and best-loved microbreweries in the business. And
since 2006, Gorham Savings Bank has been proud to
play a role in Shipyard’s continuing growth and success.
Savings Bank’s
“ Gorham
understanding of our
business and support
of our growth plan has
enabled us to expand
over the years.
”
Fred Forsley
The relationship began in 2006, when Gorham Savings
worked with Forsley to provide financing tied to a close
affiliate of Shipyard – Federal Jack’s Restaurant and
Brew Pub. Based on the success of that relationship,
Shipyard Brewing Company chose Gorham Savings as
its banking partner, and the rest, as they say, is history.
Since the relationship began, Shipyard has continued
its aggressive growth trajectory. Between 2009 and
2013, the company doubled its sales, turning to
Gorham Savings for equipment loans required to bring
production in line with demand. Gorham Savings has
also helped Shipyard to expand its Sea Dog Brewing
Company chain, which now includes locations in
Clearwater and Orlando, Florida.
With its recent recognition by the National Brewers
Association as one of the nation’s top 25 craft
breweries, Shipyard continues to demonstrate its
capacity for smart, sustained growth in a competitive
industry. As Shipyard looks to an even brighter future,
Gorham Savings Bank welcomes the opportunity to play
a strong supporting role.
LaunchPad winner Bixby & Co.
savors the sweet taste of success.
It’s one thing to have a terrific idea for a business. It’s something
else entirely to see that idea through to success. That’s why
Gorham Savings Bank developed the LaunchPad competition –
providing Maine entrepreneurs with the opportunity to share
their stories, with the promise of a $30,000 grant to one finalist.
Now in its third year, the LaunchPad competition continues to
receive innovative business ideas from all over Maine. Over the
course of the competition, the entries are narrowed down to
five finalists who present their business idea to a panel of three
judges at a live competition.
Last year, after presenting a compelling pitch to the panel
of judges, Bixby & Co., a Rockland-based confectioner
specializing in organic chocolate bars, emerged victorious.
Kate McAleer, the company’s founder, announced plans to
use the $30,000 to purchase equipment, helping increase
production and expansion into the national market.
Like many Maine entrepreneurs, McAleer expressed her plans
to pursue broader national exposure while keeping her business
where it began, adding strength to the local economy. Kate is
also pleased to act as a role model for other young aspiring
businesswomen here in Maine.
As of March 2015, Bixby Bars are sold in over 800 stores
across the country. They expect to be in 1,500 stores by the
end of 2015.
gave us
“ LaunchPad
the ability to grow at
a time when demand
was outpacing capacity.
Now, we’re perfectly
positioned to continue
expanding.
”
Kate McAleer
Chairman of the Board update.
This year we sincerely thank and honor
Director Anne Haskell on her retirement from
the Board of Directors. For nearly 30 years,
Anne has been steadfast in her commitment
and stewardship at the Bank – first as a
Corporator in 1987 and then as a Director in
1990. Anne’s passion for assisting the less
fortunate members of our community suffering
from hunger and inadequate housing closely
mirrors Gorham Savings Bank’s corporate
social compact. Anne’s principled leadership
in Maine State Government has also set the
bar high in Augusta. Thank you, Anne; your
many contributions to the fabric of the Bank
will be greatly missed.
Avesta Housing is a not-for-profit organization committed
to providing affordable housing opportunities throughout
southern Maine.
Recognizing the organization’s importance to the
communities we serve, Gorham Savings Bank has long
supported Avesta’s efforts. Often, that support comes
in the form of construction loans, which allow Avesta to
create new housing units in communities where demand
invariably outstrips supply.
This past year, Gorham Savings supported Avesta’s
development of more than 100 affordable housing units in
Portland, including:
• 57 new construction units at 409 Cumberland Avenue
• 56 historic rehab units at 77 Pine Street and 218 State Street
Although filling Anne’s
shoes is a tall order, we
are pleased to welcome
Jere G. Michelson.
Butler School – 77 Pine Street, Portland
With more than 40 years of success to its credit, Avesta now stands as one of the largest
not-for-profit developers of affordable housing in New England. And at Gorham Savings Bank,
we’re proud to provide the support they need to bring hundreds of Maine people home – year after year.
Running hard for
a common cause.
Over the course of the past 15 years, the
Maine Marathon, its partners and its committed
contingent of volunteers have combined forces
to raise more than $3.2 million for Maine
charities. Proceeds from the event are
directed to nonprofits benefiting children
with each primary beneficiary remaining the
same for a two-year cycle.
Chambers Photography
We at Gorham Savings Bank are all looking
forward to many new accomplishments
in 2015!
Dan Willett, Chairman
Gorham Savings Bank ITMs:
high tech with heart.
In a continuing effort to leverage state-of-the-art
technology while maintaining the vital personal
relationships we share with our customers, Gorham
Savings Bank will open two new Interactive Teller
Machines (ITMs) in early 2015. Part ATM and part teller,
ITMs provide direct video access to a Gorham Savings
Bank Customer Service Representative. A variety of
transactions are coordinated via speaker or over a
telephone handset, and they’re every bit as secure as
an ATM or branch transaction – and even more efficient.
Look for ITMs at our Kennebunk branch and soon at our
new Portland location on Munjoy Hill.
Again this year, Gorham Savings Bank is proud
to sponsor this inspirational Maine event and
embrace the healthy lifestyle shared by the
thousands of racers who log countless miles
each year to prepare for race day.
With employees that include many avid
runners and fitness aficionados, we welcome
the opportunity to support healthy lifestyle
choices, and to encourage families and
communities to join forces in support of a
common cause. And when all of those
objectives come together, everyone wins.
Jere, the Executive Vice
President and Chief
Financial Officer for
the Libra Foundation,
was elected to the
Gorham Savings Bank
Board of Directors in
November 2014. He’s been a Corporator of
the Bank since May 2013, and his financial
expertise and business experience are a
tremendous addition to our Board. Jere’s
strong commitment to the community and
active involvement with numerous nonprofits
are consistent with our mission and values.
Kennebunk asked –
and Gorham Savings Bank
delivered.
30
Main Street
With each year, we’ve seen increased demand at
our Kennebunk Loan Center. In response to the
community’s expressed desire for more services,
we’ve expanded our Kennebunk location to offer
full banking services and greater convenience.
As our customers’ needs change, it’s our job to
keep pace – and the Kennebunk branch is proof
of our commitment.
Gorham Savings Bank Update
In the Community
Avesta Housing and
Gorham Savings Bank –
putting community first.
Gorham Bancorp, MHC and Subsidiaries
This past year saw its share of change, and while some of it was the continuation of
initiatives taken and decisions made in prior years, much of it was exciting and new.
Perhaps most exciting is that this was one of our best years in recent history.
ASSETS
Our Commercial and Business Banking teams had another impressive effort, with
outstanding loan balances increasing by $40 million. New commercial loan and
lease originations exceeded $100 million and now account for 47% of total assets.
Included in that number is $28 million of business loans originated by our Business
Banking group.
Business development efforts within the retail area of the Bank were impressive as
well, with Residential and HELOC loan originations up 37% and 30%, respectively.
Business and consumer checking and savings accounts increased by $39.5 million.
“
2014 saw its share
of change, and while
some of it was the
continuation of initiatives
taken and decisions
made in prior years,
much of it was
exciting and new.
”
Another exciting change was the decision to expand our presence in Kennebunk –
extending our capabilities to meet customer demand for a full-service branch. This
expansion also provided us with an excellent opportunity to take a market-leading
position and introduce the Interactive Teller Machine. The “ITM” offers video teller
capabilities along with standard ATM functionality, allowing customers to conduct
nearly all traditional teller line transactions via video link.
Technology is becoming more and more important in delivering the convenience all
customers demand. Adding solutions like the ITM, along with mobile check deposit
and support for ever-evolving personal devices, is a process of change we are
committed to keep pace with.
We rely on our Board of Directors to provide vital insight that helps us measure
change and keeps us on a course for success. This year, we’ve added the fresh
perspective of Jere Michelson to the Board – whose keen financial expertise and
business acumen enhance our forward momentum. As we welcome Jere, we will
undoubtedly feel the loss of Anne Haskell, who retires from our Board in August.
Anne has been a key contributor for more than 25 years, serving as Vice Chair
and leading several Board committees. Her passion for serving the community will
continue in her role as one of our most effective State Senators.
Bringing about positive change in the communities we serve is perhaps what makes
me most proud. Employee volunteer hours – that is to say the time and effort our
people devote each year in support of nonprofits — truly exemplifies what it means
to be a community bank.
Yes, change is constant, and I’ve touched on just a fraction of what has occurred in
the past year. The future promises more change, and Gorham Savings Bank is well
positioned to anticipate, evaluate and respond.
Summary Consolidated Statements of Condition (UNAUDITED)
March 31, 2015 and 2014
2015
Cash and due from banks
$
2014
16,774,429
$
24,871,110
Investment securities
168,872,791
195,817,835
Total loans and leases
738,234,778
684,679,335
Less allowance for loan and lease losses
Net loans
Other assets
TOTAL ASSETS
$
(6,431,533)
(6,280,117)
731,803,245
678,399,218
52,304,751
52,014,843
969,755,216
$
596,486,327
$
951,103,006
LIABILITIES AND NET WORTH
Deposit accounts
$
568,863,995
Brokered deposits
152,369,646
124,347,111
Total borrowings
118,995,904
165,231,302
Other liabilities
13,492,094
9,031,683
Total liabilities
881,343,972
867,474,091
88,411,245
83,628,915
Net worth
TOTAL LIABILITIES AND NET WORTH
$
969,755,216
$
951,103,006
Standby letters of credit outstanding,
not included above
$
3,163,785
$
2,563,381
$
30,563,271
Summary Consolidated Statements of Income (UNAUDITED)
Years Ended March 31, 2015 and 2014
Total interest and dividend income
$
Total interest expense
32,272,561
6,121,184
7,957,146
26,151,377
22,606,125
800,000
300,000
25,351,377
22,306,125
5,758,406
5,958,236
(19,334)
33,289
-
1,734,407
25,668,684
24,197,298
Income before income taxes
5,421,765
5,834,759
Income tax expense
1,165,680
1,166,952
Net interest income
Provision for credit losses
Net interest income after provision for credit losses
Non-interest income
Gain (loss) on sale of securities
Net gain on sale of subsidiary
Non-interest expense
Net income
$
4,256,085
$
4,667,807
This statement has not been reviewed or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation.
Chris Emmons
President and Chief Executive Officer
The Numbers
The President’s Letter
Change, as they say, is constant, and arguably what matters most is how we
manage the pace of change. Whether it’s change in our market environment,
operations, organization, customer demand, products, tools or technologies –
having the right people and processes in place is critical to facilitate all change.
Officers and Corporators
Officers
Christopher W. Emmons President and Chief Executive Officer
Daniel P. Hunter Chief Operating Officer and Chief Financial Officer
Eric A. Andrews Chief Banking Officer
Roger C. Levesque EVP, Senior Loan Officer
Kimberly A. Donnelly SVP, Director of Business Banking
Matthew W. Early SVP, Commercial Loan Officer
Richard J. Ranaghan, Jr. SVP, Public Finance
Karl H. Suchecki SVP, Commercial Loan Officer
Christine M. Weymouth SVP, Director of Cash Management
Rebecca L. Winslow SVP, Director of Sales
M. Daniel Hancock RVP, Cash Management & Bus. Dev. Officer
John N. Lufkin RVP, Regional Senior Business Officer
Todd M. Abbotoni VP, Commercial Loan Officer
Beth C. Ahmida VP, Commercial Loan Portfolio Officer
Toni A. Bailey VP, Customer Service Center Manager
Julie D. Brooks VP, Senior Risk Officer
Jane W.S. Cirone VP, Finance & Accounting Manager
Jeremy T. Clough VP, Information Security Officer
Linda T. Cooper VP, Senior Operations Manager
Lisa M. Cormier-Smith VP, Director of Human Resources
Katherine E. Damon VP, Regional Senior Business Officer
Gloria A. Fredette VP, Loan Servicing Manager
Mark S. Girr VP, Director of Marketing & Communications
Jody L. Hamilton VP, Regional Banking Center Manager
Lindsay Harris VP, Commercial Loan Portfolio Officer
Kevin M. Heatley VP, Senior Information Systems Officer
Gorham Leasing
Group, LLC
Frederick G. Proctor, Vice President
Directors
Daniel G. Willett, Chairman
Anne M. Haskell, Vice Chairman
Katherine B. Coster
Dennis P. King
Joseph Malone
Jere G. Michelson
Richard M. Roderick
Paula D. Silsby
Bradford A. Wise
Honorary Corporators
John B. Alden*
Elmer H. Alley
Richard T. Barden
Richard A. Boyman
Burtis Brown, Jr.
D. Brenda Caldwell*
Carroll T. Cutting
Geraldine A. Day
Harvey C. Donald
F. Paul Frinsko*
John J. Godfrey
Natalie L. Hague
George V. Hall
Donald G. Marean
Eldon L. Morrison
Mary Pennell Nelson
John D. Phinney*
William W. Rust
Sally G. Vamvakias
Ralph B. Willis*
Herbert H. Woodbrey
*Honorary Directors
Kathleen O. Kalicky VP, Deposit Operations Manager
Ronald W. Knott VP, Director of Consumer & Residential Lending
Jill M. LaFlamme VP, Commercial Loan Portfolio Officer
Susan E. Laliberte VP, Retail Loan Processing & Underwriting Manager
Marie L. Morin VP, Senior Business Officer
Cynthia M. Nichols VP, Commercial Loan Portfolio Officer
Melanie T. Nunan VP, Mortgage Loan Officer
Kelly M. O’Donnell VP, Core Systems & Emerging Payments Officer
Holly A. Pepin VP, Commercial Loan Officer
Frederick G. Proctor VP, Commercial Loan Officer
Julie Landry Viola VP, Business Banking Portfolio Loan Officer
Katie L. Bellerose AVP, Advertising & Events Coordinator
Jessica J. Burbank AVP, Regional Banking Center Manager
Martha L. Conley AVP, Senior Financial Analyst
Troy A. Hendrickson AVP, Senior Business Officer
Lisa M. Hughes AVP, Senior Business Officer
Donald G. Joly AVP, Network Administrator II
Alden L. Joy AVP, General Services Manager
Kim M. Kenney AVP, Marketing & Communications
Troy R. Levesque AVP, Recruitment Officer
Matthew G. Palmer AVP, Commercial Senior Credit Analyst
Tracey L. Sardella AVP, Compliance Officer
Jason N. Straetz AVP, Credit Analyst II
Sue E. Strout AVP, Regional Banking Center Manager
Lisa M. Thomas AVP, Employee Development Officer
Corporators
David J. Abbott
Mark Adams
Timothy P. Agnew
Richard Berman
Tom Biegel
Leo W.C. Binette
Sheri Boulos
Michael Boyson
Samuel B. Broaddus
Joseph Bruno
Steve Campbell
Christopher Claudio
Russell J. Collett
Matthew Cook
Philip A. Cook, Jr.
Katherine B. Coster
Andrew D. Couch
Stephen Crockett
Albert R. Curran
Mark Curtis
Steven DiMillo
Susan J. Doliner
Robert H. Dorr
Diane M. Doyle
Christopher W. Emmons
Donald Esty, Jr.
Fred Forsley
Katie Fullam Harris
Kenneth Grondin
Charles F. Hahn
Anne M. Haskell
Barry J. Hobbins
Horace Horton
John R. Huard, Sr.
Janice A. Jongerden
Dennis P. King
Kenneth M. Lefebvre
Renee J. Lewis
Burleigh H. Loveitt
Joseph Malone
Anne M. McBrady
Daniel McCormack
Bradley C. McCurtain
Edward S. McKersie
Peter L. Michaud
Jere G. Michelson
Thimi Mina
John P. Nolan
Brian H. Noyes
Daniel J. O’Halloran
Timothy O’Neill
Gregory R. Palmer
Michael J. Phinney
Sheila Phinney-Levine
Charlie Poole
Malcolm Poole
Ford Reiche
M. Parker Roberts, III
Richard M. Roderick
Kenneth A. Ross
Linda F. Sanborn
Timothy W. Seavey
Paula D. Silsby
Jon Shaw
Jonathan Smith
Walter P. Stinson
Lisa Toner
Dana Totman
David E. Warren
Anna Wells
Daniel G. Willett
Jeffrey S. Willis
Bradford A. Wise
Nicole Witherbee
Printed with soy inks on recycled paper
with100% post-consumer content.
2015 Annual Report: The Pace of Change