ConneCtion - Institution for Savings

The Clock Tower
C
onnection
NEWS AND UPDATES FROM THE INSTITUTION FOR SAVINGS SPRING 2014
Expanding Our Geographic Footprint to Cape Ann
O
n April 15 the Institution for
Savings signed a definitive
agreement to acquire Rockport
National Bancorp, Inc., the
parent company of Rockport
National Bank. The completion
of this acquisition requires the
approval of the holders of at
least two-thirds of the shares of
Rockport National Bancorp, Inc.
as well as receipt of customary
regulatory approvals.
Additionally, the Institution for
Savings will create and fund a
new charitable foundation in
the amount of $2 million for
the benefit of not-for-profit
organizations in the Cape
Ann community.
The combined Bank will have
eleven full service offices in
Salisbury, Newburyport, Rowley,
Topsfield, Ipswich, Beverly,
Rockport and Gloucester and
$1.6 billion in deposits.
Additionally, the Bank will have
retail offices in five high schools:
Newburyport, Triton Regional,
Ipswich, Masconomet Regional
and Beverly.
ABOUT ROCKPORT NATIONAL BANK
“We are committed to remaining
a mutually owned regional savings
bank and Cape Ann and Beverly
are a natural extension to our
existing banking offices,” said
Michael J. Jones, President and
CEO of the Institution for
Savings. “We will continue to offer
the best products and customer service
in the marketplace while retaining a
talented team of employees and
recruiting the best banking
professionals in the industry.”
• Year founded: 1851
• Total assets: $200 million
• Number of full-time employees: 46
• Number of offices: 4 (two in Rockport,
one in Gloucester, one in Beverly)
plus an educational school banking
office at Beverly High School
As community banks, Rockport
National Bank and the Institution
for Savings have much in common.
Both highly respected institutions
have been committed to serving the
financial needs of their customers
and communities for well over
150 years. Founded in 1851,
Rockport National Bank has
$200 million in assets. The bank
prides itself in building customer
relationships primarily through its
commitment to small business
lending on Cape Ann and
the surrounding communities.
The anticipated completion date of
the acquisition is expected in the
fourth quarter of 2014.
Inside This Issue
Letter from the President................... 2
Financial Literacy Programs................ 5
IFS in the Community......................... 7
Rowley Office Milestone.................... 3
Jones Named Top Business Leader.... 6
New Faces.......................................... 7
Charitable Foundation Update........... 3
Girard Receives President’s Award..... 6
Online Account Opening Launch........ 7
Educational School Banks................... 4
Painting: Upper State Street............... 6
Building Stronger Communities Together Since 1820
Letter from the President & CEO
Rowley Office Tops $200 Million
We are pleased to report that our first quarter net income was $10.8 million resulting in a return
on assets of 2.60 percent. This is the highest quarterly net income recorded in the Bank’s
194 year history.
At a time when many community banks have struggled to maintain deposits,
our Rowley Office is defying that trend, recently exceeding the $200 million
milestone in total deposits just six years after opening its doors.
“We are very happy to see the exceptional growth that this location has
experienced in the last six years,” said Institution for Savings President
and CEO Michael J. Jones. “I believe it proves that our brand of personal,
professional attention to our customers, coupled with great products,
great rates, low fees and community support is exactly what customers
are looking for in a bank.”
The Rowley Office, located at 312 Haverhill Street, opened in October
2007 and is managed by Assistant Vice President Joshua Tuff. In addition
to being a full-service retail office, it is also home to the Bank’s growing
Commercial Lending division, managed by Senior Vice President and
Senior Commercial Lender Karen MacCormack.
We want to thank the residents, businesses and organizations of Rowley and the
surrounding communities for making this office a success in such a short period of time.
Here are a few financial highlights and projections:
Balance Sheet Total assets Total residential loans Total commercial loans Total deposits Total capital Income Statement
3/31/2014
3/31/2013
$ Increase
% Increase
$1,715,258,000 $940,601,000 $166,156,000 $1,422,037,000 $224,102,000 $1,432,803,000 $282,455,000 $743,321,000 $197,280,000 $125,357,000 $40,799,000 $1,163,632,000 $258,405,000 $197,444,000 $26,658,000 Year-to-date
3/31/2014
3/31/2013
20%
27%
33%
22%
14%
$ Increase
$ (Decrease)
% Increase
% (Decrease)
6%
27%
100%
-61%
This is the highest
quarterly net income
Total operating income before taxes $3,286,000 Total gains on sales of securities $12,247,000 Charitable Foundation Contribution -
Total income tax expense ($4,697,000)
$3,101,000 $9,610,000 ($1,402,000)
($2,919,000)
$185,000 $2,637,000 $1,402,000 ($1,778,000)
$10,836,000 $8,390,000 $2,446,000 29%
$2,925,000 $2,651,000 $274,000 10%
Net Income Net Operating Income Profitability Ratios
Total capital to average assets Return on average assets Efficiency ratio Interest rate spread 13.19%
2.60%
63.01%
2.12%
13.89%
2.42%
77.92%
2.25%
recorded in the Bank’s
194 year history.
Year-End Projections Year-to-date
12/31/2014
12/31/2013
$ Increase
$ (Decrease)
% Increase
% (Decrease)
Net income Return on average assets Net operating income
$22,000,000
$25,593,000
1.28%1.72%
$12,650,000
$11,288,000
($3,593,000)
-14%
$1,362,000 12%
Welcome Our New Corporators
As illustrated above our first quarter net earnings increased $2.4 million or 29 percent over
the first quarter of 2013 primarily due to gains on sales of common stocks.
Our year-end net income projection of $22 million represents a decrease of 14 percent
compared to our prior year net income and is solely due to our forecasted decrease in gains
on sales of common stocks for the second half of this year. However, our net operating income
is forecasted to increase approximately $1.4 million or 12 percent.
These financial results will once again be in the top 95th percentile for banks in Massachusetts!
Newsletter highlights include: our announcement to acquire Rockport National Bank,
our financial literacy programs, a great story on commercial credit analyst David Doucette,
and other Bank happenings.
As you will read we have been very busy and continue to remain true to our vision to positively
affect the lives of every person, business and organization within the communities we serve.
I hope you will enjoy this edition of The Clock Tower Connection and as always I invite you
to contact me if you have questions or comments.
Sincerely,
Michael J. Jones
2President and CEO
Left to right: Michael Jones, president of the
Institution for Savings; Dr. Ann-Marie Clancy of
Newburyport, partner at Newburyport Dental
Associates; Zachary T. Field of Amesbury,
owner of Zach Field Drum & Musical Suite;
Judy Proctor of Topsfield, lawyer and minister;
Stuart E. Winfrey of Essex, owner of Winfrey’s
Fudge and Chocolate; Charles Wear of
Amesbury, vice president of Meridian
Associates; and Kimberly Rock, executive vice
president of the Institution for Savings.
Charitable Foundations Donations and Pledges
The Institution for Savings, through its two charitable foundations, donated and pledged $600,000 in the
fourth quarter of 2013 and the first quarter of 2014.
1st Lt. Derek Hines Soldiers
Assistance Fund
Acord Food Pantry
Amesbury High School Senior
Celebration Class of 2014
Amesbury Veterans Memorials
Restoration Committee
Anna Jaques Hospital Aid Association
Assisted Living Center, Inc.
Belleville Roots Music Concert Series
Boys & Girls Club of Lower
Merrimack Valley
Bright Happy Power
Coastal Homebuyer Education, Inc.
Community Action, Inc.
Community Service of Newburyport
District 7930 Rotary Foundation
Polar Plunge for Polio
Essex County Greenbelt Association
Exit Dance Theater
Firehouse Center for the Arts
Friends of Ipswich Elderly
Friends of Ipswich Elementary School
Friends of Newburyport Public Library
Books in Bloom
Greater Newburyport Mothers
& Families Club
Greater Newburyport Special Athletes
Harborlight Community Partners
Haverhill YMCA
David Curley Memorial 5k Race
Historical Society of Old Newbury
Homes of Hope - Irenicon, Inc.
Hope Community Church
Hugh Doyle Resource Center
Ipswich Caring
Ipswich Community Food Pantry
Ipswich Department of Recreation
and Culture
Ipswich Garden Club
Ipswich High Class of 2014
Ipswich Youth Lacrosse
Jeanne Geiger Crisis Center
Larry Fournier Memorial
Hockey Tournament
Masconomet Regional High School
Senior Celebration Class of 2014
Merrimack River Feline
Rescue Society
Merrimack Valley Economic
Development Council
Muddy Leprechaun Mud Run
Newbury Elementary School
Field Renovations
Newburyport Art Association
Newburyport Boys Basketball
Association
Newburyport Chamber Music Festival
Newburyport Choral Society
Newburyport Education Foundation
Newburyport Elementary PTO
Fun Run, Kitchen Tour
Newburyport Elks Lodge
Newburyport High School
Senior Celebration Class of 2014
Newburyport High
School Theatre
Newburyport Learning
Enrichment Center
Newburyport Lions Club
(Yankee Homecoming Road Race,
Salvation Army Thanksgiving Dinner)
Newburyport Literary Festival
Newburyport Rotary Club
Frigid Fiver Road Race
Newburyport Waterfront Trust
Newburyport Youth Football &
Cheerleading League
Newburyport Youth Lacrosse
Association - Stephen Boy Scholarship
Newburyport Youth Services
Northern Essex Community College
Northern Essex Elder Transport
Open Door
Pentucket Education Foundation
Pentucket Regional High School
Senior Celebration Class of 2014
Pentucket Youth Lacrosse
Tournament
Pine Grove School
Razz Ma Dazz
Destination Imagination
ROOF Overhead Collaborative, Inc.
Rotary Foundation DAF
Rowley Food Pantry
Senior Care Inc.
St. Paul’s Episcopal Church
Among Friends Program
Storm Surge
The Community House
The Compassionate Friends
The Link House
Topsfield Firefighters
Relief Association
Topsfield Food Pantry
Tough Warrior Princesses
Town of Wenham War Memorial
Triton Babe Ruth League
Triton Regional School District
Triton Regional High School
Senior Celebration Class of 2014
Waltham Rotary Club
West Newbury PTO
Windrush Farm
Winners Circle Running Club
(High Street Mile, Pat Polletta Race,
Spring Classic)
YWCA of Greater Newburyport
YMCA of the North Shore
3
Helping Teach Students
A d u lt s A b o u t M o n e y .
Student Bankers Invest
in Their Future
Supporting Our Communities
Through Financial Literacy
The Institution for Savings is one of a growing
number of financial institutions across Massachusetts
and the country that provides high school students
with hands-on experiences with banking and helping
them prepare for the workforce. The Bank operates
educational school bank branches at Newburyport,
Ipswich, Triton Regional and Masconomet Regional
High Schools.
As a mutual savings bank, the Institution for Savings is committed to focusing on
the long-term futures of the communities we serve. The Bank offers a number of
programs that teach various segments of the community about the importance
of solid money management skills.
Elementary School
The school bank program consists of classroom
sessions followed by a hands-on practical module
during which the students work as tellers in
2014 Banking Bowl
the school bank. Student tellers go through
Masconomet
Regional
comprehensive training before they are allowed to
2014 Banking Bowl - 1st Place
High
School
Student
Bankers
work in the school banks. “Our students go through
Triton Regional High School
the same training and preparation that we put our
Student Bankers with
employees through,” says Judy Langill, the Bank’s Educational
School Bank Coordinator Judy Langill
School Bank Coordinator. “While working in the school Bank,
at the Federal Reserve Bank in Boston.
students process transactions for students, teachers, administrators
and school departments.”
The school bank program also
prepares students for their future
working careers. Student tellers
apply and go through an interview
FROM SCHOOL BANKER TO REAL-LIFE BANKER
process before they are selected to
As an Ipswich High School student, Dave Doucette did not know much
work in the school offices. Student
about banking until he enrolled in his school’s Banking 1 elective. During
bankers that distinguish themselves
his senior year he worked in the school’s Educational School Bank as a
while in the program are often
teller. After several months, Dave was offered a part-time teller position
hired to work summers and
at the Bank’s Depot Square Office.
part-time in one of the Bank’s
A business management major at St. Joseph’s College,
full-service banking offices.
Dave continued to work at the Bank during college
The Institution for Savings fully
breaks. In his senior year, Dave reached out to the
underwrites the cost of our school
Bank to inquire about possible permanent positions
banks, including equipment,
at the Bank. As luck would have it, the Bank was
furniture and fixtures. The Bank
expanding its residential lending division and offered
also hires Bank employees to
Dave a position as a Loan Processor. After a year of
supervise the offices. The classroom
processing credit reports, underwriting mortgages and
component is taught by teachers
preparing disclosures and commitment letters, he was
who work in the respective
promoted to Credit Analyst in the Bank’s fast-growing
Commercial Lending department. Today, Dave assists
high schools.
in the management of a $160 million commercial
loan portfolio.
“Working in the school bank office helped me realize that I wanted
to major in business in college,” says Dave in speaking about the
importance of the Bank’s growing educational school banking program.
“This experience also taught me important lifelong financial lessons—
things like budgeting and keeping strong credit. The school banking
program was the impetus that launched my career path.”
4
and
Savings & Retirement Booth
Take Home Challenge Winners
(Credit for Life Fair)
(L-R) Ipswich High School Guidance
Counselor Justine May; Ipswich High School
winners David Leff and Natasha Vasiliades;
and Financial Planning Associate Tyler Dolan
from The Financial Advisors, LLC.
Teach Children to Save Each spring, Institution for Savings
employees visit area elementary schools and present fun
hands-on presentations to third graders to help them learn
about savings and spending.
Middle School
Think, Save, Succeed! is an interactive program designed
for area eighth grade students. The program is presented in
multiple sessions including: Financial Decision-Making, Setting
Savings Goals, Needs and Wants, Making Money, Budgeting,
and more. The program was piloted at the Nock Middle School
in Newburyport last year.
High School
Get Smart About Credit is a spring workshop for high school
seniors that explains credit scores and credit cards, discusses
the importance of maintaining good credit and the potential
problems and pitfalls that come with bad credit.
Credit for Life Fair Now in its fourth year, this nationally recognized
half-day program helps eleventh grade students develop personal
financial management skills that they will use throughout their lives.
Students play the roles of 25-year old adults during the Fair and are
assigned professions and annual salaries. Then working within a budget
based on their monthly income, they visit 15 booths over a three hour
period to make purchase decisions utilizing the monthly salary along
with some credit or savings.
2014 Credit for Life Fair
Institution for Savings Salisbury Office Manager
Bruce Macdonald assists students as
they spin the Reality Wheel.
Senior Citizens
Identity Theft and Internet Fraud
Annual presentations are given by Bank managers at area senior
centers and Council on Aging meetings to make older adults aware
of identity theft and how to prevent it.
2014 Credit for Life Fair
Community Service Volunteers (l-r): Jamie Millen, IFS Teller;
Robert Wood, Ipswich Rotary Club; Suzanne Dubus,
Jeanne Geiger Crisis Center, Inc. and Anna Marie Beech,
Pentucket Education Foundation
5
Building Stronger Communities Together Since 1820
Michael Jones ­Named
A Top Business
Leader to Watch
in 2014
In the spring premier edition of North
of Boston Business magazine Michael
Jones was named a top 10 business
leader to watch in 2014.
“The Bank’s long term strategic focus
is to increase profitability, grow
existing banking offices, and expand
into other local communities. We
are committed to remaining a
‘mutually owned’ regional savings
bank serving the North Shore and
Cape Ann. We will continue to offer
the best products and customer
service in the marketplace. One of our
top priorities is to retain our talented
team of employees and recruit the
best banking professionals in the
industry. Further, as we increase
our earnings, we will increase our
charitable giving to local and
not-for-profit organizations.
2014 President’s
Award Winner Anne Girard
Deposit Services Representative Anne
Girard is this year’s recipient of the
Institution for Savings President’s Award.
This Award is given annually to an
employee nominated by his or her peers
who best exemplifies the Bank’s vision
of positively affecting the lives of every
person, business and organization.
“The level of customer service that Anne delivers far exceeds expectations,” said
President Michael Jones. “It is not only the service Anne delivers but who she is as
a person. She is inquisitive, mature, encouraging and respectful. Anne’s efforts have
a significant impact on the entire Bank. She relates to what a customer is going
through and uses her life experiences to help on a more personal level. She truly
cares about and respects everyone who works here at the Institution for Savings.”
Anne’s first lessons in banking came as a young child. Her father, Robert Gosselin,
was a founding officer of the St. Joseph’s Credit Union in Biddeford, Maine. As a
young child, Anne used to visit the credit union on Sundays to help her father
post interest to the members’ savings accounts. He diligently checked her work
and was impressed with Anne’s accurracy.
A graduate of the University of Maine, Anne moved to Rowley with her husband
Roger and raised their two children, Christopher and Nicole. Anne worked many
years in the education field. In 2006, she joined the former Ipswich Cooperative
Bank as a Teller. Ipswich merged with the Institution for Savings in 2007 and
Anne was promoted to Deposit Services Representative in 2009.
Painting of the Bank and our Neighbors
Hangs in Lobby
I believe that customers have come
to appreciate our style of personal
community banking. Despite the
significant growth of our balance
sheet, we have retained our ‘small
bank’ feel. When customers choose
to bank with us they know they are
getting an institution where decisions
are made by people they know and
trust, right in there own backyard,”
said Mr. Jones.
To read the article in its entirety
visit institutionforsavings.com
under ‘What’s New’ on the
right-hand column.
6
This magnificent 24” x 48” oil
painting entitled ‘Upper State
Street and Beyond’ was
completed in August 2013 by
Richard Burke Jones. It was
purchased by the Bank
and currently hangs in the
historic lobby of the Bank’s
Main Office. Richard, a
lifelong Newburyport
resident, is a realist painter
who has researched, designed
and painted historical scenes
of many 19th century New
England towns for years.
IFS in the Community
Introducing
ONLINE
ACCOUNT
OPENING
Newburyport High School Girls Soccer - State Champions
Wearing their championship jackets donated by the Bank, the team and their coaches
posed with President Michael Jones, left.
The Ultimate
in Banking
Convenience!
Coming Early June!
Open a new bank account
from the convenience of
your computer!
Coins for a Cause Yields $1,000 for
Winthrop School and Friends of
Ipswich Elementary School (FRIES)
Michael Jones, along with his first grade
twin sons Sam and Max and their classmates present a check to Toni Mooradd,
co-chair of the school’s parent group.
Go Green, Earn Green!
E-Statements Campaign $250 Winner
Liz Riley, Newburyport (left) accepts
her $250 VISA gift card from
Main Office Manager Jessica Yuhasz.
Liz’s name was drawn from over
1,000 customers who entered
during the month-long
E-Statements Campaign.
Meet the new IFS faces
Nina Cutts
Vice President
Commercial Lending
Danielle
Field
Weekend
Teller
George
Pantelis
Summer
Teller
Jacqueline
Gordon
Weekend
Teller
Elizabeth
Grossheim
BSA
Analyst
Christopher
Reydel
Weekend
Teller
Join us in welcoming
Nina Cutts as Vice President
of Commercial Lending.
Nina has more than 25 years of
experience in banking, lending
and financial services, most
recently with The Provident
Bank where she managed an
$82 million commercial loan
portfolio. Her knowledge and
personal style of banking are
a great asset to the Bank’s
commercial lending team.
Opening a checking account,
savings account, money market
or CD online is easy and reliable.
Our simple and secure online
application will guide you
through the process.
FAST!
Complete your
online application
in minutes. Once
we receive and verify
the information your
account will be
promptly activated.
CONVENIENT!
Set up your account(s)
when you want­-from
wherever you want.
SAFE AND
SECURE!
Like all of our online
services, we are
committed to
safeguarding
our customers’
information and
offer the highest
degree of security.
7
PRESORT
FIRST CLASS
U.S. POSTAGE
Headed to the lake
for the summer?
Take us with you!
PA I D
PO Box 510, 93 State Street
Newburyport, MA 01950
institutionforsavings.com
NEWBURYPORT, MA
PERMIT NO. 3
SIGN UP FOR
E-STATEMENTS
Click on the Internet tab
on our home page for more info.
We are confident we will prosper and meet the challenges of tomorrow.
Trustees*
Freeman J. Condon
James V. Ellard
Kevin M. Gasiorowski
Donald M. Greenough
Cindy M. Johnson
Michael J. Jones
Peter G. Kelly
Mary E. Larnard
John F. Leary, III
Jeremiah T. Lewis
R. Drew Marc-Aurele
Saira Naseer-Ghiasuddin
Ellen Galanis Nich
Kimberly A. Rock
Ellen Mackey Rose
Richard J. Silverman
David A. Tibbetts
* Are also Corporators
C
orporators
Frederick J. Abdulla
Benjamin C. Armstrong
Todd M. Baltich
Kenneth C. Barney
A. Gerard Beauchamp
Jean Paul Beck
Umesh Bhuju
Robin S. Blair
Robert G. Bodwell
E. Douglas Bolick
John F. Bradshaw
Mae C. Bradshaw
Eugene E. Case
Lucinda J. Cathcart
David J. Chatfield
Anne-Marie Clancy
Daryl G. Colden
H. Patricia Comeau-Simonson
Paul S. Como
Christopher J. Connolly
Lawrence J. Cuddire
Francis Culver
Andrew J. deBernardo
Gene del Rio
John J. Desmond, III
V. James DiFazio
William J. DiMento
Paul J. Donohoe
Denald H. Doonan
Marlene M. Doyle
Suzanne C. Dubus
Donald Dupray
Robert H. Ebersole
George H. Ellison, Jr.
John C. Elwell
Henry L. Farmer, III
Zachary T. Field
Thomas J. Flynn
Brian Forget
Cheryl B. Forster-Cahill
William J. Freitag
Jennifer Germain
James H. Gilford
Benjamin M. Gorniewicz
John F. Grady
Christopher Gregory
Mark W. Griffin
David D. Hall
Augustus Harrington
Daniel Harrington
J. Keith Harris
Gerald S. Hirsch
Gary W. Jernegan
Russell A. Johnson
Russell E. Johnson
Richard M. Kallman
Jeffrey C. Kirpas
Paul Labadini
Kenneth Labrecque
Kathy Lampropoulos
Christopher M. Latham
Stacy LeBaron
Richard A. LeBlanc
David L. Levesque
Susan J. Little
Marjorie A. Lynn
Andrew B. MacDonald
Jon H. Martin
Robert T. Martin
Stephen J. McGarr
Lisa L. Mead
Stuart A. Meurer
Robert C. Miller
John F. Moak
John G. Morris
Tracy Mousseau
David A. Mullen
U. Mary Murray
David B. Newbert
Charles K. Nutter
Mark E. O’Brien
William J. O’Flaherty
Jacqueline Page
Nancy E. Peace
R. Sean Perkins
Kerri S. Perry
William J. Plante
Carol L. Powers
Judy E. Proctor
Frederick H. Richenburg
Peter J. Riley
Michael E. Rowan
Michele T. Sasmor
Esther M. Sayer
Paula Simpson
David M. Smith
Christopher L. Snow
Maria Z. Todaro
Charles E. Wear III
Mark F. Welch
Mark Welling
Pauline C. White
Stuart E. Winfrey
Jonathan J. Woodman