Annual Report - Haverhill Bank

Annual
Report
December 31, 2011
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180 Merrimack Street • Haverhill, MA 01830
www.haverhillbank.com
Connecting All Branches: (978) 374-0161
Federal Deposit Insurance Corporation • Federal Home Loan Bank
Massachusetts Bankers Association • America’s Community Bankers
Independent Community Bankers of America
The Co-operative Central Bank Share Insurance Fund
From the President & CEO
Dear Fellow Depositors,
The year 2011 was exciting for Haverhill Bank. During the
year, the board of directors and depositors at Haverhill Bank
and Economy Cooperative Bank of Merrimac approved a
merger of the two banks. The two banks received approval
from the Division of Banks and FDIC to merge. A natural
fit, the merger was completed on January 1, 2012. Both
were mutual and cooperative chartered banks.
Haverhill Bank now has five full service branches between
Haverhill and Merrimac. The combined assets total
approximately $280 million and the capital/surplus will be
greater than $30 million. This transaction allows Haverhill
Bank to expand its footprint to attract additional depositors
and borrowers. We are also pleased to say there were no
layoffs at either bank as a result of the merger.
Haverhill Bank remains an independent and communityoriented bank. In the aftermath of the financial and
mortgage meltdown from Wall Street to Main Street,
Haverhill Bank, like most community banks, did not
contribute to that end result. Like many consumers and
business owners we too had to navigate these troubled
waters. While the coast isn’t quite clear, we do see calmer
waters ahead.
Everyone at Haverhill Bank is excited about 2012 and the
prospects the merger brings. In 2011, Haverhill Bank said
good bye and thank you to three long-time, outstanding
directors, Frank L. Pallaria, Sr., Joseph H. Mazzola and
Hartley R. Cranton.
Thank you to the outstanding staff who meet the
challenges of the banking world daily, while finding the
time to volunteer to make their community even better.
Thomas L. Mortimer
President and Chief Executive Officer
Thomas L. Mortimer
President and Chief Executive Officer
Local Experience Counts
Haverhill Bank Team at Work
W
Bank expands and rewards talent
hile you may know Haverhill Bank is the oldest
cooperative bank in Massachusetts, you may not
know that bank staff represent more than 300 years of
local experience. Receptionist Rose Theos, for example,
has been greeting visitors at the bank’s main office for
more than 50 years.
It’s not enough to be just a community bank today.
Haverhill Bank delivers solid banking experience, but
also deep local roots and a commitment to the specific
needs of area customers.
Haverhill resident Asaad A. Faquir was named
compliance officer early in the year. Faquir is
responsible for ensuring the bank’s compliance with
the myriad of federal and state
regulations and reporting
requirements. He previously
served three years with Fidelity
Federal Bank & Trust, West
Palm Beach, Fla., where he
began as a management trainee
and worked his way up to vice
president and project manager.
Asaad A. Faquir
Main office
Faquir lived in Limerick, Ireland, while he was studying
for his master’s in human resources management in
2008 from the University of Limerick. While there,
he served as a Rotary International Foundation
Ambassadorial Scholar, giving presentations to Rotary
clubs and other groups. He also received a master’s in
fi nance from Temple University, Philadelphia, in 2004,
and bachelor’s in fi nance from Florida State University,
Tallahassee, in 2002. He received an International
Baccalaureate diploma in 1999 from Atlantic
Community High School, Delray Beach, Fla. Faquir
also taught human resources as an adjunct professor
at North Shore Community College last fall. He lives in
Haverhill with his wife Tara.
Charlette M. Weeden, a
Haverhill native, was named
vice president of fi nance at
Haverhill Bank in September.
She was previously employed
by Holbrook Cooperative Bank
as senior vice president, CFO
Charlette M. Weeden
and treasurer. In that capacity,
she was responsible for the bank’s overall fi nancial
operations, including asset liability management and
regulatory compliance and reporting. Weeden also once
Lafayette branch
served as CFO at Marlborough Co-Operative Bank and
vice president at Butler Bank, Lowell. Weeden attended
Northeastern University and majored in Business
Administration and Accounting. She also attended the
Massachusetts School of Financial Studies and National
Graduate School of Banking.
Two existing and long-time staff members were also
recognized for their exceptional service to customers
and the bank. Last fall, Lise T. Zapatka of Lowell was
promoted to senior vice president of operations/
marketing and Kelly C. Quevillon of Sandown, N.H.,
was promoted to vice president of operations.
Bradford branch
Rosemont branch
Zapatka is responsible for the
overall information technology
and operations of the bank
as well as overseeing the
promotion of the bank through
advertising, community events
and sponsorships. With more
than 30 years of banking
Lise T. Zapatka
experience, Zapatka has been
with Haverhill Bank since its
merger with Northeast Community Credit union in
2008. Prior to that, she served as assistant treasurer at
Northeast Community Credit Union. Zapatka earned
a bachelor’s degree from Franklin Pierce College in
Rindge, N.H.
Quevillon implements system
enhancements, participates in
the development and testing of
new products and works with
the bank’s service bureau to
maintain efficient operations.
She is also responsible for
deposit operations, including
Kelly C. Quevillon
electronic banking. A Bradford
native, Quevillon has worked at Haverhill Bank for
more than 22 years. She attended St. Michael’s College
of Vt. and the American Institute of Banking.
Merrimac Square branch
New benefits for
depositors and borrowers
Merger delivers Merrimac Square branch
Haverhill Bank completed negotiations with Economy
Co-operative Bank to complete a merger after the
beginning of the new year. Approvals were also received
from both the Federal Deposit Insurance Corporation
(FDIC) and the Massachusetts Division of Banks.
Whittier Regional Vocational Technical High School
& Haverhill High School branches
With the addition of Economy’s 6 West Main Street,
Merrimac, office, there are now seven Haverhill Bank
locations for the mutual benefit of residents of both
Haverhill and Merrimac.
Business may now bank
nk from the office
Bookkeeping
Many commercial
customers are already
saving a trip to the
bank with Remote
Connection 24SM. The
service, introduced in
2011, allows businesses
to deposit checks directly from the office using the
provided Web-based software and desktop scanner.
Remote Connection 24SM helps speed credit for deposits
and provides:
Š Earlier notification of returned items
Š Automatic creation of file copies of checks
Š Online reporting tools and transaction search
capabilities
Š Reduced administrative time and expense
Š Compatibility with most accounts receivables
systems
Loans
Business customers may also take advantage of Automated
Clearing House (ACH) Origination to quickly and reliably
receive customer payments or securely pay vendors.
Stimu-Loan helps businesses, creates jobs
Loan Servicing
During 2011, Haverhill Bank teamed with both the U.S.
Small Business Administration and the Massachusetts State
Treasurer’s Small Business Banking Partnership to offer
below market interest rate loans aimed at stimulating the
local economy. As of December
31, 2011, Haverhill Bank granted
7 loans to 5 borrowers totaling
New 4.74%
Stimu-Loan
$1,595,777.04.
from
t Balloon note
coming due?
t Time to refinanc
e & save?
t Looking to expa
nd?
*
your SBA
Express Lender
Local approval
&
streamlined pro
cessing
Balloon
Ballo
oon nnote coming due?
Hav
Haverhill
verhill Bank’s
B
Stimu-Loan
Stim
mu-Loa at a glance
Š Below marke
market 4.74% interest rate, fixed
for the initial
initia 5 years*
Š Priority loan
loans for businesses facing
maturity or balloon payments
loan maturi
amounts from
Š Loan amou
$50,000 up to $2,000,000
Š Local appr
approval
Š Accelerated review
Š Limited offer
Time to refinance and save?
Massachusetts State
Treasurer’s Small Business
Banking Partnership
If, for any reason, your business doesn’t
qualify for one of the Small Business
Administration loans, Haverhill Bank has a
variety of similar loan programs designed to
stimulate small business growth.
Haverhill Bank, for example, is one of
the first banks to participate in the Small
Business Banking Partnership with the
Massachusetts state treasurer’s office. This
program provides a source of funding for
small business loans that create new jobs
and enhance economic development in the
community
* Limited time only. Rate subject to change without notice.
Rate current as of June 10, 2011.
Apply now for a below market rate loan!
Looking to expand?
Haverhill Bank initiative
is truly different
Businesses receive fast responses and
reduced paperwork thanks to Haverhill
Bank’s participation in the Preferred
Lenders Program (PLP) — part of Small
Business Administration’s effort to
streamline small business lending. This
means decisions are made locally with your
best interests in mind.
In addition, you may qualify under the
Rural Lender Advantage program. These
are loans of between $150,000 and up
to $350,000 and feature a simplified
application and approval process.
For more information please call
Maureen M. Stillwell, (978) 556-4245
Harry J. Korslund, (978) 556-4236
Deposit Operations and Compliance
Under the program, businesses may receive low interest
loans of between $50,000 and $2,000,000 at a fixed rate
for the first five years. Priority is given for businesses
facing loan maturity or balloon payments. Additionally,
loans feature accelerated review and local approval.
Haverhill Bank was one of the first banks to participate
in the Small Business Banking Partnership with the
Massachusetts state treasurer’s office. The program
provides a source of funding for small business loans that
create new jobs and enhance economic development in
the community.
Administrative Officers
Haverhill Bank Statement of Condition
December 31, 2011
Published in accordance with provision of
General Laws Chapter 170, Section 18.
Assets
December 31, 2011
December 31, 2010
$9,987,305
$5,059,919
$48,983,381
$52,194,393
$191,126,286
$179,874,250
Premises and Fixed Assets
$4,950,175
$4,723,899
Other Assets
$5,638,111
$6,067,245
Total Assets
$260,685,259
$247,919,706
Liabilities
December 31, 2011
December 31, 2010
$217,505,143
$211,687,967
Advances
$9,201,077
$5,206,128
Other Liabilities
$4,221,368
$2,667,514
$230,927,588
$219,561,609
$29,214,997
$28,430,828
$542,674
$(72,731)
$29,757,671
$28,358,097
$260,685,259
$247,919,706
Cash and Due Banks
Investments
Loans
Deposits
Total Liabilities
Surplus
Unrealized gains / Losses Securities
Total Equity Capital
Total Liabilities and Equity Capital
Financial Highlights
Civic Pride
Despite the continuing laggard local economy, Haverhill
Bank grew its lending portfolio 6 percent by year-end to
$191 million. This positive news was accompanied by
other bottom line improvements.
Haverhill Bank officers and employees take pride in
serving the community. They actively participate in
the following organizations, among many other civic,
cultural and charitable organizations.
Both deposits and total surplus grew approximately
3 percent and 5 percent, respectively, making the bank
a nearly $261 million institution. The result is a
5.15 percent growth in capital—enviable among
similarly sized institutions. The Bank’s capital position
was strong at 11.42%.
Because Haverhill Bank’s merger with
Economy Co-operative Bank of Merrimac was not
consummated until 2012, these numbers do not reflect
the expected positive results of that acquisition.
Haverhill Bank is the oldest cooperative bank in the
Commonwealth of Massachusetts. It is proud of its roots
and will continue to serve the community in the best
possible manner.
Loans
2011
2010
$191,126,286
$179,874,250
Total Equity Capital
2011
2010
$29,757,671
$28,358,097
Š All Saints Parish
Š American Bankers Association Teach the Children
to Save program
Š American Cancer Society Breast Cancer Walk
Š ARC of Greater Haverhill/Newburyport
Š Bethany Homes
Š Career Resources Corporation
Š Exchange Club of Haverhill
Š Girls, Inc. of Greater Haverhill
Š Greater Haverhill Chamber of Commerce
Š Greater Haverhill Foundation, Inc.
Š Griffin White Foundation
Š Haverhill Community Television
Š Haverhill Community Violence Coalition
Š Haverhill Day Care
Š Haverhill High School Site Council
Š Haverhill Kiwanis
Š Haverhill’s Brightside
Š Haverhill Youth Mentoring Network
Š Massachusetts Bankers Association
Š Massachusetts Department of Children and
Families Adopt-A-Family
Š Massachusetts School Bank Association
Š Mayor’s Downtown Task Force
Š Merrimack Valley Chamber of Commerce
Š Northeast Association of Realtors
Š Northern Essex Community College Foundation, Inc.
Š Penacook Place
Š Plaistow Area Commerce Exchange (PACE)
Š Rotary Club of Haverhill
Š Team Haverhill
Š Wadleigh Foundation
Š Ward Hill Park Association
Š Whittier Regional Vocational Technical High School
Advisory Board
Š YWCA
Commitment to Community
Teaching children to save
Children attending two Haverhill schools learned the
importance of saving money and understanding its value
from Haverhill Bank staff during the 15th Annual Teach
Children to Save Day, April 12. Patricia St. Cyr, Haverhill
Bank’s Merrimack Street branch manager, taught two
second grade classes at Sacred Hearts School, while
Compliance Officer Asaad Faquir taught a seventh grade
class at Saint Joseph’s School of All Saints Parish.
Earth Day Clean Up
During the citywide Earth Day Clean Up at the end of
April, Haverhill Bank assembled 15 volunteers to clean
along upper Hilldale Avenue from Vale Street to the New
Hampshire border. The crew collected more than 35 bags
of trash and retrieved illegally disposed items such as a
television, computer
parts, building
debris and more.
Haverhill Bank
sponsored T-shirts
that were provided
to volunteers.
Haverhill Kidsfest
Bank staff participated in the annual downtown
Haverhill Kidsfest. Haverhill Bank sponsored the “So
Haverhill You Think You Can Dance” showcase as
well as a hula-hoop contest. Participants also received
trophies and gift certificates to All That Jazz Dance
Studio in Haverhill, while hula-hoop contest winners
received gift certificates to Sweet Things bakery in
downtown Haverhill.
Pentucket Kiwanis Soap Box Derby
In May, Haverhill Bank’s junior drivers shared prizes
during the 16th annual Pentucket Kiwanis Soap Box
Derby. Split seconds separated the winning times
during the race at the Bradford Elementary School.
First place went
to Sam Mailloux
of Methuen and
Rachael Mailloux
of Bradford with an
average combined
time of 22.11
seconds followed
by Colton Smith
and Jamie LoConte, both of Bradford, with an average
combined time of 22.22 seconds and Haverhill Banksponsored drivers Aaron Cullen of Danville, N.H. and
Camelia Hannah of Hampstead, N.H. with an average
combined time of 22.28 seconds. Pentucket Kiwanis’
race organizers averaged the times of the two drivers
on a team and there were six races. It was the second
time Cullen represented Haverhill Bank. He is the son
of Shelley-Ann A. Cullen, a commercial loan assistant
at Haverhill Bank. Hannah is the daughter of Elizabeth
Hannah, marketing manager for Haverhill Bank.
Relay for Life
Haverhill Bank’s
Relay for Life Team
contributed more
than $10,000 to
the American
Cancer Society after
participating in the
June 10 and 11 event at Northern Essex Community
College. Haverhill Bank’s total contribution was the
second largest, behind Team Integrity of Haverhill
which contributed more than $15,000. Tara L. Gillen of
Derry, N.H. and Erica Lemire of Plaistow, N.H. served as
Haverhill Bank team co-captains and were supported by
65 team members. The Haverhill event raised more than
$157,000. The Haverhill Bank team was also honored
with two awards. Assistant Vice President Thomas O.
Faulkner, of Salem, N.H. won “Most Outrageous” for his
portrayal of Amy Winehouse in the Miss Relay contest.
He was accompanied by Justin Sanchez of Haverhill who
portrayed Kim Kardashian. Alexis Courtney, daughter
of Erica Lemire of Plaistow, N.H., won “Best Bed-Head”
while wearing a duck costume. Another bank employee,
Alison Hall, served as Miss Relay committee chair.
Unlike other fundraising walks, the Relay For Life is a
“relay” style event. Each team must have a team member
on the track at all times for the duration of the event.
River Ruckus
In August, Russ
Boisvert, of
Methuen, drove
away with the
“People’s Choice”
trophy during the
Haverhill Banksponsored Classic Car Parade and Show at River Ruckus
in downtown Haverhill. Boisvert drove his Willys
1945 World War II-era Jeep, complete with trailer and
munitions. Besides the trophy, he received a $100 gift
certificate to Keon’s restaurant. Haverhill Bank was also
honored by Team Haverhill, organizers of the second
annual event, with a certificate of appreciation for
serving as a gold sponsor. The bank hosted a display at
the event, complete with a spinning prize wheel, and
gave away gifts such as a fleece picnic blanket.
each month. The money raised is in turn donated to a
local civic or charitable organization. Haverhill Bank has
made annual donations to Moore*Mart since 2009.
47th annual VFW Santa Parade
Haverhill Bank provided the funding to help Santa
make a grand entrance during the 47th annual VFW
Santa Parade in November. A walking Christmas tree,
somersaulting Frosty the Snowman and nearly 25 elves
and other Christmas characters escorted the great man
into Haverhil1. A newly designed float, complete with
flying reindeer and
a golden crescent
moon arching
over the sleigh,
displayed replicas
of Haverhill’s
Cultural Treasures:
Buttonwoods
Museum, Tattersall
Farm, Whittier Birthplace, Winnekenni Castle and
Firefighting Museum. Creative Haverhill and Whittier
Regional Vocational Technical High School, in addition to
an architect and designer, completely revamped the float,
sponsored by Haverhill Bank.
Moore*Mart
19th annual Christmas Stroll
Representatives
of Moore*Mart, a
non-profit based in
Londonderry, N.H.,
recognized Haverhill
Bank in the fall
for its longtime fi nancial support. Moore*Mart supplies
soldiers and local children in Iraq and Afghanistan with
needed materials. Steve Costa and Joan Gagnon, both
Moore*Mart resource members, presented Haverhill
Bank President and Chief Executive Officer Thomas
L. Mortimer with the organization’s highest honor: an
American flag flown in Afghanistan during Operation
Enduring Freedom. Through its activities committee, the
bank holds several “Jeans Days.” In exchange for a $5
donation, employees may wear jeans on a designated day
Haverhill Bank again actively participated in the annual
Christmas Stroll. The 19th annual event took place along
Merrimack, Essex, Washington and Wingate Streets,
and was sponsored by the Greater Haverhill Chamber of
Commerce. Haverhill Bank operated two craft tables and
gave away balloons and candy.
Community Meals
More than 20 Haverhill Bank employees and family
members again sponsored and served a holiday meal at
the Citizen’s Center. Employees helped serve, provide
desserts and clean after the meal. Community Meals, Inc.
has been serving meals to people in need for the past 26
years. Every Monday, other than holidays, Community
Meals provides a meal to between 110 and 170 people.
Honorary Directors
Frederick A. Battistini, Sr.
Joseph A. Cardarelli, Sr.
Hartley Cranton
H. Louis Farmer, Jr.
F. Kenneth Martin
Joseph H. Mazzola
J. Leo Ouellette
Frank L. Pallaria, Sr.
Nancy A. Paszko
Retiring members receive honors
Board of Directors
Paul M. Accardi
William Barron, Esq.*
Rocco L. Basso
Joseph J. Bevilacqua
Mary E. Carrington
Stuart B. Davis
William S. Faraci, Esq;
Duncan C. Farmer
Thomas R. Faulkner, Chairman
Dana A. Fields
Glen A. Lewandowski
Christos S. Papaefthemiou;
Dr. Frederic Rose
Richard J. Sheehan Jr., Esq.
Norman J. Shepherd, DMD
Dr. Theodore A. Souliotis
*Effective January 1, 2012
Three members of Haverhill Bank’s board of directors
retired in 2011, and each was honored for his service.
Frank L. Pallaria, Sr., who has served since 1977;
Joseph H. Mazzola, since 1982; and Hartley R. Cranton,
since 1973, were honored and presented with a
commemorative chair bearing the Haverhill Bank seal.
Corporate Governance: Front row, left to right,
William S. Faraci, Esq., Thomas R. Faulkner and Dr.
Theodore A. Souliotis. Back row, Mary E. Carrington
and Richard J. Sheehan, Jr., Esq.
Security Committee: Front row, left to right,
Glen A. Lewandowski and Thomas R. Faulkner. Back row,
Christos S. Papaefthemiou and Dr. Frederic Rose.
Officers
Thomas L. Mortimer ...................................................... President/CEO
Patrick R. Dwyer ................................ Senior Vice President/Treasurer
Harry J. Korslund, III .........Senior Vice President Commercial Lending
John P. Teoli ..................Senior Vice President Retail Lending Manager
Lise T. Zapatka .................Senior Vice President Operations/Marketing
Charlene D. Laprel .................... Vice President Branch Administration
Finance Committee: Front row, left to right,
Paul M. Accardi, Norman J. Shepherd, DMD, and Dr.
Theodore A. Souliotis. Back row, Rocco L. Basso,
Christos S. Papaefthemiou and Duncan C. Farmer.
Kelly C. Quevillon ....................................... Vice President Operations
Maureen M. Stillwell ..............Vice President Commercial Loan Officer
Charlette M. Weeden ........................................Vice President Finance
Thomas O. Faulkner ........................................Assistant Vice President
Loan and Business Development Officer
Janet F. Odenwelder ........................................Assistant Vice President
Loan and Business Development Officer
Theresa J. Sarratora.............. Assistant Vice President Loan Operations
Asaad A. Faquir .......................................................Compliance Officer
Denise M. Joslin ............................................. Human Resource Officer
Deven M. Robinson .......................... Executive Administration Officer
Donna Ahearn ........................................................... Branch Manager
Deborah A. Flanagan ................................................. Branch Manager
Tara L. Gillen ............................................................. Branch Manager
Ana Gonzalez ............................................................ Branch Manager
Audit Committee: Front row, left to right,
Mary E. Carrington, Stuart B. Davis and Dana A. Fields.
Back row, Joseph J. Bevilacqua,
Richard J. Sheehan, Jr., Esq., and William S. Faraci, Esq.
Maria A. Karcasinas ................................................... Branch Manager
Shannon K. Pettis ...................................................... Branch Manager
Patricia St. Cyr ........................................................... Branch Manager
Annual
Report
December 31, 2011
To scan this code,
text SCAN to 43588
to download a scan app
Data rates may apply from
your mobile carrier
180 Merrimack Street • Haverhill, MA 01830
www.haverhillbank.com
Connecting All Branches: (978) 374-0161
Federal Deposit Insurance Corporation • Federal Home Loan Bank
Massachusetts Bankers Association • America’s Community Bankers
Independent Community Bankers of America
The Co-operative Central Bank Share Insurance Fund