2014 Annual Report - Mechanics` Savings Bank

2014 Annual Report
Our Vision
Create and sustain outstanding experiences
to deepen relationships with our customers,
employees, and communities.
A MESSAGE FROM OUR PRESIDENT AND BOARD OF DIRECTORS
Dear Friends of Mechanics,
It has been a remarkable year in several
respects. As we move into our 140th year of
serving the banking needs of Maine families
and businesses, we would like to share some
of our team’s many accomplishments and
initiatives in progress.
Mechanics Savings Bank Board of Directors. Left to right:
Alan Hahnel, Richard Vail, Ed Snook, Jon Oxman, Norman
Albert, Peter Chapman, and Stephen Bryant.
Despite many persistent headwinds, 2014 was
another year of solid financial performance
with earnings after taxes of $2,085,239 and
asset growth of $14,404,770. Those earnings
and growth are a function of our loyal
customers, coupled with our competent and
hardworking staff.
After many years of due diligence, we finally broke ground on a new main office campus at our Minot
Avenue, Auburn, location. A new 4,200 square foot branch should be ready for occupancy late 2015,
at which time the existing building will be completely renovated into office space. The entire project
is scheduled for completion by the summer of 2016. We hope and believe that this will be a facility
that customers, employees, and the greater Lewiston-Auburn community will be proud of.
Finally, we have entered into a combination agreement with Biddeford Savings Bank to form the first
multi-bank mutual holding company in Maine’s history. This proposed partnership will allow both
banks to remain independent and build upon each other’s strengths.
The fit between these two venerable institutions, both founded in the mid-nineteenth Century, is
noteworthy—we are about the same asset size, have approximately the same number of employees,
have approximately the same excellent reserve funds, and most importantly, we share the same
dedication to our respective communities.
Our expansion into the Midcoast region under the leadership of Earle Harvey reached break even
and continues to exceed our expectations.
In these increasingly challenging and competitive times, the 750 million dollar combination of
Mechanics and Biddeford will facilitate prudent growth, safe lending to larger borrowers, sharing of
administrative and regulatory costs, economies of scale in negotiating with vendors, and an ongoing
commitment to our communities and customers.
We successfully enhanced some of our products by offering consumer mobile deposit capture,
mobile credit card processing, enhanced merchant services, and a new “smart” ATM at our Minot
Avenue location. A smart ATM will be installed at our Windham branch in the fall.
Our boards have met with each other a number of times, and our directors share mutual respect and a
high comfort level with each other and with the senior staff members of each bank, which augurs well
for the future. We will, in fact ,“Grow Stronger Together.”
We continue to dominate the residential mortgage market in Androscoggin County as the leading
bank lender.
As a mutual community bank, we exist for the benefit of our customers. We take that charge
seriously and thank you for your ongoing interest in and support of Mechanics Savings Bank.
May all of us have a healthy and prosperous 2015 and beyond.
As a reflection of our commitment to creating a positive employee experience, we
were once again honored to be designated one of the Best Places to Work in Maine.
Over the past several years, in addition to their day jobs of meeting the needs of
our customers and communities, our team has completed more than 100 projects
addressing issues ranging from products and services to facilities, technology,
and new regulatory demands.
2014
Sincerely,
Richard Vail
President & CEO
Jon
Jon S. Oxman
Chairman, Board of Directors
Moving Forward—Giving Back
Being there for our community.
At Mechanics Savings Bank, our engagement with the community extends far beyond
the day-to-day world of deposits and withdrawals. Our customers have invested their
confidence and trust in us. And we have a responsibility to work together in creating
stronger, healthier, more resourceful, and more livable communities.
In 2014, Mechanics Savings Bank’s 75 employees devoted 5,327 volunteer hours to
nonprofit organizations, and we were able to contribute $100,000 toward charitable
causes and community programs.
Recognizing the immeasurable value that education returns to the community,
Mechanics Savings Bank was pleased to continue its long-standing commitment to
help Maine’s young adults achieve their higher education goals. In 2014, the bank
awarded $17,000 to seventeen high school graduates from eleven local
high schools. The bank also contributed $2,500 to the USM L/A
Scholarship Fund and $2,500 to the Central Maine Community
College Scholarship Fund. In addition, the bank continues
to support College for ME Androscoggin and Junior
Achievement of Maine.
5,327
VOLUNTEER HOURS
Minot Avenue • Auburn Branch
Groundbreaking Ceremony—October 1, 2014
In 2014, Mechanics Savings Bank’s 75 employees volunteered a sum total of 5,327 hours
to many worthy causes within our communities—from coaching youth sports and teaching
financial literacy programs to providing leadership for nonprofit agencies.
We are a part of the community
and the community, is part of us.
Mechanics Savings Bank and its employees give back to the communities we serve in numerous ways. Throughout
the year, you can expect to see any number of employees at a local fundraiser or a community event, teaching
literacy programs in local schools, coaching youth sports, or serving on the boards of non-profit agencies. Here’s
just a glimpse of what our cameras caught in 2014.
k/
sponsored Safe Voices’ Wal
Mechanics Savings Bank
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i Cook, Kristina Cote, and
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have adequa
House.
at the Hospice
Jim Bouchard and Teri Blaschke, of Androscoggin Home Care and Hospice, accepted a $1,500
check from Rick Vail (center). The bank is a longtime supporter of the organization and a
returning sponsor of the non-profit’s 5k and holiday remembrance ornament fundraisers.
Mechanics donated $1,500 to Bath Area Family YMCA. (Left to right): Earle Harvey;
Sabrina Murphy, Executive Director of Bath Area Family; Bob Davis; Francie Tolan,
Development Director of Bath Area Family YMCA; and Charlie Ault.
Mechanics employees (l to r)
Mariah Robinson,
Bryan Campbell, and Terri Cook
participated in
Color Me Rad, which benefited
YMCA Maine.
Mechanics is proud to
support the Auburn
Public Library.
Kirk Egge serves on
their board and is seen
here presenting a check
for $1,000 to Mamie
Anthoine Ney, Library
Director. The funds
were designated to the
Young Engineers Club
(science, technology,
engineering, and math
programs).
For nineteen years, Me
chanics Savings Bank
employees have partici
American Cancer Soc
pated in the
iety’s Relay for Life. In
June 2014, the MSB
of $1,759.63. The tot
team raised a total
al raised for Androscog
gin County was $28,12
Mollie Voter, Jennife
4.91. Left to right:
r Lobb, Deanna Jackso
n, Venise Monto, Nan
Mariah Robinson.
cy Letourneau, and
United Way
United Way continues to be the largest beneficiary of
the bank’s charitable giving program, with a donation of $8,000
in 2014. (The funds were dispersed to Androscoggin County,
Greater Portland, and Midcoast Maine.)
In addition, over 67% of the bank’s employees participated in
the fund raising campaign for United Way’s Community Care
Fund, donating more than $25,078.
Throughout the years, Mechanics employees have contributed
countless hours volunteering on the United Way’s board of
directors, campaign cabinet, community impact and investment
councils, and community events. The bank was awarded the
2014 Spirit of Androscoggin for community outreach efforts.
United Way’s Day of Caring kickoff breakfast. Mechanics staff, standing (l to r): Chelsea Cooper,
Jeff Gosselin, JoAnne Campbell, Johanna Lloyd, Natasha Stewart, Lisa St. Hilaire Crites, and
Debora Whittle. Seated (l to r): Mollie Voter, Jennifer Lobb, Kelly Cooper-Arsenault, Debra
Decker, Bonnie Joe Carr, Deb Parent, and Stacie Brown.
nifer Lobb,
Chelsey Cooper, Jen
y’s Day of Caring,
tively
lec
col
t
During United Wa
tha
m
tea
re part of the MSB
and Mollie Voter we
to the Boys & Girls
day
gle
sin
a
in
urs
unteer ho
contributed 800 vol
Club in Lewiston.
Terri Cook (left), who serves
on the United
Way board, presented a chec
k for $6,000 to
Joleen Bedard, Executive Dire
ctor at United
Way of Androscoggin County.
Left to right: Chelsey Thompson and Vickie McMullen
presented a check to Rhiannon Robnett, Relationship Manager,
Resource Development at United Way of Greater Portland.
“I’ve never had a relationship with a bank
like I do with Mechanics. They are all so
warm and personable...and they make
things happen.”
“Mechanics is a friendly bunch of bankers...fun to talk to­and a
wealth of information. Plus, they’re always accessible. Working
with a local bank is a far better experience than you get with a
big bank. It’s smart, complication-free banking.
Choosing Mechanics was a great decision. They’ve saved me
money and delivered on everything they said they would. I know
I can continue to count on them to be a great financial resource
for me and my family.”
- Dr. Eric Staeben, DDS, Brunswick Dentist and Family Man
The Staeben Family
Brunswick, ME
When it comes to business banking
Mechanics is the talk of the town.
“We were a small business with a big adventure
in mind, and Mechanics was right there with us,
every step of the way.”
See what some of our community’s business leaders are saying about Mechanics Savings Bank.
“It’s so nice to know that Mechanics is watching out
for us, and I don’t have to think about banking on
top of everything else I have to do.”
- Ray Fortin, Owner of Autometrics, Brunswick, ME
Teddy + Ray Fortin (Daughter/Father Team)
“I appreciate Mechanics’ focus on small
businesses. They not only know you by name,
they probably shop at your business, too.”
- Annette + Michael Nadeau, Owners of Bedard Pharmacy + Medical Supplies,
Auburn/Lewiston, ME
“I’ve built more than a dozen homes for customers who
have financed with Mechanics. It’s a very easy and
efficient process for everyone involved. Mechanics offers
such peace of mind­­­. I tell people all the time to go to
Mechanics, because I know the bank will do right by them.”
- CR Peffer General Contracting, Gorham, ME
- Pat Thorne, Patman’s Redemption Center and Agency Liquor Store,
Windham, ME
Boost + Pat Thorne
“I’ve never had a relationship with a bank like I do
with Mechanics. They’re so personable, always
accessible, and I know I can count on them.”
- Dr. Eric Staeben, DDS, Owner of a Dental Practice in Brunswick, ME
Mrs. Heather Staeben + Dr. Eric Staeben
“Mechanics makes complex banking easy. They really
listened to me and understood what I wanted for my
business. They came through when it mattered most.”
- Diane Champoux, Owner of Champoux Insurance Group, Lewiston, ME
“My advice to any business owner: ‘Go to
Mechanics. They’ll take great care of you.’ ”
- Steve Roop, Owner of Roopers Beverage & Redemption,
Lewiston/Auburn, ME
- Michele Tribou, Owner of Heidi’s Brooklyn Deli in Auburn, ME
“Mechanics makes my life easier in so many
ways, and they’re always working to help me
make money. Now, that’s a great bank!”
“Mechanics Savings Bank’s focus on customer
service is A+. They make me feel like the
priority...and it’s been this way for nine years!”
- Steve Napolitano, Owner of Dairy Queen, Windham, ME
- Dan Cunliffe II, Owner of Republic Jewelry & Collectibles,
Auburn, ME
“If we need to make it happen, Mechanics
can make it happen for us. Their ability to
be so responsive makes a big difference.”
Daniel Cote, Dan Cote, Armand
Cote, and Dan Gagne
“Mechanics helped me seize a key business opportunity.
So my business became more profitable sooner.”
- Dan Gagne, Controller at The Cote Corporation,
Auburn, ME
“Mechanics plays a very important role
in helping me grow my business.”
- Jason Agren, Owner of Agren Appliance & Television,
Auburn/Topsham/Portland, ME
“Mechanics is a true community bank that
treats you like a neighbor, not just a number.
They’re our bankers and our friends, too.”
“We rely on Mechanics for sophisticated
banking solutions. They anticipate our
needs and fulfill them all.”
- Rachel Potvin and Dan Larrivee, Sister and Brother Team,
Rollodrome Owners, Auburn, ME
- Central Maine Orthopaedics, Auburn, ME
Dr. Paul Cain, M.D. and Dr. Matthew Bush, M.D.
Our Core Values
We will be competent, respectful, hardworking,
trustworthy, charitable, caring, and always fair.
STATEMENT OF CONDITION
ASSETS
12/31/1412/31/13
LIABILITIES
Cash & Due from Banks
4,199,964 3,926,310 Business Checking Accounts
Federal Funds Sold
1,036,480 545,982 45,352,198 43,560,497 U.S. Government/Agencies
Municipal Securities
31,172,542
29,366,878 Business NOW Accounts
2,111,444
1,970,830
IOLTA Accounts
1,326,619
1,651,824 Personal Checking Accounts
20,935,297 19,125,274
7,500,361 6,632,805 Money Market Accounts
59,288,372 56,295,746 Time Deposits
93,333,937 99,394,444
Brokered Deposits
33,837,447
49,186,462
820,755
718,958 Listed/Marketable Securities
1,010,908 1,001,604 Savings Accounts
Federal Home Loan Bank
3,710,400
2,862,000 Unrealized Appreciation on Investments
1,161,737
368,906 TOTAL CASH & INVESTMENTS
57,292,442
52,984,257
12/31/1412/31/13
TOTAL DEPOSITS
Residential Mortgages
112,143,160 107,272,142 Commercial Loans
107,680,266
98,938,623
FHLB Advances
68,450,491 43,213,395 Mobile Home Loans
46,909,606
51,080,463 Repurchase Agreements
10,142,980 9,450,253 Installment Loans
45,474,518 44,053,383 Other Liabilities
(547,764) (132) Loans in Process
TOTAL GROSS LOANS
311,659,786
301,344,479 TOTAL OTHER LIABILITIES
249,506,019 6,071,727
84,665,198 263,624,263 4,261,073
56,924,721
SURPLUS ACCOUNTS
Unearned Income
(698,174)
(494,841)
Reserves
Deferred Costs
1,293,884
916,372
Allowance for Loan Losses
(4,414,695)
(4,281,461)
701,423 936,383 Other Real Estate Owned & Other Assets Repossessed
5,000,000 5,000,000 Undivided Profits
35,008,345 32,244,732 Other Comprehensive Income
(2,616,211)
(1,313,509)
Net Income
2,085,239
2,763,613 39,477,373 38,694,836 Bank Premises, Furniture, Fixtures
4,581,311 4,622,813
TOTAL SURPLUS ACCOUNTS
Other Assets
3,232,613
3,215,818 TOTAL OTHER ASSETS
4,696,362 4,915,084 TOTAL LIABILITIES & SURPLUS ACCOUNTS
TOTAL ASSETS
373,648,590
359,243,820 373,648,590 359,243,820 STATEMENT OF INCOME
INTEREST INCOME
OTHER OPERATING INCOME
12/31/14
12/31/13
978,787 916,077
2,587 3,033
Interest on Loans
14,980,882
14,481,623
TOTAL INTEREST INCOME
15,962,256 15,400,733
Investment Income
Interest on Fed Funds Sold
12/31/14
12/31/13
891,582
1,060,124
Net Security Gains
95,084
47,686
Gains on Sales of Loans
39,171
99,056
1,025,837
1,206,866
ATM Income, Deposit Account Fees, Investor Income,
and Other Miscellaneous Income
TOTAL OTHER OPERATING INCOME
INTEREST EXPENSE
Checking Accounts
33,316 31,333
OPERATING EXPENSES
Regular Savings
27,572 34,553
Salaries & Employee Benefits
6,279,336
6,570,279
123,439 129,950
Facilities & Equipment
1,475,219 1,188,293
1,016,908
1,196,236
All Other
3,292,889 3,656,703
584,441 543,913
11,047,444
11,415,275
23,569 25,880
425,286 583,644
2,234,532
2,545,509
Money Market Accounts
Time Deposits
Brokered Deposits
Repurchase Agreements
Interest on FHLB & Other Borrowings
TOTAL INTEREST EXPENSE
TOTAL OPERATING EXPENSES
Income Before Taxes
3,238,498
4,224,552
Income Taxes
1,153,259
1,460,939 2,085,239
2,763,613
NET INCOME
Net Interest Income
Provision for Loan Losses
NET INTEREST INCOME After Provision for Loan Losses
13,727,724 12,855,224
467,619 (1,577,737)
13,260,105
14,432,961
2014
CORPORATORS
HONORARY CORPORATORS
OFFICERS
Jason Agren
John Hayden
Richard Bastow
Richard J. Vail
Vickie L. McMullen
Mollie Cardoza-Voter
Normand Albert
Timothy Hebert
Thomas C. Boyer
President & CEO
Vice President,
Assistant Vice President,
Mark Anthoine
J. Marc Kannegieser
Leonard J. Cote
Richard L. Roy
Banking Center Manager
Underwriter
Paul O. Baril
Peter Kowalski
Lucien J. Dussault
Executive Vice President,
Stacie L. Brown
Linette Dehetre
Shawn Bell
James Mandel
Bernice J. Gilbert
Chief Banking Officer
Vice President,
Assistant Vice President,
Douglas Boyd
Raymond Martel
John J. Kannegieser
Thomas A. MacDonald
Loan Operations Manager
Banking Center Manager
Stephen G. Bryant
Jo Miller
Jane P. Norris
Executive Vice President,
Lisa St. Hilaire-Crites
Sharon Gates
Paul Bussiere
Laurence Minott
Raymond L. Pinard
Chief Risk & Operations Officer
Vice President,
Assistant Vice President,
Diane M. Champoux
Michael Nadeau
Carol DiBacco Rea
Debora L. Whittle
Security & BSA Officer
Controller
Peter B. Chapman
Stephen G. Ness
Theresa S. Samson
Senior Vice President,
Christopher A. Brann
Lisa Hallee
Daniel Chasse
Monica Noel
Neil Shapiro
Human Resources
Vice President,
Assistant Vice President,
Andrew B. Choate
Jon S. Oxman
Roger Timmons
JoAnne P. Campbell
Credit Administration Manager
Marketing & Communications Officer
Mark Cobb
Curt Peffer
Bill Turner
Senior Vice President,
Pamela Reynolds
Johanna Lloyd
David A. Collins
Aaron E. Perkins
Margaret C. Waters
Commercial Department Manager
Vice President,
Assistant Vice President,
Richard Corbin
Jim Pittman
Jeffrey R. Gosselin
Private Banking Officer
Retail Banking Officer
Daniel Cote
Betty Robinson
Senior Vice President,
Terri L. Cook
Jennifer Lobb
Michael Cox
Leo F. Roche III
Senior Private Banking Officer
Vice President,
Assistant Vice President,
Walter W. Crites III
Elwin Scott
Mona Leavitt
Branch Administrator
Banking Center Manager
Philip A. Curry
Edward Snook
Senior Vice President,
Sandy MacDonald
Nancy Richard
Michael Cyr
Donald Spann
Chief Deposit & Product Officer
Vice President,
Assistant Vice President,
Daniel D’Auteuil
Craig P. Thorne
Marianne Mason
Deposit Operations Manager
Retail Banking Officer
Micahel Davis
Michele Tribou
Senior Vice President,
Raymond Teixeira
Bryan Campbell
Brian Devlin
Richard J. Vail
Compliance Officer,
Vice President,
Assistant Banking Center Manager
Susan D. Donovan
Zark Van Zandt
Corporate Secretary
Commercial Loan Officer
Sharon Cloutier
Tim Evrard
John Vigue
Kirk R. Egge
Mariah Robinson
Assistant Banking Center Manager
Stephen A. Fairchild, MD
Rebecca S. Webber
Senior Vice President,
Vice President,
Gerald Therrien
John Fiske, Jr.
Diane M. Whiting
Chief Information Officer
Retail Banking Officer
Collections/Workout Manager
Joyce Gibson
Richard S. Whiting
Earle F. Harvey
Charles F. Ault
Marjorie Bickford
Richard Gleason
Lloyd E. Wiley, Jr.
Senior Vice President,
Vice President,
Commercial Administrator Manager
Paul Gosselin
Charles Wolverton
PRESIDENT EMERITI
Market Manager
Retail Banking Officer
Donald R. Grant
Karen Youland
John J. Kannegieser
Thomas M. Greeley
Alan R. Hahnel
BOARD OF DIRECTORS
Normand Albert, Director
Stephen G. Bryant, Vice Chairman
Peter B. Chapman, Director
Alan R. Hahnel, Director
Jon S. Oxman, Chairman
Edward Snook, Director
Richard J. Vail, Director
DIRECTOR EMERITI
Carol DiBacco Rea
John J. Kannegieser
Jane P. Norris
Raymond L. Pinard
Jane P. Norris
AUBURN
•
BRUNSWICK
•
LEWISTON
•
WINDHAM
207.786.5700 or Toll-Free 1.800.325.7553
www.mechanicssavings.com