Annual Report
Letter from the President
We surpassed $1 billion in customer deposit balances for the first time ever. This tremendous growth was the result of shifting strategic direction and following through at every level of the organization. I can’t be more proud of our employees who worked tirelessly to make this ambitious goal a reality.
We also grew our statewide presence with the opening of our new branch on Middle Street in Portland. Located in the heart of the commercial district, this renovated facility heralds Portland’s past while pointing to a vibrant future for Machias Savings in the heart of Maine’s largest community.
With growth came profits. We gained efficiencies across the bank and kept a watchful eye on expenses. At the end of the day, our employees and communities benefitted tremendously from our record setting profitability.
And we don’t just write checks. We get involved and join forces with our community partners to make a significant difference. That difference amounted to over $700,000 in contributions and over 10,000 hours of community service. We maintained our position as the number 2 large employer in the Best Places to Work in Maine program and we were named the Lender at Work for Maine by the Finance Authority of Maine for the 3rd year in a row.
Over a decade ago, we began an unprecedented investment in cash management talent and technology. Today, we have the deepest and most talented team in Maine, helping businesses across the state best manage their cash efficiently and effectively, and build greater value in their companies and our communities.
As technology makes banking less personal, we’re focusing on how we can add value to both businesses and individuals, harnessing the power of technology while maintaining the culture of old fashioned relationship banking that’s been appreciated by our partners in ME for nearly 150 years.
We’re humbled and energized that our customers across Maine have put their trust in MSB. We are proud to be Machias Savings Bank, exceptional partners, beyond banking.
Larry Barker
President & CEO
Financials
Statement of Conditions
| Assets | 2017 | 2016 |
|---|---|---|
| Cash and Deposits Due from Banks | 53,848,000 | 102,376,000 |
| Federal Funds Sold | 0 | 0 |
| U. S. Government and Agency Securities | 63,808,000 | 15,246,000 |
| Other Bonds, Notes and Debentures | 5,879,000 | 2,074,000 |
| Corporate Stock and Other Marketable Securities | 13,177,000 | 12,765,000 |
| Real Estate Loans | 839,483,000 | 801,856,000 |
| Other Loans | 329,484,000 | 287,452,000 |
| Allowance for Loan and Lease Losses | (20,891,000) | (20,639,000) |
| Bank Premises and Fixed Assets | 25,000,000 | 25,534,000 |
| Other Assets | 38,475,000 | 43,147,000 |
| Total Assets | 1,348,263,000 | 1,269,811,000 |
| Liabilities and Reserves | ||
|---|---|---|
| Savings Deposits | 353,040,000 | 289,098,000 |
| Time Deposits | 269,983,000 | 288,597,000 |
| Non-Interest Bearing Demand Deposits | 172,657,000 | 156,156,000 |
| Interest Bearing Demand Deposits | 331,259,000 | 323,164,000 |
| Total Deposits | 1,126,939,000 | 1,057,015,000 |
| Borrowed Funds | 40,000,000 | 40,000,000 |
| Other Liabilities | 14,025,000 | 14,207,000 |
| Surplus and Undivided Profits | 165,196,000 | 156,260,000 |
| Net Unrealized (Losses)/Gains on Marketable Securities | 2,103,000 | 2,329,000 |
| Total Liabilities and Reserves | 1,348,263,000 | 1,269,811,000 |
| Letters of Credit outstanding (not included in the above figures) | 10,028,000 | 7,545,000 |
Statement of Earnings
| Interest Income | ||
|---|---|---|
| Interest and Fee Income on Loans | 57,781,000 | 52,988,000 |
| Interest and Dividend Income on Securities | 1,578,000 | 1,048,000 |
| Total Interest Income | 59,359,000 | 54,036,000 |
| Interest Expense | ||
|---|---|---|
| Interest and Dividend on Deposits | 5,802,000 | 4,703,000 |
| Interest Paid on Borrowed Funds | 406,000 | 147,000 |
| Total Interest Expense | 6,208,000 | 4,850,000 |
| Net Interest Income | 53,151,000 | 49,186,000 |
| Other Operating Income | 9,968,000 | 10,297,000 |
| Other Operating Expense | 45,287,000 | 42,797,000 |
| Provision for Loan Losses | 1,440,000 | 1,297,000 |
| Income Before Taxes and Security Transactions | 16,392,000 | 15,389,000 |
| Realized (Losses)/Gains on Securities | 2,109,000 | (97,000) |
| Income Before Income Taxes | 18,501,000 | 15,292,000 |
| Income Taxes | 8,296,000 | 4,924,000 |
| Net Income | 10,205,000 | 10,368,000 |
To learn more about our accomplishments in 2017, please download a digital copy of Annual Report.
Equal Housing Lender.
