Annual Report
Letter from the President
If I were to sum up 2018 in a single word, it would be “Purpose”.
We began the year from a position of strength, powered by an exceptional 2017 which was by many measures, our best year ever. And yet 2018 gave us pause, and a collective opportunity to take a focused and genuine look inward. “What gets us out of bed in the morning?” “Why do we do what we do?” “Who are we to our employees, our customers, and our communities, and what responsibilities do we have to them?”
In short, what is our purpose?
Not coincidentally, this year we celebrate a rare milestone, 150 years in business. And as we revisit our storied roots and pioneering heritage, we realize how little has changed. We were created quite simply to make a difference in our community; a difference that would help our community grow and prosper. That purpose remains unchanged.
2018 saw many achievements, including an 11% increase in total bank assets to $1.5 billion and customer deposit growth of $130 million, far surpassing our expectations. For the third year in a row we placed in the top three large employers in the Best Places To Work In Maine and were named the #1 Best Bank To Work For in New England by American Banker Magazine. For the third consecutive time, we have received the FDIC’s top rating of “Outstanding” under the Community Reinvestment Act, a mark achieved by less than 5% of the banks in New England and 8% of banks nationwide. In support of our statewide growth, we announced the exciting expansion of our headquarters in Machias. And once again, our commitment to our communities across the state increased over the previous year, with over $750,000 in giving and over 11,500 hours of volunteer service to over 500 organizations.
From the first deposit of two dollars and fifty cents 150 years ago, to over $1.1 billion in customer deposits today, our customers across the state continue to place their trust in Machias Savings Bank to be their financial partner of choice.
While strategies, tactics, and even goals change, our purpose has not. And while increasingly difficult to imagine 150 years from now, we have set our sights squarely on the future, continuing our unwavering mission established a century and a half ago, to markedly improve our state’s financial health and prosperity, one person, one business, and one community at a time.
Finally, thank you to our exceptional employees for your hard work and commitment to making a difference in our communities! You are not just the face, but truly the heart and soul of Machias Savings Bank.
Larry Barker
President & CEO
Financials
Statement of Conditions
| Assets | 2018 | 2017 |
|---|---|---|
| Cash and Deposits Due from Banks | 191,563,000 | 53,848,000 |
| Federal Funds Sold | 0 | 0 |
| U. S. Government and Agency Securities | 59,027,000 | 63,808,000 |
| Other Bonds, Notes and Debentures | 7,120,000 | 5,879,000 |
| Corporate Stock and Other Marketable Securities | 10,878,000 | 13,177,000 |
| Real Estate Loans | 858,448,000 | 839,483,000 |
| Other Loans | 324,877,000 | 329,484,000 |
| Allowance for Loan and Lease Losses | (17,106,000) | (20,891,000) |
| Bank Premises and Fixed Assets | 24,431,000 | 25,000,000 |
| Other Assets | 39,423,000 | 38,475,000 |
| Total Assets | 1,498,661,000 | 1,348,263,000 |
| Liabilities and Reserves | ||
|---|---|---|
| Savings Deposits | 418,201,000 | 353,040,000 |
| Time Deposits | 253,552,000 | 269,983,000 |
| Non-Interest Bearing Demand Deposits | 191,394,000 | 172,657,000 |
| Interest Bearing Demand Deposits | 442,546,000 | 331,259,000 |
| Total Deposits | 1,305,693,000 | 1,126,939,000 |
| Borrowed Funds | 984,000 | 40,000,000 |
| Other Liabilities | 11,390,000 | 14,025,000 |
| Surplus and Undivided Profits | 179,619,000 | 165,196,000 |
| Net Unrealized (Losses)/Gains on Marketable Securities | 975,000 | 2,103,000 |
| Total Liabilities and Reserves | 1,498,661,000 | 1,348,263,000 |
| Letters of Credit outstanding (not included in the above figures) | 10,712,000 | 10,028,000 |
Statement of Earnings
| Interest Income | ||
|---|---|---|
| Interest and Fee Income on Loans | 61,675,000 | 57,781,000 |
| Interest and Dividend Income on Securities | 3,563,000 | 1,578,000 |
| Total Interest Income | 65,238,000 | 59,359,000 |
| Interest Expense | ||
|---|---|---|
| Interest and Dividend on Deposits | 9,099,000 | 5,802,000 |
| Interest Paid on Borrowed Funds | 239,000 | 406,000 |
| Total Interest Expense | 9,338,000 | 6,208,000 |
| Net Interest Income | 55,900,000 | 53,151,000 |
| Other Operating Income | 10,470,000 | 9,968,000 |
| Other Operating Expense | 45,511,000 | 45,287,000 |
| Provision for Loan Losses | 2,882,000 | 1,440,000 |
| Income Before Taxes and Security Transactions | 17,977,000 | 16,392,000 |
| Realized (Losses)/Gains on Securities | (72,000) | 2,109,000 |
| Income Before Income Taxes | 17,905,000 | 18,501,000 |
| Income Taxes | 3,483,000 | 8,296,000 |
| Net Income | 14,422,000 | 10,205,000 |
To learn more about our accomplishments in 2018, please download a digital copy of Annual Report.
Equal Housing Lender.
