Annual Report

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Annual Report

Letter from the President

Larry Barker

2015 was a great year for Machias Savings Bank! We grew customer deposits and loans by $56 million and $48 million respectively and ended the year with $1.158 billion in total assets. Once again, we ended the year with respectable profits and expect to place in the top third of all Maine community banks. 2015 was a year of many exciting accomplishments for your bank. We were recognized by the Finance Authority of Maine at their annual meeting as the Maine Community Financial Institution of the Year. This award meant a lot to us because making a difference in our communities is the reason we exist! Our employees work hard to help families acquire homes, help businesses expand and create jobs, and teach financial literacy to our youth. We donated over $499,000 to our communities and we pay every one of our employees 20 hours a year to volunteer. We received an outstanding rating on our recent FDIC Community Reinvestment Act (CRA) examination. The CRA exam basically measures the extent to which we are making a positive difference in our communities. The exam considers many factors, including but not limited

We were recognized by the Finance Authority of Maine at their annual meeting as the Maine Community Financial Institution of the Year. This award meant a lot to us because making a difference in our communities is the reason we exist! Our employees work hard to help families acquire homes, help businesses expand and create jobs, and teach financial literacy to our youth. We donated over $499,000 to our communities and we pay every one of our employees 20 hours a year to volunteer.

We received an outstanding rating on our recent FDIC Community Reinvestment Act (CRA) examination. The CRA exam basically measures the extent to which we are making a positive difference in our communities. The exam considers many factors, including but not limited to: the extent to which we are serving the needs of low to moderate income residents, community development loans and services, loan to deposit ratio, volunteer efforts, contributions, small business and home mortgage loans. I am proud to tell you that this is our second consecutive Outstanding CRA rating! Less than 5% of the banks in the nation receive an Outstanding rating.

As a result of feedback provided by our employees, we were named by American Banker Magazine as one of the Best Banks to Work for In the Nation! We were the only bank in New England to make the cut. Also, for the 8th year in a row, we ranked as One of the Best Places to Work in Maine. We have worked hard to provide a unique culture that embraces working hard, having fun, a family-first philosophy and a refreshingly different customer experience.

Our Marketing Team received the Gold Award for Internal Marketing at the 2015 New England Annual Financial Marketing Awards event. The New England Financial Marketing Awards celebrates the financial marketing superstars and honors those individuals and companies who go the extra mile every day and have the courage and vision to go outside of the status quo. The economic story is good and bad. 2015 has been a very challenging year for the forest products industry with closures and layoffs having a major impact. The blueberry industry has been greatly impacted by the strength of the dollar and prices have dropped significantly. On a positive note, although we are hearing that the catch is down a little, the price of lobsters has been very strong resulting in another good year for that industry. Hospitality and retail sales have been strong along the coast. Our home purchase mortgage originations were up 40% compared to 2014 based on number of loans and 60% based on dollars. Homes are selling but new home construction hasn't gained much.

"We will continue to focus on making a difference in our communities."

In 2015, we will continue to focus on enhancing and promoting the unique and thriving culture that has made us successful for many years. We will look through the lens of the customer in our daily effort to provide the best customer service in the business. We will provide a challenging, engaging, and rewarding environment for our employees with ample opportunities for growth, development, and advancement. Finally, we will continue to focus on making a difference in our communities.

Thank you for your support throughout the year, we appreciate your business! Please never hesitate to reach out to me directly if you have any questions or feedback to share, your input is always greatly appreciated!

We have a lot of great momentum headed into 2016 and we're excited to see what the New Year brings!

Larry Barker

Larry Barker Signature
President & CEO

Financials

Statement of Conditions

Assets20152014
Cash and Deposits Due from Banks 65,232,000 70,779,000
Federal Funds Sold 0 0
U. S. Government and Agency Securities 13,027,000 10,123,000
Other Bonds, Notes and Debentures 4,356,000 3,970,000
Corporate Stock and Other Marketable Securities 14,889,000 18,466,000
Real Estate Loans 761,064,000 742,477,000
Other Loans 255,769,000 226,200,000
Allowance for Loan and Lease Losses (20,911,000) (21,064,000)
Bank Premises and Fixed Assets 24,322,000 23,361,000
Other Assets 41,085,000 38,422,000
Total Assets 1,158,833,000 1,112,734,000
Liabilities and Reserves  
Savings Deposits 291,056,000 272,627,000
Time Deposits 283,418,000 308,221,000
Non-Interest Bearing Demand Deposits 139,174,000 121,929,000
Interest Bearing Demand Deposits 240,832,000 205,488,000
Total Deposits 954,480,000 908,265,000
Borrowed Funds 45,000,000 55,000,000
Other Liabilities 12,984,000 11,948,000
Surplus and Undivided Profits 145,891,000 136,741,000
Net Unrealized (Losses)/Gains on Marketable Securities 478,000 780,000
Total Liabilities and Reserves 1,158,833,000 1,112,734,000
Letters of Credit outstanding (not included in the above figures) 9,015,000 6,104,000

Statement of Earnings

Interest Income  
Interest and Fee Income on Loans 50,393,000 49,288,000
Interest and Dividend Income on Securities 1,061,000 1,147,000
Total Interest Income 51,454,000 50,435,000
Interest Expense  
Interest and Dividend on Deposits 4,969,000 6,520,000
Interest Paid on Borrowed Funds 156,000 365,000
Total Interest Expense 5,125,000 6,885,000
Net Interest Income 46,329,000 43,550,000
Other Operating Income 9,673,000 9,579,000
Other Operating Expense 40,016,000 37,474,000
Provision for Loan Losses 426,000 2,656,000
Income Before Taxes and Security Transactions 15,560,000 12,999,000
Realized (Losses)/Gains on Securities  (1,973,000) (31,000)
Income Before Income Taxes 13,587,000 12,968,000
Income Taxes 4,438,000 4,116,000
Net Income 9,149,000 8,852,000

To learn more about our accomplishments in 2015, please download a digital copy of Annual Report.

 Annual Report

OUR FOCUS

As a customer of Machias Savings Bank, the focus is on you. We will enhance your banking relationship by working with you to discover your banking needs. We will be there when you need us.

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Routing Number: 211274531
NMLS Number: 469539

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