Financial Reports
2010 Executive Summary2010 Statement of Income2010 Statement of Condition
2010 Executive Summary
To Our Corporators, Customers, Staff and Other Friends,
For the third consecutive year Bath Savings Institution has posted record earnings. What is it that makes us so successful? The exceptional service we provide to our customers. Legendary football coach and motivator Lou Holtz famously said, “Ability is what you are capable of doing. Motivation determines what you do. Attitude determines how well you do it.” Our employees are positive individuals who enjoy helping others, take pride in their work and strive for excellence. It is their attitude of exceptional service without exception that differentiates us from other financial institutions, and delivers exceptional financial results.
2010 was another record-breaking year for Bath Savings Institution. Net income totaled $5,575,189. This represents a 25% increase over our previous best, achieved last year.
As a mutual organization we retain our earnings as capital to further protect our customers’ deposits and fund future growth. Capital is the measure of safety at a bank, and at the end of 2010, our total capital or reserves and undivided profits totaled $59.2 million, 10.1% of total assets. Our capital position continues to be approximately twice what federal regulators require to be well capitalized.
Our checking accounts, which are the cornerstone of a full banking relationship, increased by nearly 20% in 2010. Our customer relationships continue to grow with total deposits ending the year at $449 million — a 14% increase over 2009. The bank’s total assets also reached a new high, ending 2010 at $588 million, an increase of more than 10%.
We continue to provide loans that help strengthen our local economy and keep our hometowns strong. In 2010 we originated over 1,400 new loans totaling $238 million. An impressive 983 loans totaling $137 million were made to individuals and families to finance homes and consumer items including automobiles. Commercial activity was equally strong with nearly $100 million in loans provided to businesses and municipalities in our region.
At Bath Savings Trust Company our clients again saw outstanding investment performance. Our clients value the personal care, respect and service that set us apart. They know we are here to help them manage their investments and prepare for a successful future. This led to nearly 200 new relationships. Managed assets grew by $50 million to $353 million — a new record and a 16% gain over 2009.
Late in 2010 the FDIC selected Bath Savings Institution to participate in a pilot program offering low cost checking accounts. We are honored to be the only bank in Maine, and one of only nine banks in the country, to be selected to offer this new product. Our new eSafe Account offers full electronic banking and debit card with no overdraft fees or minimum balance for a nominal monthly charge. This innovative product is designed to serve those who feel they may not qualify for a traditional checking account.
In the fourth quarter of 2010 the bank secured a ground lease in the Mill Creek area of South Portland to build our ninth full service office. We hope to begin construction early in the second quarter and open in late 2011 or early 2012. We are excited to bring our exceptional service and Neighbor to Neighbor banking to our new neighbors in South Portland and Cape Elizabeth.
In January of 2011 D. Vincent McLaughlin retired from our Board of Trustees. Vinnie served as a Trustee of the bank for over 15 years, and we thank him for his years of service and many contributions to the success of Bath Savings Institution.
A special thank you to our team of officers and employees. It is because of this group of talented and caring professionals that the bank’s financial performance is as exceptional as the service our customers have come to expect.
Sincerely,
Glenn L. Hutchinson, President & CEO
